He Government evaluates continuing with the closure of trust funds of the public sector and has its sights set on Procreate Plan, created in 2012 during the management of Cristina Kirchner to facilitate access to housing through State credits. Milei management has already closed funds linked to the education, the health, the agricultural activity, the protection of forests and the neighborhood development, inter alia.
“What to do with all the trust funds is being studied,” official sources informed the Noticias Argentinas agency this Thursday. He plan for the construction of houses currently has more than 17 thousand works in progress.
Procrear depends on the Ministry of Economy headed by Luis Caputo, and is under the administration of the Ministry of Territorial Development, Habitat and Housing.
Should the wallet you lead Caputo choose to delete the trust that manages the Procreate, The Executive would have to look for a compensation mechanism for the credits that have already been granted.
These funds are linked to resources that the State you grant to a certain entity to manage them on your behalf or that of a third party. Generally, these entities that collect and transfer these State resources are the Mortgage bank, he Argentine Development Bank (BICE) or the National Bank (BNA).
Javier Milei ordered to advance on the trust funds: which ones have already been closed
Javier Milei’s government has been carrying out a audit in relation to this type of funds and has already made progress in closing some. One of the first to be eliminated was Fund for the Fiscal Strengthening of the Province of Buenos Airescreated by the Government of Alberto Fernández for the strengthening of Buenos Aires with resources obtained from the review of the amounts granted to the City for the transfer of Security.
The same day too ordered to modify the COUNTRY Tax to reduce to a minimum the distribution that the Socio-Urban Integration Fund (FISU), the fiduciary tool used by the previous government for the urbanization of popular neighborhoods. He FISU, that before the modification received a third of the 30% collected by the tax, saw its financing reduced to a minimum since it will barely receive 1%.
He also deregistered from the Trust Fund for Universal Health Coverage (FFCUS). This was decided this Friday, through resolution Resolution 666/2024 published in the Official Gazette. It was established in 2016, during the government of Mauricio Macri, and its objective was “to finance actions aimed at reduce gaps in access to health services.
In that line, the Government also resolved to close a fund that was intended for the sheep activity in the country, for which about $3,000 million a year were handled. It is about the Trust Fund for the Recovery of Sheep Activity (FRAO)which for the Government operated “without any type of transparency.” Agricultural producers criticized the Government’s measure and defended the transparency of the system.
Another of the most recent cases was the announcement through the Official Gazette of the closure of the Social Capital Trust Fund (FONCAP)a state tool for finance microenterprises so that families with employment problems can develop their own productions.
On October 8, the Government moved forward with the closing of another trust fund, in this case, it finances the Progresar Scholarships. It did so through Decree 888/2024 published in the Official Gazette with the signatures of President Javier Milei, Chief of Staff Guillermo Francos and the Minister of Economy, Luis Caputo.
In the letter, they indicate that the Public Trust Fund created on January 28, 2022 called “Progresar Trust Fund” whose purpose was to finance lines of action aimed at complementing and enhancing the actions of the “Support Program for Argentine Students” (Progresar). According to the Government, this fund “was never operational, because the assets necessary for its operation had not been integrated.”
Created in 2022 It had a duration of 20 years counted from the date of its constitution through the execution of a trust contract. Upon expiration, the ownership of the trust assets will remain in the hands of the trustee”, which in this case was the Ministry of Education at that time, now the Ministry of Education.
On the same day, through Decree 888/2024 and with the signature of Javier Milei, the chief of staff Guillermo Francos and the minister of economy, Luis Caputo, two more were eliminated trust funds that target different sectors of society. It is the case of National Emergency Fundwhich had the objective of financing response actions in emergencies that affect the country, and the Native Forest Environmental Protection Fund (Phoforest).
Source: Ambito
