The city of Buenos Aires has just launched a comprehensive green plan to reverse the adverse effects of climate change and its impact, in line with the axes required by the Paris Agreement, to which Argentina signed up in 2016. It is working to reduce emissions of the leading greenhouse gases (GEis), which account for 13.1 million tonnes of CO2 according to the latest official measurements. It focuses on three key sectors with high participation in emissions: responsible energy of 58%, transport of 28% and residues of 14%. The initiative will seek to make the city carbon neutral by 2050
The national government presented on Thursday the guidelines to increase gas production during the next four years. It has as its central pillar a 4-year competitive auction scheme for onshore development. For off-shore projects, an eight-year term will apply to amortize costs. It aims to secure fixed blocks of 70 million cubic meters per day (MMm3/d) for production companies for 365 days until 2024. It plans to authorize export volumes of up to 11 MMm3/d during the summer season. By promoting local production, the desired effect is to achieve a reduction in imports of Liquefied Natural Gas (LNG) and liquid fuels, to enable a reduction in the cost of the service.
The Federal Administration of Public Revenues (AFIP) today tightened its control over the assets of Argentines abroad, through a series of changes in criteria on personal property tax. In December 2019, it established that assets abroad should pay taxes at a rate of 2.25%. The rule indicated that it should be paid by those who had tax domicile in Argentina. Now, the AFIP established a series of modifications so that eventually the loss of residence in Argentina would not be argued by processing only the cancellation of the tax domicile.
President Alberto Fernández announced that the government will move to nationalise bankrupt agricultural giant Vicentin. The president said that the government would step in and run the firm for the next 60 days while congressional approval for the move is sought, with agricultural economist Gabriel Delgado serving as trustee.
The Government provided for controls on international transactions between companies in the same economic group because the loss of tax revenue as a result of harmful tax planning techniques amounts to 4.4% of GDP. The regulations require economic groups with annual incomes over 2 billion pesos ($29.54 mn) to submit “Master Reports”, with information on strategic planning for the financial group as a whole.
The Argentine government is considering the creation of a tax on “large fortunes”, after collection has fallen by almost 29% due to the emergency situation decreed in the country to try to stop the advance of the Coronavirus.
The International Monetary Fund will send another mission to Buenos Aires on Monday to continue debt strategy talks and discuss “next steps,” an IMF spokesman said on Thursday, as Argentina seeks to renegotiate its $57 billion financing package. Julie Kozack, the IMF deputy director for the Western Hemisphere, and Luis Cubeddu, head of the IMF’s mission in Argentina, will lead the team. In their previous visit just over a week ago they said Argentina’s sovereign debt was “unsustainable”.
From March 1, payments to electricity generators in the “spot” modality will be reduced to almost half and they will be in pesos, the same currency to be used for the binational hydroelectric plants rather than dollar, according to the resolution of the Secretariat of Energy published today in the Official Gazette. With this so-called ‘pesification’ step, the government expects to save $300 million per year and “regulate the tariff restructuring of the energy system with a distributive, equity, and productive sustainability criteria”, says the resolution.
The Ministry of Economy on Wednesday issued Treasury letters and bonds in local currency maturing in 2020 and 2021 worth AR $9.22 billion ($148.5 million). Of that amount, AR$2.36 billion correspond to Lebad bills maturing on August 28, and another AR$6.87 billion to a swap of the dual bond AF20 for another ones in pesos with Badlar rate plus 100 basis points. Argentina has already swapped 18% of the AF20 which was due on February 13 whose capital payout was postponed to Sept. 30.
U.S. soybean futures on Wednesday extended a rebound from a sharp drop earlier this week after the Argentine Ministry of Agriculture suspended the registration of agricultural exports until further notice. The movement was seen as foreshadowing a jump from 30% to 33% in grain export tariffs that Alberto Fernández’s government might announce this weekend, thus shifting exports to the United States.