MercoPress. South Atlantic News Agency

Massa announces measures for the poorest leading up to the elections

Massa will meet with Brazilian President Lula to deepen bilateral trade

Argentina's Economy Minister and presidential candidate on behalf of the Ruling Unión por la Patria (UP) Sunday announced a series of measures towards improving the people's situation through the current crisis ahead of the Oct. 22 elections.

Among the announcements were a lump sum of AR$ 60,000 (around US$ 82 at the unofficial “black market” rate also known as “blue”) to the 5.5 million registered workers nationwide, bonuses to retirees, and other benefits for the agricultural sector and the self-employed, in addition to more convenient conditions for bank loans.

Massa's initiatives seek to counterbalance the effects of the Aug. 14 22% devaluation, just the day after the Mandatory, Simultaneous, Open, and Primary PASO elections from which Libertarian Congressman Javier Milei emerged as the main contender for Casa Rosada as of Dec. 10.

The AR$ 60,000 will be paid in two monthly installments and on account of further collective bargaining agreements to workers with monthly net salaries of up to AR$ 400,000. Massa also said purchases with a debit card will entail a VAT refund. He also announced specific advantages and tax reductions for the self-employed.

The minister also said there would be no export taxation for regional products with an industrial added value such as wine, must, rice, tobacco, forestry, and citrus peel, among other measures.

Massa left Sunday evening for Brazil to discuss with his colleague Fernando Haddad and with President Luiz Inácio Lula da Silva the use of Chinese yuan for bilateral trade and thus cut down the demand for US dollars.

The meeting will take place a few days after the disbursement of US$ 7.5 billion by the International Monetary Fund (IMF) and Argentina's entry into the BRICS bloc (Brazil, Russia, India, China, and South Africa), where Lula's support was key.

Massa will also broker a credit line from the Bank of Brazil and future financing from the Brazilian Development Bank (BNDES) for bilateral trade, it was reported in Buenos Aires. Joining Massa's entourage will be Industry Secretary José Ignacio de Mendiguren and Argentina's Ambassador to Brazil, Daniel Scioli, among others.

The presidential hopeful will discuss the opening of agricultural markets and the bidding for another section of the President Néstor Kirchner Gas Pipeline, in addition to signing a strategic agreement for maritime and river transport.

Argentina's economic team knows that if bilateral trade is carried out in yuan, it will be easier to keep up with the flow of Brazilian inputs demanded by the domestic industry, it was explained.