The price of food would increase up to 7% before announcements

While Finance Minister Nicolas Dujovne warned the United States yesterday that "the financial environment remains unstable" due to the high monthly inflation, meetings were held in Buenos Aires between national officials and men of the United States. To set the plan that will announce Wednesday President Mauricio Macri.

One of the central points of the plan is the agreement on prices (government officials avoid the word "freeze") of commodities in food, beverages and cleaning.

In this sense, it was known yesterday that the program would call "preferential prices", which will include 40 products of 12 items negotiated with the main companies in the food sector. The question here is what will be the increase in products before these prices are frozen, although employers estimate that it will be between 5% and 7%. The idea is that the plan lasts six months.

The call was a few companies but big. Several figures from the Argentine business community have pbaded through the Ministry of Production and Labor: Luis Pagani, Arcor's largest shareholder and representing a growing percentage of Mastellone; Luis Perez Companc, referent of the family that controls Molinos; Miguel Acevedo, of Aceitera General Deheza, and brother-in-law of its owner, Roberto Urquía, and owner of Union Industrial Argentina. There was also the CEO of Ledesma, Javier Goñi, representing the controllers, the Blaquier family, and he was also the number one in the country of Pepsico Alimentos, Martín Ribichich.

"The general climate was to go with it," said a spokeswoman for the portfolio.

Other measures

The package also includes a revival of ANSeS credits and official discount programs.

The credits will aim to reach a rate of 45% to 54% and to double the current ceilings, which today rise to $ 80,000 for the largest pensions and $ 6,500 for the beneficiaries of the universal allowance for children. Up to now, 64% of the credits are used for home repairs.

Added to this are the discounts on debit card payments granted by ANSE seeking to recompose the elimination of VAT refunds of 4%.

Although a moratorium has been excluded, AFIP will propose a new tax payment plan if the taxpayer's delay situation requires it.

Regarding tariffs, although there is no reduction or freeze, the government plans to flatten the electricity tariff, that is to say to distribute the payment of bills in several slices.

Governor Maria Eugenia Vidal is also preparing a provincial plan, with a return to discounts on purchases made with the Bank's cards from the province.

"Positive results"

"The reformulated economic program is producing positive results," Dujovne said in a written statement to the IMF's International Monetary and Financial Committee, released ahead of the meeting with David Lipton, the Fund's number two.

"Despite these achievements, the financial environment remains unstable, especially after monthly inflation, driven by inertia, some recovery in production margins, further standardization of public service tariffs and rising food prices, rose in January and February, although it remained below the high monthly rates of the second half of last year, "said Dujovne in a 13-page document, submitted on behalf of Argentina, Bolivia and Chile. , Paraguay, Peru and Uruguay.

IMF spokesmen said Lipton and Dujovne had "exchanged views" on the progress of the economic plan. Lipton reiterated its support for the measures taken by the government to achieve the goals of the plan and the "strong commitment of the authorities to better protect the most vulnerable by expanding and improving the social network of Argentina".

"The government was scared"

The former finance minister, Alfonso Prat Gay, said that the price agreement that the government was preparing to announce "looked like an emergency plan despite the elections" and has warned that "we can make announcements, but if it is not credible, it can halfway".

"The key is whether or not the company believes the promises of the government Since the end of 2017, the authorities have lost all credibility.It can announce, but if it is not credible, it may be half way" he said, although he welcomed "the government is opening its ears a little".

"It appears to be an emergency plan in the face of the elections, the government has been afraid of the elections and will be encouraged to do things it did not do before.The investigation of Durán Barba does not need to realize that the thing does not work, "he said. He added: "It is not wise to talk about a price deal and delay the announcement because we know the misdeeds of some who raise prices by doubts".