The Argentine government announced on Monday the creation of a fund fed by the "
unexpected profits
" drawn from the war in Ukraine by certain sectors, such as the food industry, to cushion the inflationary shock for the most vulnerable.
"
We want to build a mechanism to ensure that the shock of war does not have a regressive effect on our society, producing inequalities
," said Economy Minister Martin Guzman from the presidency, alongside the head of the country. State, the Peronist (center left) Alberto Fernandez.
Read alsoArgentina: transporter strike paralyzes agricultural exports
“
In the weeks to come, we will convene the productive forces to work on the establishment of this mechanism
”, declared Martin Guzman, who intends to present a bill on these “
unexpected profits produced by war
” in the process.
.
The Minister did not name any sectors in particular, but the cereals sector (corn, wheat), whose prices are on the rise, is a major Argentinian exporter, and soybeans (flour and oil) represent nearly 30% of exports.
According to him, only companies with annual net profits of more than 1 billion pesos (8.5 million dollars) should contribute to the fund, i.e. a "
very small fraction of the country's business fabric
", from the order of 2.1% in 2021. Would also contribute only companies having recorded between 2021 and 2022 “
a significant increase in profits
”.
And would be partially exempt those who would have channeled these profits towards productive investment, underlined Martin Guzman.
“
There is urgency in the most lagging sectors of society
,” said Alberto Fernandez.
"
Those who have made windfall gains through war must contribute to ensure fairness
."
Inflation is racing
The government has set itself as a key objective for 2022 the control of chronic inflation, among the highest in the world (50.9% in 2021), an objective at the heart of its recent agreement with the International Monetary Fund on a refinancing of its colossal $45 billion debt.
But the global inflationary context, the impact of the war in Ukraine, are already undermining this objective, and the first three months of 2022 have seen inflation surge (+16.1%), demonstrations follow one another, and the government forced into measures to soften the price shock for less fortunate households.
Read alsoArgentina: thousands on the streets in the face of soaring inflation
After a recent 50% increase in the "
food card
" (a sort of voucher), he on Monday announced a one-time "
boost
" of 18,000 pesos (152 dollars) for informal workers and 12,000 (101 USD) to retirees.
Martin Guzman assured that these expenses remained within the nails of the agreement with the IMF.
“
Fiscal, monetary and international reserve targets are met
,” with a fiscal deficit of 0.25% in the first quarter, he said.
From 3% in 2021, the government has undertaken to reduce it to 2.5% in 2022, gradually towards equilibrium in 2025.