The Ministry of Production and Labor announced the construction of 10 new vessels to begin the process of renewing the national fishing fleet. The proposals of the companies in the sector involve the construction of at least 8 of these vessels in national shipyards through private investment.
This renewal was driven by the Decree of Necessity and Urgency No. 145/2019 signed by President Mauricio Macri on February 25 of this year, where he established the scheme to promote the renewal of the fleet of vessels with current fishing permits.
According to the regulation, once the 20-year period has elapsed, vessels with a valid fishing permit must be less than 40 years old, although this period may be extended to 60 if at least 60% of the vessel has been rebuilt in national shipyards, or if it is designated as a destination for squid fishing. Thus, from 2040 onwards, vessels that were manufactured before the year 2000 will not be able to sail.
The measure improves the efficiency and safety of the fishing sector and generates employment in the national naval industry.. Furthermore, it develops the entire value chain associated with the sector, as it provides incentives for vessels that are replaced by others built in national shipyards to receive a 10% improvement in fishing capacity.
The Bank of Investment and Foreign Trade (BICE) opened a line of financing at the beginning of 2019, which in its first stage involves a disbursement of $500 million, for the acquisition of fishing vessels built by national shipyards. The line grants a term of up to five years, and up to 60 million pesos (or its equivalent in dollars) per operation, without exceeding 80% of the value of the asset. Between approved and under-analysis credits, almost $300 million have already been committed. In turn, the Ministry of Production and Labor facilitates access to this type of financing for SMEs in the fishing industry through the Argentine Guarantee Fund (FOGAR) by granting guarantees when necessary.
The Central Bank had readjusted the regulations on naval mortgages at the end of last year, facilitating financing for the sector by being able to take as collateral 40% of the value of the vessel when it is finished, or 50% of the appraised value when it is under construction.
"The measure promoted for the renewal of the fishing fleet constitutes an opportunity for development and growth of the naval industry with the novelty of having a line of financing that dynamizes the process. This measure is very important given that the sector had not had the possibility of renewing its fleet with a clear and predictable criterion such as the one we are now carrying out.", said the Secretary of Industry, Fernando Grasso.
The fishing sector exports more than 90% of what it produces. In 2018, exports were worth more than 2.000 billion dollars, 7% more than in 2017. 60% of sales were shrimp.
The naval and fishing industry sector represents 0.7% of GDP national. There are currently 383 registered shipowners, 553 vessels with valid fishing permits and 135 industrial plants on land.
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