After the latest report from the National Institute of Statistics and Censuses of the Argentine Republic (INDEC), of April inflation of 8.4% and 108.8% year-on-year, Sergio Massa’s economic team will finally officially make the new measures, which will seek to control the rise in prices.
They will be fundamental points to highlight: in terms of rates and in relation to the IMF, in principle, the reference interest rate of the Central Bank will rise and fixed terms of up to 30 million pesos will pay 6 more points, to 97 annual percent. Thus, the nominal monthly rate will remain at 8% and the effective annual rate at 152 percent.
Regarding the price increase, the economic team announced the creation of a new control entity, the Unit for Monitoring, Traceability and Promotion of Trade Operations. They define it as an “immediate response to price disorder” made up of an executive area with a representative of several organizations whose owners “will analyze the connected information daily and order the necessary measures.”
In addition, they assured from Economy that “as of next week the cost of financing will drop 9 percentage points in 12 installments.”
As detailed, what they want to achieve with this is that only products of national origin are consumed, which represent 5.8 million monthly operations for a total of more than 250 billion pesos.
They also declared that this is a “concrete benefit to merchants and companies.”
In turn, there will be a new AFIP payment plan for current debt of up to 84 installments and tax relief for debt stock due as of April 30. “They will be easy payment plans to cancel tax obligations and social security resources expired until April 30. It is a stock of debt to be regularized of $456,063 million and benefits 656,121 taxpayers, of which 48.1% are micro and small companies, 11.5% medium-sized tranche I and 31.2%, small taxpayers and monotributistas ”, They said in Economy.
Lastly, a “ordering of price makers and fiscal situation in the Central Market” and “elimination of tariffs and generation of dumping and protection rules to improve competitiveness” were also promised.
All these measures that the Government with Sergio Massa at the helm seeks to implement, will be reviewed this Monday so that they begin to be effective.
