While Argentina's current economic troubles have made foreign investors skeptical about Argentina's economic stability, De La Rua hoped to strengthen investor confidence and asked investors to increase investments in Argentina. Only days after national strikes protesting the IMF plan and austere government reform measures nearly paralyzed the country, De La Rua's agenda focused on trade and investment in Argentina. U.S. President Clinton signaled strong support for Argentina's current efforts. The Argentine government also recently liberalized the telecommunications sector, which should increase foreign investments in Argentina. Government Approves Leasing Law Argentina recently passed a new leasing law to increase business productivity and consumer spending through the simplification of leasing procedures and requirements.
Many sectors expect large benefits as a result of the new provisions.
For instance, the automotive sector projects an increase in sales and production as a consequence of the law. The law applies retroactively to contracts already in effect if its application does not contradict prior provisions or nullify the contracts. The Argentine government recently established new rules for government contracting and purchasing. Government procurement in Argentina amounts to more than 2 billion pesos per year. With the new measures, the government hopes to save at least 300 million pesos in the medium-term.