This circular amends the 'Regulation on Credit Line for Production Investment'. It gives the guidelines which financial entities should follow if they wish to borrow funds from the government. Financial entities must be willing to lend these funds to clients investing in production projects.
Entities are classified under two main categories. The first category will be comprised of state financial agents receiving no more than 1% of their funds from the private non-financial sector. The second category will be comprised of state financial entities receiving more than 1% of their funds from the private non-financial sector.
Overall, entities receiving state credit may not charge their clients more than 200 basis points (calculated in pesos) above the BADLAR rate. Entities in the first category may not charge clients an interest whose total amount will be more than 17.5% of the amount the state has lent to them. Entities in the second category may not charge clients an interest which will be more than 19.5% of the amount the state has lent to them.