300 Argentine PYMES to carry out digital transformation with resources from Multilateral Development Bank - CABEI

Tegucigalpa, March 23 2021 -Central American Bank for Economic Integration (CABEI), approved US$50 million in financing for the Republic of Argentina to finance the Pilot Program for the Digital Transformation of Argentine PYMES in this South American country.

For CABEI, it is a priority to support entrepreneurs in its member countries, especially in times of difficulty, in order to improve their performance and thereby strengthen the industrial sector. CABEI Executive President, Dr. Dante Mossi, stated that "the digital transformation of business is a step that forms part of the Bank's 2020-2024 Institutional Strategy, where we have identified the promotion of initiatives to improve the sustainable competitiveness of our member countries. Among the strategy's initiatives we are promoting technological change. With this operation, we are betting that these companies can increase their productivity and contribute to the country's development, even generating new jobs later on." 

CABEI Director for Argentina and Colombia, Maximiliano Alonso, highlighted: "The pandemic has increased inequalities in the region with a high level of informal employment and a large digital divide. Our role as a multilateral development bank is crucial; we must promote economic reactivation by articulating technological and digital transformation, betting on scientific development and reindustrialization with a firm commitment to climate change mitigation and poverty reduction.”

This loan will finance the technological infrastructure for the digital transformation of the productive sector, particularly SMEs, train entrepreneurs and workers for the transition to a 4.0 production model, finance the productive transformation processes for a pilot group of companies to access a new production platform compatible with 4.0 production, and systematize and replicate the model.

The financing will indirectly benefit three provinces where the 4.0 Transformation Centers/Units will be installed; the public and private entities that participate in the centers' management: sectoral and regional chambers, universities, technology centers in the region, subnational authorities. As for training, 1,500 workers and entrepreneurs are expected to receive courses to acquire new digital skills (an average of 5 workers for each of the 300 companies that acquire technical assistance services).

The loan was approved for a term of up to 20 years, including a grace period of up to five years and an interest rate of six (6) months LIBOR, which will be reviewable and adjustable semiannually, plus a margin established by CABEI, which will initially be two hundred and fifty (250) basis points.