The new program that replaces Ahora 12 will come into effect in February and the financing plans will be three and six installments.

The Ministry of Economy formalized the launch of the new Cuota Simple consumption promotion program, which will replace Ahora 12 and will be launched on February 1.

Resolution 7/2024, published in the Official Gazette, established the launch of the new program through a modification to Joint Resolution 671/2014 and 267/2014 of the former ministries of Economy and Industry that, at that time, had launched Now 12.

The continuity of the consumption stimulus program – with a new name – responds to the “serious economic and social situation received by the current government”, which makes it necessary “to implement specific policies aimed at strengthening the economy”, the recitals point out.

This is the first time, since its launch in 2014 by the government of Cristina Kirchner, that the name of the program, maintained by the administrations of Mauricio Macri and Alberto Fernández, has been changed.

The form and type of financing; and key aspects such as the -subsidized- interest rate, will be determined in an upcoming regulatory resolution of the Ministry of Commerce, which will also decide the term of validity.

However, according to government sources told Télam last weekend, The financing plans will be three and six installments.

Regarding the rate, according to reports, the percentage discussed by the Ministry of Commerce, companies and banks is around 77% annual nominal.

Commerce will also be in charge of analyzing “the evolution and impact on productive sectors in order to decide inclusions or exclusions”, aiming at “growth and strengthening of the internal market.”

The regulations clarify that marketing through Cuota Simple is not subject to companies subscribing to other State programs.

“With the objective of promoting the simplification of trade and the effectiveness of the policy to be implemented, it is pertinent to expressly establish that the Simple Quota Program may not be subject to the regulatory guidelines of another program of the Ministry of Economy,” the recitals underline.

In June 2023, the previous national administration had established that companies that wanted to continue offering their products in Ahora 12 had to sign agreements through the Fair Prices program, which was discontinued by the current government.

Negotiations to launch the new program were launched at the beginning of the month by the Secretary of Commerce, Pablo Lavigne.

The head of CAME specified that the reference rate will be 85%

The president of the Argentine Confederation of Medium Enterprises (CAME), Alfredo González, specified this Wednesday that the reference rate of the Cuota Simple program, of 85%, is “quite acceptable”, after ensuring that it is the only national tool to finance sales at the country level.

"The installments of the new program will be three and six, while the reference rate is 85% of the fixed-term rate, which is currently 110% annually. This is the reference rate to work with, within the Argentine financial world it is a quite acceptable rate; it is not the best, but it is the only national tool available to finance sales in the country, as well as other tools at the provincial level," he stated in an interview with Urbana Play.

The Cuota Simple program will replace the Now 12 and will begin to take effect on February 1, with a nominal annual rate of around 85%, as anticipated by the entity.

Regarding the upcoming announcements for the sector, the president of CAME stated that they need more information about the program that will be implemented in the real economy.

“The economic contraction is a concern since 80% of the production of the SME sector is destined for domestic consumption,” he noted.

Regarding consumption and commerce in December, González pointed out that there is a significant contraction due to people's purchasing power, although some sectors, such as tourism that benefits from foreign tourism, are maintained.

In relation to the strike called by the CGT, González expressed that CAME's position “is the same as always.”

"While the right to strike is respected, CAME's position has always been to seek solutions through dialogue, both with the previous and current governments."

In this way, González expressed that, given the suspension of the Ahora 12 program, they are working with the government on alternatives such as the Cuota Simple program, “maintaining a proactive position and constant dialogue.”

Therefore, he stressed that although they are respectful, they also have their own needs and positioning.

Source: Télam