The Minister of Economy of the Province of Buenos Aires, Paul Lopezreported this Monday that the district successfully completed the payment of the second installment of the year of foreign currency debt totaling of US$333 million and 15 million euros.
At the usual Monday press conference, where the ministers of the administration of Axel Kicillof They refer to various issues in Buenos Aires, López provided information on the province’s finances and announced the cancellation of part of the debt in foreign currency.
Province of Buenos Aires paid another installment of the debt in foreign currency
When taking the floor, the minister indicated that the Kicillof administration received in 2019, from the outgoing governor Maria Eugenia Vidal“unsustainable debt levels for our Province.”
“After having carried out a restructuring in 2021, we managed to establish a payment profile in line with our payment capacity,” Lopez said at the press conference.
At the same time, the official said that, as a result of this work, the Province “began a debt relief process, paying off interest and capital, without giving up our priorities: public works do not stop and we strengthen social programs to fulfill the mandate of our Government.”
The economist later referred on his social media to the cancellation of the debt in foreign currency. “As Axel Kicillof indicates, we will continue working responsibly to maintain the fiscal sustainability of the Province, protecting the people of Buenos Aires, while we demand that the national government fulfill its commitments and change the course of its economic policies,” referred.
The press conference was also attended by the Minister of Transport of Buenos Aires, Jorge D’onofrio, who denounced the national government for its decision to end the Integrated Ticket for the Province of Buenos Aires.
“We maintain that it is an arbitrary and illegal decision. The national Executive has laws, budgets and allocations for this purpose and taxes that are collected to cover this expenditure. The Province does not have the legal tools to do so,” the official protested.
In this vein, he explained that the Nation, which administers the Sube Network, announced that “both the Province and the Autonomous City of Buenos Aires would be disconnected from the program: on Saturday night only the Province was disconnected.” “We are in the presence of a new libertarian federalism where the most punished are the people of Buenos Aires,” he said.
He also commented that between January and August the Ministry of Transport of Buenos Aires invested more than $454,000 million in the policies of Tariff Compensation of AMBA and Interior; River Transport and Special Educational Ticket.
La Rioja deepens default
Last week, meanwhile, the government of La Rioja has announced that it will not be able to meet the payment due on one of its foreign currency bonds.
In this regard, the provincial administration of President Ricardo Quintela warned that the impossibility of meeting the due dates is due to the debt that the National State has with La Rioja for more than $40,000 million.
“The provincial government states that it cannot cancel these commitments made by previous administrations due to the debt that the national government has with La Rioja, corresponding to the funds established by article 83 of Law No. 27701 of the National Budget for fiscal year 2023., “The budget has been revised for this year’s fiscal year, which to date amounts to 40.632 billion pesos at historical values, to which the amounts corresponding to inflation and interest updates must be added,” they indicated in a statement.
The text explains that “the national government’s debt has a direct impact on the province, especially if we take into account the inflationary process and the mega-devaluation of 118% in December 2023, plus the monthly crawling peg recorded to date,” he added.
“Last February, the northern district informed its bondholders that it would not be able to pay the $26 million in foreign currency payments it faced. For this reason, it opened a round of “consultations with the bondholders with the aim of reaching an amicable and consensual agreement with them in the shortest possible time,” he added.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
