The Argentine Chamber of Construction (Camarco) convened its Federal Council to define lines of action, “given the delicate situation that the construction sector is going through in the country.”
The meeting will take place this Thursday, February 1, and its objective is to “open a space for dialogue and joint action between actors in the sector, “in search of strategies that will allow us to overcome this drastic situation and reactivate public works in Argentina,” they noted from the Chamber.
The call is made within the framework of what they consider “a general paralysis of public works, with nearly 3,500 unfinished projects throughout the country, which put at risk the activity of the 1,400 associated companies in Camarco that employ more than 500 thousand workers.”
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The entity emphasizes that the sector has a “multiplier effect” on employment and the general economic activity of more than 140 productive sectors, of great relevance throughout the national territory. The Federal Council is the highest body of the Camarco, where more than 1,400 member companies and delegations from all over the country.
Gustavo Wiss, president of Camarco.
Public works situation
During the meeting, called in an extraordinary manner “due to the seriousness of the situation”, the councilors will present the problems that affect the sector, “such as the paralysis of public works, the delay in payments, the impact of high inflation and high interest rates,” the entity said in a statement.
According to Camarco, “it is an equation that puts the continuity of many companies at risk, with the loss not only of capital but also of the productive knowledge that this implies, and the consequent impact on employment. “A countless number of associated companies are in an extreme situation that urgently requires definitions, since the breakdown of the payment chain puts companies on the brink of disappearance in a matter of weeks.”
The president of the entity, Gustavo Weiss, told NA a few days ago that “uA crisis like this is unprecedented. We have gone through periods of paralysis But this crisis impacts us with many works in progress, with companies with a lot of burden, a lot of debt. In 2001, companies had few contracts, so they were able to weather it.”
Weiss accepted that the problem is difficult to solve. “If the money was there it would be easy. But we have to see if the solution is enough for 10% of the works in progress or 70%. We already know that it will not be 100%. But we do know that the solution is not in the short term. Without a doubt, the works will remain stopped in the long term,” he said in an exclusive interview with Noticias Argentinas.
The business leader announced that “There are going to be countless of business calls because there was a lot of work and companies went into debt in the banks to continue working. Today many companies have bank debt that runs at 130%, with suppliers, with the AFIP.”
LM CP