Axel Kicillof suggested promoting capital controls

Candidate for the post of governor of Buenos Aires, Axel Kicillof, has suggested restoring some sort of control over capital movements in order to stop what he considers to be an unstoppable leak of foreign currency.

"There is no need to go back to the exchange rate trap," he said, but pointed out that if what he called "capital flight" persists, we will have to think to a sort of control of capital outflows.

"In central countries, you are even asked for a dollar to sell you dollars, here everyone buys," said the current legislator.

"I do not need to go back to stocks, what I'm saying is that it's an obvious problem for Argentina, which is not Is not just the shortage of cyclical dollars, and that's part of the same phenomenon, the capital flight.We had a history of capital outflows, there are different ways to deal with the problem, but you can not to distract you unless you are part of the business.There is today an armed financial cycle for the stability of the dollar, which is the carry trade., which is bad news, how are we going to we celebrate that ?! "complains Kicillof.

The former minister added: "There is no intention to take steps to disrupt or hinder the life of the company, but you can not deny the problem because after the leak occurs the debt, which is even worse ".

And in La Plata, he simply proposed the nationalization of Edelap, the electricity distributor that powers one million users in the province. Last week, about 50,000 users, neighbors of Gran La Plata, suffered a power outage that lasted more than three days.

According to his statements, the problem of the power outage of almost a week in La Plata, which caused losses of nearly 1,000 million pesos, is determined by the "privatization and deregulation" of the electricity industry. old system in the hands of the state. And, according to his statement, the alleged deficit of provision for the formation of a "monopoly that controls the businessman Rogelio Pagano", which is close to the government of Mauricio Macri, has increased.

"We know that before, competition was limited, but now it is zero, it does not exist," Kicillof said.

In 2018, in the balance sheets presented to the CNV, EDELAP's operating profit was 1,211 million pesos, with all accounting effects reaching 1,576 million pesos. Investments were 955 million.

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