Argentina: the government creates a fund from the windfall profits of the war in Ukraine

The Argentine government will set up in the coming weeks a fund to be financed by local groups which despite themselves have made significant profits due to the war in Ukraine.

(Illustrative image) © JUAN MABROMATA / AFP

Text by: RFI Follow

1 min

The Argentinian government will create a fund fed by the “unexpected profits” drawn from the war in Ukraine by certain sectors.

The objective is to cushion the inflationary shock for the most vulnerable population, and to avoid producing inequalities.

The government intends to introduce a bill on these “unexpected profits from the war in Ukraine”.

Advertisement

Read more

The Argentine government will set up in the coming weeks a fund to be financed by local groups which despite themselves have made significant profits due to the war in Ukraine.

It is likely that the grain sector is affected.

Typically, activity benefits from rising wheat and corn prices.

Argentina exports a lot of it, as does soybeans, a basic product for flour and oil, which accounts for almost 30% of its exports.

Galloping inflation accentuated by the war in Ukraine

A priori, only companies that have made annual net profits of more than 1 billion pesos, or 8.5 million dollars, will contribute to the fund.

But also those which last year recorded a significant increase in their profits will contribute to this.

On the other hand, those who have reinvested their profits in production will be partially exempt.

Plagued by chronic

of nearly 51%, one of the highest in the world, the country has pledged to the

to refinance its colossal debt of 45 billion dollars.

But with

, inflation soared again to more than 16% in the first quarter.

►

Newsletter

Receive all the international news directly in your mailbox

I subscribe

Follow all the international news by downloading the RFI application

google-play-badge_FR

• Argentina

• Economy

• Ukraine

• Social issues