New products are joining the program, which will continue until the end of the year. Attempt to encourage consumption.
The new rate reduction ordered by the Central Bankwill also improve the conditions of the program “Simple Fee” promoted by the Ministry of Commerce. Starting this Friday, 9 and 12 installments are added with a nominal annual rate of 50% (40% is the BCRA reference rate multiplied by a coefficient of 1.25) and new items are also added, as confirmed Ambit.
To the 30 sectors that already make up the list, construction materials, electronic security and kits for satellite internet connection (Starlink), among others, are added. This initiative, which expired on May 31, will finally be sustained until the end of the year. The resolution will come out in the next few hours.
Simple Fee is a government program that allows consumers to finance fixed installments the purchase of certain products and services in participating businesses throughout the country, both online as well as in stores identified by the program graph, with all the Credit cards that the trade has. Includes a wide variety of items: from optical products to bookstore items, bicycles, footwear and leather goods, computers, mattresses, entertainment and clothing, among others.
The perspective is that the drop in interest rates and the return of the 12 installments will generate a strong increase in credit card operations. According to a recent report, the Credit card consumption continues to grow steadily and the most used financing option is the 6 installments, representing almost 90%.
“The use of debit cards for purchases continues to grow while cash withdrawals from businesses gain space over ATM withdrawals due to their accessibility,” Emiliano Porciani, Chief Business Officer of Payway, also commented in a recent report. .
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Argentina.gob.ar
The objective of improving consumption
The Government’s objective is to be able to boost consumption, which has been falling consecutively. According to data from Focus Market, mass consumption fell 20.4% year-on-year in April as a result of the persistent loss of purchasing power of employees, which had a negative impact on the volumes of retail purchases.
When compared to March, the decline in purchases was 17.1%. Meanwhile, the number of tickets fell 8.9% compared to the previous month and 11.2% compared to the previous year. Units per ticket fell 4.5% year-on-year to 4.2 units per ticket and 13.2% compared to March 2024 to 4 units per ticket.
“April has been a complex month for the pockets of Argentines. The increase in public service rates despite the slowdown in the rise in the price of goods leaves little surplus to maintain spending at constant values. “Volumes continue to decline with fewer tickets at points of sale and fewer purchase units per ticket,” he noted. Damián Di Pace, Focus Market director. In that context, Although the 50% rate is not ideal, it improves consumer financing and will decrease to the extent that the reference rate falls.
Source: Ambito
