The Central Bank of Argentina (BCRA) established that financial institutions may use part of their deposits in dollars to finance imports of Argentine products or services. As under the resolution adopted by the BCRA Board today, banks may grant loans in dollars either directly to importers or though banks' credit lines abroad.
Thus, Argentine banks turn into a source of funding for clients of Argentine exporting companies abroad thereby playing a role similar to that of development banks in other countries (such as Brazil’s BNDES). In this scenario, the financial system's growing saving capacity in dollars may well boost Argentina’s exporting capacity, raise its productivity and activate its economy.
These two lending models enable exporters to obtain more convenient financing options where importing companies or correspondent banks abroad have a better credit rating than that of their own.
Private sector deposits in dollars have been growing steadily since December 2015 as a result of the unification of the exchange market and other policies implemented by the BCRA. At present, private sector deposits in foreign currency exceed US$ 24 billion; in turn, loans granted in that same currency stand below US$ 11 billion. The easing of the credit policy will help make a better use of the idle lending capacity observed in Argentina’s financial system.
April 27, 2017