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Quasi-monies could be back in Argentina if provinces don't receive financial support by March

Tuesday, February 4th 2014 - 08:50 UTC
Full article 121 comments
Corrientes governor Ricardo Colombi Corrientes governor Ricardo Colombi

Quasi monies could be back in Argentina since many provinces and city councils are running short of funds and the federal government is not sending the checks be it because of political differences or simply because there is not enough money to go around.

 “It's a possibility, issuing our own bonds. If the Executive continues with its current policy there is no other way”, said Corrientes governor Ricardo Colombi. This is not the first time Colombini makes such a comment, last time was in December.

At the time cabinet chief Jorge Capitanich said Colombi's words were “a harsh remark and an exaggeration”, but the Corrientes governor could be the spearhead of a larger group of his peers which can't make ends meet.

”We're on the limit, that is why I talked about bonds at the time and now many (governors) are agreeing with me, even when they can't say it publicly. Governor Mauricio Closs from Misiones said something similar recently“ added Colombi.

Governor Closs went much further and called for a 'political multi-sector agreement” so that the current situation in Argentina does not end up like in 1989 when former president Ricardo Alfonsín had to advance elections, or in 2001 when the crisis forced the ousting of former president Fernando de la Rúazn and was followed by a major default.

“It's clear that there are groups and interests who want President Cristina Fernández out of government before her term is up in December 2015”, said Closs, adding that some of those groups could be identified as “those refusing to sell the soy beans they are hoarding”.

Colombi said that “if by next March we can't reach an understanding, if the Executive does not share with us the lack of funds, issuing bonds to pay for the provinces outlays can't be discarded”. He added provinces need to restructure debts, receive the federal participation checks and other government office have to cancel pending debts.

However Governor Closs admitted that the government's decision to take the value of the (official) US dollar to 8 Pesos “was needed particularly for regional economies to be able to export and help rebuild the central bank's international reserves”.

Closs recalled that back in 1987, when Ricardo Alfonsín was president, a few days before mid-term legislative and governors elections 'flour disappeared, and that is why I have called for a political multi-sector agreement, since back in 1987 some political actors did not respond as they should have“.

The Misiones governor admitted he was summoned by Cabinet chief Capitanich to explain what he meant by comparing the current situation with 1989 or 2001, but he simply described 2014 as ”a hinge year“

But hard core Kirchnerites wasted no time and were quick to reply: ”2001 crisis has nothing to do with the current situation. At the time there was 30% unemployment and 60% of Argentines were living below the poverty line; eight million people had no jobs and hundreds of factories closed: this is not the situation now”.

Tags: Argentina.

Top Comments

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  • Anglotino

    It's like the worst possible Groundhog Day!

    Feb 04th, 2014 - 09:11 am 0
  • ChrisR

    ”But hard core Kirchnerites wasted no time and were quick to reply: ”2001 crisis has nothing to do with the current situation. At the time there was 30% unemployment and 60% of Argentines were living below the poverty line; eight million people had no jobs and hundreds of factories closed: this is not the situation now”.

    Mmmm!

    Just give it another six months and you will be there or there about.

    But where will TMBOA be by then, hanging by her neck off the balcony of Casa Rosada if the people are lucky.

    Feb 04th, 2014 - 09:44 am 0
  • toxictaxitrader2

    Argentine states (provinces) should stop funds going to the central government,use them locally and think about Independence,the present model does not work and has,nt since 1930

    Feb 04th, 2014 - 10:19 am 0
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