Question 1

What is BICE?

Accepted Answer

BICE (Banco de Inversión y Comercio Exterior) is Argentina's national public development bank specialized in financing productive investments and foreign trade operations. Founded as a second-tier institution, BICE focuses on increasing the competitiveness of Argentina's private sector, stimulating employment, and promoting economic development.

The bank is attached to Argentina's Ministry of Economy and operates with a mandate to support medium and long-term investment financing and trade finance. BICE plays a strategic role in financing Argentine exports, particularly of value-added products, and provides credit to sectors that traditional commercial banks typically underserve.

Question 2

When was BICE founded?

Accepted Answer

BICE was established in 1992 as a Sociedad Anónima (corporation) to address the demand for specialized financial services in foreign trade and productive investment. The bank was created following significant regulatory changes in Argentina's foreign trade framework.

Beginning in 2003, during the government of Néstor Kirchner, BICE underwent a strategic transformation. The bank shifted its profile to provide direct credit to companies, particularly SMEs, with medium and long-term financing for investment and foreign trade. This repositioning expanded the bank's regional and sectoral reach and included administration of infrastructure trusts worth approximately $40 billion pesos.

Question 3

Where is BICE headquartered?

Accepted Answer

BICE is headquartered in Buenos Aires, Argentina, positioning the bank at the center of the country's financial and commercial activities. The main office location allows BICE to maintain close coordination with the Ministry of Economy and other government agencies.

From its Buenos Aires headquarters, BICE coordinates its nationwide operations and manages relationships with international development institutions and foreign trade finance organizations that support Argentine exporters.

Question 4

Where does BICE operate?

Accepted Answer

BICE operates throughout Argentina, serving clients across all provinces and regions of the country. The bank's reach extends to SMEs, agricultural producers, industrial manufacturers, and service sector companies nationwide.

Internationally, BICE maintains strategic relationships with multilateral institutions including the Inter-American Development Bank (IDB), Corporación Andina de Fomento (CAF), and Banco Centroamericano de Integración Económica (BCIE). The bank joined the IDB's Trade Finance Facilitation Program (TFFP) in 2011 as both an issuing and confirming bank, connecting Argentine businesses to international trade finance networks spanning 53 countries.

Question 5

What services does BICE offer?

Accepted Answer

BICE provides comprehensive financing for productive investments including machinery acquisition (new and used), technology modernization, working capital, and leasing with tax benefits. The bank offers specialized foreign trade financing with pre-financing and post-financing of exports according to product classification (NCM).

Trade finance services include letters of credit, guarantees (stand-by, performance bonds, bid bonds), and buyer credit programs that finance Argentine exports by providing credit to foreign purchasers. BICE operates Sistema de Monedas Locales (SML) facilities for working capital financing.

The bank administers sector-specific programs including Pagaderos en Valor Producto for agricultural sectors like dairy and livestock, offering financing tied to commodity prices. BICE provides long-term credit lines for strategic projects, including infrastructure and technology acquisition, serving as both issuing and advising bank for major national projects.

Question 6

What makes BICE unique?

Accepted Answer

BICE is Argentina's only national public bank exclusively focused on development financing for productive investment and foreign trade. The bank fills a critical gap by providing medium and long-term financing that traditional commercial banks typically avoid due to risk or tenor constraints.

Between 2003 and 2010, foreign trade financing represented 40% of BICE's operations, making it a cornerstone institution for Argentine exporters. The bank earned top credit ratings (A1+, AA) from FitchRating, reflecting its strong financial position and strategic importance.

BICE's role extends beyond lending to include advisory services for exporters, helping companies improve competitiveness and access new markets. The bank's participation in international trade finance networks provides Argentine businesses with guarantees and financing options unavailable through purely domestic sources.

Question 7

What type of financial institution is BICE?

Accepted Answer

BICE is a Public Development Bank (Banco Público de Desarrollo) in Argentina's financial system. It operates as a second-tier institution primarily, though it also provides direct financing to eligible borrowers.

As Argentina's official development and trade finance bank, BICE functions under the supervision of the Central Bank of Argentina (BCRA) while reporting to the Ministry of Economy. The bank's mandate focuses on promoting exports, productive investment, and job creation rather than retail banking activities, distinguishing it from commercial banks in Argentina's financial sector.

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About BICE in Argentina