IFC Invests $150m in BBVA Argentina to Expand Long-Term SME Financing

IFC’s investment will strengthen BBVA Argentina’s funding base, enabling the bank to offer longer-tenor financing solutions tailored to the needs of SMEs.

The International Finance Corporation (IFC), a member of the World Bank Group, has announced a US$150 million investment in BBVA Argentina to expand access to financing for small and medium-sized enterprises (SMEs) across the country. The initiative aims to address persistent credit constraints facing SMEs, a sector that is central to Argentina’s economic resilience, employment generation and inclusive growth.

Boosting Long-Term Financing in a Constrained Credit Market

Argentina’s financial market is characterized by a limited availability of long-term credit, making it difficult for businesses to plan investments, modernize operations and expand sustainably. IFC’s investment will strengthen BBVA Argentina’s funding base, enabling the bank to offer longer-tenor financing solutions tailored to the needs of SMEs.

By improving access to sustainable financial services, the investment is expected to help SMEs invest in productivity, innovation and job creation, while enhancing overall economic stability.

“After more than seven years, IFC is once again making long-term investments in the Argentine financial system,” said Alfonso García Mora, IFC Vice President for Europe, Latin America, and the Caribbean. “This financing strengthens BBVA Argentina’s funding base, facilitating access to credit for thousands of SMEs, and thereby supporting the country’s growth and job creation.”

Strengthening BBVA Argentina’s Role in the Business Ecosystem

BBVA Argentina sees the partnership as a strategic step toward consolidating its position as a leading financial partner for businesses nationwide.

“This transaction with IFC is a key step in our strategy to consolidate our position as the reference bank for the business ecosystem,” said Jorge Bledel, CEO of BBVA Argentina. “We are committed to SMEs because they are the engine of economic growth, and our goal is to provide them with solid, long-term financing that enables them to plan, invest, and grow.”

SMEs: Backbone of Argentina’s Economy, Yet Credit-Constrained

SMEs account for more than 98.6% of all firms in Argentina and generate nearly 65% of private sector employment, underscoring their critical role in economic and social development. Despite this, access to finance remains a major challenge.

According to the World Bank Enterprise Survey:

• 34% of firms are financially constrained

• 44% identify access to finance as a major obstacle

• More than 35% of firms refrain from applying for loans due to high interest rates or the perception that financing will be unavailable

These constraints limit business expansion, innovation and employment growth, particularly in a volatile macroeconomic environment.

Closing the Financing Gap to Support Growth and Jobs

IFC’s investment is designed to help close this financing gap by expanding the availability of longer-term credit for SMEs. Improved access to finance will enable businesses to:

• Invest in new technologies and innovation

• Expand production and services

• Create and sustain jobs

• Strengthen resilience against economic shocks

The initiative reflects IFC’s broader strategy in Argentina to support private sector development, foster financial inclusion and promote sustainable economic growth.