Estimados profesores,

Este viernes 03  de julio se llevará a cabo la octava sesión del seminario interno de FEN donde se exponen trabajos en progreso de académicos y avances de tesis de estudiantes.

En esta ocasión, José Manuel Belmar presentará "Evaluating the Impact of Credit Guarantee Scheme in Chilean Firms", trabajo realizado en conjunto con Roberto Álvarez y Luis Opazo, cuyo resumen se encuentra más abajo.

El seminario se llevará a cabo a las 13:00 hrs en la sala 1605 de la torre. Se solicita confirmar asistencia con Pamela Fuentes al correo pamela.fuentes@econ.uchile.cl a más tardar el día jueves 02 de julio a las 13:00 horas, ya que el seminario contempla almuerzo.

Quienes deseen inscribir presentaciones para futuras sesiones, por favor dirigirse con Damián Vergara al correo damian.vergara.d@gmail.com.

Atentos saludos,

Dirección de Investigación FEN

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Título - Evaluating the Impact of Credit Guarantee Scheme in Chilean Firms

Autores - Roberto Álvarez, José Belmar, Luis Opazo

Abstract - We evaluate the impact of a credit guarantee program in Chile. The paper employs panel data that represents more than 43,000 Chilean firms in 2007 and 2009. The results for the propensity score estimation, using a Probit model, show that younger and smaller firms that know about public programs and have higher percentages of long term debt are more likely to use this type of guarantees. As it should be expected, credit guarantees increase the probability of having banking debt in comparison with firms that have not used these guarantees. We find that the differential in probability is about 71%, and that credit guarantees increase the amount of total loans from banking institutions for such firms in approximately 6% of initial total assets. Additionally, the guarantee scheme caused a growth of 17% in the sales of its beneficiaries. On the other hand, there aren't any robust significant effect on other real variables –such as investment and employment. Therefore, these outcomes point to the idea that the credit guarantee program is a vehicle for funding firms working capital, at least in the early stage of access to the program. In fact, credit guarantees reduce in about 14 percentage points the share of internal funds in working capital and increase in a similar amount the importance of banking credit in the same item. Finally, the evidence suggests that the positive effects of the guarantee scheme is particullary strong in smaller firms.