July 25, 2014
Capitanich highlights provinces' debt reduction, auto negotiations with Brazil
Cabinet Chief Jorge Capitanich today highlighted the “drastic” reduction of the debt the provinces hold with the national administration as the government is expected to sign today a debt restructuring adjustment deal with 17 provinces. The agreement aims at fulfilling the new condition to review rates on a quarterly basis.
In his daily press conference at the Government House he emphasised the debt reductions of each jurisdiction and referred to the negotiations with Brazil to extend an automobile agreement which will end on June 30.
Economy Minister Axel Kicillof and Industry Minister Débora Giorgi are scheduled to travel to Brasilia tomorrow in a bid to swing the automobile trade balance in Argentina’s favour, with the sector accounting for the majority of a total US$3.15 billion trade deficit. With car production down 16 percent in Argentina and 8.4 percent in the first quarter of 2014 compared to the same three months last year, both parts are keen to extend the existing pact.
These joint actions, Capitanich added, “include missions abroad, particularly to Mexico, a country that used to be an important market for Argentina.”
After several business sectors requested to adjust their balance sheets to inflation indexes, Capitanich affirmed that “what is important is to sustain the macroeconomic policy and the price stability.”
He, furthermore, informed President Cristina Fernández de Kirchner will today unveil new financing instruments to boost the investment capacity, while the Congress will analyze on Wednesday a bill to promote employment and to fight informality.