CFK announces modifications in insurance companies' regime

President Cristina Fernández de Kirchner announced several modifications in the insurance companies' regulation system and stated that these changes will raise the funds destined to production and infrastructure projects from 88 to 7 billion pesos by May 31, 2013.

"This is about turning a new page on what has up until now been the major destination of insurance company funds," the president said in a televised speech, describing the measure as counter-cyclical.

During the nationwide televised speech held at the Government House, the Head of State affirmed that this modifications will allow a "funds shot in the productive activity."

Insurance companies will have to lend a portion of their portfolio funds -- between 5 percent and 30 percent depending on their liquidity needs -- to medium- and long-term production and infrastructure projects. Officials did not immediately provide further details about what types of projects would be included.

At the beginning of her speech, Fernández de Kirchner considered that "only those who don't pay taxes are the ones that should fear the AFIP, the rest should be calmed."

The president also said she would send a capital market reform bill to Congress to make it easier for ordinary Argentines to invest and give the country's CNV securities regulator new powers including more control over credit ratings agencies.

"We want to give the capital markets a new (regulatory) framework so they're more transparent, more accessible and more straight forward," she said, calling the ratings agencies a "massive international swindle."

Besides, she defended once more the currency policies applied in Argentina.

Before her speech, the Head of State received the Grandmothers of Plaza de Mayo a few days after the confirmation of the 107 grandchild found. Afterwards, she met with Mexican singer Luis Miguel at the Government House.