03/03/2021 20:00
Clarín.com
Economy
Updated 03/03/2021 20:00
The presidents of dozens of companies gathered at the
Business Convergence Forum
began to distribute a letter asking the national government, governors, national deputies and senators, and mayors of the country's main cities to focus on generating something very concrete: rules of the game that allow local companies to operate in
a macroeconomic context similar to that observed in most countries in the region.
Specifically, the document, which was unanimously approved this Wednesday and will be released between today and tomorrow, demands that the political class get to work quickly so that Argentina has in the shortest possible time an
inflation
similar to that of the neighboring countries,
lower interest rates
to finance investment, and a strong
reduction in fiscal pressure
at all levels - national, provincial and municipal - so that local firms are in a position to compete as equals for flows investment companies.
The presidents of the main companies present in the country, as well as the heads of the various business chambers participate in the Forum.
Miguel Blanco is the coordinator.
As
Clarín
learned
, at the plenary meeting held this Wednesday, the CEOs participating in the Business Convergence Forum resolved to send a
letter to the entire political leadership
requesting the
same macroeconomic conditions as the rest of Latin America.
Sources that participated in said meeting warned that “the idea behind this document is very simple:
to create wealth and get out of poverty
,
private investment must be encouraged
, and for this, conditions similar to those found in companies operating in Mexico are needed. neighboring countries, because otherwise it is impossible ”.
The businessmen listed
the drama of inflation
that has long been installed in double digits in Argentina, when average inflation in the region is less than 5% per year.
The
tax burden,
both national, provincial and municipal was a central topic of discussion.
It was well taken into account that with the
breakdown of the fiscal pact,
many provinces are getting ready to raise the aliquots of the gross income tax.
And the infinity of municipal taxes that appear constantly throughout the country was also mentioned.
On the tax issue, a World Bank document was mentioned, where it is mentioned that Argentine companies leave in the treasury an amount similar to that obtained from profits,
when the average for the region is less than half that figure.
The
high country risk
was also pointed out
,
which at the current level - above 1,500 basis points - has become a practically insurmountable barrier to obtaining financing in international markets.
It is a variable that reflects
the failure of the debt swap
.
Today Argentine bonds are yielding close to 20% annually.
It is a rate that reflects the near certainty of the financial markets that Argentina will once again incur in the breach of its commitments.
The document
does not present specific proposals
to walk the path towards this desired macroeconomic context.
"We did not put them because it is the responsibility of the governments to solve this serious problem, although we will always be willing to participate in each call that they make us," they concluded
It is not the first statement in which the Forum expresses concern about the economic situation.
In September, the entity affirmed that since its creation it maintained “the importance of respect for private property, compliance with contracts and the stability of the rules of the game, to maintain and promote private investment and generate genuine employment in the formal sector. of the economy ”.
In this context, he underlined the "crucial importance" of the private sector in the current context, since the pandemic and mandatory quarantine "have had and will have significant economic impacts in the future, with bankruptcies and company closures and job losses. ”.
“The economic situation, the product of a long recession, with high fiscal deficits and the impossibility of obtaining new financing in the short term, despite the renegotiation of the external debt, makes the promotion of private investment imperative to help the reactivation of the economy".