The Board of the BCRA has extended up to September 30 the Credit Line for Productive Investment (LFIP, in Spanish), the main source of credit for micro-, small- and medium-sized enterprises (MSMEs). Accrued disbursements for loans granted within this line have totaled about ARS1,743 billion so far, reaching 219,000 companies.
Financial institutions must allocate to this line at least 7.5% of deposits from the non-financial private sector in pesos, calculated on the monthly average of daily balances for March 2022.
The LFIP has contributed to the growth of loans supporting commercial activities. Thus, the average stock of loans granted between October 1, 2021 and February 28, 2022 through the LFIP reached ARS634,000 million, 35% of which represented investment projects and the rest, working capital. Such stock represented two thirds of the loans granted to MSMEs and about 40% of all commercial loans.
The preferred terms of financing granted under the LFIP resulted in a year-on-year growth of about 20% in the stock of loans to MSMEs at constant prices.
The BCRA has renewed and boosted the LFIP for MSMEs. As a result, this line is entering a new phase: as the main objective of protecting the productive system during the pandemic has been achieved, now the LFIP is aimed at promoting production in the sector as a way of contributing to controlling inflation.
March 22, 2022