From this Tuesday Simple Fee will have a Interest rate of 50% nominal annual, 4.17% effective monthlyin line with the recent cuts by the Central Bank of the Argentine Republic (BCRA) on its monetary policy rate.
The Secretary of Commerce led by Pablo Lavigne is working on the details of what will be the new stage of the consumption incentive program, which has Valid until 31 May and? will be relaunched from June.
The official intention is that the financing plan for the purchase of goods and services is extended until the end of the year, with new items and with the possibility of carrying out operations with more installments.
This occurs in the middle of the sharp drop in consumption which was recorded at the beginning of the year due to the generalized loss of purchasing power. The SME retail sales They fell 7.3% year-on-year in April and accumulated a drop of 18.4% in the first quarter, according to Came.
Simple fee will have a new rate
The Government will launch this Tuesday a new interest rate that will govern for Simple Fee. It will be 50% nominal annualequivalent to an effective annual 63.2% and a monthly rate of 4.17 percent, according to what the Government commented.
The fact is that the program has the financing cost tied to the BCRA reference rate. The entity decided a 10 point cut last weekfrom 60% to 50% annual nominal, the second in less than fifteen days.
The Resolution that launched Simple Fee, consumption incentive program that replaced the traditional Now 12contemplated its validity from February 1 to May 31, 2024. The scope is national, with availability every day of the week in both physical and virtual stores that are participating.
The intention is extend it for at least four monthsthat is, some 120 more days. Commerce and Industry officials, the BCRA, work in an articulated manner on the details, in conversation with companies and businesses.
Are the 12 installments back?
The financing of Simple Fee contemplated allowing only 3 and 6 installments because they were the most chosen by consumers during the Now 12. They represented 80% of the transactions.
Meanwhile, the Government is working with some areas for the possibility of offering 9 and 12 installments in items such as appliances, appliances, motorcycles. These products usually have nominally high values and the payments are very large if made in few installments.
New Items
From Commerce they told this medium that the inclusion of tourism in the program is Until the 7th of Maybut that in the new stage that begins in June will be incorporated. “It is likely that other items will be added”they added.
The items that already participate in the program are: Appliances, Clothing, Footwear and Leather Goods, Cell Phones with 4G technology, Furniture, Bicycles, Motorcycles, Educational Services, Mattresses, Books, Glasses and Contact Lenses, Bookstore Items, Toys and Games of Table, Technical Services of Electronics and Appliances for the Home, Tires, accessories, CNG gas vehicle conversion kit and spare parts for automobiles and motorcycles, Musical Instruments, Computers, Notebooks and Tablets, Lighting fixtures, Televisions and monitors, Perfumery , Small Appliances. Preparation services for sports, Medical Equipment, Machinery and Tools, Cultural Shows and Events, Durable kitchen items, Repair Services for Motor Vehicles and Motorcycles, Kit for home connection to public water and sewer services and tourism.
Fall in sales
The SME retail sales They fell 7.3% annually in April and accumulate a drop of 18.4% in the first four months of the year. Compared to March, they rose 1.6%, according to the Argentine Confederation of Medium Enterprises (Came).
The rebound with respect to march fall (12.6% year-on-year and 3.2% month-on-month) was related to the return of interest-free installments in some stores selling household appliances and construction materials, above all, which helped improve sales.
However, in April, six of the seven items registered year-on-year falls. The largest annual retraction was detected in Perfumeries (-23.3%) and the only increase was in Textile and clothing (+8.8%).
“Retail continues to feel the decreasing dynamics of consumer purchasing power, who have cut expenses in all areas. The only sector that emerged from this trend is clothing and textiles, favored for three reasons: proliferation of offers; due to the very low base of comparison, since the industry has been very weakened since the pandemic; and for the price slowdown in this particular area,” said Came.
