Although the market does not believe that the announcements of Sergio Massa’s economic team are effective in reversing the course of the economy, the measures will have concrete short-term effects on people’s pockets.
Fixed deadlines
On the one hand, the Central Bank will once again embark on a record rate hike, after taking them last month to the current nominal 91%. With the expected adjustment. the reference rate of the economy would become 97% per annum, implying an effective return for the fixed terms of 154% per year and just above 8% per month.
cards
The organism did not detail How will this increase affect lending rates, i.e. those that banks apply for the loans they grant? In a survey conducted by clarion In the last week, before these announcements, in public and private bodies, it was verified that with the last adjustment of the discount rates, the “classic” form of financing in SMEs had exceeded 70% annually that have already impacted the small business and corporate finance chain.
To relieve this sector, a quota plan will be implemented”cancel tax obligations and resources of social security until 30 April last”. To this will be added a tax relief for the current MiPyME payment plans with a Badlar rate.
now 12
It was also clarified that in order not to further burden spending for families and not hit a level of consumption that was already penalized, it was will cut Now 12 rates by up to 9 percentage points. It is, as announced in Economy, “a concrete advantage for merchants and companies”.
“This promotes the consumption of the products ONLY OF NATIONAL ORIGIN, representing 5.8 million monthly transactions totaling more than 250 billion pesos”, they detailed in the Palacio de Hacienda. In parallel, there will be an increase in the repayments that are currently made to the most vulnerable sectors for consumption with debit cards .
Also, there will be higher repayments for debit card consumption by vulnerable sectors.
Foreign exchange market intervention
On the other hand, it was announced that the Central Bank will change the way it intervenes in the foreign exchange market, and manages the daily rate of devaluation. More coordinated action is expected from Miguel Pesce and Lisandro Cleri, respectively president of the organization and Massa’s right-hand man within the monetary authority.
With few reservations, therefore little leeway, it has been reported that the Central will also intervene in the financial markets, where the MEP dollar and cash with settlement are quoted. To cushion the dollar decline resulting from these transactions, it was reported that agreements with the International Monetary Fund, China Swap and guarantee through BRICS Brazil would be accelerated. Massa is expected to travel to Beijing on the 29th of this month.
imports
To avoid further cooling of the business, it is will expedite the approval of SIRA for the import of capital goods with SIRA at 360 days. At this point, the creation of the Business Operations Analysis Unit was announced. In addition, the elimination of tariffs and the generation of dumping and protection regulations will be carried out to improve competitiveness.
In Economy they anticipated that during this week Sergio Massa will communicate further measures.
Source: Clarin
