The Now 12 plan is being replaced by the Cuota Simple (NA) program in an effort to boost consumption during the economic crisis in Argentina. The new program, which will take effect next week, aims to stimulate demand for goods and services by providing financing options for consumers. The Ministry of Economy announced the creation of the “Program to Promote Consumption and Production of Goods and Services, called ‘Simple Quota’ through Resolution 7/2024, published in the Official Gazette. The Ministry of Commerce will determine the forms and types of financing, and will analyze the impact on the productive sectors to make decisions about inclusions or exclusions.
Despite being announced recently, the program will come into force on February 1. The decision to implement the program was justified by the current government’s recognition of the serious economic and social situation in Argentina. The goal is to strengthen the economy by stimulating consumption and production of goods and services through financing mechanisms.
The “financing facilities” established in the Simple Fee program will be granted through public or private entities and will cover up to 100% of the final price. The new system will offer financing in 3 and 6 installments, with an interest rate expected to be 93.5% nominal annual, equivalent to 85% of the reference for fixed terms by the Central Bank of the Argentine Republic (BCRA).
There are 34 confirmed items that can be purchased through the Simple Quota program, including clothing, appliances, and tourism. Consumers will have the option to pay in 3 and 6 installments, with an interest equivalent to 85% of that referred to by the BCRA for fixed terms (110%). The enabled channels for purchases will be both physical and virtual.
The new program represents a significant change from the Now 12 plan, which offered financing from 3 to 24 payments. The current rates for the old program for 3 and 6 installments are 82.5% annual nominal, so the new program will have higher rates if the planned modifications are confirmed. The 3 and 6 installment options were chosen because they represented 80% of the transactions, and the most in-demand items by consumers were clothing, small appliances, and tourism, which will continue within the new scheme.
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