“Product of the consolidation of the financial surplus which was possible thanks to the efforts of the Argentines and the rigorous orthodox economic plan applied by Minister Caputo, The Government will lower withholdings to the countryside. The rate for the main crops will be reduced and withholdings for regional economies will be eliminated. “It is work that has been done especially since the last quarter of 2024,” said the presidential spokesperson.
For his part, the Minister of Economy Luis Caputowho had tweeted two days ago that it was not possible to lower withholdings, now gave in to agropower’s threats not to liquidate their crops and said: “There is a particular situation in the countryside as a result of the drought and the drop in commodity prices, Therefore, withholdings on the main crops such as soybeans, beans, oil, flour, wheat, barley, sorghum, corn and sunflower will be temporarily lowered from Monday until the end of June. permanently because we don’t have the resources.
He also added that “We are going to permanently eliminate withholdings from regional economies, another large outstanding debt. The President has always said that the countryside was a priority. These measures come to support these presidential promises.”
The aliquots of withholdings on beans soybeans will drop from 33% to 26%; those of soy derivatives will be reduced from 31% to 24.5%; in the case of wheat the drop will go from 12% to 9.5%; in barley from 12% to 9.5%; for sorghum it will be 12% to 9.5%; for corn from 12% to 9.5%; and in the case of sunflower it will go from 7% to 5.5%. This measure is however provisionaland will take effect from next Monday, January 27 until June 30.
Likewise, the Government eliminated withholdings on some products from regional economies such as sugar, cotton, wine, industrial forest and rice.
Apparently, for the national government there is a “financial surplus” and “yes there is money” to benefit the great economic power of the countryside, but “there is no money” when retirees, state workers, health or education come out to complain against the adjustment. It is estimated that the fiscal cost for the State is about US$800 million.
The rural employers and their most enthusiastic political spokespersons such as Pullaro and Llaryora achieve the reduction of withholdings. This measure will deepen the adjustment of Milei and its partners against retirees, with more layoffs of state workers, destruction of jobs in…
— Nicolas del Caño (@NicolasdelCano) January 23, 2025
The urgency for dollars is total
This Wednesday the first day of the IMF mission to Argentina took place, where local authorities requested a new loan with the organization, using as a token of exchange to continue with the strong adjustment on the working class and the attack on conquered rights. The versions speak of an additional loan of about US$11,000 million, although others also slip that indicate that it could reach US$20,000 million, tied to a disbursement schedule of US$5,000 million in four times conditioned on the evolution of exchange rate policy.
The announcement of a “provisional” reduction could indicate that negotiations would last several months, or that the expected disbursement, if an agreement is reached, would arrive after mid-year. But the rNet reserves of the Central Bank are in (very) negative territorybelow US$ 6.5 billion according to different estimates, and Caputo’s scheme to continue ironing the dollar and feeding the financial bike You just need dollars.
Likewise, in July of this year a similar amount of debt to that paid in January will mature again, for another US$ 2,901 million in capital and interest of US$ 1,800 million. In total, in 2025 the maturities of public and private debt in foreign currency amount to approximately US$21.5 billion and in the coming years this will be the average annual pace of capital and interest maturities.
The government presents the measure as a “promise fulfilled” with the countryside, with which it seeks at the same time to distort greater provincial will for the antidemocratic and regressive reforms that it seeks to pass in extraordinary sessions in Congress. But it would really be about one more example of the desperation to obtain greater foreign exchange settlement. According to the official communication, in addition, in order to access the reduction in withholdings, they must liquidate the dollars 15 days after submitting the “Affidavit of sale abroad.”
The agrarian employers cry, but They omit that Caputo’s megadevaluation of December 2024 improved its profitabilityas well as that they are benefited from the dollar blend which allows them to settle 20% in cash with liqui. It is estimated that in this way the government lost almost the same amount of foreign currency as it “gained” from foreign trade with the devaluation.
Source: www.laizquierdadiario.com
