By Sergio Malis and Clara Picasso Achaval, Lawyers
sergio@estudiomalis.com.ar / cpicasso@estudiomalis.com.ar
The main goal of the new program “POTENCIAR”, promoted by the Argentine Government, is to contribute to the development and internationalization of local leading companies, producers of goods and services with high added value, with outstanding innovative capacity and export trajectory.
The specific objectives pursued are: the increased of exportation of goods and services with high added value; the diversification and/or recovery of export markets; the development of local suppliers and high-level human capital qualification; the technological transfer and the improvement of the international positioning of the production and the technologies developed in the country.
The aim of the Government is to boost Argentine companies into the international market.
To access to the benefits of the PROGRAM, companies who have interest in participating must comply with certain requirements. Among them, companies that want to be beneficiaries must be local companies funded with national capital, dully registered bofere tax authorities, fulfilling their tax´s obligations.
They must also record an average annual turnover in the last three (3) years greater than PESOS FIVE HUNDRED FORTY MILLION ($ 540,000,000) –aprox. USD 30,000,000- for the industrial case, or PESOS ONE HUNDRED EIGHTY MILLION ($ 180,000,000) –aprox. USD 10,000,000) for those dedicated to the provision of services. In any case, the average annual turnover in the last three (3) years may not exceed PESOS SIX BILLION ($ 6,000,000,000) –aprox. USD 333,300,000-.
Moreover, the regulations specifies that the companies that wish to access to the PROGRAM must work in the production of industrial goods and/or provision of know how with high added value and neither have penalties nor any sanction or breaches related to public contracts.
The program looks auspicious and among its benefits, Argentine medium-sized companies will be able to obtain credits at a subsidized rate of up to 6% in pesos and up to 3% in US dollars with a maximum bonus of $ 20 million for loans –aprox 1,110,000) of up to $ 200 million –aprox. 11,110,000; non-refundable contributions of up to $ 7 million –aprox. USD 388,000- and technical assistance from public agencies, universities and other institutions to facilitate and improve their internationalization.
