Argentine banks reach only 23% of small- and medium-sized enterprises (SMEs) in the country with their financing options, according to a study from the local SME confederation, CAME.
The majority of the SMEs surveyed said they operate without bank financing, 60% said they simply do not qualify for a bank loan, 27% said they prefer self-financing and 13% go to the informal market.
The main reason for non-qualification for bank financing was outstanding tax and pension debts, followed by a presence in credit registers and lack of loan guarantees.
According to Hernan Fardi, partner at local consultancy Maxinver, Argentine banks should loosen up their financing requirements for the SME sector because it is "key" to the current economic recovery - a recovery the banks' future also depends on.
