The European Investment Bank (EIB) will grant USD 71 million to the Argentine Republic to finance Argentine SMEs investment, offering them the liquidity they need to continue growing and generating employment in the country. The Vice President of the EIB for Latin America, Roman Escolano, and the Minister of Finance of the Argentine Republic, Luis Caputo, signed today in Buenos Aires the USD 71-million loan by which the European Union Bank will support Argentine enterprises through the Bank of Investment and Foreign Trade (BICE, for its acronym in Spanish). This Argentine institution will be managing these funds, which will have the contribution of the BICE with additional USD 71 million.
The project signed today is the first agreement between the EIB and the Argentine public sector as from 1996. The EU bank started operating in Argentina in 1994, and since then it has singed 13 agreements, both in the private and the public sector, with the objective of supporting the economic growth of the country. The loan granted will be aimed at the productivity of Argentine SMEs, which are the engine of the country’s economy and which may be benefitted from the advantages of the EIB loan as regards both term and interest rates.
The Vice President of the EIB, Roman Escolano, highlighted today “the positive impact of this loan to contribute to the economic development of the private sector in Argentina, granting liquidity to the productive sectors. The agreement signed today evidences the cooperation commitment of the European Union with Argentina and our strong support to its economic reforms”.
The Minister of Finance, Luis Caputo, highlighted EIB’s support to extend credit for SMEs. “One of the milestones of the Government’s Administration and of this Ministry is to recover the world’s confidence in Argentina. Thanks to this agreement, we can obtain good financial conditions for SMEs and entrepreneurs”.
“The loan agreed with the EIB allows us to fulfill the mission we have as a development bank, promoting financial inclusion and extending the terms of the credits with which enterprises throughout the country are financed. The money obtained will be used in direct loans or through our second floor channel and it will be aimed at the financing of productive investment, exports and renewable energy projects that promote sustainable growth”, said the President of the BICE, Pablo Garcia.
The EIB loan signed today with the Argentine Republic is covered by the guarantees agreement of the EU and it is granted under the EU mandate loans for Latin America 2014-2020.
The visit of the Vice President of the EIB to Argentina is part of his tour in the region. He has signed different agreements to promote economic, social and environmental development.
EIB in Latin America
The European Union is the main partner of economic development of Latin America and the EIB, as EU Bank, supports the cooperation between both regions financing the projects that contribute to achieve the objectives of the European foreign policy: economic development, social and environmental infrastructure, development of the private sector and fight against climate change.
The EIB provides financial assistance for projects in Latin America fostering long-term investment in favorable conditions and the necessary technical support to make sure said projects have a positive social, economic and environmental impact.
Since the EIB started its activity in Latin America, in 1993, it has granted financing solutions for more than 100 projects in 14 countries of the region, with a total investment of 7 billion Euros. During the last years, the Bank of the EU has granted 900 million Euros to implement different projects in Argentina, Bolivia, Brazil, Ecuador, Mexico, Panama and Paraguay.
The European Investment Bank (EIB) is the long-term financial institution of the European Union which shareholders are its member countries. The EIB provides long-term financing for viable investment projects aimed at the achievement of the EU policy objectives.