Argentina Increases Margins for Credit Card Purchases and Advances in Checking Accounts to Boost Consumption and Investment

The announcement is expected to be made by the minister himself this Monday afternoon, under the scheme “Strengthening credit to the private sector and improvements in the regulatory framework.” “It is an important measure in this context because it is oriented in sustain consumption, increase investment and reduce the damage of drought”say ministry sources to Financial sphere.

As reported, the margins of purchases in credit card installments will be increased by 30%, and the margins of purchases with credit cards in one payment will be increased by 25%. In addition, the margins for advances in checking accounts for MiPymes will increase by 25%.

“More than 20 million Argentines will be able to buy 30% more. For every $10,000 pesos available in a payment, 3,000 more pesos are added; and if a family had 50,000 pesos of credit on their card, now they will have 65,000 pesos,” they added from the Treasury.

Now 12, relief for SMEs, reduction in import prices and rate hikes: Massa’s measures to combat inflation and control the dollar

On the other hand, cash withdrawals with debit cards in businesses were increased to $40,000, which previously was up to $30,000.

The new resolutions aim to sustain the level of consumption, and maintain the economic activity of small and medium-sized companies. The summary of the resolutions is as follows:

• Adjust the Central Bank rate to 97%.
• The BCRA will increase intervention in the foreign exchange market and will manage the pace of the crawl.
• Agreements with the International Monetary Fund, Swap China and guarantee via BRICS Brazil will be accelerated. In this regard, Minister Sergio Massa travels to Beijing on May 29.

In parallel, measures aimed at sustaining the level of activity were announced, consisting of:

• A new AFIP current debt payment plan of up to 84 installments.
• Tax relief for the moratorium on fees with the Badlar rate.
• Acceleration of the approval of permits for the importation of capital goods with SIRA to 360 days.
• The Trade Operations Analysis Unit is formed.
• Ordering of price makers and fiscal situation in the Central Market.
• Elimination of tariffs and generation of dumping and protection regulations to improve competitiveness.