By Patrick Archer – @InvestBA
The Argentina Investment Report for December 01, 2015
The Argentina Investment Report is a weekly snapshot of headlines regarding the country’s changing economic outlook; as well as the challenges, risks and opportunities awaiting foreign investors in Argentina.
“The First Signs of Confidence” – Clarín op-ed by Dante Sica, former national secretary of industry and mining, who says “generating confidence, that will be the first challenge for the new government. Today it is clear the fiscal, monetary and exchange policies will have to change profoundly, because the macro situation shows very deep and unsustainable disequilibrium.” (Source: Clarín)
“Argentina Will Receive US$35 Million Per Day In Portfolio Investment” – Argentina will receive at least US$10 million per day in direct and portfolio investment next year and US$25 million per day in 2017 from investors attracted by the neoliberal policies the president-elect is promising after 12 year of state intervention that caused many to flee. ‘We see a strong appetite for energy, agro, infrastructure and financial services, says economist Nicolás Bridger.'” (Source: Forbes Mexico)
“Caution Among Executives and Analysts for Changes the Macri Era Will Bring” – The view from across the river in Uruguay…”Moderate optimism…that is the sense and perspective of industrialists, exporters and local analysts over the changes they expect under the Mauricio Macri administration beginning December 10. The first priorities for the Macri administration will be reducing the fiscal deficit, controlling inflation, and the gradual liberation of foreign trade.” (Source: El Observador)
“Macri Will Push For A Whitening of Capital and Tax Amnesty” – “The future Treasury Minister, Alfonso Prat Gay, is already working on a whitening (blanqueo) project for pesos, dollars and undeclared assets, in addition to a new moratorium that would forgive penalties and unpaid interest, through a payment plan of 60 installments and a payment of 5% of the amount owed.” (Source: El Intransigente)
“Exclusive: See The Complete Text of the Whitening and Moratorium That Macri Will Push In The Coming Days” – “The first chapter refers to the 5-year (60-payment) plan with 1.5% monthly interest. The second part of the project consists of whitening in force through 2017. The cost for assets and foreign money that remain abroad will be 8% the first year and 10% the second year. In case of repatriation, they will be 5% and 7%, respectively. (Source: iProfesional)
“Retailer Falabella Is Open To New Investment In Argentina” – “The Chilean holding company has not opened a store in Argentina in five years, but that could change when new president Mauricio Macri takes office December 10. Argentina represents 7% of the company’s total revenue placing it in third place behind Chile (58%) and Peru (26%). The company’s 19 stores in Argentina account for US$785 million in annual revenue. (Source: Economia y Negocios)
“The Merval Index Opens With A 0.26% Drop” – The Merval Index of the Buenos Aires Stock Exchange opened today with a drop of 0.26% to 12,937.82. Among the biggest losers were BBVA Banco Francés (-3.27%), YPF (-1.50%), and Grupo Financiero Galicia (-1.48%). Today’s biggest winners so far include Aluar (+1.59%), Sociedad Comercial del Plata (+0.84%) and Pampa Energía (0.78%). (Source: Finanzas)
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