"80% rates paralyze everything": SME crisis warned due to economic measures

Economist and businessman Gustavo Lazzari analyzed the impact of the political situation on productive activity, which particularly affects SMEs . In this regard, he harshly criticized the way in which each election ends up directly affecting the private sector, given the pre-election scenario. "In Argentina, every time there are elections, politics chooses the economy and SMEs as their battlefield," he stated.

Lazzari explained that, as a result of disputes between thegovernment and the opposition, measures are being adopted that end up suffocating small and medium-sized businesses. "The market dries up, the exchange rate rises, and the interest rate climbs to 80%. This means paralyzed economic activity and nonexistent credit. For an SME, it's impossible to finance working capital under these conditions," he said in an interview with Radio Rivadavia .

With concrete examples, he described the scenario: “From September to November, we have more than 40 due dates: salaries, taxes, contributions, bank installments. The SME entrepreneur juggles, sells a check, stretches with the overdraft, and gasps for air. But when you go to the bank, they tell you: 'No problem, I'll lend you... at 90 or 100% interest.' That's unfeasible. And all because of a poll or a political calculation. It's absurd .”

The economist took aim directly at the leadership: “The candidates can't think of a single idea. None of them talk about restoring the railway network, channeling rivers, or reforming a pension system that has been a scam for 50 years. They prefer to fight among themselves rather than solve structural problems. And on top of that, they expect people to be interested in elections that offer nothing concrete.”

For Lazzari, according to NA , the province of Buenos Aires is the best example of this lack of proposals: “It's 40% of Argentina, they elect an entire legislative branch, and no one presents substantive projects. Some remain silent out of fear, others because they don't care, and others because it's symbolic. It's a lack of respect for the citizenry. And the worst part: they transfer this fight to the real economy, which is extremely expensive.”

Asked about the social mood, the businessman acknowledged the concern but insisted on the need to look beyond: “We are going through a very painful, short-term storm. There are sectors that are recovering, others that have to force a long-term view to survive. But the problem is that politics throws a stone in the middle of the road just when you were just getting the steering wheel right. That's discouraging.”

According to Lazzari, until mid-year, a path toward normalization was evident. “Businesses were returning to productive activity, and banks were returning to being banks. You could now sit down with a project, with a portfolio. It wasn't perfect; it would take years, but we were on the way to normalcy. Now everything has frozen. And with interest rates at 80%, no productive project can compete,” he warned.