Carlos Bianco did not rule out the Province issuing its own currency
Given this panorama, the Minister of Provincial Government, Carlos Bianco, made it clear that if necessary, In the face of a definancing scenario, they could resort to issuing a Buenos Aires currency.
“It is something that the National Constitution and the Provincial Constitution allow us as part of the pre-existing agreements,” he explained. in dialogue with El Destape Radio this Thursday, and recalled that during the social outbreak of 2001-2002, Banco Provincia issued the patacón, an emergency bonus that was equivalent to one peso.
The power to print currency for the Buenos Aires government comes from a clause derived from the Pact of San José de Flores of 1859, which is pre-existing to the national State, which has no influence on the decision. “The first legal tender in our country was issued by Banco Provincia,” he recalled.
“As far as the Constitution allows, it is a tool that the provincial government can use,” Bianco said, but clarified: “We will see if that is necessary, we must evaluate the opportunity, merit and convenience.”
For now, the official Axel Kicillof explained that the provincial government “has the means to provincial financing, fundamentally with the Bank province, which is the bank that most credit productive gives in the Argentina, to the industrial sector and to agricultural. The sector agricultural is one of the main beneficiaries of the different lines of credit –many times subsidized, at a negative real interest rate–“.
Bianco highlighted the importance of Nation transfers
However, he pointed out that “with Banco Provincia It is not enough to attend, to finance such a large Province.with so many sectors, industries, services and agricultural production”, which is why he insisted on highlighting the importance of the transfers that Milei seeks to cut: “National funds and national development programs are also required. But the truth is that we are not seeing any intention to carry out these types of programs, which is why we are concerned and concerned.”.
In any case, regarding the issuance of its own currency, Bianco stressed that “for now we are not moving forward in that direction, but if the Constitution enables it and we consider that it is a tool that can alleviate a certain liquidity or credit deficit in the Province, will be evaluated as such. Not today”.
Source: Ambito
