Page 7 - MONTT LATIN AMERICAN MAGAZINE, MARCH, 2018, ENGLISH

Argentina: Agenda of Economic Laws,
2018 Several laws pending last year will be released in the coming weeks, such as
the Capital Market Law; the Labor Reform and the State De-bureaucratization. President Macri also announced new initiatives, among others, the Law on Telecommunications and T.I.
Much legislative activity waits this year the Argentine Congress, related to pending laws since 2017, and new provisions recently announced by the Executive. Among those norms already approved by the Chamber of Deputies and that require the final procedure in the Senate are: the Law of Productive Financing or Capital Market Law; the Law on Labour Laundering, which is nothing else than the Labour Reform project that was divided into several initiatives and the State De-Bureaucratization Law that suffered the same fate as the previous bill, that is, it was fragmented into three instances to facilitate its processing. Another new topic that Macri expects Congress to debate this year is the Law on Telecommunications and Information Technologies, known as the Convergent Law, a regulatory framework for telephone companies and television providers such as Cablevision and Grupo América.
“We need a standard that allows us to take advantage of the benefits of technology, improve competition and investments, lower prices and raise quality for users, guaranteeing the neutrality of networks and the plurality of content,” he said. The President added that “cooperatives, small, medium, large companies, both national and international”, should participate in the debate.
Capital Market
Regarding the Law on Productive Financing or Capital Market Reform, it had priority in 2017, but it was not dealt with after the exalted debate that the Pension and Tax Reforms had. The norm aims at the small and medium companies so they can access the Stock Market to be financed. The initiative seeks to facilitate access to credit for these organizations, incorporating mortgage bills, while creating an electronic credit invoice for them, of mandatory acceptance 30 days after issuance, as if it were a check.
One of the central points from the perspective of the private sector is the elimination of the power that since 2013 has the National Securities Commission (CNV) to designate an inspector with veto power in the directories of companies. Regarding the development of the mortgage market, the project introduces a series of tools to facilitate to obtain funds from the banks that grant the mortgages. On the
other hand, it eliminates fines as a source of income to avoid conflicts of interest, stipulating that resources must go to the National Treasury. The document also establishes taxes for capital gains in the purchase and sale of shares that do not have a public offering.
At the same time, it foresees tax advantages for the closed Mutual Funds and the elimination of obstacles for the issuance of Negotiable Obligations by the business directories.
Labour Reform
Regarding the Labour Reform, it was split into several initiatives. Labour Laundering was the first chapter of the project. The other two pillars of the original document are the system of training practices and internships and the creation of the National Health Technology Assessment Agency. The first chapter of “Labour Inclusion to Combat Unregistered Work” consists of facilitating the regularization of non- registered employees with tax exemptions, with the specification of a pardon or moratorium for social security debts. That is, without fines or penalties.
On the other hand, in the Chamber of Deputies, the project on State De-Bureaucratization has already begun to be discussed in the commissions on Small and Medium Business, Finance and General Legislation. There is already a schedule for the treatment, during the whole month of March, of the three items in which it was divided. The analysis will be by areas. One group will see the infrastructure chapters, which includes the rating of the mega cars with which the government seeks to weaken the power of the unions. Another concentrates the productive sector, which includes the creation of a guarantee fund to facilitate access to credit for Small and Medium Business. The third covers the more specific issues of simplification of procedures and contains the points most contested by the opposition: the seizure of salaries and the authorization to the National Social Security Administration to issue trusts and operate with certain instruments through the Sustainability Guarantee Fund.
However, the ruling party confirmed its willingness to advance in the search for consensus, and hopes to count on the votes of the opposition.
Montt Latin American Magazine p7