Mendoza joins the judicial outpost of Córdoba for the new shares to the dollar imposed by the Central Bank which affects the public debts of the provinces and municipalities. The measure obliges them to cancel 60% of the bonds’ maturities with their own dollars and limits access to the official foreign exchange market to the remaining 40% of the debt in dollars.
The provincial government of wine tIt has to pay due dates in September for 60 million dollars. and decided to start a Amparo action before the federal courts, in the same way that his contemporary Juan Schiaretti announced that he will Cordoba.
The governor Rodolfo Suarez (UCR) took to Twitter to communicate: “We will go to federal justice to request the annulment of this provision, in defense of the interests of the men and women of Mendoza.”
Suarez, who has just filed a complaint with the Ministry of National Government to be the most relegated provincial administration in the distribution of national funds, he has now pointed to the damage the Kirchnerist government is doing to the finances of his province.
“The resolution of the Central Bank of the Argentine Republic (BCRA) which prevents the provinces from buying dollars at the official price to pay their debts, thus doubling the cost of the same or forcing refinancingit violates their autonomy, is discriminatory and anti-federal, complicating the payment process,” said the governor of Mendoza.
And he placed the new titles in the context of the complex economic scenario that the country is experiencing: “It is another example of fiscal, financial and foreign exchange mismanagement of the national government, which continues to harm Argentines”
The public funds targeted by the Central Bank correspond to savings, royalties, bonds or assets in dollars and purchases of the provinces in the single foreign exchange market.
The next deadline of another 60 million dollars, Mendoza has to face on September 19, therefore every six months. These are the principal amortization quotas of the PMM29 bonds issued for 590 million dollars.
Faced with this reality, Suarez assured: “Mendoza is ready to face its obligations with the savings generated by an efficient and austere administration.”
But, he warned, not having access to the dollars “also implies not allocating them to public works or services that the province needs”.
last in the cast
Mendoza, ruled by the opposition to Kirchnerism, was last in the league table of provinces receiving Advances from the National Treasury (ATN), which led Governor Suarez to file a complaint Thursday with Cabinet Minister, Wado de Pedro.
During the year 2022, Mendoza received only 713 million dollars, of the 33.5 billion that should have arrived, according to calculations by the provincial government. That meant just $5,936 per capita, a figure that puts it last in the league table.
La Rioja appears in the ranking as the most benefited province from the nation’s Ministry of Economy, receiving $91,073 for each La Riojan, from ATN last year.
“We file a complaint against the discrimination suffered by Mendoza in the distribution of national funds. It has clearly been harmed, under jurisdictions with fewer inhabitants. This is the first step to redress the unfair and unfair treatment of Mendoza,” Suarez said. . .
According to a survey by Aerarium, the provinces with the highest maturities in the rest of the year are Córdoba (US$259 million), Mendoza (US$40 million), Chubut (US$39 million), Salta (US$35 million) , Between Ríos ($25 million) and Neuquén ($20 million). However, on a case-by-case basis, not all governors have sufficient funds to pay them.
This is not the case with Axel Kicillof. Buenos Aires is the district with the most dollars saved ($500 million) and no principal maturities this year, after debt restructuring in 2021. CABA follows in second place ($410 million), with no payments expected . And in third place, Mendoza (194 million dollars), with sufficient resources to meet the commitments.
After Jujuy and Salta, the most complicated is Córdoba. The province governed by Juan Schiaretti filed an amparo against the BCRA resolution for “discriminatory and anti-federal”. If he used the $171 million in his deposits to pay off 60% of the maturities, he would have to spend $155 million, most of which would vanish on June 10th.
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.