Economy Minister Sergio Massa explained on Wednesday that the main guidelines of its management will be based on the fiscal order, the commercial surplus, the strengthening of reserves and development with inclusionas well as investment, production, exports and the defense of the internal market.
At a press conference at the Palacio de Hacienda almost two hours after being sworn in, Massa presented his main management guidelines that night, accompanied by his work team.
According to the new head of the economic portfolio, Argentina “has the opportunity to become a great world player” by highlighting its wealth in energy resources, minerals, proteins and knowledge, which “define the wealth of countries.” He also assured that “Our goal is to grow with inclusion and we came to work for that”.
After stating that in order to combat the “scourge” of inflation, “the greatest factory of poverty”, his management at the head of the portfolio will be governed by “principles and engines”, he explained that “among the principles are fiscal order, trade surplus, strengthening of reserves and development with inclusion; and, among the engines, investment, production, exports and the defense of the internal market“.
On the other hand, he announced that “the balance of advances from the Treasury will not be used for the rest of the year and on Monday a $10 billion refund will be made to the BCRA”; and affirmed that “the freezing of the State plant governs, but each jurisdiction will be responsible for the decentralized companies that will also be affected by the limitation.”
This transformation requires everyone, government and opposition, businessmen and workers, field and industry, social organizations and civil society.
All of us must think that we put in at this moment to help Argentina.– Sergio Massa (@SergioMassa) August 4, 2022
Likewise, he announced that the national government will launch a credit program at promotional rates and a guarantee scheme for leading exporters to “sell more Argentine work to the world.”
This mechanism will be accompanied by a traceability system for foreign trade, since “The idea is to have greater control and transparency in the use of foreign currency for imports”so that there is traceability of the request and delivery of foreign currency, with priority for importing resources for health and production, he explained.
According to Massa, they will promote the export financing and that those companies that through triangulation of imports appropriated foreign currency will be denounced before the Justice.
Many of these policies and measures may be liked more or less, but they contribute to building a better future. We are going to work under two axes: one linked to principles and the other linked to engines. pic.twitter.com/27PhW5nhLh
– Sergio Massa (@SergioMassa) August 4, 2022
“We want control and transparency on the use of foreign currency, from the authorization and until the release of foreign currency, there will be a deadline and authorization, with priority for the productive and health chains,” he said.
The new minister announced that in the process of strengthening reserves it was agreed “a scheme for the advancement of foreign exchange for exports with the chains of fishing, agriculture, mining and other sectors, which will enter US$ 5,000 million dollars in the coming days.”
Officials and leaders of the FdT expressed their good expectations after the assumption of Massa
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“In addition, we have agreed to disburse US$1.2 billion with international organizations for current programs, a new program for US$750 million with CAF, and we are evaluating four REPO offers to strengthen reserves and repurchase sovereign debt,” he affirmed, while revealing that he maintained this Wednesday a first working meeting with authorities of the International Monetary Fund “to continue with the planned disbursements“.
On the other hand, he announced the launch of a voluntary swap for debt maturities in pesos for the next 90 days, which will end on Tuesday, for which he assured that there are already “adherence commitments of more than 60%”.
The engines: investment, production, exports and defense of the internal market.
– Sergio Massa (@SergioMassa) August 4, 2022
“As a government we fulfill our commitments”affirmed the minister when referring to the next maturities in pesos, for which he considered it necessary to “clear up the uncertainty”.
Massa assured that he will meet the goal of 2.5% of the primary deficit and of the national public system, and affirmed that the main fronts to attack are inflation, loss of income, the lack of macroeconomic and fiscal stability and the problems “with those who work and produce face every day”.
Regarding the subsidies, he announced that “lThe 4 million who did not apply for subsidies will be the first cut” in the tariff segmentation.
This path will also have inclusion as a protagonist, which allows us to transform resources into wealth to overcome the pain that represents as a society, the poverty and indigence with which we live. pic.twitter.com/fHPJonxVoT
– Sergio Massa (@SergioMassa) August 4, 2022
In this sense, Massa indicated that “among the more than 9 million who did ask to continue with the subsidy, savings in consumption will be promoted”, and he explained that “in light, up to 400 kilowatts will be subsidized; in terms of gas, the removal will follow the same logic and in water, the application of the removal by segmentation will begin in September”.
Our goal is to grow with inclusion, and we came to work for that.
We pledge our word and we are going to honor with order, coordination and planning the task entrusted to us and entrusted to us by the president @alferdez. pic.twitter.com/zIZbsWkI7U– Sergio Massa (@SergioMassa) August 4, 2022
According to the minister, these are the first measures, but “not the last” of this week, since in the coming days they will “continue with more decisions, “understanding that there are several fronts to resolve in order to travel a path to a solution that It’s not magical or overnight.”
