Argentina: La Rioja province to remain in default, sparking presidential criticism

The government of La Rioja province has officially notified the Buenos Aires Stock Exchange that it will not meet its upcoming debt payment, thereby remaining in default. This decision comes shortly after the provincial administration reintroduced its "Chacho" bonds, also known as Bonos de Cancelación de Deuda (BOCADE), with a value equivalent to 4 billion pesos.

“

Peronism always proposes to spend more. And it always proposes to pay these delusions with money printing.

President Javier Milei strongly condemned Governor Ricardo Quintela's actions, labeling the reissuance of the bonds as "Plan Platita 2.0." Milei asserted on social media that Peronism consistently advocates for increased spending and finances such measures through money printing. He linked this policy to Argentina's high poverty rates, including over 50% overall poverty, 20% extreme poverty, and 70% child poverty.

“

The recipe for slavery from the impulse of poverty using assistance as a means - CYNICS.

La Rioja's Minister of Finance, Fabián Blanco, defended the decision, stating it aims to address the financial needs of both provincial employees and the commercial sector. He described the "Chacho" bonds as a successful measure to meet these dual demands. Governor Quintela had previously described the bond's return as a stance of "rebellion" against the national government's policies, which he claimed exacerbated the country's economic crisis and unfairly targeted certain provinces.

“

We are going to put the Chachos back into effect. It's not because La Rioja is doing badly or doesn't have money; that has nothing to do with it. It also means maintaining our attitude of rebellion against the serious situation the country is going through.

The province's default stems from its inability to pay the capital of an international bond issued in 2017 for a wind farm project, which it has since sold. The provincial government has cited unprecedented economic challenges, including Argentina's economic contraction, high inflation, and currency devaluation, as reasons for its insufficient revenue to cover essential services and programs.

“

The BOCADE were a success. With this measure, we can address two demands: one, that of the employee, and another, that of the economic sector of the province.