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Without margin, the Government gives up the fiscal chapter, Profits, withholdings and retirements to approve the omnibus law


Luis Caputo led a press conference this Friday, where he pointed to modifications in the package of measures that the Government presented in Deputies. The owner of the Ministry of Economywhich was in the news last week for its crosses with deputies and governors over the omnibus lawwill have his second meeting with the press so far this month in Pink House.

We are evaluating measures that imply greater adjustment for everyone“said the official and noted that the dollarization “is a goal of this government and it will be done when the conditions are given.”

Two contexts frame the press conference of Luis Caputowhich will reiterate the format that the past chose January 10together with the owner of the Central Bank, Santiago Bausili. One of the most resonant events is the resignation of Guillermo Ferraro from the Ministry of Infrastructurewhose dependence will be absorbed in part by the Ministry of Economy. The other important date that is coming up is the meeting of the IMF Executive Boardnext Wednesday, January 31, where he will seek to unlock a disbursement of US$4.7 billion.

The Minister of Economy analyzed that “Today we are clearly in better condition than a month agowhen we command the law” and argued that “the central bank has bought US$ 5,000 million; the inflation, even though it is very high, it has been lower than all private analysts expected and has slowed down in the last two weeks; We have managed to solve the problem of trade debt of importers“.

Luis Caputo confirmed changes in the omnibus bill

“As you know, these weeks we have been debating with governors, legislators and productive forces the Base Lawwhich has two well-differentiated chapters: a chapter of more than 500 articles that implies a structural change and regulatory in the country, which will lay the foundations so that the country can really develop and grow during the next 10 or 20 years,” Caputo introduced.

Subsequently, he referred to one of the most disputed issues of the omnibus law: “There’s a tax chapter that we had included in the law with the objective of reaching our commitment to society to balance our fiscal accounts and reach the zero deficit“. In this framework, the minister considered that “we have had a clear consensus of what we believe is the most important part of the law, which are these more than 500 articles that come to lay the foundations for growth and there has been a certain dissent, as everyone knows, in what is the economic chapter“.

He then assured that “we have listened to everyone and share a good part of those complaints,” but clarified that “what In no way do we want something that is necessary and urgent to be delayed due to this fiscal chapter.which is what we really want to show the world, because everyone is watching.” That is why Luis Caputo confirmed that “we have decided to withdraw the fiscal chapter of the Bases Law in order to facilitate and accelerate its approval.” “We are providing legislators and governors with the most important part of the law,” he added.

It is a decision that we have made by listening to the different economic actors.in order to facilitate and accelerate the approval of what we consider the structural and most important part of the law,” the minister concluded.

The IMF has a key meeting next Wednesday

After the agreement reached by the national authorities with the technical staff of the organization, on January 10, within the framework of the seventh review of the Extended Facilities Programthe approval of the Board of Directors is the last instance that remains for the country to obtain a disbursement of 4.7 billion dollars.

The expectation of Ministry of Economy is for the IMF Board to give its approval. In this regard, it is worth remembering that, after the understanding reached with the technicians, the organization released a statement stating that “the new administration is already applying a ambitious stabilization planbased on a strong initial fiscal consolidation, together with measures to reconstitute reserves, correct relative price imbalances, reinforce the Central Bank balance sheet and create a market economy based on clear and predictable rules. It also provides for increased social assistance to protect the most vulnerable.”

In that communication it was also stated that “The proposed disbursement is intended to support the determined economic efforts of the new authorities to restore macroeconomic stability and support Argentina to meet its balance of payments needs.”





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