BUENOS AIRES (Reuters) – Argentina on Friday announced a package of tax and customs benefits for the oil and gas sector aimed at attracting dollars to the South American country, which is battling crippling inflation and a low level of foreign currency reserves.
The measures were announced on Thursday – after other incentives for the agribusiness and tourism sectors, also with the aim of attracting dollars – and were formalized on Friday by the country’s new Minister of Economy, Sergio Massa.
The measures will only benefit companies that invest at least 50 million dollars.
Argentine President Alberto Fernández has long sought to attract new investment to Argentina’s enormous “Vaca Muerta” shale formation, one of the most important in the world for obtaining unconventional hydrocarbons.
The development of the Vaca Muerta region could make Argentina a net exporter of oil and gas, bringing badly needed dollars to the economy.
Under Fernández, the country has imposed tight exchange controls that have failed to reduce inflation, which is expected to hit 90% this year.
(By Marcelo Rochabrun)
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