The Limited Times

Now you can see non-English news...

Importers criticize that they use US$ 1,000 million to buy back debt while they are denied the dollars

2023-01-20T01:17:01.291Z


The obstacles to importing continue and the Central Bank already accumulates a debt of US$ 9,000 million.


The news that the Government will allocate

US$ 1,000 million

to repurchase bonds to improve the debt profile and this put importers on alert, who for several months have been struggling to unlock the entry of merchandise into the country.

The account that importers do is simple.

In recent months

, the Central Bank has accumulated a debt of US$9 billion with companies

seeking to import.

And despite the fact that the system was changed three months ago with the implementation of the SIRA, a new import permit, the entry of merchandise is still delayed.

Faced with complaints from importers, the Government assures that in many cases these are unfounded claims.

And that the companies have already withdrawn from the precautionary measures that they have been presenting before the courts.

"With the ups and downs of the shortage of foreign currency that our country presents, we have established a procedure between the Industrial Union and the Ministry of Economy and the Secretary of Commerce.

There are delays but the critical lists are finally unlocking

, "Daniel Funes told Clarín de Rioja, president of the UIA.

However, Funes de Rioja warned that "there are

still drawbacks for certain supplies and spare parts,

and also problems inherent to the value chain when there is no comprehensive approach to import needs. Also added is the 180-day payment period that suppliers from abroad continue to reject".

"Regarding the debt purchase issue,

its eventual impact is being analyzed

," Funes de Rioja said.

"However, the productive sector has anticipated import projections, which should also subject the government strategy to those already identified needs, to avoid production stoppages or supply problems."

Eduardo Espoille, from the Argentine Chamber of Elevator Manufacturers, said that despite the SIRA, the import situation "is much worse.

We are concerned that they are now using dollars to buy back debt

. The next three months will be critical for small businesses of the sector".

Espoille explained that "the SIRAs in a state of observation that have passed 90 days are cancelled.

The Secretary of Commerce freezes them and without notifying the importer anything.

This goes against what is established in the agreements to which Argentina adhered in the World Trade Organization".

In this context, he assured that "

workers from small manufacturing companies begin to be suspended in March

. There are subway escalators stopped due to lack of spare parts. And elevators in apartment buildings that are also stopped due to shortages of parts."

Change of priorities

"

Obviously, the debt must be reduced, but the priority must be another.

 Maintaining production and the generation of resources and jobs is more important than negotiating a debt. Because the only reason for this measure has been that,

to reduce the exchange rate gap "

said Gustavo de Boca, president of the Chamber of Metallurgical and Components Industrialists of Córdoba.

"Nothing has changed regarding the difficulties to obtain approval from SIRA and access to imports. The serious thing is that the start of activities after the holidays is imminent," said De Boca.

"Clearly

in the industrial groups there is talk that production is not being prioritized with these measures

," said Eduardo Borri, president of the Chamber of Agricultural Machinery Manufacturers.

Francisco Schang, manager of the Argentine Chamber of Animal Nutrition Companies (CAENA) explained that "for weeks we have been waiting for them to give us a sign of how we can import raw materials for production and nothing happened. Now they have not given us any help since Agriculture.

It seems that they do not measure the seriousness of this issue.

When the problem reaches the producer, there will be no solutions and that will generate less production, less exports and, due to the effect of supply and demand, higher prices."

"Our concern today is knowing how we are going to be able to import raw materials this year. I think that the type of measures announced has to do with

financial mechanisms that close off avenues for other types of businesses.

We need clear rules and a mechanism to operate normally," Schang remarked.


"The truth is that access to dollars to guarantee the import of raw materials and inputs essential for food production must also be a priority...", they added from one of the main companies in the country.

AQ

look also

The market doubts Massa's strategy: bonds and shares fall and country risk rebounds

More criticism of Massa's move with bonds: "They spend scarce dollars," said Rodríguez Larreta's chief economist

Source: clarin

All business articles on 2023-01-20

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.