Social charges and other taxes add, on average, about 60 percent of base wages to the cost of labor. As a result, the labor market is unusually rigid. Private capital pension funds, launched in 1994, have promoted increased domestic savings. The privatization of workers' compensation insurance took effect in 1996. Capital Markets and Portfolio Investment Argentine regulation of capital markets promotes the free flow of financial resources.
Credit is available to foreign investors in the local market, but is relatively expensive.
Law 17118 generally regulates public offerings of securities. In addition, the banking system is undergoing consolidation. The percentage of non-performing loans varies widely among banks. No discriminatory measures specifically target foreign investors in finance and capital markets. In keeping with this open philosophy, a U.S. commercial officer in Buenos Aires works with Argentine industry standards-setting organizations.