Fogape awards guarantees for more than 8 million UF
A total of 21 institutions were awarded guarantees for financing micro, small and medium enterprises. The funds can be used until this coming 30 September.
In its second call for bids in 2015, the Chilean Fund of State Guarantee for SmallIndustrialists (Fogape), administered by BancoEstado, awarded a total of 8 million 76 thousand 200 UF in guarantees to finance small enterprises.
6 million 891 thousand 200 UF of the total awarded were allocated to small and micro enterprises, while the remaining 1 million 185 thousand UF will be used to finance medium enterprises in accordance with the terms of Law 20.792, passed at the end of 2014.
The funds awarded may be used between 10 July and 30 September of this year, inclusive, permitting participating institutions to offer small and micro enterprises, exporting firms, eligible federations or small entrepreneurs and medium enterprises financing or guaranteed certificates of security which are partly guaranteed by FOGAPE
In this bid, Alessandro Bozzo, Assistant Manager of FOGAPE, reviewed the behavior of the fund over the past years. He also referred to the number of operations carried out and the amounts financed from 2010 to date, giving a detailed explanation of sectorial distribution for the January-May period of this year.
In the case of micro and small enterprises, for example, the following is a breakdown of the distribution of Fogape funding as at May 2015: Commerce ranks first with 32.9%, followed by the Services sector with 20.01%; Construction with 16.4%; Agriculture and Fishing, 12.6%; Transport and Communications 10.6%; Industry and Production, 6.2%, and 1.3% in other sectors.
The distribution breakdown for Medium Enterprises was as follows: Commerce ranks first with 33.7%; Services with 22.2 %; Construction with 18.6%; Industry and Production with 9%; Transport and Communications with 8.3%; Agriculture and Fishing with 5.8%; and finally, other sectors with 2.3%.
21 institutions took part in this bid, including Banks, Factoring, Savings and Loan Cooperative Institutions, and Reciprocal Guarantee Companies (SGR.)
The following institutions took part in this bid:
Banco de Chile, Banco Internacional, BancoEstado, Scotiabank, BCI, Corpbanca, BICE, Santander, Banco de la Nación Argentina, BBVA, BCI Factoring, BBVA Factoring, Oriencoop, Coopacsi, Congarantía C.G.R., Aval Chile S.A.G.R., Masaval, Suaval S.A.G.R., Aval Pyme, Pymer S.A.G.R., and Multiaval S.A.G.R.
We should remember that at the end of 2014, President Michelle Bachelet passed a law which authorizes a capital injection of US$ 450 million to BancoEstado, in addition to US$ 50 million to the Chilean Fund of State Guarantee for Small Industrialists (Fogape), which is also administered by this financial institution.
With this capitalization, which is part of the Agenda for Productivity, Innovation and Growth developed by the Government, BancoEstado will be able to continue to give priority to financial inclusion, increase access to credit, promote competency in the financial system and support economic reactivation, by means of inclusive and efficient management.
The Fund, administered by BancoEstado and supervised by the Superintendency of Banks and Financial Institutions (SBIF), finances working capital for the purchase of raw materials, goods, salaries, labor, crop expenses. It can also be used to purchase machinery, work vehicles, equipment, tools, installations, productive real estate, among others.