Argentina: The main currency-generating sector was excluded from the new “Investment Promotion Regime for Exports"
Published 2021년 4월 7일
Tridge summary
Arguments:
1. The Argentine Ministry of Agriculture has been excluded from the 'Regime for the Promotion of Investment for Exports'.
2. The exclusion covers essential foreign exchange generators like wheat exports, conventional corn, soy products, and biodiesel.
3. The regime allows beneficiaries to use 20% of foreign exchange for foreign debt and profits, while the rest is subject to 'exchange withholdings'.
4. To benefit, projects in forestry-industrial, mining, hydrocarbon, manufacturing, and agro-industrial sectors must invest a minimum of $100 million.
5. Approved projects will enjoy regulatory stability for foreign exchange matters for up to 15 years.
The Argentine government has excluded the Ministry of Agriculture from the 'Regime for the Promotion of Investment for Exports', which will primarily benefit sectors such as forestry-industrial, mining, hydrocarbon, manufacturing, and agro-industrial industries. This exclusion covers essential foreign exchange generators like wheat exports, conventional corn, soy products, and biodiesel. The regime allows beneficiaries to use 20% of foreign exchange for foreign debt and profits, while the rest is subject to 'exchange withholdings'. To benefit, projects must invest a minimum of $100 million and will enjoy regulatory stability for foreign exchange matters for up to 15 years.
1. The Argentine Ministry of Agriculture has been excluded from the 'Regime for the Promotion of Investment for Exports'.
2. The exclusion covers essential foreign exchange generators like wheat exports, conventional corn, soy products, and biodiesel.
3. The regime allows beneficiaries to use 20% of foreign exchange for foreign debt and profits, while the rest is subject to 'exchange withholdings'.
4. To benefit, projects in forestry-industrial, mining, hydrocarbon, manufacturing, and agro-industrial sectors must invest a minimum of $100 million.
5. Approved projects will enjoy regulatory stability for foreign exchange matters for up to 15 years.
The Argentine government has excluded the Ministry of Agriculture from the 'Regime for the Promotion of Investment for Exports', which will primarily benefit sectors such as forestry-industrial, mining, hydrocarbon, manufacturing, and agro-industrial industries. This exclusion covers essential foreign exchange generators like wheat exports, conventional corn, soy products, and biodiesel. The regime allows beneficiaries to use 20% of foreign exchange for foreign debt and profits, while the rest is subject to 'exchange withholdings'. To benefit, projects must invest a minimum of $100 million and will enjoy regulatory stability for foreign exchange matters for up to 15 years.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.
Original content
The main currency-generating sector of the Argentine economy was excluded from the “Regime for the Promotion of Investment for Exports”. Bichos de Campo had announced last week that the Ministry of Agriculture had been left out of the new initiative, which will be managed by Ministers Matías Kulfas (Productive Development) and Martín Guzmán (Economy). Decree 234/2021 was published today, implementing the "promotion regime", in which it is expressly clarified that it does not include wheat exports; pellets, flour, gluten and wheat starch; conventional corn and pisingallo; corn flour, pellets, preparations, starch and oil; beans, flour, oil and soy proteins; biodiesel and glycerol. These items are precisely those that generate the bulk of the foreign exchange that enters the Argentine economy. The regime allows its beneficiaries to use 20% of the foreign exchange obtained from exports related to the new project to be used "to pay capital and interest on commercial or financial ...
Source: Bichos de campo
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