BUENOS AIRES, April 3 Argentina's government
announced on Monday an agreement with unions and banks to lower
labor costs in the construction sector, mimicking similar deals
in the oil and auto workers as part of the government's effort
to create jobs.
President Mauricio Macri is trying to attract investment to
drive an incipient economic recovery before mid-term elections
in Congress later this year.
The sector-specific agreements this year have lowered income
taxes while making concession to labor unions aimed at
increasing jobs. In announcing the agreement, Macri said on
local television that construction for public works projects was
already taking off but private sector building had lagged.
"Now we need to give impulse to private construction," he
As part of the deal, banks promised to give 30-year loans at
rates lower than those offered in the markets. The province of
Buenos Aires will lower mortgage rates as part of the pact in an
effort at inducing more mortgage lending.
Interior Minister Rogelio Frigerio said other provinces
would follow the same tax-cut model in coming weeks.
(Reporting by Juliana Castilla; Writing by Caroline Stauffer
and Hugh Bronstein; Editing by Alistair Bell)