March 1st, 2024
1. The Minister of Economy met with the IMF at the G20 Ministers Meeting
The Minister of Economy, Luis Caputo, participated this Wednesday in the G20 Ministers’ Meeting that is taking place in the city of Sao Paulo. Within this framework, he held a meeting with the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva. The official of the multilateral organization highlighted “the sustained efforts of the authorities to restore stability.” Caputo also met with U.S. Treasury Secretary Janet Yellen, who mentioned that “The Milei administration has inherited a steep stabilization task, but has already taken some important steps toward restoring fiscal sustainability, adjusting the exchange rate, and combating inflation. … There is no doubt that this has been and will continue to be a difficult economic transition period for the Argentine people. Protecting the most vulnerable during this transition will be a challenge, but is vitally important.”
Ámbito Financiero: Luis Caputo se reunió con Kristalina Georgieva
Ministerio de Economía: Luis Caputo participó en la Reunión de Ministros del G20 y se reunió con la Directora Gerente del FMI
2. Justice ruled in favor of Chubut and the Patagonian governors tried to lower the tone of the conflict
The Governor of the Province of Chubut is in conflict with the National Government after the claim for the withdrawal of co-participation funds from the province. The Justice determined this Tuesday that the debt must be refinanced and the withdrawal of funds must be suspended. In this way, Torres would have triumphed in this first conflict and would have set a precedent in the dispute between the governors and the National Executive Power. The document urges the parties to the case in detail “to arbitrate means tending to the cancellation and/or refinancing of the debt, under reasonable conditions, which do not entail the compromise of essential services of the provincial state.” In this context, some Patagonian governors – Alberto Weretilneck (Río Negro), Rolando Figueroa (Neuquén), Sergio Ziliotto (La Pampa) and Claudio Vidal (Santa Cruz) – gave a conference in the Senate, in which they lowered the tone of the conflict and invited the President to a regional meeting to be held March 7 in the city of Puerto Madryn.
3. The President will open the ordinary sessions of Congress
This Friday at 9:00 p.m., President Javier Milei will give a speech at the opening of the ordinary sessions of Congress. At the ceremony, the president will address deputies and senators in order to inaugurate the constitutionally established period of regular operation of the Legislative Power, which will end on November 30. The presidential spokesman, Manuel Adorni, said that the speech he will give will be focused on the following axes: the economic course and the results of the measures taken so far; denunciations for alleged irregularities; and a “surprise,” according to the spokesman. The inauguration takes place in a context of recent parliamentary activity, since the Government called for extraordinary sessions in the summer to deal with the “Omnibus Law” project, which ultimately did not prosper.
La Nación: Cuándo es el discurso de Javier Milei en la apertura de sesiones del Congreso
4. The President explained the reasons for the dollar’s continued fall
In the last few days, the “blue dollar” (non-official dollar) price dropped by AR$ 25 again (from AR$ 1070 to AR$ 1045). This price places it 17.59% above the official value, which is around AR$ 888.70, as reported by Banco Nación, and at the same time represents the lowest nominal value since the beginning of January. President Javier Milei explained the reason through his Twitter account: “The dollar, being a financial asset and therefore adjusting faster than goods, anticipates prices (not that it causes prices to rise). Using this analytical framework I propose to look at what is happening with monetary aggregates in nominal, real and GDP terms. If you don’t get the math wrong you will see the light at the end of the road and understand what makes the caste so nervous.” Although it does not mean that prices will go down, it could mean a stabilization in the rise of prices.
La Nación: Milei explicó por qué baja el dólar y aseguró que ve una luz al final del camino
5. Income Tax collection fell by 40%
The National Government will announce the tax collection of the Federal Administration of Public Revenues (AFIP) for the month of February, where a drop is expected, which is largely due to the reduction of Income Tax collection in February. Said tax fell 40% in real terms, due to the tax reform that was approved at the end of last year, according to the Ministry of Economy spreadsheets on federal tax co-participation remittances. The other tax that is a pillar of the national state’s revenues, which is also shared with the governors, is the Value Added Tax (VAT). Although there would have been an increase of approximately 3.5% in real terms, this increase would not have been enough to compensate for the loss of Profits.
Ámbito Financiero: La recaudación del Impuesto a las Ganancias cayó casi 40% en febrero