One by one, Sergio Massa’s first measures as Minister of the Economy

After his appointment as Minister of the Economy, Sergio Massa this Wednesday evening launched the first measures of its managementgrouped into four axes: fiscal order, trade surplus, reserve strengthening and development with social inclusion.

Massa promised to tax adjustment, cap on energy subsidies and bonuses for retireesamong the main announcements. He ruled out a devaluation.

The presentation of the guidelines of his project took place during the first conference in his new role. After crossing his office on the fifth floor, the new official of the Cabinet of Alberto Fernandez moved to the ministry auditorium to make the announcements.

One by one, the measurements are as follows According to a document released by the Ministry of Economy:

fiscal order

• The goal will be achieved Deficit of 2.5%. established by the budget.

• Treasury Advances will not be used in the rest of the year.

• rules the state of freezing of the plants for all sectors of the national centralized public administration.

• subsidies: Four million Argentine families have given up on using subsidies. Among the nearly 10 million families who have applied for the subsidy, consumption savings will be promoted. “We cannot continue with a scheme where those who spend the most receive more subsidies”poses in Economy.

trade surplus

• Regimes will be promoted by DNU for the agribusiness, mining, hydrocarbon sectors to increase production and the knowledge economy. “We will report cases of under-invoicing of exports and over-invoicing of imports to the Argentine Justice and the United States Anti-Money Laundering Unit”affirms the document that Economia has released together with the calls.

• will throw a promotional rate credit program, and a guarantee scheme for early exporters. “We want to sell more Argentine work to the world”, the team from Massa sets as its goal.

• It is also planned to “launch a traceability system for foreign trade a greater control and transparency in the use of foreign currency for imports“.

Strengthening of reserves

• advance on exportswith the value chains of fishing, agriculture, mining and others, which will enter in the next 60 days for a total of 5,000 million dollarswhich will increase the reserves of the Central Bank.

• Disbursement of 1,200 million dollars with international organizations for ongoing programs. New program with CAF with delivery of 750 million dollars additional.

• Four Repo offers for strengthening of reserves and repurchase of sovereign debt (three from international financial institutions and a sovereign wealth fund).

• “Today we had a first working meeting with the IMF to continue with the planned disbursementsMassa explained.

development with inclusion

• Retirements: on 10 August the mobility index of pensioners will be announced with a strengthening “to help retirees overcome the damage caused by inflation,” they indicated in Economics.

• Work: On Thursday next week, bodies and workers will be convened to guarantee a mechanism that allows this recover the income of private sector workerswhich includes the improvement of family allowances.

• Plans: a policy of reorganization of social plans for the next 12 monthsfocusing on three axes, which are the return to the labor market, the strengthening of cooperatives and protection in situations of vulnerability. An audit begins on 15 August and will be carried out by the universities. “Anyone who does not respect you will receive the suspension of the plan”, they confirmed in Economics. In parallel, the liquidation will be crossed with the ANSES databases. “Our idea of ​​the country is that the plan is emergency and the work is permanent,” they added.

• Credito Argentino: a unification of credit programs will start in a single line, called Credito Argentino, and that unify all credit promotion policies for the manufacturing, SME and trade sectors, program for a total of 400 billion dollars. “We are convinced that Argentina’s jobs and growth must be sustained,” they said in Economics.

Other measures

• Tender for the second section of the Nestor Kirchner gas pipeline.

• Launch of a program for train 70,000 new programmers over the next 12 months.

• Launch of a voluntary exchange for deadlines in pesos for the next 90 dayswhich will end on Tuesday. “We have membership commitments exceeding 60%“, they stated in Economics.

• Congress will be convened to request the rapid treatment of the laws that benefit from it in tax terms to construction, bio / nanotechnologies, agri-food and the automotive industry. “Because they are great generators of jobs and growth”, they justified.

• Also The liaison table will be convened. And for sit down to work together for the development of such a powerful sector made up of Argentine producers “, they indicated in Economics.

Before enacting the measures, Massa was sworn in as Economy Minister in a massive ceremony at the Bicentennial Museum.

It did so after the markets closed. The blue dollar, which touched $ 340 with the resignation of Martín Guzmán in July, closed on Wednesday at $ 298seven pesos more than on Tuesday and once again approaching $ 300.

The wait for the measures announced this Wednesday was not enough even for the financial dollars: the CCL collected more than two pesos a $ 287.55 and the dollar MEPlittle more than a burden $ 282.19.

Meanwhile, the bonds which entered the 2020 swap trading in red for most of the day with drops up to 3.4% driven by the GD35D. In any case, the country at risk it remained virtually unchanged and even dropped by 0.7% from Tuesday to 2,394 points.

On the other hand the merva index Massa was awarded with a green panel: 1.43% won. Something similar happened on Wall Street with Argentine stocks, which had a good day in the papers Free market with an increase of almost 20% driven by the record revenues announced by the company.

LP