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News 2014

Government authorizes BancoEstado capitalization

Subgerencia de Comunicaciones

, May 26, 2014. 03:00

The measure that is part of “Productivity Innovation and Growth” agenda presented by President Michelle Bachelet will provide capital for small and medium scale entrepreneurial activities.
With the presence of entrepreneurs,  workers, representatives of small and medium scale companies and members of parliament, President Michelle Bachelet presented the “Productivity, Innovation and Growth” agenda on May 16th at the La Moneda Presidential Palace;  this agenda contemplates 7 core areas and 39 initiatives to strengthen the development of small and medium scale enterprises and increase the system’s competitiveness.

One of the measures included in this announcement is the US$  450 million capitalization of BancoEstado. This will enable the bank to expand the credits it offers to the productive area  to US$ 1,500 million and to increase financing for mortgage and housing loans by  US$ 2,000 million.

Together with this, it will increase the capital of the Guarantee Fund for Small Scale Entrepreneurs (FOGAPE) which is currently administered by BancoEstado.  The measure aims to facilitate loans for small-scale companies.  Furthermore, the maximum limit of annual sales of eligible companies will be increased in order to increase the number of beneficiaries.

When referring to this announcement, Rodrigo Valdés,, President of BancoEstado stated that the institution is honored to play this key role I the Government’s Productivity Agenda and thanked the President of the Republic for her confidence in what the Bank can do to support the development of the country, “which gives us a  motive to continue strengthening our commitment with the entrepreneurship and development of thousands of Chileans”.

Some of the measures included in the agenda are:

Central Guarantee System: An electronic system will be created for individuals and companies to be able to identify their guarantees,  property or deeds,  making these financial instruments easier and safer to use when gaining access to financing. 

Emerging Financing: Regulation improvements, together with Corfo financial support, will strengthen those emergent financial instruments and agents that can increase accessibility and improve PYME (small and medium-scale companies) credit conditions.

PYME Export Centers: PYME Export Centers will be created in every region, and will be in charge of coordinating the actions required to generate export plans for companies in this sector including negotiations abroad logistics and advanced commercial strategies.