Federal Reparation Regime: which provinces seek to enter and what debts they claim from the Government

Federal Reparation Regime: which provinces seek to enter and what debts they claim from the Government

Presented last Thursday by the Deputy Chief of Staff, Lisandro Catalánand made official in the Official Gazette on Friday, November 1, The measure seeks to make a “clean slate” and relaunch the strained link between the Casa Rosada and the districts, offering “alternative ways to pay debts”such as public lands and other items.

In the midst of the adjustment on the provincial coffers, The libertarian administration found a way out of the maze. On the one hand, it gets rid of assets that it is not interested in maintaining and, on the other, relieves subnational administrations, in need of funds and restless to have different issues under their orbit, such as the administration of some routes, among others.

Which governors are interested in the new Regime

Although caution still prevails and governors They look closely at the fine print, some took the initiative and have already expressed their desire to participate in the Regime. This is the case, for example, of Mendoza. “TWe are willing to participate. “We will begin the administrative process by which the Nation produces the legal technical report on the plausibility of the obligations it has against the province and we will do the same,” explained the local Minister of Treasury and Finance, Victor Fayad.

The official of Alfredo Cornejo He specified that some of the claims they have with the national State are for transportation, education and housing: “They are commitments assumed by the Nation. There are also political and administrative claims for unfulfilled commitments regarding the fiscal consensus. In this concept, Nación committed to returning an adjustment as a result of the changes that were made in the co-participation.”

The Mendoza management also recalled that it currently maintains a claim before the Court for poorly settled hydroelectric royalties and that it will ask that they be able to enter the Regime.

As he told Scopethe Government had first communicated the initiative to the leaders of Gustavo Saenz (Jump), Osvaldo Jaldo (Tucumán) and Raul Jalil (Catamarca), during a meeting they held at the Treasury Palace with the Minister of Economy, Luis “Toto” Caputo. In that meeting, they were asked to make a calculation of the total debt that the Nation has with its districts, numbers that will be crossed with the Government’s estimate, and to carry out a survey of the properties that the Nation has in its provinces.

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In that line, Saenz and Jalil They already let the ruling party know of their interest in administering the Belgrano Cargas y Logística Sociedad Anónima, railway firm that the Nation seeks to get rid of and that represents a strategic value for the regional economies of those provinces. It is worth remembering that both, together with Jaldo and the missionary Hugo Passalacquawere entertained by the President with a barbecue at the Quinta de Olivos.

“The idea is not that the provinces are going to make investments in infrastructure and put money for the locomotive and the wagons. What the governors propose is to have the provinces the power over the railway infrastructure and from that, we will be the ones to organize the best operation of the train”, explained weeks ago the Minister of Production and Sustainable Development of Salta, Martin De los Rios.

In Córdoba lands, meanwhile, the administration Martin Llaryora It advances with a lead foot and puts the axis in the fine print of the Federal Reparation Regime. In response to this media’s query, the province anticipated that they would sit down and talk. “You have to see carefully what they offer, how much it is valued. There are many details to discuss”they commented to Scope. However, they already anticipated that the debt that the Nation maintains with Córdoba’s pension fund will not be included in an eventual agreement. “They are funds that correspond to us by law,” they clarified.

Outside of opposition Peronism, the Mediterranean is one of the dialogue leaders who have not yet been summoned to the Casa Rosada, within the framework of the meetings that Milei himself led with provincial leaders. That call could come in the next few days, according to Ámbito.

The demand for pension funds is agitated by Llaryora together with his peers from the Central Region, Maximiliano Pullaro (Santa Fe) and Rogelio Frigerio (Entre Ríos). In principle, the Santa Fe management did not take a dim view of the implementation of the Regime. In particular, it is interested in being able to take charge of some routes, taking into account the importance of their maintenance to access the ports of the Hidrovía. Some highly valuable public lands, located in Rosario, could also enter.

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The three governors of the Central Region complain to the Nation for debts in their pension funds.

To achieve an agreement of this type, the Local Deliberative Council should also intervene. Therefore, they will be highly complex negotiations, where they will participate. “There is a lot to talk about,” they told this medium, anticipating a long process with multiple voices. For now, they are evaluating a complex dialogue.

Similar scenario sees Frigerio. In Paraná they realized that it is interesting to participate in the initiative, but that there are debts that should be resolved externally. This week, for example, Between Rivers initiated a new lawsuit before the Supreme Court against Nación for discrepancies in the liquidations of the surpluses generated by the Salto Grande dam. Particularly, it demands a retroactive amount of US$175 million.

The objective, they stated, is to “recompose the economic-financial equation of the 1999 agreements that gave rise to the Salto Grande surpluses” and, at the same time, modify, with the intervention of the province, the way in which the Ministry of “Energy of the Nation establishes the price of energy for binational hydroelectric dams.”

Message from an opposition Peronist

Outside of the allied leaders, the Peronist’s intention caused surprise Sergio Ziliotto (La Pampa), one of the most belligerent with President Javier Milei. Through a statement, the Pampas government stated “the decision of the Province to access the Regime provided by the national Government in order to facilitate the process of validation of the debts of our province.”

In the text, the Casa Rosada was requested to give “priority and act quickly” to the process, to avoid increasing the negative impact on provincial finances, given the magnitude of the accumulated debt. “The provincial government will immediately send the documentation required by the decree showing the debts that the Nation maintains with La Pampa,” they noted.

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Sergio Ziliotto, governor of La Pampa.

Sergio Ziliotto, governor of La Pampa.

Finally, the document ensures that the decision to join the Regime “is in line with the extrajudicial and judicial claims that La Pampa has filed in response to the non-compliance that the National State has incurred to date.” However, in Santa Rosa they specified Scope which is just the beginning. “We are going to listen to what they propose and see if it is possible to dialogue and agree on something,” they commented.

Beyond the particular claims of each province, some of the requests that cut across all of them are public works, transportation subsidies, the reduction in funds – pension and educational funds, primarily – and the reduction in Federal Co-participation. In this regard, the governors continue to demand that the Nation share the Fuel Tax.

Source: Ambito

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