The decree with which more than 300 regulations are modified or repealed, among them rental laws and supply laws, and the labor regime. “These reforms, of which I have only mentioned 30 of the more than 300 included, are some of those contemplated in the decree. The objective is to begin the path of reconstruction of the country,” Milei said on national television.
With this basis, the S&P Merval index gains 4.7% at 963,428.51 points. The main increases of up to 10% are led by Supervielle up to 13%, BBVA (7.7%), YPF (7.2%) and Grupo Financiero Galicia up to 7.1%. The only drop is recorded in Mirgor up to 0.9%.
ADRs
In this context, the Argentine papers listed on Wall Street They rose up to 11% thanks to Banco Supervielle, followed by Grupo Financiero Galicia (6.8%), BBVA (6.7%) and Banco Macro (6.7%).
The analysts of Adcap Financial Group They stated that “at first glance, we do not observe direct implications for the market that allow a rapid impact on prices. However, we see that the presidential decree shows a pro-market spirit, by reducing regulations and eliminating many restrictions that have been hindering Argentina’s growth.”
“However, the main concern lies in what the measure indicates about Milei’s style in relationship with institutions. Where would prices go if both Houses rejected it and its authority was somehow questioned? We don’t see that happening anytime soon. The first interpretation should be positive. However, since There are many sectors that will file complaints before the courts, The question about sustainability remains latent,” they added from Adcap.
“Now we will see the first strong test of the libertarian’s governability. Firstly, after the statement there were sectors that demonstrated against the DNU in the streets by banging pots and pans. It is not clear whether the expression of rejection was due to its content or to the fact that the laws and repeals have been passed by decree and not by Congress. Then, We will have to be attentive to the actions of Justicewhich has already stopped in the past – as it did in the Macri era – certain measures adopted by DNU,” he pointed out. Personal Investment Portfolio.
“Finally, the decree must be approved by Congress through the Permanent Bicameral (whose composition is the subject of debate), so it will once again be necessary to negotiate with the different parties that comprise it, with Peronism being the most opposition wing. Not less important, The DNU would be accompanied by the expected ‘Omnibus Law’, which will be another more complete package of reforms, and which must be approved by both Chambers. In this sense, the reaction to the decree will serve as a thermometer for what the law may be,” they pointed out from Personal Portfolio.
Source: Ambito
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