B20 in Argentina to urge greater investment in infrastructure

B20 in Argentina to urge greater investment in infrastructure

The Business 20 (B20), a group affiliated to the Group of 20 (G20), will recommend greater investment in infrastructure on a global scale, the Argentinean press reported Sunday.

B20 coordinator Carolina Castro told Argentina's official press agency, Telam, that businessmen within the group would propose redirecting resources assigned to "low return" projects toward infrastructure.

"There is a lot of money placed in low return assets that could be placed in infrastructure projects, if we show they are viable and profitable. The ideas would be shifting investments from a passive place to one with more impact on the economy," she said.

Castro's remarks came a day before a two-day meeting of G20 finance ministers in Buenos Aires.

She added that infrastructure projects can become a sort of assets "with its corresponding regulations, as if they were stocks."

"This would be more stimulating for the market, as infrastructure projects are long-term and institutional investors are usually conservative, for example, if they manage pension funds," said Castro.

However, she admitted that it is "very difficult to know which recommendations may prosper" in the context of the G20 even though infrastructure is crucial to all, especially for countries "with deficiencies in this area."

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