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The 12 installments are back from today: the renewal of the Simple Quota and the expected impact on consumption - Infobae
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Vuelven desde hoy las 12 cuotas: la renovación de Cuota simple y el impacto esperado en el consumo
El Gobierno habilitó la nueva etapa del programa hasta fin de año. La TNA será del 50% y son 35 rubros los habilitados para ofrecer esta financiación. ¿Conviene con tasas e inflación en baja?
www.infobae.com
May 17, 2024
The Government enabled the new stage of the program until the end of the year. The TNA will be 50% and there are 35 items authorized to offer this financing. Is it okay with low rates and inflation?
By Natalia Donato
The Government extended "Simple Quota" until December 31 and enabled up to 12 installments for 35 items
As Infobae announced this Thursday , the Government finally renewed the “Cuota Simple” consumer financing program until December 31 with 35 items –29 that already existed and another 6 new–, an annual nominal rate of 50% and the possibility that different businesses can offer 3, 6, 9 and 12 installments. The resolution was published this Friday in the Official Gazette, so it is already valid. This will translate, as the Government believes and the business owners themselves anticipate, in an expansion of the supply of financing for longer terms and, in many cases, businesses will make the effort to absorb the cost to offer the consumer payments “without interest” (same cash price as financed).
The Government had decided to extend the program for at least four months and also extend the financing terms at least for the items with higher prices, such as electronics and white goods, for example, but finally the decision was to extend it to all, since that there will be no more rate subsidies from the Central Bank (BCRA). In any case, although the contribution is purely private, the Ministry of Commerce maintained their interference so that the spirit of the program continues – which implies lower rates than those of the market – and favors the recovery of ailing consumption.
In fact, the annual nominal rate of 50% – 25% higher than the monetary policy rate, today 40% – is today low compared to others, such as that of personal loans, which are around 80%, or those of financing on cards, which range between 100 and 120 percent. The consumer might wonder if it is appropriate to borrow for 12 months at 50% today, in a context in which inflation is slowing sharply and rates are also falling at an accelerated pace. If the business absorbed that cost and offered the client the interest-free installments, there would be no risks for the buyer, but it would also be a good option if the consumer had to face the financial cost, since the program rate is still quite high. below others in the market, bank sources admitted.
The Government knows that 2024 is a recessive year and that the economy would only grow next year, but at the same time it is concerned about the collapse in sales that several sectors have suffered and believe that these types of plans could help the situation. At least it doesn't get worse. Even more so when there will no longer be a rate subsidy, which is what generates costs for the BCRA. Until now, the monetary body allowed financial entities to release 15% of the reserves and place them in repos, which gave them an additional improvement in the rate. But the entity led by Santiago Bausili had already been warning that it did not want to sustain the franchise, not only because it is not well regarded by the International Monetary Fund (IMF), but because it increases the remunerated liabilities, which the entity seeks to reduce as much as possible.
The clothing sector has been demanding 12 quotas to prevent sales from continuing to fall
From the different industrial and commercial sectors, the Government has been insistently complained about the extension of the program and the expansion of the quotas. In the case of the Argentine Chamber of Commerce (CAC), in a letter sent to the Secretary of Commerce, Pablo Lavigne , at the end of April, they stated that the extension of the plan “is relevant for the promotion of consumption and, through , national production and employment" and asked for more time for special dates, in order to "offer greater financing to consumers in a year where commerce faces a substantial drop in sales." “We consider that the notable slowdown in the national economy, thanks to the welcome fiscal and monetary order implemented by the National Government, makes this possibility viable,” the letter says.
One of the fears that the sectors had was that the Government would not agree to the longer terms, since if demand grew, this could hinder the process of reducing inflation. But the Ministry of Commerce considers that the idle capacity today is so important that there is no room to accelerate the price increase again. In this sense, the Clothing Chamber clarified that longer financing periods were necessary so that “the ship does not sink,” said a source in the sector.
One of the items that will be incorporated is construction materials, a sector that has been demanding greater financing due to the sharp drop it is registering, largely due to the halt in public works. Also tourism, which was permanently incorporated last week.
In turn, they may offer up to 12 installments, if they wish, in the following sectors: glasses and contact lenses, lighting fixtures, bookstore items, bookstore items, Bicycles, Footwear and leather goods, Mattresses, Computers, Notebooks and Tablets , Durable kitchen items, Medical equipment, Cultural shows and events, Clothing, and Musical instruments. Also Toys, Books, Appliances, Machinery and Tools, Motorcycles, Furniture, Tires, accessories and spare parts, Small Appliances, Perfumery, Educational services, Kit for home connection to water and sewage services, Sports preparation services, Repair services, Automotive vehicle and motorcycle repair shops, Cell phones with 4G and 5G technology, Televisions and monitors.
