The Minister of Economy, Sergio Massachurches by letter to the president of the Central Bank, Miguel Angel Fishwhich repeals Communication “A” 7720 with which the bank raises to a 116.4% rate credits to those producers who do not sell 95% of their soybeans or who have operated under the Soybean Dollar I, II and Agricultural Dollar programs.
The incident can be considered a formal procedure, but strictly exposes the fierce domestic policy within the government, which escalates in the midst of the discussion on electoral candidacies. Pesce is one of the president’s extremely trusted officials Alberto Fernándezand in this matter she positioned herself with the more interventionist views habitual in Kirchnerismwhich Massa in general has tried to unlock with an attitude more inclined towards the market and in particular towards agricultural operations.
Indeed, in the request – which he extended to Ricardo Casal, legal and administrative secretary of the ministry – Massa sent a letter he received this Tuesday from his secretary of Agriculture, Juan José Bahilloin which argues on the opportunity to “repeal the measuredespite initial goals to kick-start exports so dollars flow in.”
In an internal 3-page document, Bahillo first of all defines the provision of the Central as “reasonably understandable and precise” in order to “facilitate and encourage the entry of foreign currency”. He even claims to understand increase” in the cost of bank financing, so that grain is sold and the foreign exchange income target is met.”
But after the first three “diplomatic” paragraphs with Pesce’s position – against which Massa spoke out for weeks, but without the internal power to impose their criteriaasked Bahillo “Differences on the success of the Circular”.
The central circular, valid until 31 December, establishes that “the annual nominal compensatory interest rate for loans by financial institutions in pesos – whatever the form of instrumentation – to customers with agricultural activity registered in the Agricultural Information System Simplified (SISA) as a “Producer” will be with harvesting of its soy production at least 120% of the latest monetary policy rate published.
Since the monetary policy rate is currently at 97%, the 20% more with which the Central “punishes” the producers that do not sell all soybeans reaches “at least” 116.4%.
In the government, they speculate that the measure is intended to cover a state need: to obtain dollars for reserves and to maintain the flow of imports that support economic activity. For this reason, since its implementation in September – with Communication “A” 7600, replaced in March by “A” 7720 – it has been interpreted by the agri-food sector as a further tax burden on the sector which brings more vitality to the economy.
The limitation applies to all banking entities operating in the country and, although it has been in force since last year, several agribusiness sectors have warned that now, amid the meager harvest is compromising every business, for example in the agricultural machinery sector. is even putting the payment chain at riskas stated by various bodies grouped in the art Link table.
Source: Clarin
