MEXICO (Notifix) – Grupo Elektra of Mexico, a financial services company and a leading specialty retailer in Latin America, announced on October 1^st. that is closing down and liquidating its operations in Argentina. 

The company took this decision as a result of unfavourable macroeconomic and business environment in the country.

Elektra said that the decision is due to the difficult macroeconomic and business environment that makes the operation unviable. Exchange controls and import and export restrictions limit access to trade goods, while controls on capital flows constrain investment. Furthermore, high inflation hinders business planning, while labor regulation allows union practices that affect the investment environment. The company also pointed out a culture of non-payment of debts that is impractical in their credit business.

Grupo Elektra’s operations in Argentina are small in relation to the size of the company, and that it intends to focus on markets with higher profitability prospects, in the the benefit of all investors.