The evolution of the CEDIN in Argentina

At the beginning of July, the Argentine Government launched a new Certificate, called “Certificado de Depósito de Inversión”, alias CEDIN, in order to promote investments in the Real Estate Business. In addition to these certificates, CEDIN, the Government also launched a new Law which allows the declaration of (undeclared) money that people have in foreign countries, without having to pay any penalty, so they are encouraged to invest it in Argentina.

As every process, in order to analyze the results of the launching of the CEDIN and the impact over the economy in Argentina, time is the key, so we will need more time in order to make conclusions. The president of the "Camara Inmobiliaria Argentina" (Real Estate Organization in Argentina), Roberto Arevalo, mentioned that at the end of July some conclusion could be made, in order to analyze how the CEDIN is evolving, and the response it had over the people.

For the time being, the CEDIN are already available and many people have been investigating on how it works. During the first 5 days since its launching, in the City of Buenos Aires, 22 CEDIN Certificates were issued, which equaled to a sum of 1.04 million of dollars. The Argentine Government expects to sum 4 billion dollars in CEDIN Certificates by September, so the amount is not very convincing for the time being. Still, since the CEDIN Certificates have been launched only a few weeks ago, it will take time until people start trusting and investing in the CEDIN certificates. For starters, people and real estate agencies have already started to publish in the agencies and in the papers that they accept CEDIN Certificates for the real estate transactions.

In some provinces, like Mendoza, people are waiting to see the results that the province of Buenos Aires show, before jumping into investing in the CEDIN Certificates. After analyzing the results and checking the benefits of investing in the CEDINs, Mendoza and other provinces may start investing as well.

To conclude, it is still a bit early to see how the CEDIN Certificates evolve, but for the time being, they are apparently starting to work positively; it is only a matter of waiting some time before jumping into conclusions.