The Government and the credit unions agreed to move forward in work groups aimed at the implementation of financial assistance for new SME and working capital projects through a “network or microsystem” at the head of the National Institute of Associativism and Social Economy (Inaes).
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The objective was raised since the launch by the Government of the productive plan at the end of last year, in order to implement a line of non-bank credits and discussed between the agency and the Argentine Federation of Credit Unions (FACC)which heads Marcelo Kremer.
The Board of Directors of the entity, which brings together 42 credit unions from all over the country, met with the head of Inaes, Alexandre Roig, at the end of April. “It was the first meeting we have with who is our regulator in many years“, highlighted Alberto Bavestrello, General Manager of the FACC.
“Many times the non-bank credit sector has been questioned for its high rates in relation to banks, but there is not much difference, and we are charged taxes that impact the cost of financing sectors that cannot go to banks” . (Bavestello)
The Inaes works in the orbit of the Ministry of Productive Development, after having been transferred from the Ministry of Social Development at the beginning of the current government’s administration.
At the meeting it was agreedadvance in the structuring of a kind of Control Superintendency that will generate reports on the social impact of cooperatives and mutual societies, in addition to possibilities of greater funding in the capital market and resources of the sectorBavestrello explained.
Obstacles to operation
In addition, the regulation of credit installment discounts imposed by the Central Bank on the sector was discussed..
This is the regulation of the national payment system, which through Communication A 6909 block the possibility of collecting through direct debits of the credits in the bank accounts of the borrowers.
The restrictions were applied after numerous payers to retirees, during the pandemic, deducted overdue credits from pension benefits.
“Many times the magnifying glass has been put on the sector and questioning that as non-banking entities we have interest rates above the banking system. However, the mismatch is not as highsince the agency compares in its reports with the rates of Banco Nacin, the Province or Credicoop, which have the lowest rates in the entire system,” complained Bavestrello.
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double tax on check
However, one of the biggest demands of cooperative members is that the sector be subject to an additional tax burden.
“The double taxation of the Check Tax causes a situation of tax inequity manifested both for our associates and for the productive activity carried out by their partners,” Bavestrello indicated.
The cooperative credit sector must pay the tax (1.2%) twice, when taking the funds and when disbursing the credits.
“It generates additional costs with a negative impact on the production chain, especially in entities associated with difficulties in accessing credit,” said the general manager of FACC.
“It is a very great difficulty that has an impact on the financing rates that we charge to productive sectors that are not traditionally served by banks“said Bavestrello, who recalled that the distortion was already studied during Domingo Cavallo’s own administration in the Ministry of Economy in the ’90s by the economists Orlando Ferreres and Fausto Spotorno.
As he stated, the cooperative approach was received by Alexandre, who became the first official in the position that receives the sector, despite the fact that he regulates credit cooperatives.
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