Due to his disastrous provincial management, the Kirchnerist governor of La Rioja, Ricardo Quintela, confirmed that the province will reissue quasi-currency to pay salaries, highlighting the depth of the crisis in its public accounts.
This marks the return of the so-called “chachos”, officially called Debt Cancellation Bonds (BOCADE), which had previously been used as an emergency tool and failed miserably.
The announcement was made during an interview on Infobae en Vivo, where the provincial leader acknowledged the economic difficulties his administration is facing. “I have difficulties, but we will pay anyway. The chachos are back,” Quintela stated regarding the payment of the Christmas bonus, making it clear the fiscal tension the province is facing.
A cool bill.
As he explained, these bonds could start being used from the salaries corresponding to July, which are received in August, although he clarified that they would not be allocated for the payment of the Christmas bonus. “Not for the Christmas bonus, maybe it can be used for an increase,” he indicated.
The reappearance of the “chachos” highlights the serious financial situation of the province due to Quintela's Kirchnerist management, which is once again resorting to the issuance of quasi-currency to meet its obligations.
The governor explained that the bond originally had, in its first issuance, a maturity date set for December 2024 and that its return aims to "cushion" the impact of the crisis on the incomes of state workers. “I don’t want them to lose, I want them to lose as little as possible,” he asserted.
Ricardo Quintela and the chachos.
However, the decision brings the economic situation of La Rioja and the sustainability of its public accounts back to the center of the debate.
In parallel, the governor also expressed strong criticisms of economic policies promoted by the government of Javier Milei. Regarding the Incentive Regime for Large Investments (RIGI), which has already achieved nearly USD 150 billion in investments, he stated that “it is a total surrender of our resources.”
The return of quasi-currency in La Rioja marks a new chapter in the provincial fiscal crisis and reflects the structural difficulties in sustaining public spending under the deficit-ridden Kirchnerist management.
