Support of S/ 2,000 million will only reach 6% of mypes in the country

The support of S/ 2,000 million announced by the government to micro and small companies (mypes) in the country, it will only favor 6% of themthat is, about 140,000, when at the national level there are 2,300,000 and in La Libertad 160,000, the dean of the College of Economists of La Libertad told La República (CELL), Francisco Huerta Benites.

“We are talking about formal mypes and that have RUC. In such a way that the impact that this program will have is marginal in our region, where mypes represent 7% in relation to mypes in the country”, indicated Huerta.

Given this, the economist stated that it is only possible to hope that the credits are well directed, that they go to the most affected activities.

“In Freedom Those sectors are leather and footwear, textiles, tourism. In addition, there must be adequate mechanisms for credit facilities and the time for the mypes to recover. These credits, in the financial system, are called with soft interest rates and the time to be able to pay does not suffocate the company”, commented Huerta Benites.

Input. Mypes contribute more than 20.5% to the national GDP and employ more than 60% of the total employed EAP in Peru, according to data from the MEF. Photo: diffusion

He added that, although it is a limited and conjunctural aid, the positive thing is that it is an appropriate initiative of the government to finance mypes.

“Therefore, it is necessary that there be a good targeting of credit to mypes Given the decline in economic activity, the inflation. Precisely, inflation has generated a decapitalization in companies. In other words, a loss of working capital has been generated,” Francisco Huerta asserted.

In this sense, he explained that, if before a company had S/ 100 of working capital, with which it bought 100 units of inputs for its products to sell, now, as inputs have risen in price, it is no longer enough to buy 100 , but 70; then, with the same S/ 100, fewer inputs will be purchased and less will be produced.

“That is the decapitalization of companies in general and of mypes in particular. Thus, companies need financing to continue maintaining their working capital and can continue in the market without the danger of bankruptcy. The mypes allow that employment does not fall, since they are labor intensive”, pointed out the expert in economic and public management issues.

Low interest rates

The impulse program Business Mype seeks to place S/ 2000 million in guarantees to financial entities to promote access to financing for mypes. The credits may be directed to working capital, purchase of machinery or to consolidate debt.

Average credit rates for mypes would be around 13%, according to the MEF. Photo: Andean

Interest rates will be well below the current average credit rate, which is over 38% for mypes.

The key

Filter. This financial support will be given through the Business Boost Programwhich should have a good targeting of the companies that really need the help.