ARGENTINA
Balancing Act
Argentina extended a price freeze for TV, internet and mobile services until the end of the year, in a move that could further complicate a deal with the International Monetary Fund, Bloomberg reported.
The freeze establishes that the items are “essential public services” and bars providers from raising prices without government approval.
The new measures come after the South American country reached an agreement with investors earlier this month to renegotiate $65 billion in debt following its ninth default.
Argentina is trying to win back confidence in the global markets, as its economy is facing its deepest contraction ever caused by nationwide lockdowns to curb the coronavirus pandemic.
Meanwhile, the decision marks the government’s latest measure to contain prices: President Alberto Fernandez’s administration has also banned layoffs, doubled severance pay and frozen prices on 2,000 consumer goods it deems essential.
His populist stance, however, contrasts with the recent comments by Economy Minister Martin Guzman, who hinted that the country may remove strict capital controls and would try to renegotiate its payments to the IMF.
No comments:
Post a Comment