Financing for SMEs in the Capital Market Through Collective Investment Instruments Has Been Expanded

On September 18, 2024, the Argentine Securities Commission (CNV) issued General Resolution 1019, which modified the special regime for the incorporation of Financial Trusts for the financing of SMEs.

The CNV indicated that a new sector was identified which, although not having an SME certificate (Certificado MiPyME), is not recognized as a Large Company, according to the Argentine Tax Authority’s (AFIP) corresponding list.

Likewise, the purpose of this regulation is to continue expanding the universe of entities that may have access to a differential financing such as the SMEs regime in the capital market.

In view of this, at the time of setting up financial trusts for the financing of SMEs, the rights or credits arising from transactions entered into with companies that, without holding a an SME certificate are not considered large companies under the terms established and the list AFIP publishes periodically, were admitted within the percentage of up to 20% of the amount of the trust assets, considering their nominal value.

Additionally, it is increased the percentage indicated to 40% until the end of this year, to improve the opportunities of access to the capital market for said companies.

Finally, the regulations applicable to mutual funds whose special investment purpose is made up of instruments intended for the financing of SMEs were modified, allowing that—to calculate the minimum required percentage of the fund's assets—up to 40% of the fund's net equity is invested in deferred payment checks and stock exchange promissory notes issued or discounted, for trading in the direct segment—guaranteed and not guaranteed—in first endorsement, by companies that are not considered large companies under the terms established and according to the list AFIP publishes periodically.