Nuevo Banco de Santa Fe SA

completed

This project responds to a lack of long-term financing for small and medium sized corporates in the Province of Santa Fe. Capital scarcity as a result of the recession in the country has been a major constraint for even the more efficient corporates in the Province to modernize and invest in property, plant and equipment or expand to meet competition or take advantage of new opportunities. BSFE has substantial short-term liquidity but lacks the long-term funding needed to finance these operations. Under today’s market conditions, with access open only for top-quality credits, the ability of Santa Fe’s small and medium sized corporates to borrow will remain minimal, and limited to a few blue chip companies for short maturities at high rates. This facility would help provide longer term funding for Argentina, specifically the Province of Santa Fe, while developing the local capital market, reducing the dependence on international investors, and improving the efficiency of local small and medium sized corporates. Furthermore, the indirect support of the acquisition of the Bank by BGN, leading to the increased consolidation of the system, translates into higher operating efficiency and improved banking services in the provinces.