The Foreign Investment and Trade Bank (BICE) obtained a US $ 150 million loan from the China Development Bank

The Foreign Investment and Trade Bank (BICE) obtained a US $ 150 million loan from the China Development Bank, which will be used to finance small and medium-sized investment projects in Argentina, mainly in the Value-added agriculture and renewable energy.

“This is US $ 150 million of financing that we have just closed in very good conditions for the Bank, with a repayment term of seven years and two grace periods, and at a very low rate,” BICE President Pablo García told Télam , From the Chinese capital of Beijing, on the credit obtained for SMEs.

Garcia, who accompanied President Mauricio Macri on his tour of the East, said that “the idea is to pass this credit advantage to SMEs,” and said that “it will be an anchor in pesos, seven years, and an interest of 21 % Annual or at Badlar rate (currently at 19.68%) plus 4.5 percentage points, whichever is lower. ”

“This is part of the result of the Argentine mission (to China), the confidence in the country, that we have returned to the market, and the interest they have to support us,” said the head of BICE, who stressed that ” In the first year of management we increased in lending capacity and doubled disbursements to $ 7 billion, which in 2017 will end up $ 13.5 billion. ”

He said that the Chinese bank “see that we can reach more companies and are willing to take more risk Argentina,” and said that the Asian giant “there is a great interest for Argentina.”

Between 2007 and 2015, the China Development Bank loaned BICE US $ 140 million in three tranches, and this time the agreement represents an amount higher than the sum of the three previous lines over more than eight years.

“There is a lot of interest from the Chinese bank to support everything that has to do with SMEs in value-added agriculture, agricultural products, and renewable energy,” said García, who estimated that with projected disbursements for $ 13.5 billion this year, Will reach about 1,350 small and medium enterprises, given that the average loans are $ 10 million.

During the signing of the agreement between both banks were present, in addition to Garcia and the head of the Chinese institution, Hu Huaibang; The President of the People’s Republic of China Xi Jinping, Macri and the Minister of Production, Francisco Cabrera.

“We are working so that Argentine SMEs can grow and improve their productivity and competitiveness. Proof of it is that today the Chinese Development Bank is ready to start a relationship that we are convinced will be more than beneficial for both countries, “said Cabrera.

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