October 25th, 2024
1. Caputo secured financing with the IDB Group and the World Bank Group
The Minister of Economy, Luis Caputo, traveled to Washington, D.C., with the goal of securing financing for Argentina. During his visit, he held meetings with authorities from the Inter-American Development Bank (IDB), the World Bank, and the International Finance Corporation (IFC). As a result of these agreements, the IDB will support the country with over US$2.4 billion for the public sector, aimed at strengthening social protection, improving primary education, optimizing fiscal management, and expanding access to essential energy services. IDB Invest will also promote financial support for the private sector over the next two years, with financing exceeding US$1.4 billion. Furthermore, the World Bank will provide Argentina with US$2 billion in the coming months, focusing on social protection, education, and assisting vulnerable sectors by making transportation and electricity tariffs more affordable. Lastly, in his meeting with the IFC, Diop confirmed to Caputo that they will allocate US$3 billion for the development of strategic sectors.
Argentina.gob.ar: Grupo Banco Mundial y el Grupo BID otorgan financiamiento por USD 8.800 millones para impulsar el desarrollo económico argentino
2. The government announced the dissolution of AFIP, which will be replaced by ARCA
This Monday, through Presidential Spokesman Manuel Adorni, the government made a series of announcements at a press conference. Among them was the dissolution of the Federal Administration of Public Revenues (AFIP), which will be replaced by the Agency of Collection and Customs Control (ARCA), an agency with a 45% reduction in higher authorities and a 31% reduction in lower levels, averaging a 34% elimination of the total structure. Likewise, the Hierarchical Account for senior officials will be eliminated, assimilating the salaries of the officials of this new agency to those of the members of the cabinet. The Directorate General of Taxes (DGI) and the Directorate General of Customs (DGA), formerly part of AFIP, will be under the authority of the Minister of Economy, Luis Caputo, while ARCA will be headed by Florencia Misarhi, who was already in charge of AFIP; the DGI will be headed by Andrés Gerardo Vázquez; while the DIGA will be headed by José Andrés Velis.
3. The government continues with deregulation measures and announced audits at ENACOM
Through AFIP’s General Resolution 5586/24, Circulars 701/99 and 799/2000, which required a national industry overseer to release a container in red channel when importing goods from that sector, were repealed. Also, through General Resolution 5587/24, the use of “reference values” for exports was eliminated. Presidential spokesman Manuel Adorni said that the General Audit Office of the Nation carried out an audit on ENACOM’s management regarding the funds of the Universal Service Trust Fund (FFSU), covering the period from 01/01/2019 to 08/31/2020. The audit revealed that Telecom and Telefónica owed more than $3 billion in contributions to the FFSU, with Telecom paying interest two years late. ENACOM was criticized for failing to intimidate the companies or adequately control, which will lead to the State reviewing telecom contracts and investigations by the National Commission for the Defense of Competition. In addition, ENACOM will repeal Resolution 1491/2020 and will adjust regulations to correct asymmetries between ICT and audiovisual services, in accordance with Decree 70/2023.
Ministerio de Economía: La AFIP agiliza el proceso del comercio exterior
4. The World Economic Forum held an event in Buenos Aires, concluding with a speech by Milei
The World Economic Forum (WEF) held an event on Wednesday, October 23rd at the Libertad Palace. It consisted of a series of meetings between key figures from both public and private sectors, aiming to attract new market players and more investments to the country. This event, dubbed “mini Davos,” was attended by government officials including Chief of Cabinet Guillermo Francos; Presidential Secretary General Karina Milei; Minister of Deregulation Federico Sturzenegger; Demian Reidel, head of presidential advisors to President Milei; secretaries Daniel González (Energy and Mining), Luis Lucero (Mining), Sergio Iraeta (Agriculture), and the Argentine ambassador to Washington, Gerardo Werthein. From the private sector, representatives from companies such as DHL, Salesforce, PepsiCo, Luma Group, Meta, Chevron, and Volkswagen were present. The event provided an opportunity for companies to make inquiries and receive firsthand information about political and economic matters, such as inflation, debt, relations with China, and the dollar. During his speech, the President reviewed his administration and celebrated his “radical reforms,” while also praising his ministers, such as Patricia Bullrich for “pacifying Rosario,” and Sturzenegger for “being like a bomb squad that deactivates scams.” He mentioned some phrases that are often present in his speeches, such as “in less than a year we have already achieved the lowest inflation in the last four years” and “we have made the biggest adjustment in human history and haven’t lost an ounce of social support.”
5. Government announces privatization of Belgrano Cargas railway line
Presidential spokesman Manuel Adorni announced that the government will privatize the Belgrano Cargas railway line. With this, a privatization process begins that will encompass, in its first phase, 59 companies currently under state control. According to Transportation Secretary Franco Mogetta, the reason for privatizing this company is that “[…] in 2023 it generated expenditures of US$112 million for the State, which we believe are needed for much more urgent purposes than managing an operation that, in more than 95% of cases across the continent, is in private hands.” Additionally, the head of the Public Companies Transformation Agency, Diego Chaher, explained that seven different concession processes will be implemented, namely: one concession for the track with toll collection rights, which will include the transfer of affected employees; two concessions for locomotives that will encourage competition and include their respective drivers; two concessions for railcars; and two concessions for workshops that will include associated employees.
Ámbito: El Gobierno explicó cómo será la privatización del Belgrano cargas y de trenes de pasajeros