Luis Caputo: “Investment is one of the most important elements of economic recovery”

Mr. Minister highlighted the role of financial inclusion in the reduction of poverty and in the development of the country’s competitiveness.


The Minister of Finance, Luis Caputo, gave a speech at the Foundation for Latin-American Economic Research (FIEL, for its acronym in Spanish) 2017 Annual Conference “Argentina: Challenges. What is the agenda to face them?” where he said that “fiscal targets will always be met”.

After the keynote address given by FIEL Director Juan Luis Bour, Mr. Minister said that “investment is one of the most important elements of economic recovery” and he anticipated that “this year we will grow 3% and in the third quarter we will be growing above the 4%”. In this sense, Caputo said that “the recovery is clearly being perceived by the people” and that “real salary has allowed consumption to be part of this growth “. “We are going through the best economic time of our Administration”, Caputo highlighted.

Regarding fiscal targets, the Minister of Finance said that “they will always be met” and that “we are going to achieve fiscal balance gradually”. “Meeting fiscal targets gives us credibility to achieve financing, investment and sustainable growth, Caputo added, and he highlighted that “we are generating investment in infrastructure and reducing the level of deficit”.

Regarding investment in infrastructure, Caputo said that we are “leveraging our resources and the resources of multilateral organizations such as the Inter-American Development Bank (IDB), the World Bank and the Development Bank of Latin America (CAF), and the private sector” to finance works for transportation, energy, social housing, sanitation, etc.

Likewise, Mr. Minister highlighted that the Government “is working in 59 investment projects under the Public-Private Partnership scheme for 26 billion dollars for the next three years and a half”. “We are going to invest 3.5 GDP points in infrastructure, which is approximately 50% of what we have invested this year”, he added.

During his speech, Caputo highlighted that “mortgage loans increased in August at a 40% rate monthly” and he forecasted that next year there will be “a mortgage credit boom”. In this sense, he said that in 2017, mortgage loans will amount approximately 50 billion pesos and in 2018, they would amount 10 billion per month.

In addition, the Minister of Finance said that “the Argentine financial system has a huge growing potential” and that “we have inherited the smallest capital market of the region”. “We hope Congress passes the Capital Market Bill after the elections”, Caputo added. Mr. Minister highlighted “the reforms that have favored the development of this market which is growing almost 40% annually” and he added: “We want to give SMEs financing options and the capital market is an essential tool. We want financing to reach citizens and SMEs”.

Finally, Caputo talked about financial inclusion and he explained that an improvement in this sense will enable the reduction of poverty and the development of competitiveness for enterprises. Financial inclusion will allow every sector of the society to access credit in transparent competitive conditions and it will guarantee Argentinians the savings capacity. “We want everyone to grow”, Caputo concluded.

Caputo highlights IDB commitment with Argentina evidenced by a USD 10-billion contribution to the Argentine Government

The multilateral organization increased the amount of its loans to the country for 2017 to USD 2.3 billion and USD 2.35 billion in 2018.


The Minister of Finance, Luis Caputo, together with the head of the Inter-American Development Bank (IDB), Luis Alberto Moreno, offered a press conference to give details about the loans signed during the morning for USD 1.28 billion. These credits include financing for technological innovation programs, citizen safety, early childhood, strengthening of the statistical capacity of the National Institute of Statistics and Censuses (INDEC, for its acronym in Spanish), transparency and integrity reforms, the improvement of General San Martin Railway and investment in water and sanitation services for the metropolitan area of the City of Buenos Aires.

By the end of 2017, the IDB will have approved USD 2.3 billion for technological innovation, citizen safety, education, transportation, water and sanitation services, institutional strengthening, transparency and financial security, urban development and regional integration projects such as the tunnels of Agua Negra (USD 130 million) and Cristo Redentor (USD 200 million). In addition, the IIC – which had already approved projects for USD 130 million – plans additional projects for USD 410 million.

The IDB has announced commitments for 2018 for an amount of USD 2.35 billion for the public sector (USD 2 billion correspond to Argentina’s annual quota and USD 300 million to resources for regional projects). In addition, the IIC has committed itself to USD 600 million.

Argentina, the IDB and the World Bank will create a Fund to Develop Infrastructure for a total amount of USD 900 million (USD 600 contributed by the IDB and USD 300 by the WB).

During the conference, given this afternoon at the Ministry’s building, Mr. Minister talked about the strategic support offered by the multilateral organization and he said: “It is a proof of the international community’s confidence in the reforms implemented in Argentina”. In this sense, Caputo highlighted the multilateral organization’s role in the regional growth agenda and in the development of infrastructure works in the country. At the end of the Government’s term, the IDB will have committed itself with around USD 10 billion of public and private resources. “We must recall that in December 2015, when President Macri took office, IDB commitment was of USD 6 billion. This number was broadly increased thanks to the confidence in this Administration”, the Minister of Finance highlighted.

Luis Alberto Moreno highlighted Argentina’s improvements in the consolidation of the economic growth and in the country’s efforts to improve the dynamics of its productive activity. “The reason why the IDB is strongly relying in Argentina is because the efforts to create confidence are evidenced in the economy and in how investors and the international financial community see the country today. Since President Macri took office, we have increased four times our activity in the country”, Moreno said.

Nowadays, the IDB has 62 projects in Argentina for a total amount of USD 10.1188 billion. The IIC has 18 projects in the country for a total amount of USD 550.3 million for the transportation, agro-business and financial entities sectors.

The signed Projects that will be financed by the IDB are the following:

Technological Innovation Program V: USD 100 million

Federal Security Program: USD 25 million

Support to the National Plan of Early Childhood and to the Universalization of Early Education Program: USD 200 million

Drinking Water and Sanitation for the Metropolitan area and the locations of the First, Second and Third section of Greater Buenos Aires Program: USD 305 million

Improvement of General San Martin Railway Project: USD 400 million

Strengthening of INDEC Statistical Capacity Program: USD 50 million

Support to Transparency and Integrity Reforms Program: USD 200 million

Caputo met with the Deputy Prime Minister of Singapore


The Minister of Finance, Luis Caputo, together with the Chief of Cabinet of the Ministry of Finance, Pablo Quirno, and the Secretary of Finance, Santiago Bausili, met this morning with Tharman Shanmugaratnam, Deputy Prime Minister and Coordinating Minister for Economic and Social Policies of Singapore.

At the meeting, they talked about Argentina as a potential destination for infrastructure investment, taking into account that Singapore invests almost every international reserve abroad.

The Assistant Managing Director, Der Jiun Joseph Chia; the Director of the Ministry of Finance, Chng Thien Alvin Lim; the Deputy Prime Minister’s Special Advisor, Zhang Yang Lim; the Senior Associate of the Ministry of Finance, Shan Ming Kenneth Kwan; and the Advisor Mei Chan Trina Chuang, attended the meeting representing Singapore.

The strong increase in mortgage loans is consolidated


Last August, 7.109 billion pesos were granted in mortgage loans, which constitutes a 38% more than July and 7 times more than August 2016, the Ministry of Finance reported.

The 84% of the credits was granted by the UVA modality (Acquisition Value Unit), value adjusted by inflation and it allows granting loans with installments similar to a rent. Loans have been granted by 17 public and private banks.

Since April, mortgage loans to individuals have grown at 50% per month.

In August, the 70% were granted by the three big public banks. Banco Nacion granted credits for 3.003 billion pesos, Banco Provincia granted 1.52 billion pesos and Banco Ciudad 559 million pesos.

In the first half of August, 3.321 billion pesos were granted and in the second half, that volume grew a 114% and reached 7.1 billion pesos.