LatinNews Daily - 20 March 2020

* Argentina’s central bank (BCRA) has announced a ream of measures as it seeks to limit the negative impact of the coronavirus (Covid-19) pandemic on the country’s economy, which is already in crisis. The BCRA will allow financial institutions to offer special credit lines to micro, small and medium-sized businesses (MiPymes) at a maximum annual interest rate of 24% (well below Argentina's inflation rate, which currently stands at over 50%) – loans aimed at financing companies’ working capital, particularly for salary payments. Reserve requirements will be modified to free up banks’ available resources. The BCRA has also announced the relaxation of parameters for debt classification, making allowances for debtors facing difficulties. “These measures aim to improve the ability of the financial system to give more support to both companies and individuals, and [to ensure] that the payment chain not suffer in coming months”, the BCRA said in its note.

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