Executives of the Buenos Aires stock exchange and its chairman Julio Werthein have asked economy minister Roberto Lavagna to approve the creation of an independent factoring market to compete with banks, local daily El Cronista reported.
The idea is to securitise titles to accounts receivables and cheques that are payable to a specific individual or entity, Buenos Aires stock exchange Vice-President Guillermo Busso said.
However, according to Daniel Ceccini, of cheque factoring firm Buenvalor, there are now only three banks interested in factoring, compared to 10 banks a year ago. There is a black market for trading cheques that typically charges a 75% annual percentage rate, while the banks can charge up to 120%, and the two markets move 1mn pesos (US$274,000) in cheques daily.
