Argentina announces economic measures in favor of sectors hit by devaluation

Argentine Economy Minister Sergio Massa announced on Sunday a series of economic measures in an effort to alleviate the difficult situation facing the South American countrya few weeks after the presidential primaries that punished the government at the polls.

The also presidential candidate for the ruling party said that the measures are intended to “take care of Argentine families”, who have suffered the consequences of the devaluation of the currency, the drought and the lack of dollar reserves. They include benefits for retirees, SMEs, independent workers, employees, the agricultural sector and groups that “depend on State support programs,” he said. These are credits, benefits or tax reductions, among other measures.

Retirees, estimated at seven million people, will receive an increase of 37,000 Argentine pesos (approximately $105) in September, October and November, bringing the minimum pension to 124,000 ($354 dollars), he said. In addition, if they buy with a card, they will be refunded a VAT refund of up to 18,000 ($51) and credits will be offered at preferential rates. The objective for this group is to “continue caring for our retirees” who, according to Massa, also receive free medicines.

Independent workers will be exempted from paying taxes for six months and will be allowed access to credit, among other measures, he added. There will also be special credits for salaried workers at special rates so that they can pay off their debts and credits that now drown them, according to the minister.

The so-called “Food Card” for mothers will be reinforced, which will increase depending on the number of children, in order to take care of “access to food for the most vulnerable sectors,” said Massa.

In the agricultural sector, fertilizers will be financed for producers who are in sectors declared in “emergency” due to the drought and the planting process will be supported, Massa explained on social networks. In the case of flour, oil and soybeans, 25% of the currency will be provided to encourage job maintenance, also encouraging long-term job creation, she said.

In addition, the minister pointed out that 770 million dollars will be allocated in pre-financing for exports with the objective “so that the companies that sell Argentine work to the world have all the tools to continue increasing the volume and accumulating reserves,” concluded Massa, whose account of Instagram continued to publish measures throughout the day on Sunday.

The announcements come after several supermarkets and businesses in different locations were the target of violent looting in recent days in Argentina. The situation caused many businesses to close their shutters for fear of more group assaults.

The events occur in a context in which poverty affects almost 40% of the population and year-on-year inflation is 113.4%, according to the last measurement in July.

They also occur in a pre-electoral period marked by uncertainty about the outcome of the October 22 elections, in which Peronism is gambling for power and the far-right economist Javier Milei is emerging as the favorite.

The liberal leader, who prevailed at the polls in the primary elections on August 13 and burst into politics two years ago questioning the “privileges” of the traditional political class, brings together the vote of those dissatisfied with the social situation. He will have as main contenders the minister of Massa in the ruling party and the former Minister of Security, Patricia Bullrich, of the opposition force Together for Change.

(AP source)