The economic cabinet confirmed the seventh stage of the Labour and Production Assistance (ATP) programme and its continuity for critical sectors through October wage payments, exempting employer contributions and credits at subsidized rates.
On Thursday, the economic team met again at the Palace of Finance, headed by Economy Minister Martín Guzmán, to discuss economic dynamics in the context of the pandemic, on-the-fly economic measures and fiscal situation, was officially reported after the meeting After the meeting ended, Guzman said that “the ATP has been and is a fundamental tool to reduce the impact on productive activity , sustain work and accompany companies in this harsh context.” We defined a new round to further protect the know-how of the economy and to have solid foundations that would lead to a better recovery horizon,” the minister announced in reference to the seventh edition of the programme designed to assist the sectors most affected by the pandemic.
The fiscal situation and public policies to boost productive activity were other axes of the meeting, officially communicated. Guzman said that “there is a fine corridor on which the fiscal path has to pass, and the 2021 Budget is the first step towards recovery, because it is the roadmap that sets the course of the economy.”
The meeting was attended by the Deputy Chief of Cabinet, Cecilia Todesca Bocco; Minister of Labour, Employment and Social Security, Claudio Moroni; the president of the BCRA, Miguel Pesce; the holder of the AFIP, Mercedes Marcó del Pont, and the Secretaries of Finance, Raúl Rigo and Economic Policy, Haroldo Montagu.Although the Government still has time to make changes to the parameters to be used in the new stage of the ATP, from the sixth round it was established that the net salary is equivalent to 83% of the gross remuneration accrued until August 2020. In addition, it was confirmed that the Supplementary Salary to be allocated as a benefit must be equivalent to 50% of the net salary, thus the result thus obtained may not be less than the sum equivalent to 1.25 minimum living and mobile wage ($21,093.75) or greater than the sum equivalent to two SMMs ($33,750).
For their part, firms that have a positive nominal variation in their turnover of between 0% and 40% will be able to apply for a subsidized rate credit, the interest rate of which will in all cases be 15%. This will be paid in 12-month installments and also has an incentive for enterprises as they will be able to convert some or all of the loans into State subsidies based on job creation, based on year-on-year employment parameters.
The process for accessing a subsidized fee credit – which is credited directly to the worker’s bank account – will be initiated through the AFIP website and the loans are finally managed before the bank selected by each company.
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