The Inter-American Development Bank (IADB) has approved a US$6mn loan to help small and medium-sized enterprises (SMEs) in Argentina expand export opportunities with better promotion and market development.
The loan is for a 25-year term, with a four-year disbursement and grace periods, and carries a Libor-based interest rate. The government of Argentina will provide US$4mn in local counterpart funds.
It will support the internationalisation of Argentine SMEs by providing business development services in the area of exports as well as help centralise information, and services and statistics on foreign trade.
"The project will help Argentine SMEs increase their presence in international trade through an innovative model that will provide export-oriented business development services with public-private participation," says IADB team leader Fabrizio Opertti.
The programme will improve institutional capabilities of provincial agencies to promote foreign trade and increase value of exports by small and medium-sized companies. In addition, it will also provide better access by Argentine SME exporters to information on export requirements and commercial opportunities in foreign markets.
The export sector has become a cornerstone of growth in Argentina, generating foreign exchange as well as stimulating the rest of the economy. However, SMEs’ share of total exports remains very small.
Small companies face considerable challenges in penetrating international markets, including a lack of access to information on the opportunities created by trade and investment agreements signed by the country, a lack of awareness about specialised business development services for entering international markets and a lack of a single source of information relevant to their export activities.
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