The bank has provided over 10,000 million pesos in loans to micro, small and medium-sized enterprises (MSMEs), hospitals, clinics and nursing homes. These loans were provided through special facilities to fund salary payments, working capital, and purchases of medical equipment and supplies in the case of healthcare companies.
Buenos Aires, 21 April 2020 – In April, Santander provided over 10,000 million pesos in special lines of credit to fund salary payments, working capital and purchases of medical supplies and equipment to micro, small and medium-sized enterprises (MSMEs), hospitals, clinics and nursing homes.
Of this amount, 7,800 million pesos is for loans to over 7,500 MSMEs for the payment of 175,000 salaries, at a special nominal annual rate of 24%. This is in addition to 1,400 million pesos in working capital loans and 900 million pesos of additional loans to a dozen hospitals, clinics and nursing homes to purchase supplies and equipment during the pandemic.
The MSMEs receiving loans at special rates from Santander include Argentina's two largest ventilator manufacturers located in the province of Córdoba.
Santander Argentina provided loans amounting to 16,000 million pesos available to MSMEs for salary payments. These loans will mean that wages can be paid to approximately 350,000 employees at 24,000 MSMEs.
The special facility for payment of MSME salaries features a nominal annual interest rate of 24%, a 3-month grace period and a 12-month term. It is backed by a fund specifically allocated by the Argentine Guarantee Fund (FOGAR). MSMEs that are Santander customers can start the fully online credit application process using the bank's online banking services.
Previously, on 14 March, Santander Argentina launched a new line of credit for MSMEs to buy IT equipment in a bid to facilitate remote working during the coronavirus pandemic. The line of credit for MSMEs was issued with an annual rate of 20% for a total of 1,000 million pesos and repayment of up to 24 months.
About Santander Argentina
Santander Argentina is the country's leading private bank by savings (deposits plus common funds) and lending volume. The entity has 430 traditional branches, 8 social integration branches, 6 digital branches, 3 Work Cafés, more than 3.7 million customers (including 2.2 million digital customers, more than 320,000 MSMEs and 1,300 corporate companies), more than 8,300 employees and operates in 22 provinces and in Buenos Aires. Santander Argentina is developing an extensive responsible banking programme that focuses on higher education; through Santander Universities, it has over 86 collaboration agreements in place with public and private Argentinean universities.