Nat'l Gov't sends AR$1.5 B in financial aid to Scioli for payment of bonuses, providers

Economy Minister Hernán Lorenzino confirmed today that the National Government will give $AR 600 million pesos in further financial aid to Buenos Aires province governor Daniel Scioli in order to complete the payment of the midyear bonus to provincial state workers and also allowed him to issue bonds worth 900 million pesos to pay state suppliers and maintain basic utilities.

“The Buenos Aires province Government once again requested financial aid from the National Government in order to pay the midyear bonuses and debts to suppliers, and thus, by the President’s order, I met with Governor Daniel Scioli and we have laid out a precise diagnosis of the province’s needs and requirements. With these in mind, President Cristina Fernández de Kirchner decided to first assist state workers and maintain essential utilities,” Lorenzino explained.

According to the minister, the extra 600 million pesos will be used from the Sustainability Fund, which is managed by ANSeS, and will be sent within the framework of the Fiscal Responsibility law. Meanwhile, the issuing of bonds,backed by revenue from a national tax-sharing scheme, will be allotted exclusively to pay state suppliers.

Thus, Scioli’s administration will be able to pay the midyear bonus to 550 thousand provincial state workers. The payment will be done along with July salaries in August.

Lorenzino also stressed that this is the fourth time Buenos Aires province receives financial aid from the National Government thus far in 2012, reaching AR$2.5 billion

Scioli initially proposed to pay the salary bonus in four installments, but last week his government made the first disbursement and vowed to pay the rest on Aug. 15.

To get his hands on the needed cash, Scioli ordered spending cuts and struck a deal with casino operators, who agreed to make an extraordinary payment to state coffers in exchange for a renewal of their licenses ahead of time.