2017年-世界发展银行全球_Argentina___Assessment_of_Capital_Market_Mechanisms_for_Financing_of_SMEs_34页_838kb

Summary of the Assessment of Capital Market Mechanisms for Financing of SMEs in Argentina

Core Content

This report, prepared by the World Bank Group Finance and Markets Global Practice for the Latin America and Caribbean Region, evaluates the current state and potential improvements of capital market mechanisms for financing Small and Medium Enterprises (SMEs) in Argentina. It outlines the main obstacles to SME financing through capital markets and proposes various mechanisms to enhance access and efficiency.

Main Obstacles to SME Financing through Capital Markets

• High Informality: Many SMEs operate informally, leading to underreporting of financial performance and limited access to formal financing.
• Preference for Short-Term Instruments: SME financing through capital markets is heavily concentrated in short-term instruments, particularly post-dated checks (CPDs).
• High Fixed Costs: Structuring a public offering involves significant fixed costs, which are often only feasible with high-value issues not aligned with SME needs.
• Limited Capital Market Development: The capital market is underdeveloped, with low market capitalization and minimal trading of shares.
• Lack of Specialization: Credit rating agencies have not developed specific methodologies for assessing SMEs, leading to downgrades and reduced investor confidence.
• Insufficient Liquidity: The CPD market lacks depth and liquidity, making it an unreliable source of funding.
• Limited Investor Base: There is a scarcity of investors capable of analyzing and taking on SME risk.
• Regulatory and Design Deficiencies: Factoring schemes and private placement instruments are not well-developed or utilized.
• High Interest Rates: High nominal interest rates discourage long-term financing, especially in local currency.

Proposed Solutions and Options

• Marketable Instruments (MIs): Proposing MIs that involve multiple SMEs and are backed by SGRs could reduce costs and enable longer-term financing.
• Simplified Prospectuses: Introducing simplified prospectuses would lower the cost of public offerings and encourage SMEs to enter the capital market.
• Intermediate Agency: Establishing an intermediate agency to assist SMEs with public offering requirements and ensure compliance could facilitate market entry.
• Suitable SME Advisor: Introducing a "suitable SME advisor" with minimal regulation could support SMEs in navigating capital market processes.
• Electronic Invoice for MSMEs: Developing an electronic invoice system for MSMEs could improve the enforceability and tradability of SME debt instruments.
• Regulatory Review: Revisiting the prohibition on non-serialized securities and creating a minimum regulatory framework for private placements could support SME access to capital markets.
• Tax Incentives: Offering tax breaks to investors acquiring SME shares could increase demand and reduce required yields.
• Market Makers and Secondary Market Alternatives: Promoting liquidity through market makers and alternative mechanisms for secondary market trading would enhance investor confidence.

Key Players

• CNV (National Securities Commission): Has developed a specific regime for SME public offerings and created an SME assistance office.
• MAV (Argentine Securities Market): Specialized in SME financing, focusing on CPD trading and promoting capital market instruments.
• SGRs (Reciprocal Guarantee Firms): Provide guarantees for CPDs, with 90% of CPD checks in the capital market being SGR-backed.
• BCRA (Central Bank of the Republic of Argentina): Influences the interest rate environment and monetary policy.
• AFIP (Federal Public Revenue Administration): Impacts SMEs through tax regulations.
• ANSES (National Social Security Administration): Also plays a role in the regulatory and social framework.

Regulatory and Tax Incentives

• New SME Law (July 2016): Reduces tax pressures, provides exemptions from certain taxes, and extends VAT payment terms.
• Investment Promotion Regime: Allows deduction of up to 10% of investment costs from earnings.
• Interest Rate Subsidy Scheme: Provides support for SME instruments.
• Fogapyme: A guarantee fund that supports SME instruments in public offerings.
• Law for Small Business Initiatives: Sets terms and benefits for SME development, including tax incentives, crowdfunding, and co-investment funds.

Current Financing Landscape

• CPD Dominance: CPDs are the main instrument used by SMEs in capital markets, with 95% of SME financing from the financial sector coming from banks.
• Growth Trends: SME financing through capital markets has grown from USD 350 million annually (2007-2010) to USD 865 million annually (2015-2016).
• Instrument Composition: CPDs represent 94% of SME financing through capital markets, with FFs (Financial Trusts) and MIs (Marketable Instruments) playing smaller roles.
• Sponsored and Direct Trading: These newer modalities are still underdeveloped but offer potential for diversification.

Conclusions and Next Steps

• The capital market in Argentina is underdeveloped and needs more support mechanisms for SMEs.
• CPDs, while dominant, lack depth and liquidity.
• Legal and regulatory reforms, including the new SME law, are crucial for improving financing options.
• Specialization of market players, including the CNV and SGRs, is necessary for efficient SME financing.
• A sustainable investor base and improved transparency are essential for the growth of SME financing through capital markets.

Annexes

• Charts and Tables on SMEs: Provides statistical data on SMEs and their financing.
• Experiences on Financing Initiatives in Other Countries: Offers comparative insights from Latin American countries.
• Institutions and Persons Surveyed: Lists the organizations and individuals involved in the study.