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Montevideo, December 4th 2022 - 07:54 UTC
The Argentine government said it will refinance 89% of the debt that most of the country’s provinces hold with the federal government, announced President Cristina Fernandez de Kirchner and Economy Minister Amado Boudou. Read full article
I can't help but think that the last sentence of the story is the key to the whole business, or is that just me being unduly cynical?
Go figure, robbing Peter to pay Paul, and buy some votes.. and no Rufus, you are not being unduly cynical..
In the first place, most of the provincial indebtedness owes its origin to two causes: i) imbalanced provincial spending, and ii) central Government cheating with 'coparticipation' funds (funds originated in national VAT and other general tax sources) by retaining and not paying the provinces their shares. On the other hand, the K Government has been using the delivery of these funds as a kind of ransom held to 'buy' Governors into supporting the K policies to stay in power. As Bubba well said Go figure...
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