After the jump in inflation in April to 8.4%, the Ministry of Economy will order a sharp rise in interest rates. The details
By iProfessional
14/05/2023 – 09,15hs
He Ministry of Economy will launch from this week a new package of economic measures tending to offset the effects of high inflation in April that reached 8.4%. The set of provisions contemplates the increase in the rate of fixed terms, a reduction of 9 points in the interest rate of the Ahora 12 plans and the qualification of the Central Market as an importer. In addition, there will be more official intervention to contain financial dollars.
The measures were defined on Saturday at the Palace, where the head Sergio Massamet with his entire team and the president of the Central Bank, Miguel Pesce.
New rate for fixed terms
In principle, the fixed term interest rate will rise to 97%a significant increase compared to the current 91%. In this way, the monthly rate will remain at 8% and the annual effective rate will reach 152%.
Although the official announcement of the Central Bank (BCRA) remains, this measure is expected to come into effect this Monday.
Regarding plans with Credit cardsstarting next week the cost of financing will drop 9 percentage points in 12 installments. In this way, the consumption of products of national origin is promoted, which represent 5.8 million monthly operations for a total of more than 250 billion pesos.
Also, there will be a increase in refunds to vulnerable sectors due to consumption with Debit.
Fixed-term interest rates go up again this week.
Intervention focused on financial dollars
As for the dollar, from Economy they let it be known that the BCRA will intervene forcefully in the market to control the prices of financial dollars (counted with liquidation and MEP). They also indicated that “the rhythm of the crawling peg” of the official dollar will be managed. In this way, it will seek to avoid any hint of a currency run, a scenario feared by Sergio Massa’s team.
The authorities of the Ministry of Economy will also seek to speed up the agreements with the International Monetary Fund (IMF)the swap with China and obtaining a credit guarantee through the New Development Bank of the countries that make up the Brics (Brazil, Russia, India, China and South Africa), for which Minister Massa will travel to Beijing on May 29 to participate in a meeting of the forum that brings together the main emerging powers.
On the other hand, a new role will be given to the Central Market. The entity will be enabled in the Registry of Importers. Given the detection of distortions in food prices by the Secretary of Commerce, due to the abuse of companies with a dominant market position, the Central Market may directly import these products with Zero Tariff, creating a greater supply of products without cost of brokerage.
Likewise, Economy promises to speed up the approval for the import of capital goods with SIRA at 360 days.
AFIP relief and greater controls for companies
The package also includes a payment plan of the Federal Administration of Public Revenues (AFIP) for small and medium businesss of up to 84 installments.
The benefit is to cancel tax obligations and social security resources expired until April 30. It is estimated that the stock of debt to regularize $456,063 million and that with this benefits 656,121 taxpayers. Among them, 48.1% are Micro and Small Companies, 11.5% are Medium Tranche I and 31.2% are Small Taxpayers and Monotributistas.
In relation to costs, the government will announce the suspension of antidumping duties on the import of widespread inputs, which will be part of the costs of local industries. In simple terms, will enable the importation of inputs Eliminated through ministerial resolutions the collection of penalties provided for in the rules of the World Trade Organization (WTO)
In terms of controls, a Trade Analysis unit. It will have the objective of monitoring the traceability of the goods that are traded in the local market and the taxation at each stage. This body would be made up of the Secretariat of Commerce, Production and Agriculture of the Ministry of Economy, Afip, DGI, Social Security and Customs, Central Bank Insurance Superintendence, National Securities Commission and the UIF.
