IDB redirects funds for small businesses in Argentina
June 24, 2020
Latin American development bank takes $500 mln from a $1.8 bln financing package to cover loans to MSMEs
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The Inter-American Development Bank (IDB) has agreed to redirect $500 million in funding to help micro, small and medium-sized enterprises (MSMEs) in Argentina recover from the economic effects of the COVID-19 pandemic.
The money comes from a $1.8 billion financing package for 2020 that the IDB announced in May, the Washington DC-based development bank said in a press release on Tuesday.
The redirected funds will go to medium-term loans for MSMEs to cover liquidity needs, pay bills to vendors and refinance existing loans, among other purposes, the IDB said. "It will also help them deal with a temporary rise in demand as a result of the crisis," it added.
The Argentine government plans to grant financing through the national productive development fund Fondep and put up money from the federal guarantee fund Fogar to back loans from financial institutions, according to the IDB.
The loans are expected to go 30,000 MSMEs in Argentina, including 6,000 led by women, the IDB said.