The Minister of Economy, Sergio Massa, asked by letter to the president of the Central Bank, Miguel Angel Pesce, to repeal Communication "A" 7720 by which the bank restricted access to credits with subsidized rates to those producers who do not sell 95% of soybeans, or have operated in the soybean dollar I programs, II and agro dollar.
The incident can be considered a formal procedure, but strictly speaking it lays bare the fierce political internal within the Government, which is exacerbated in the midst of the discussion over electoral candidacies. Pesce is one of the officials of extreme confidence of President Alberto Fernández, and on this issue he has positioned himself with the most interventionist visions usual in Kirchnerism, which Massa in general has tried to unlock with an attitude more inclined to the market and particularly to agricultural operations.
In fact, in the request – which he extended to Ricardo Casal, legal and administrative secretary of the ministry – Massa sent a letter that he received this Tuesday from his Secretary of Agriculture, Juan José Bahillo, in which he argues about the convenience of repealing the measure, despite the initial objectives of boosting exports so that dollars enter.
In a 3-page internal document, Bahillo first defines the Central Bank's measure as "reasonably understandable and accurate," in order to "favor and encourage the entry of foreign currency from foreign currencies." He even says he understands that "the cost of bank financing" is made more expensive, so that the grains are sold and the objective of foreign exchange income is achieved.
But after the first three diplomatic paragraphs with Pesce's position – on which Massa has been against for weeks, without internal power to impose his criteria – Bahillo raises "differences about the success of the Circular."
The limitation that has been in force since last year applies to all banks operating in the country, and from different sectors of agribusiness have been warning that in the midst of the meager harvest is compromising all activity, for example in the agricultural machinery sector, and even putting at risk the chain of payments, as stated by different entities grouped in the Liaison Table.
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