The construction sector took to the Government the idea of ​​a money laundering and a plan to reactivate the sector

Natalia Muscatelli

07/10/2020 - 21:19

• Clarín.com
• Economy
• Economy

With a diagnosis detailing the crisis that the sector is going through, the chambers that bring together construction entrepreneurs , presented the Government with a comprehensive program that seeks to reactivate private work , which weighs 70% within the industry nationwide .

One of the proposals contained in the joint work done between the Argentine Chamber of Construction (CAMARCO), the Chamber of Urban Entrepreneurs (CEDU), the Association of Housing Entrepreneurs (AEV) and the UOCRA union, is the implementation of a  “money laundering” to capture the necessary financing to start the works.

The idea is anchored in the high informality that exists in the economy and that is also seen in private works. For this reason, the work entitled “Re-Construction Plan of the economy through Private Construction” includes the possibility of laundering in pesos, free of charge, as long as the money is invested in a certain project.

​This will generate a decompression for the blue dollar. Because, whoever has dollars will have to sell it to contribute those pesos to the venture or trust, ”explained Ivan Szczech, president of the Construction Chamber.

The sector comes from two years of consecutive decline that accelerated from March. In April, it had a fall of 78.6% year-on-year, according to INDEC. In May it improved a little because in some provinces the works were reopened in the private sector. "But, the pandemic affected a lot of economic sectors that now do not have the capital to invest in private developments," according to the executive.

Therefore, another of the proposals raised by the so-called "construction table" is the promotion of a line of credit for individuals and companies that need leverage of at least one year so that private works can return to have - from investors - a guaranteed flow of funds.

Another of the legs of the comprehensive program proposed by the sector, seeks to shore up the workforce. The sector lost 80,000 jobs due to the pandemic and was already dragging the loss of another 70,000 jobs before the crisis due to the recession . In other words, a third of construction workers lost their jobs and today half of the workers, according to the agreement that the businessmen have with the UOCRA, are suspended, within the ambit of AMBA and the Great BsAs, charging 75% of the salary. They are measures that have a consensus of the entire sector.

The reactivation plan that the businessmen presented to President Alberto Fernández on Thursday and yesterday to the Minister of Production Matías Kulfas , and Gustavo Béliz , Secretary of Strategic Affairs of the Presidency, was well received by the officials.

The work  foresees three time horizons:

The first, from the third quarter of the year, proposes to move forward with works in progress using tickets and accessions to development trusts. Also, an "activation of the regime of the 2019 Budget Law, for homes with a value of less than 140,000 UVAs".

Then, from the fourth quarter , it proposes the "creation of a vehicle for investment in Construction with incentives to investors and families, with a positive tax effect, a boost to the Mortgage Credit in CVS (coefficient of wage variation) for the borrower, with a Fund Anti-cyclical compensation for eventual mismatches between CER and CVS.

And finally, the last stage, towards 2021,  the plan proposes the " externalization of pesos for the flow of investments in new works and construction, a Housing Law that encourages permanent investment in housing for sale, rent or leasing, for the middle sectors of the population. " And also, the incentive of mortgage loans implemented against the possession of real estate.