The Productive Financing Act and its respective regulations were published last May* with a view to enhancing funding for Micro, Small and Medium-sized enterprises (MSMEs), and to drive the development of the domestic capital market.

The act regulates many aspects aimed at making it easier for MSMEs to raise finance and boost their productivity. The most important one is the creation of the MSME Electronic Credit Invoice, which will replace electronic receipts, recording goods delivered or services provided but not paid for. This document, with mandatory acceptance within 30 days of issue, will be used as if it were a cheque and will be eligible for negotiation on markets authorised by the National Securities Commission (CNV, in Argentina) via computer systems that facilitate factoring, assignment of invoices, discounting and/or negotiating invoices. This provides an alternative source of finance, allowing companies to negotiate their credit on a secondary market or wait until it falls due for collection.

The legislation also addresses issues concerning the Collective Financing System or crowd funding: acknowledging the National Securities Commission as the enforcement, control, audit and regulatory authority and allowing mortgage and collateral to be constituted to underwrite a guarantee or bond Agent** for funding of this kind.

Furthermore, the act amends many other laws; including the Permanent Character of the Programme of Productive Recovery Act – discussed in Progreso 9 – insofar as Bills of Exchange, the law creating the Financial Unit or the law approving the Civil Code and the Code of Commerce. However, the most important amendment concerns the Capital Markets Act, Law 26.831; placing greater importance on its provision of greater consumer protection and promoting access to the capital market for MSMEs, transparency and financial inclusion.

There is one Title devoted to Financial Inclusion. As can be inferred from the Decree that regulates the Law, Financial Inclusion encompasses both access to all kinds of financial services and their use by companies and households, with special attention required for the poor and vulnerable. That is why the act requires the Executive to draw up a National Financial Inclusion Strategy that allows all sectors of the population to be incorporated into the process of economic development, in the context of an efficient, transparent financial system that fosters the confidence of consumers in the financial sector.