The Mayor of Concordia, Francisco Azcué, authorized by decree the Undersecretariat of Finance to “carry out the necessary steps for the Dollar purchase through the MEP dollar operation.”
In its article 2, decree 187/2024, empowers the undersecretary led by accountant Pablo Ferreyra to operate “indistinctly” with the Banco de Entre Ríos and Banco Hipotecario.
In the recitals of the decree, the Executive headed by Azcué justifies the decision to go out and buy the MEP dollar for the “possibility of monetary devaluation, which represents a significant risk for municipal funds.”
Faced with such risk – explains the rule – “it is necessary to invest part of the stock of currency availabilities or instruments that allow mitigate potential losses and maintain the financial stability of the Municipality.”
Next, he adds that “the purchase of dollars is justified as a necessary strategy to preserve the purchasing power of municipal funds.”
Finally, the decree signed by Azcué reveals that given “the impossibility of purchasing dollars through the official market,” the “most viable and safest alternative is to do so through the MEP dollar operation”.
Concordia: a debt that puts the municipality in a delicate situation
At the end of December 2023, the municipality of Concordia announced that the debt exceeds 8 billion pesos.
“More than 60% of it is dollarized with maturities during 2024. In addition, there was a growth in the staff, which directly impacts the Municipality’s accounts,” they expanded in a statement at that time.
The report states “that “The situation is very delicate,” indicated the same official statement and specified “that the debt, which is extremely worrying, is estimated at more than 8,000 million pesos considering, in addition to the consolidated debt, the floating and unliquidated debt, the EDOS debt for more than 1,000 million pesos and purchase orders issued that have not yet been recorded as debt.”
“Another piece of information that further compromises the accounts, for 2024, in addition to the 8,000 million pesos mentioned, is the expiration of more than 5,000 million pesos for committed public works resources”he added later.
On the other hand, they mentioned the existence of potential legal disputes with suppliers for amounts “that could significantly impact the municipality’s numbers,” the communication received by The Between Rivers.
“Regarding the formation of the total debt, it is worth mentioning that more than 60% is dollarized and more than 1,000 million pesos mature during the year 2024,” they revealed and clarified that part of the countercyclical fund in dollars was liquidated between the months of October and November 2023 “when the imminent devaluation of the peso.”
Source: Ambito
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