WASHINGTON — IDB Invest has approved a guarantee program for Banco Santander Argentina S.A. aimed at expanding access to credit for small and medium-sized enterprises (SMEs) in Argentina. 

SMEs represent 97% of the Argentine business landscape and generate 50% of formal employment, but they frequently face difficulties accessing credit. This initiative seeks to improve their liquidity, strengthen their participation in value chains, and support formal employment in the country. 

Through this program, Banco Santander will advance payments to SMEs for pending invoices arising from the sale of products or services to an anchor company, using a discount line of up to $50 million, or its equivalent in Argentine pesos. IDB Invest will provide partial guarantees to Banco Santander for that amount, covering up to 90% of any payment default by the anchor companies. This will allow Banco Santander to expand its program and free up capital to increase the financing available to SME suppliers. 

“This program will enable thousands of Argentine SMEs to access liquidity at critical moments, strengthening their role in the economy and formal employment,” said Viviana Alva-Hart, IDB Group Representative in Argentina.
As a partial guarantee, the financial structure includes the mobilization of resources by Banco Santander Argentina for the non-guaranteed portion, thereby expanding the operation’s impact. In addition, the program will increase access to supply chain financing for anchor companies—particularly their SME suppliers—shorten their cash conversion cycle and finance their working capital. 

The operation aligns with the IDB Group’s Strategy for Argentina, which seeks to promote sustained and resilient economic growth led by the private sector, and to contribute to quality job creation and poverty reduction. IDB Invest reaffirms its commitment to fostering the country’s economic development and financial health through innovative solutions that strengthen the private sector.

About IDB Invest

IDB Invest, a member of the IDB Group, is a multilateral development bank committed to promoting the economic development of its member countries in Latin America and the Caribbean through the private sector. IDB Invest finances sustainable businesses and projects to achieve financial results and maximize economic, social, and environmental development in the region. With a portfolio of $22 billion in assets under management and more than 400 clients in 25 countries, IDB Invest offers innovative financial solutions and advisory services to meet its clients’ needs across diverse sectors. Visit our website: www.idbinvest.org/en.

About Santander Argentina

Santander Argentina is the leading global, digital, and people-centric bank in the Argentine financial system. With more than 288 branches, 8 social-integration branches, and 11 Work Cafés, the bank serves over 5.4 million clients across 22 provinces and the City of Buenos Aires. It also runs a broad responsible banking program, standing out for its initiatives in higher education and environmental sustainability. For more information, visit: www.santander.com.ar