FONPLATA grants US$60 million to support Uruguayan micro and small enterprises
The Development Bank approved a new loan of US$45 million for the “Financial Assistance Program for Micro and Small Enterprises” led by the National Development Agency (ANDE), aiming at alleviating the impacts of the emergency caused by the COVID-19. This operation adds to the US$15-million loan approved last April.
The purpose of ANDE is to improve entrepreneurial and territorial competitiveness through different programs, with a special focus on micro, small and medium enterprises (MSME) of the country. The agency is responsible for implementing the loan-granting program for micro and small enterprises affected by the pandemic, funded by FONPLATA.
In Uruguay, MSME represent 99.5% of all businesses and are responsible for about 70% of all jobs. Currently, there are 200 thousand companies in this country, of which 83% are micro enterprises and about 14% are small enterprises. The pandemic caused by the COVID-19 has affected the regular functioning of most of the companies, which had to suddenly stop their activity, reducing income.
The financial-aid program provides approved credit with no personal guarantee and no interest rate to more than 65 thousand Uruguayan entrepreneurs. Additionally, ANDE will offer micro and small enterprises credit products with favorable financial conditions for working capital, investment, and debt reprofiling.
With this injection of liquidity, the probability of business interruption is expected to decrease in the short run, contributing to the sustainability of the payment chain and mitigating the impacts of the stagnation caused by the health emergency, thus minimizing job losses in the micro and small enterprises sector, most vulnerable to the health emergency.
FONPLATA, formed by of Argentina, Bolivia, Brazil, Paraguay, and Uruguay, has also approved initiatives to address the emergency caused by the COVID-19 pandemic in the different member countries.
Thus, FONPLATA – Development Bank supports the efforts being made to face the socioeconomic effects of coronavirus in the region.