The textile entrepreneur Marco Meloni considered that this level of rates is the “final hammer” for all manufacturing SMEs.
The strong rise in rates impacts the real economy. Entrepreneurs of the productive sector consulted by the scope assured that it affects consumption and production. They indicate greater damage among small and medium signatures that have more dependence on credit to maintain their activity. In all items they believe that the deadline that the government put until after the elections It is too long and a relief must arrive before October.
The government chose to validate rates that even triple the projected inflation for this year in order to keep the dollar at bay. As this did not reach, The Central Bank rose the lace at the highest level in more than thirty years and opened positions in the future dollar that are estimated at more than US $ 6,000 million. But this was not enough either, then the Secretary of Finance, Pablo Quirnoannounced that the treasure will intervene directly in the change market.
While flying monetary policy occur, chaos in rates are maintained, with increases that lead to a financing cost between 75% and 100% for small and medium enterprises. “Today we do not give anyone a loan, the one who comes to ask you or is molten and will not pay you or it is a scammer, because no one can accept rates of this type,” recognized the referent of a weight entity.
The rate level is the “final hammer”
In dialogue with Scope, The textile businessman Marco Meloni considered that this level of fees is the “final hammer” For all manufacturing SMEs. In that sense, he explained that not to “fire, suspend or directly close, you need financing.” On that point he said that it is impossible to imagine 85% rates with an inflation of 35%, because no one has 50% margins to bank them and their competitors are financed with ten times minor rates
“It does not only affect companies, but also individuals, so there is a decrease in production, but also in consumption, ”said the president of the General Business Confederation of the Argentine Republic Marcelo Fernández. In that line, he said: “There is a high load of interest rates in the final price of products, hopefully they will fall in the short term because it will be a serious problem, outside of all others that there is as the decrease in consumption, the use of installed capacity to only 50% and the facilitation of imports.”
On Tuesday, the president of the Province Bank, Juan Cuattromo, He said on radio with you that in recent days the consumption financing options were limited by the shops because the government “DECIDED ALL FINANCING CIRCUITS“And this” impacts a company that has to discount the check or that has to be financed with a current account advance, but also on the consumer. “
For him President of Adimra, Elio del Re“The rise in interest rates has a direct impact on production, because it makes financing more expensive and limits the capacity for investment and working capital” and “in a context where the industry already faces a complex situation, this increase deepens the difficulties, especially in smaller companies, which depend to a greater extent on the credit to sustain their activity.”
This September 2 was held as every year on industry day, and Argentine businessmen celebrated it with rates that reach up to 100% to take financing. The government promises that the monetary squeeze will end after the October elections. In the private sector they consider that this goal is “too far.”
Source: Ambito
