Argentina’s government has decided to place restrictions on the Assistance for Work and Production (ATP) program, one of the main instruments helping companies and workers during the Covid-19 lockdown and pandemic (c.f. article No. 11864). Profiling of businesses from April’s first round of ATP applications has enabled the identification of those benefiting from the program’s measures and these freshly added conditions (ban of dividends paiement or to invest in USD dollars via the stock market etc..) are intended to prevent capital flight at a time when Argentina is structurally short of USD are intended to counter the effects of windfall gains for large company and high salary earner beneficiaries.
Monthly salaries in excess of ARS 250,000 gross (€3,333) will be excluded from the ATP program, which covers up to 50% of net salaries for workers in companies that have had to stop or severely restrict their operations because of the Covid-19 lockdown. The scheme provides for a subsidy amount ranging from a minimum matching the minimum monthly wage of ARS 16,875 (€235 euros), to a maximum of twice that amount (ARS 33,750/€470). Initiated on 20 March the nationwide ‘quarantine’ is set to...
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