The exchange of public debt in pesos, a reinforced bonus for retirees, increases in electricity and gas rates and a meeting with the Liaison Table, will be the first moves that Sergio Massa will make next week at the head of the Ministry of Economy.
After the first week of appointments, assumption, announcements and the first contacts with his staff and with multilateral credit organizations, such as the International Monetary Fund (IMF) and the Inter-American Development Bank (IDB), Massa will start moving through the agenda . that last Wednesday was at the conference he gave at the Microcinema of the Palacio de Hacienda.
This Monday, the Ministry of Economy will repay $10,000 million to the Central Bank (BCRA) to reduce the debt it holds with the monetary authority.
“A path of cancellation that we will try to continue”, declared Massa at that point, who declared: “Basically, what we are going to do is not to ask for more money from the issue, to the Exchequer, the Central Bank to finance. We are going to tackle the resources we collect and the funding we can get from the private sector.”
So far this year, the BCRA has transferred approximately $950,000 million as temporary advances to the Treasury, although the Treasury has returned $322,449 million with some of the Special Drawing Rights (SDR) granted by the IMF.
With the agreement signed with the Fund, a maximum amount of temporary advances from the BCRA to the State Treasury was established equal to 1% of the GDP for 2022, a target that has been reached so far but will be exceeded, with the announced measure.
With great commitment and responsibility, together with the economic and productive team I assembled, we started this phase at the head of the Ministry @Economy_AR.
We face a huge challenge, but also a huge opportunity to fundamentally change the reality in which we live. pic.twitter.com/Q2XJhegf8l
– Sergio Massa (@SergioMassa) August 4, 2022
Debt exchange in pesos
Next Tuesday ends the exchange of debt securities in pesos that will expire in the next 90 days, which the minister launched last week, and which he emphasized to adhere to strongly in the first dialogues with debt holders in the private sector.
“We already have more than 60% compliance commitments”announced Massa last Wednesday, emphasizing: “I transmit this consideration so that those who speculated to redefine the debt understand that the population and investors should not be disturbed.”
The same Tuesday, the Minister will announce the levels of increases in gas, electricity and water rates that will govern in the different regions of the country, “because it will seek to respect the specificity of each region.”
According to sources from the Palacio de Hacienda, “the use of 400 kilowatts in the Federal Capital and Greater Buenos Aires is not the same as in the northeast of the country, where cooking is done with electricity.”
Too much anticipation that “Among the nine million more who asked to keep the subsidy, savings for consumption will be promoted”and detailed “that a subsidy of up to 400 kilowatts will be given in light, in terms of gas, the extraction will follow the same logic as in water, the implementation of the extraction through separation will begin in September.”
New bonus for pensioners
For Wednesday, a new bonus is expected to be announced to boost the income of pensioners, which will be announced when the Retirement Mobility Index is presented.
The bonus paid by the National Social Security Administration (ANSES) to pensioners will be implemented together with the increase in pensions planned for September.
On August 10, together with the head of Anses, Fernanda Raverta, “the retirement mobility index will be announced with a reinforcement that helps retirees overcome the damage caused by inflation,” explained Massa.
In the middle of last May, the agency announced the 15% increase for June-August which brought the minimum retirement amount to $37,524.96, and the Universal Child Allowance (AUH) and Pregnancy to $7,332.
Meetings with the productive sectors
On Thursday, the Minister will meet with ebusiness entities and workers “for the purpose of ensuring a mechanism that allows private sector workers to recover income, including improving family allowances.”
It will be a previous step to the meeting National Council for Employment, Productivity and the Living and Mobile Minimum Wageset for next August 18, where a new salary floor will be defined and the amount referred to unemployment will be updated.
Likewise, next week, although no date has been set yet, a meeting will be held with the Link Tableconfirmed by the Secretary of Agriculture, Juan José Bahillo, and in which Massa could also participate.
“We contacted the Liaison Table but also with other productive sectors. Next week we are going to set an agenda and we will certainly meet with all the productive sectors,” said Bahillo to Télam Radio.
From today, free registration has opened to request the continuation of gas and electricity subsidies.
— Energy Secretary (@Energia_Ar) August 1, 2022
Furthermore, it is expected that the “scheme of currency advance for exports with chains of fishing, agriculture, mining and other sectors, which will enter US $ 5,000 million dollars in the coming days”, as Massa announced on Wednesday.
Later, on August 15, a audit of social plans which the universities will do, within the framework of the reorganization defined by the Government.
Based on this information to be disclosed, Massa declared that “those who do not comply” with the requirements and commitments imposed by each program “will receive the suspension of the plan and at the same time, the liquidation with the Anses databases will be blocked.”
“Our idea of a country is that the plan is the emergency, and that the work is permanent”said the minister.
In the last week of August and the first week of September, a trip to the United States, France and Qatar is coming, where the head of the Palacio de Hacienda will speak to international credit organizations and investment banks.
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