Regarding inflation, he assured that he will face it “with determination” as “it is the greatest factory of poverty that the country has.” At the same time he admitted that “the next two months are going to be the most difficult in terms of inflation.”
Then, he announced a series of orthodox measures to deal with inflation and the lack of reserves, such as a reduction in the fiscal deficit by adjusting public spending, curbing monetary issuance, raising water and gas rates for users with high consumption, export incentives and import control.
One by one, the main definitions
“We are going to meet the goal of 2.5% of the primary deficit established in the budget that we got out of the DNU.”
“Not using the advance balance from the Treasury for the remainder of the year, a refund will be made to the Central Bank for 10 billion. We are going to manage with the resources we collect and with the financing we can get from the private sector.”
“The freezing of the State plant governs, each jurisdiction will be responsible for the decentralized companies that will also be affected by this decision, which must present a sworn statement month by month.”
“We face a segmentation that shows us that almost 4 million households do not need to use subsidies. We are going to promote consumption savings. We cannot continue with a scheme in which energy or water is spent the most, it is the one that receives the most subsidy .”
“We will face a policy of reorganization of social plans during the next 12 months, focusing on 3 axes: Return to the labor market, strengthening of cooperatives and protection in case of situations of vulnerability. On August 15, an audit will begin that will be carried out by the universities. Whoever does not comply with it will receive the suspension of the plan. In parallel, the liquidation will be cross-checked with the ANSES databases.”
Foreign Trade and Reserves
“We are going to promote through DNU regimes for the agribusiness, hydrocarbon and knowledge sectors.”
“We have detected situations of abuse by companies through triangulation mechanisms. We are going to open a registry for 60 days so that they rectify, if it was an error. After 60 days we are going to make the pertinent complaints in the Justice and in the United States Money Laundering Unit.”
“We put in place a traceability system for foreign trade. From the request to the release of the currency; there will be a term and date of authorization.”
“We have agreed on a scheme for the advancement of exports in fishing, agriculture, mining, which will enter a total of 5 billion dollars in the next 60 days.”
“We will have a disbursement of 5 billion dollars with international organizations.”
“Argentine Credit: we started a unification of the credit programs in a single line, which is called Argentine Credit, and which will unify all credit promotion policies for the productive sectors, SMEs and commerce, program for a total of $400 billion because we are convinced that Argentine work and growth must be sustained.”
“We are going to tender the second section of the NK gas pipeline with private financing.”
Debt in pesos
“We have launched an exchange for maturities in pesos that already had a 60% adherence commitment.”
The expectations of the arrival of Sergio Massa to the Ministry of Economy had been celebrated by the actors of the Argentine market, and were reflected in the significant fall of the parallel dollar in the first days after its announcement.
Various important actors were even present today at the swearing-in ceremony at Casa Rosada, such as the owner of Pampa Energía, Marcelo Mindlin; the owner of Walmart, Francisco De Narvaez; Edenor’s shareholder, Joseph Louis Manzanoand its partner in energy, Daniel Villa.
The new economy minister plans to travel to the United States, Qatar and France at the end of the month, where it is estimated that he will seek new financing for Argentina, in order to strengthen the Central Bank’s reserves.