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Argentina's Neuquén Province to Provide Financing to MSMEs, with IDB Support

The Inter-American Development Bank (IDB) approved a $40 million loan to grant productive financing to micro-, small-, and medium-size enterprises (MSMEs) in the Province of Neuquén, Argentina. The operation aims to help Neuquén restore production and provide sustainable jobs.

The program will give MSMEs access to credit on favorable terms, whether through new lines of direct financing via a trust created by the province, or through guarantees granted by Fondo de Garantías de Neuquén.

Approximately 200 MSMEs in the agricultural, forestry, non-metal mining, industrial, commercial, and service sectors will benefit from the program. At least 25% of the portfolio is reserved for companies led or owned by women, and at least 30% is allocated to investments for mitigating or adapting to climate change. The program will also ensure that at least 20 Indigenous MSMEs and 10 MSMEs run or owned by people with disabilities can access loans or guarantees.

In addition, the program will provide technical assistance to study the industries targeted for financing and disaggregate their data by age range, sex, ethnicity, and disability. This assistance will also identify sector-specific actions for closing the financing gap for women, Indigenous people, and people with disabilities. Likewise, the technical assistance will detect needs and opportunities for green investments to support the demand for financing among the identified groups.

In its Vision Neuquén 2030, the province has set a goal of progressively diversifying its economic base to achieve a dynamic, innovative, and powerful business environment in which the province's business owners and entrepreneurs can capitalize on regional, national, and global market opportunities.

The $40 million IDB loan has a 25-year maturity, a 5.5-year grace period, and an interest rate based on the Secured Overnight Financing Rate (SOFR).

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social, and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance, and training to public and private sector clients throughout the region. Take our virtual tour.

Contacts

Lobera,Jose Luis

Lobera,Jose Luis
Additional Contacts

Fernandini Puga,Manuel Pablo

Fernandini Puga,Manuel Pablo
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