In that sense, one of the men closest to the future minister revealed to Ámbito that “there are already at least a dozen defined measures”. The idea is to announce one per day consecutively. The focus will be “building trust”. The need to anchor expectations appears as a consensus factor in the ruling coalition.
The dollars
The team that will take the reins of economic driving in the coming hours sees with particular concern the shortage of dollars. Part of the premise that the instability is based on the difficulty of the Central Bank to accumulate reserves. With that diagnosis, a series of initiatives to increase the level of exports, such as tax benefits for strategic sectors that can add value at source.
Given the delay of legislative projects that contemplate this spirit, some of the central points of laws that are currently awaiting their turn in Congress, such as the one on agribusiness, they could leave by decree. In this package, the reduction of employer contributions and the accelerated amortization of investments appear. Other items that could add foreign currency and for which schemes are being analyzed are energy, mining and the knowledge economy.
The formalization of the first steps will be done on Wednesday, the day on which the new minister will also take office. It is to be hoped that Massa not only has a magnifying glass on the dollars that come in, but also on those that go out. Sources close to the tigrense say, that he works in a more punctilious monitoring scheme on imports. Officials from his environment, such as the current head of Customs Guillermo Michel, have been taking steps to dismantle smuggling and overinvoicing maneuvers.
To this scheme, they will add a greater intervention of what until last week we knew as the Ministry of Productive Development. In these offices, the Non-Automatic Licenses, which represent around 30% of purchases abroad. In silence, the Government in recent weeks has been adding tariff positions to that list, which allows it greater room for maneuver to manage trade. They study adding more products to the control.
Financing
Government sources confirmed that during August the minister not yet appointed will carry out a US tour. Beyond the need to make its vision of the economy known, the mission is explore ways to strengthen funding. Yesterday, the Argentine ambassador in that country, Jorge Arguello, assured that “Massa is a well-known and recognized person in the United States, that will facilitate his landing and the possibility of adding financing.”
As Ámbito learned, one of the tools under study is to resume a Repo type line. It is a transfer of securities in cash that includes at the same time a reverse future operation in a certain term. In this regard, Javier Timerman, head of Ad Cap Financial Group, said that “these are feasible financial operations that should have been explored before.”
Stabilization plan
Massa’s diagnosis of the current situation is more pessimistic than that suggested by other members of the government coalition. For weeks he has been discussing with his economic advisers the need to carry out a “stabilization plan.” Consulted by this means, one of his closest collaborators, explained: “A stabilization plan is a rate hike, fiscal adjustment and devaluation”.
Two of these three variables seem to be on the move: last week the Central Bank and the Ministry of Economy validated effective annual rates of 80% and 90%, respectively, and earlier, during her short visit to the Treasury Palace, Silvina Batakis slowed down the execution of the Ministries and anticipated to the governors that there would be cuts on discretionary transfers to the provinces.
Part of the task is already done. In any case, the diagnoses that are made from the stalls usually differ from those that are made once inside the Cabinet, red-handed. the last point, devaluation, it seems more difficult to comply. President Alberto Fernández said over and over again that all the measures taken in recent weeks were aimed at avoiding a sudden jump in the official exchange rate. Not to mention that a new rise in the dollar could imply political wear and tear for anyone with electoral ambitions.
Source: Ambito
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