Taiwan News Online: Argentina stock drops after new controls
Taiwan News Online – Argentina’s Merval stock market index has recorded a decline after the Govt announced new economic controls.
This including a mandate that insurance companies sharply increase their investing inside Argentina.
President Cristina Fernandez is proposing that Congress put her government in charge of the currently self-regulated stock and commodities markets, and she decreed that insurance companies must invest up to 30 percent of their holdings in “productive activities” to improve Argentina’s infrastructure.
“This decree links the insurance industry with the development of the actual economy,” said the decree published Tuesday.
With her government redirecting resources toward “projects that have a clear productive and social purpose,” insurers will “encounter new possibilities of investment that that will feed a virtuous cycle of development with social inclusion,” it said. The decree, effective Wednesday, puts Deputy Economy Minister Axel Kiciloff and Commerce Secretary Guillermo Moreno in charge of a committee that will decide where the insurers can invest their holdings.
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Category: World News
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