At 1:00 am today, with the positive votes of 2/3 of the Argentine Senate, the much needed laws allowing Argentina to leave behind 15 years of a defaulted economy, were finally sanctioned.
President Macri obtained a huge victory, perhaps this one being the most important of his Presidency, he proved that even without a majority at the Congress he managed the consensus to pass these important laws that will change our current economic status.
When President Obama visited Argentina last week he repeatedly said that he was impressed by what has been achieved by President Macri in only 100 days in office, and promised investments of U$D 16.2 Bil., from US companies. With Argentina now open to International credit lines, President Macri will disclose a vast Economic plan aimed at modernizing our country with huge investments on the much required country’s infrastructure. Economists claim that this development plan will require massive investments that have already been earmarked by investors thanks to the fact that Argentina has suddenly become a shining star in a world with many countries with their economies in trouble.
With the ‘Default issue’ behind us and with the strong support from several Central countries like the USA, several countries in Europe and several in Asia, President Macri will open our country to foreign investments, we know that already the World Bank has committed funds, likewise with many private Multinational companies and by several countries like China and Russia who are showing a keen interest in investing in Argentina,
I read reports that indicate that the energy sector will be a priority, we know that two hydroelectric projects are already on the way, two nuclear plants have been recently contracted from China, several wind mill parks are also already under way and we must not forget investments in the Oil & Gas sector and our huge ‘Vaca Muerta’ shale oil reservoir being the second largest gas reservoir and fourth largest oil reservoir in the world with enough Oil and Gas for 400 years. There will also be big investments in improving the logistics sector, railroads, ports, highways and several others which we will learn more in detail when President Macri discloses his plan in the coming weeks.
Our Agriculture, the much punished sector by the previous Government has already reacted positively to President Macri support and recent measures, farmers have shown their support by planting large areas with soya, corn and wheat that is estimated to reach a record crop of 110.000 million tons mostly for export, thus helping to increase our weak Central Bank reserves.
Farmers are also investing in several other areas such as meat, fruits, fisheries, dairy, etc that will also improve our countries exports in the foodstuffs sector.
Our Finance minister today said that all what was done in these past 100 days together with the laws sanctioned this morning has positioned Argentina at the starting line of a interesting new era of growth and development. On April 14th Argentina will pay the outstanding debt of approx U$D 11,5 Bil., subsequently the ban for credits will be lifted so one can say that the Argentine race towards success will start on April 15th.
Although the future looks promising the current Government will still have a bumpy road ahead since the previous Government left behind several mine fields full of threats. President Macri biggest problem is to slow our rampant inflation, increase our Central Bank reserves, reduce a fiscal deficit of 7 percent, improve our current negative foreign trade balance and reduce the current huge subsidies in public services, however, this Administration is confident that by the beginning of the next semester many of these threats will begin to fade away.
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Daniel J. Robinson
Robinson Projects & Logistics | Robinson Group