Businesses borrow at rates that lead to inflation
CGA Cristales was born in 2013 and is still managed by its two owners, Edgar and Marcel Bonetto. Initially they focused on making laminated glass for cars. But recently, and thanks to financing from Banco Nación, it has been diversified into special glasses for architecture, competitive vehicles, road and agricultural machinery, and other glasses of particular design. In an economy that is at least irregular and dangerous like Argentina, there are many cases like CGA crystals. It is not from another planet.
They take advantage of credits at a subsidized rate either for grow or stand. Furthermore, taking out such loans has become a habit in many companies already take advantage of rates running behind inflation.
From the perspective of economist Martín Rapetti, these loans are an important instrument of development used in various countries. “In Asia, for example, they are key to boosting industry. They encourage investment and the development of broken activities. Of course, one thing is a well-organized economy and another is an economy with financial repression of stock as in our case.and it is the risk of decidinghe pointed out.
Wheat crops in full growth. This year’s attendance at subsidized rates marks a record.
Rapetti reminded expert Bernardo Kosacoff that he usually says thatand the making of industrial policy is the distribution of money. And he wonders “whether these loans, which are not a bad instrument, can be maintained when the macro is bad.”
low in proportion
Another economist, Jorge Vasconcelos from the Mediterranean Foundation, clarified. “In large numbers they are not significant because banks lend mainly to the public sector. But are options that change the balance of companiesThey take them with the assurance that the Central Bank cannot, because of its own debt, raise charges excessively and because they seek to earn on stock or working capital ”.
A study by consulting firm Curat confirms what Vasconcelos said. For every peso allocated to private loans the banks put $ 3.1 in Central Bank debt and another $ 2.6 in National Treasury Public Securities. Thus, for every peso of financing that reaches the private sector, the public sector receives 5.7 pesos.
Menzio’s company, of brothers Esteban and José Menzio, which focuses on the collection of cereals, has been able to expand Nation’s funding. He added agricultural production to his activity. They have been old clients of the bank, since 1967. “He is a father or older brother”, They said. The country it leads with 24% credits in the field and with 22% in the industry.
By the way, public banks with no difference in political color of different governments are the most active. Far.
Central Bank Headquarters
Entity by entity
The County lent $ 325.425 million in 2021 and in the first three months of this year, $ 129 billion. 55% of placements have special rates. So things between 2020 and 2022 helped nearly 16,000 SMEs with $ 371 billion. 39% went to agribusiness, 27% trade, 17% industry and services, 17%.
Ciudad, under the baton of Guillermo Laje, is also very dynamic with these credits aimed at working capital. For exporters, they have dollar lines at 24 months, with a fixed rate of 3% and a new line for female exporters at 12 months, with a fixed rate of 2.75%, and with a bonus of 100% of commissions associated with the first operation ” join special assistance to entrepreneurs. El Bice is a separate case. Led by Jose de Mendiguren, it is dedicated to this type of assistance.
And private financial entities generated private sector disbursements in 2021 for more than $ 1.5 trillion. According to the Central BankHe reached 209,300 companies. It’s not small.
Source: Clarin
