The Central Bank threatened sanctions against banks that do not comply with the conditions of the credit lines for SMEs, charge commissions or extra interest. In order for banks to offer this emergency line at a rate of 24 percent per year, the monetary entity released part of the reserve requirements, which were tied at zero rate. If this line is not enabled, sanctions will be applied under the Financial Institutions Law.
“The credits will not be computable for the reduction of the minimum cash requirement expected in pesos,” states the statement from the entity chaired by Miguel Pesce., after the denunciations of the chambers and SME associations were known, with information from their associates that the banks are not mobilizing these lines of credit. The agency also reported that the exclusive public service to retirees and pensioners was extended until this Thursday, who may collect their outstanding assets corresponding to March at the window.
SMEs insist that banks are not offering credit lines of up to a company payroll at a rate of 24 percent. It does not do so despite the fact that the Government through Fogar guarantees 100 percent of the loan to MSMEs.
Due to the low implementation and due to the collection of non-stipulated commissions, the Central Bank “urged the banks, through a note sent to the chambers of the sector, to respect the interest rate rule in credit operations and not to charge any type of commission –Direct or indirect– that increases compensatory and punitive interest rates. This rule is mandatory in all credit operations. ”
He pointed out to private financial entities “to respect the rule of interest rates in operations” and “not to charge any type of commission.” In case of not doing so, he warned that the credits “will not be computable for the reduction of the minimum cash requirement required in pesos.”
“When this non-compliance is verified in the credits of the special line for MSMEs (maximum annual nominal rate of 24 percent to finance working capital), these credits will not be computable for the decrease in the minimum cash requirement in pesos provided in the Recent Communications A 6937, 6943 and 6946. At the same time, the Superintendency of Financial and Exchange Entities will open a summary and apply the sanctions already provided for by the Law on Financial Entities, “states the statement from the Central.