The Central Bank of the Argentine Republic (BCRA) has decided to eliminate, as of today, an additional capital requirement that increased the cost of credit for large agricultural producers. The measure repeals a penalty - established during the government of Alberto Fernández - that required financial institutions to multiply by four the risk of these financings when customers held a stockpile of grains. The decision was formalized through Communication “A” 8418, in which the monetary authority establishes “to repeal the provisions that refer to the greater requirement of minimum capital per credit risk on financings to non-SME agricultural clients who maintain stockpiles of their production above 5% of their annual harvest capacity”. “It has to go”: the corn that was a success in Siberia now surprises in Patagonia The regulation implied that banks had to apply a multiplication factor of 4 on the capital required for this type of loan. In practice, this increased the cost of ...