2023-12-16 23:51:00
The Minister of Economy, Luis Caputoand his Secretary of Commerce, Pablo Lavigne, they will have lunch It is Monday with the Executive Committee of the Argentine Industrial Unionheaded by its president, Daniel Funes from Rioja. The agenda of topics will focus on the commercial debt that companies have with international suppliersalthough the great concern of factories is the flow of inputs and goods that might paralyze production, due to the stoppage of deliveries due to lack of payments.
The invitation will be held at Buenos Aires headquarters of the UIA from 1:00 p.m.according to business sources consulted by PROFILE. “Let’s see what they tell us and what will happen with the commercial debt, since they do not ship us due to lack of payment. From there, too we want to have a schedule of how we will continue“, stated one of the members of the small factory table, who will participate in the conclave.
Debt with the IMF: Martín Guzmán criticized the financial system in a note with The New York Times
It will not be Caputo’s first meeting with the red circle, since it held at least two meetings with business chambers during last week’s closure. One of them was with directors who respond to the Board of Directors of the Argentine Chamber of Commerce and Services (CAC), where they talked regarding the state of imports. In addition to Lavigne, representatives of the Central Bank also participated there, as this media learned.
Caputo has his bond payment schedule
According to reports from the fifth floor of the Treasury Palace, Caputo carries with him a schedule for access to the Single Exchange Market (MULC) by tariff position, with date of settlement between 30 and 120 days. Also, a commercial debt recognition register will be opened starting this Monday and for one week. Still definitions regarding bonds are missing that will be offered to extend the term of the debt in stock.
Although it was established that the BCRA will issue debt to pay commercial debt in dollars, still bond alternatives are not defined for that unpaid balance. What is clear is that the primer Bond for the Reconstruction of a Free Argentina (BOPREAL) it will be longfor the last quarter of 2027, just when the re-election of La Libertad Avanza is defined.
The Liaison Table “agrees” with the adjustment but warns: “The sector has been putting in a lot of money”
From the meeting that took place on Thursday of last week, it emerged that the first bond financing will be allocated to SMEsbut it will not have none of the benefits that big companies claim to make bonuses tempting. That decision will be at the table of the industrialists, who will have their own contribution scheme, as other entities did last week.
“In parallel to the exchange sincerity, The BCRA announced that debt securities will be offered to voluntarily subscribe in pesos and payable in dollars (BOPREAL) directed to importers who register commercial debt. The measure aims to reschedule forward access to USD in the MULC associated with the cancellation of commercial credit accumulated mainly since 2022 (close to USD 30,000 M between goods and services), noted a report by the consulting firm Ecolatina.
Alert for the inflation effect in the collapse of sales
It will not be Caputo who puts the pricing issue among the diners, but the concern is in the industrialists. It happens that there is a dispersion of thoughts in the factory wing, because the products that had their prices trampled by the missing program Prices Care and even those who followed the path of permitted increases, They were unleashed and stood out strongly. Others decided to make corrections more gradually.
It happens that the collapse in sales put manufacturers of products that are not essential products on alert. While the food companies highlighted “without control”, the drinks had to be self-controlled. The agreement that emerged between the meat exporters of the ABC Consortium and the supermarkets, to sell barbecue cuts at low prices, is a reference for future operation. Although Secretary Lavigne reported it, the negotiations remained in private hands. In fact, A wave of promotions and discounts are expected for these holidays in big surfaces commercial, such as also in local businessesas far as he might know PROFILE.
Milei assured that the adjustment in the private sector is temporary and will end hyperinflation
What is the fear? May inflation and recession paralyze factoriesand the import of inputs is an anecdote. “We project an average monthly inflation of around 25% in December, January and Februarywhich will deteriorate the purchasing power of labor income. The fall in real wages in December 2023 might exceed the 9% contraction observed in April 2002”, warned a report from the consulting firm Equilibria.
1702771241
#UIA #demand #Government #urgent #solution #flow #imports
