The Minister of Economy, Martín Guzmán, seeks that companies and provinces invest in public debt in pesos (Treasury bills and bonds), with a triple objective: to help finance the fiscal deficit, which in 2021 would have closed around 3% of the Gross Domestic Product (GDP).
-Reduce the monetary issue; last year assistance to the Treasury was almost $ 2 trillion and represented 72% of financing
-Reduce the stock of Liquidity Letters (Leliq) held by banks, which exceeded $ 2.2 trillion and now stands at $ 1.8 trillion
As El Cronista was able to reconstruct based on official and private sources, the official yesterday offered the entrepreneurs of multinationals and local firms to leave the excess pesos of their operations in public securities.
These instruments guarantee positive real returns of around 2-3% per year in local currency.
The challenge for the ruling party is to build confidence in the fixed rate and investors gradually abandon their propensity for inflation-linked securities (CER) and the dollar.
Representatives from Unilever (Great Britain), P&G, Coca-Cola (United States), Quilmes (with capitals from Belgium), Arcor, La Serenísima and Molinos Río de la Plata (Argentina) participated in the meeting on Tuesday with government officials.
The Government wants to talk with the parent companies to encourage large companies to participate in the development of the capital market in Argentina.
“The companies are full of pesos and need to invest them, but the parent companies do not finish enabling it and press for the turn of profits,” commented the sources.
The businessmen consulted by this newspaper showed interest in the matter but recognized that, above all, they require the endorsement of corporations in the countries of origin. The investment mechanism is not defined.
The Palacio de Hacienda also has in its portfolio to use all surplus balances from provinces and public entities for the same purpose.
Guzmán seeks, in this way, that the Treasury’s assistance returns in the form of “net” financing to record in the national accounts a reduction in the fiscal deficit and a reduction in dependence on monetary assistance from the Central Bank (BCRA).
The operation would be to convince the International Monetary Fund (IMF) that the public accounts are being ordered.
This proposal – which would reach the ears of provincial governors and ministers of Finance and Finance in the coming weeks – seeks to capture the consolidated primary surplus close to 0.9% of the Gross Domestic Product (GDP) that the jurisdictions would have, according to the consulting firm Equilibra.
Those almost $ 380,000 million are now deposited in banks, although some provinces invest them in instruments of immediate liquidity.
On the other hand, yesterday afternoon, the Minister of Economy, presented to the governors about the negotiations that the national government is carrying out with the International Monetary Fund (IMF), in a ceremony that was attended by President Alberto Fernández.
He pointed out that “it is very important that Argentina has a strong position, a position with broad support from the different political fronts in order to achieve the best conditions for our country.”
Reference-www.eleconomista.com.mx