Ministry of Economy: the first measures announced by Massa

In a press conference lasting just over half an hour, the new Economy Minister, Sergio Massa, announced the first measures of his administration, as announced last week. Massa was based on four axes of measures: fiscal order, trade surplus, strengthening of reserves and development with inclusion.

“Today we are going to announce a set of measures that are the first, but not the last,” assured Sergio Massa before detailing the measures he studied since Thursday.

Economic measures announced by Massa:

– Comply with the goal of 2.5 of the deficit of the national public system that was determined in the budget.

– The advance from the Treasury will not be used and a refund of USD 10,000 million will be made to the BCRA.

– Governs the freezing of the state plant for all sectors of the centralized national public administration. Decentralized companies will also be covered by this measure and each jurisdiction must take charge of these companies. “Companies must submit a declaration status of their plant month by month, and the INDEC will publish the follow-up of these declarations month by month so that they are publicly accessible”explained the minister.

– Subsidies: 4 million Argentine households gave up using the subsidies. “Among the almost 10 million households that did request the subsidy, we are going to promote consumption savings. We cannot continue with a scheme in which whoever spends the most receives the most subsidy,” assured Massa.

“Today we are going to announce a set of measures that are the first, but not the last,” assured Massa.

– Special regimes will be promoted by DNU for the agribusiness, mining, hydrocarbon and knowledge economy sectors. Taxes will be discussed in Congress, but other measures will be determined by decree.

– Under-invoicing of exports and over-invoicing of imports: a registry will be opened for 60 days so that these companies rectify their position before Customs. After 60 days “We are going to make the pertinent complaints in the Argentine justice system and the anti-money laundering unit of the United States, since banks from that country were used and therefore the headquarters of the financial domicile determines jurisdiction”Massa pointed out.

– Promotion of export financing, the objective is to increase the volume and quantity of Argentine companies that export. With a credit program at promotional rates and a guarantee scheme for leading exporters, “we want to sell more Argentine work to the world.”

– Traceability system for foreign trade, the idea is to have greater control and transparency in the use of foreign currency. From the request to the release of the currency there will be a term, date and authorization “with prioritization criteria for production chains and health issues”.

Sergio Massa in the announcement of the economic measures of his management.

  • Strengthening of reserves

– Advancement of exports, with the value chains of fishing, agriculture, mining and other sectors so that around USD 5,000 billion enter in this way in the next 60 days, which will go on to increase the reserves of the BCRA .

– Disbursement of USD 1,200 million with international organizations for current programs. New program with the Development Bank of Latin America with an additional disbursement of USD 750 million.

– 4 Repo offers to strengthen reserves and repurchase sovereign debt. Three from international financial institutions and a sovereign fund. These are loans with public securities as collateral and an interest rate against repurchase.

“Today we had a first working meeting with the IMF to continue with the planned disbursements, which was productive”highlighted Massa.

“Today we had a first working meeting with the IMF that was productive,” Massa stressed.

  • Development with social inclusion

Retirements: On August 10, the retirement mobility index will be announced with a boost to help retirees overcome the damage caused by inflation.

“On Wednesday, August 10, with the head of ANSES (Luana Volnovich), we will communicate the amount and reinforcement” that retirees will receive, assured Massa.

– Work: business entities and workers will be convened on Thursday of next week in order to ensure a mechanism that allows workers in the private sector to recover income, which includes the improvement of family allowances. A bonus is being studied for workers who earn between 100,000 and 150,000 pesos.

– Plans: a policy to reorder social plans will be carried out over the next 12 months, focusing on 3 axes: return to the labor market, strengthening of cooperatives, and protection in situations of vulnerability.

On August 15, an audit to be carried out by the universities begins. Who does not comply, will receive the suspension of the plan. In parallel, the liquidation will be crossed with the ANSES databases. Our idea of ​​a country is that the plan is the emergency, and the work is permanent.

Whoever has a plan will join a company and the first year will maintain the payment of the plan as a base, the company will pay the difference in salary, ART and social work; At the end of that year, the worker will decide whether to continue with the job or return to the plan, taking into account that it is a registered job, “explained Massa.

– Credit: the credit programs will be unified in a single line, called Credito Argentino, where all credit promotion policies for the productive sectors, SMEs and commerce will converge, program for a total of $400 billion.

In turn, Massa announced other measures such as the tender for the second section of the Nestor Kirchner gas pipeline; the launch of a program to train 70,000 new programmers in the next 12 months; a voluntary exchange for the maturities in pesos of the next 90 days, which will end on Tuesday, for which there are already “adherence commitments of more than 60%”.

Alberto Fernández swearing in Sergio Massa as Minister of Economy.

Since he was appointed as Minister of Economy, Massa formed the work team that will accompany him during his management at the Palacio de Hacienda, which unified the areas of Economy, Productive Development and Agriculture.

Within the Secretariats, Massa appointed in the Treasury Raul Rigo; Production to Jose Ignacio de Mendiguren; Agriculture, Livestock and Fishing to John Joseph Bahillo; trade to Matias Tombolini; Development Planning and Federal Competitiveness a George Neme; and Finance to Eduardo Setti.

In addition, the Ministry of Agriculture appointed Jorge Solmi in charge of the Federative Coordination Unit Gabriel Delgado at the head of the Unit for the Opening of New Protein Markets. Secondly, Sandra Mayol it will go to the undersecretary for Institutional Affairs; Y Sabrina Vettel Y Katia White in strategic areas of the Secretariat.

In turn, he ratified the management of Marco Lavagna at the head of the National Institute of Statistics and Censuses (Indec) and determined that Daniel Marx will integrate the committee for the development of the capital market and follow-up of the public debt.

There are still strategic areas that remain to be filled, such as the position of Vice Minister of Economy and the Energy team. When asked about the names, Sergio Massa assured: “Tomorrow we are going to continue with the presentation of the team, today the measures seem important to me”.

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