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Keys to the Omnibus Law: from privatizations to public employment and the millionaire investment regime

2024-03-14T23:35:32.781Z

Highlights: The Government returns to the fray with a reduced version of the draft Law of Bases and Starting Points for the Freedom of Argentines. Privatizations and investments to obtain the dollars that allow opening the stocks or dollarizing, the central points. The project is an updated and reduced version. of the one that foundered in the Chamber of Deputies in February, despite its general approval by a majority. The Government seeks the green light to reassign functions, make state workers available, warn them, suspend them and fire them for various non-compliance.


The Government returns to the fray with a reduced version of the draft Law of Bases and Starting Points for the Freedom of Argentines. Privatizations and investments to obtain the dollars that allow opening the stocks or dollarizing, the central points.


Yesterday the Government sent the governors and legislators a new draft of the "

omnibus law

" project (Law of Bases and Starting Points for the Freedom of Argentines) that aspires to be approved before May 25, when it would be signed. the "May Pact".

The project is an updated and reduced version of the one that foundered in the Chamber of Deputies in February, despite its general approval by a majority.

And once again it has privatizations

as key

, which will give dollars to the Government to

get out of the stocks or even dollarize

the Argentine economy, in a movement similar to the one that Carlos Menem implemented in the '90s with Convertibility;

public

employment

;

and the

Large Investment Incentive Regime (RIGI)

, mainly.

The RIGI is one of the big bets for millions of dollars to arrive, especially in the

energy and mining

sectors , which expect long-term legal and fiscal stability, accelerated amortizations and, above all, the free availability of their currencies and their profits to be able to take them out of the country.

Regarding privatizations, the project would authorize the President of the Nation to sell all of

Aerolíneas Argentinas, Energía Argentina

(Enarsa, in charge of the gas pipelines and the Santa Cruz dams) and

Public TV

.

In addition, Agua y Saneamientos Argentina ( AySA

),

Correo

Argentino, Belgrano Cargas,

passenger

trains -Sociedad Operadora Ferroviaria, SOFSE-,

highways

and

the Río Turbio

Carboniferous Deposits (YRCT)

may be 100% privatized or concessioned .

Meanwhile, a limit is set so that private parties can buy only 49% and the national State maintains 51% of the shares in the

nuclear power plants

-Nucleoeléctrica Argentina, NASA-,

ARSAT

(satellite telecommunications) and

Banco Nación

and all its subsidiaries.

In relation to the first version, presented in December, the ports (AGP), Dioxitek -nuclear supplies for medicine and energy-, the aircraft factory (FADEA), INTA -agriculture- and

YPF

were left out of the proposal . among many other state and mixed companies.

Regarding the regime for large investments, the 65 articles of the previous project remain intact and 4 new ones are added.

"The latter explicitly shows the relevance that the Government gives, despite its liberal-libertarian narrative, to a regime of incentives and promotion. For this

there is money

or, at least, margin to stop charging it," he analyzed. the former Undersecretary of Hydrocarbons and head of the consulting firm Paspartú, Juan José Carbajales.

The projects accepted in the RIGI will be those that have an investment commitment of at least 200 million dollars and will enjoy a

25% income tax rate

and accelerated amortization, non-payment of check tax, tax exemption to imports, in addition to the fact that

they will have all the foreign exchange generated by exports 3 years after their accession

.

And regarding public employment, the Government seeks the green light to reassign functions, make state workers available, warn them, suspend them and fire them for various non-compliance.

Source: clarin

All business articles on 2024-03-14

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