President Alberto Fernandez, Governor Axel Kicillof, Vice Governor Veronica Magario and numerous mayors of the conurbation silently supported the presidential decision to take away a point of national co-participation from the City of Buenos Aires to address local needs. It is a figure in the order of 35 billion pesos a year ($468.54 mn) according to the specialists' calculations.
The call to restructure debt under local legislation achieved acceptance of 98.8%, leaving some $460 million of titles without entering the same. The $460 million added to $653 million left out of the debt swap for securities issued under international legislation, and correspond to holders of Par bonds issued in the 2010 exchange and which are mostly held by small European bondholders. Adding both amounts, we arrive at the $1.11 billion that the government must seek if it wants to complete 100% of the debt, and get rid of any eventual legal problems both inside and outside the country.
Cervecería y Maltería Quilmes announced yesterday an investment plan in the country for more than 5 billion pesos ($66.93 mn) with which they plan to expand plants and manufacture new products. The initiative includes a new production line at Cervecería Quilmes; the local production for the first time of international brands such as Corona and Michelob Ultra; and the expansion of the Malt Plant in Tres Arroyos.
The Bank of the Province of Buenos Aires announced new lines of financing for agricultural producers. Seven billion pesos ($93.7 mn) will use to finance purchases made with the Procampo card in more than 300 establishments at a 0% rate. So far this year, more than 46 billion pesos ($615.79 mn) in loans have been granted to Buenos Aires' agribusinesses, almost half of all loans to businesses. The new financing package at a 0% rate is part of the "Province on the Move" Plan, which was announced a few days ago by the Buenos Aires government, where a commitment made to allocate another 35 billion pesos ($468.54 mn) also to the productive sector.
The investment of companies in Argentina -small, medium and large- in the payment of taxes is the highest in the whole region. Among the Mercosur nations, the total pressure on companies and individuals stands out the Argentine case; and to the national taxes, we must add the provincial and municipal rates. Argentine companies pay 106% tax on their profits and must pay taxes even with their initial investment. The weight of the Argentine state on the formal economy is one of the main problems when it comes to investment.
The province of Cordoba is one of the leading corn-producing districts at the national level, both in terms of volume of corn and income from it. Thus, the Mediterranean province contributed a third of the total harvest in the country for a gross value of more than $3 billion, amounts that although were below those obtained in the previous cycle, were above the average of the last five campaigns.