The Chamber of Deputies gave this Tuesday half a sanction to the Base Law and in the votes referring to the chapters gave the green light the one who allows privatization of public companies. The articles that enable the sale of State companies obtained 138 votes in favor, 111 against and two abstentions.
Specifically in chapter 2 There are four public companies that could suffer a total privatization. These are Argentinian airlines, Enarsa, Radio and Televisión Argentina, and Intercharge. For your part There are five which may pass into private hands or be concessioned: Argentine Water and Sanitation (Aysa), Argentine Mail, Belgrano Cargas, Road Corridors and Railway Operating Company (Sofse).
Finally both in Nucleoelectrica Argentina Sociedad Anónima (NASA) and Rio Turbio Carboniferous Deposits (YCRT), Private capital may be incorporated, although they will maintain a majority of state participation.
Privatizations: which could be the first companies
“I think the first one is going to be Intercharge, It already has a first and last name and then it seems to me that the package will depend on some conditions, but AYSA, Road Corridors and Belgrano Cargasthese are businesses that some actors are going to want,” he told AmbitHernán Letcher, the director of the Center for Argentine Political Economy (CEPA).
For its part, for Rafael Floreseconomist specialized in financial administration of the public sector, “the Government is facing this, not from a point of view of prioritizing certain sectors, but with a fiscal perspective of obtaining resources“.
And he added that from La Libertad Avanza there is the idea that “the State does not have to carry out any activity that the private sector can carry out” and, he confided that, from that logic, “it seems to me that They are not going to do analysis on those companies that can improve their efficiency but “They are going to privatize everything that can be sold in a relatively short period of time.”
Privatizations: what is the situation of each company
One of the companies that could suffer a total privatization is Interchargethis company provides assistance to aircraft on the ground and provides services to the main airlines, both on domestic and international flights, in 20 airports in the country.
According to a CEPA report, Intercargo “was always profitable and did not need Current Transfers from the National State throughout its history with few exceptions”. During the Covid-19 crisis, it reduced air operations by around 94%. It had a positive result for fiscal year 2023 that amounted to $1.5 billion.
For its part, Road Corridors It is made up of a 51% share capital of the Ministry of Public Works of the Nation and 49% of the National Highway Directorate. The company’s objective is to make the construction, improvement, repair, expansion, promotion, remodeling, maintenance, administration, and provision of road corridors.
With 5,885 km under concession, Corredores Viales is responsible for 10 sections of the national road network. According to the report carried out by CEPA, this company is within the sector “whose role is strategic such as the nuclear, telecommunications and defense sectors. Its privatization would imply deregulations and loss of sovereignty“.
The same report revealed that 90% of the GDP point (0.9%) that represents the total deficit of public companies in 2023 was allocated to three items: energy, water and sewage, and trains. More than half was a single company (ENARSA: Energía Argentina SA, with 0.5% of GDP in Treasury transfers) that was responsible for the execution of subsidies and payments for the Néstor Kirchner Gasduct.
At the same time, ENARSA With AySA (Water and Sanitation Argentina) and to the railway companies (Belgrano Cargas, Ferrocarriles Argentinos SA, among the most relevant), they reach 86.9% of total transfers. “They are essential services that the State provides to improve the quality of life of the population and reduce energy, gas and transportation costs,” they expressed.
Privatizations: where the money from the sale of companies will go
For Rafael Floreswhere that flow of money is going to be allocated is a “very important” issue because it is about capital resources. “These are resources that are obtained only once and They should not be used to cover current expensesthat is to say, They should not be used to cover deficits“he explained.
For this expert, The Government should form a countercyclical fund or they should be used to generate some future stabilization policy. “However it seems that They are going to use those funds as extra income and that’s it because they don’t want to do public work either,” he added.
Lastly, for Hernan Letcherthe resources They are basically going to be allocated to a scheme similar to free currency competitiona scenario that approximates the Convertibility of the ’90s but without having a fixed exchange rate. “The privatizations with Menem had the same characteristic and were basically used to sustain the economic model,” he concluded.
Source: Ambito
