Loosen the dollar lock to attract large investments: why now

To consolidate the high flow of investments, andThe government again relaxed the shares It restricts access to the foreign exchange market for the exchange of foreign currency, which is one of the conditions in the plans of international actors.

The Executive Branch issued the order in the Official Gazette
Order 836/2021, Which modifies Investment promotion system for exports Established in April 2021.

Now, it is doubling the rate of exports produced Investments dlares US $ 500 million and up to US $ 1 billion can be transferred overseas. But at the same time, Reward for the biggest projects -More than $ 1 billion a year to avoid that turn, Allows you to triple the amount of free access to MULC.

The need to attract investment and currency has motivated the government to provide these benefits. Export growth.

According to central bank estimates, This year, it will export $ 74,000 million, A figure not far from 90,000 million US dollars, the transfer system must be balanced to avoid stress. They will benefit from good agricultural results, improvements in soybean and wheat prices and components of industrial products..

“Every time we are introduced We will not hesitate to improve foreign exchange earnings and ease restrictions on the manufacturing sector.“, They pray at the center.

The government is particularly keen on announcing investments in basic sectors such as mining Recent in Lithium And this Green hydrogen production. The entry of these currencies is often a bet to ease even the negotiations with the Exchange Front and the IMF.

Because above all, With economic recovery data of 10% per annum , Surpassing official estimates, they expect strong demand for imported goods, which, if not met by foreign exchange, will again create a barrier to exchange rates and prices.

The federal government estimates that the cost of imports on imported inputs (capital goods and raw materials) is already at record levels since 2011.

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Therefore, Order 836 234/2021 issued today formalized the Investment Promotion Regulation for Exports with a new link to Article 8. Investments over US $ 500,000,000, Applicants for the rule “may choose Access to extended benefit for each calendar“The April order this year is of no use to those originally established.

The original benefit was the model implemented by the government to increase investment in exports, “Beneficiaries Free up to 20% of the foreign exchange earned on exports related to the schemeBusiness or financial liabilities abroad and / or closed and audited reserves and / or non-citizens can be “used” to pay capital and interest on profits and dividends that repurchase direct investment.

Faced with this, now The Order 836 Wide visit For those who invest more than US $ 500 million and establish two different parameters: one Payment purchases of over US $ 500 million And another for beginners u $ s 1 billion.

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Benefits between US $ 500 million and US $ 1000 million

For the projects for which they are invested Between $ 500 million and $ 1 billion For each calendar year in which the original profit is not used, investors will receive From the continuum “Twice the free application rate than expected percentage” I mean, what happens 20% to 40%.

As the order states, “The benefit calculation will be done on Forex available through export The extended benefit is attached to the plan for the year in which it is used.

However, the size of the application is advantageous Annual maximum should not exceed 40% “The total amount of foreign currency actually deposited by the user Free exchange market (MULC) to fund the development of the project, at the time of their use “.

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Investments over US $ 1000 million

With regard to projects beyond investment plans u $ s 1 billion20% for each year the original benefit is not used, From the continuum “Freely applicable amount equal to three times the percentage” Originally planned, viz Going from 20% to 60%.

Again, the profit calculation will be done on the received currencies Exports linked to the project In the year in which the scheme is applicable, as per the first parameter, “the amount of independently applicable benefits should not be equal to the maximum for the year. 60% The total amount of foreign currency actually deposited by the user Free exchange market (MULC) to fund the development of the project, at the time of their use “.

Beneficiaries can access this program After the first coinage of the second calendar year With that you will start the project. Further, “the stated period may be calculated as a fraction of the unused period leading to the use of the extended benefit.”

Finally, Article 8 of Order 234/2021 states that if export charges are not used simultaneously as provided in Article 8, “Funds applicable freely must be deposited until their application. Overseas correspondent accounts and / or local accounts of local financial institutions Bank accounts in the foreign currency of local financial institutions and / or in foreign financial institutions are not linked to the countries or regions in which they are located. Recommendations of the International Financial Action Committee“.

In measurement readings, the government attaches it directly “Forex deficit”, The element of consideration “Structural Limit for Growth” National Economy.

Therefore, it was decided on the basis of “Expansion of Investment Promotion Rule” The economic and social crisis created by foreign exchange debt For the “priority” of the national economyReal investment And “upgrading production capabilities to make sustainable recovery possible, as mandated.

The move bears the signature of the President Alberto Fernandez And all his ministers in the Cabinet Agreement: Juan Louis Manzoor, Chief of Staff; Pedro’s Eduardo “Wado”; home Minister; Santiago Cafiro, Minister of Foreign Affairs; George Diana, Security holder; Morton Guzmn, Minister of Economy; Matas Gulfas, Production development and andrs Domnguez, Ministry of Agriculture.

Add more: Alexis Guerrero (Traffic), Gabriel Gadobotis (Public works), Morton Soria (Justice), Dear Fernandes (Security), Carla Vicotti (Health), Juan Jabaleta (Social development), Elizabeth Gmes Alcorda (Ministry of Women, Gender and Diversity), Jaime Persic (Education), Sad Boer (Culture), Daniel Films (Science and Technology), Claudio Moroni (Work), Juan Kapandi (Atmosphere), Modas Lammens (Travel and Sports) and Jorge Horacio Ferrarisi (Regional Development and Habitat).