Thursday, February 21, 2013

Lorenzino: ‘Issuing debt is dangerous’

Economy Minister Hernán Lorenzino said that provinces that decide to issue debt in order to pay wages “are wandering down a dangerous road,” in reference to the financial situation of the Province of Buenos Aires, adding that “constant victimization is not appropriate, I believe.”

“I believe that all of those who have a responsibility must face these situations, always having the people in mind, because they chose us to take this place, without blaming anyone else,” said Lorenzino regarding the salary dispute between the provincial government and the teachers’ union.

Lorenzino, who was taking part in Salta of the festivities for the Bicentennary of the Battle of Salta, said he was surprised by some local dailies stating that the national government wasn’t allowing Buenos Aires province to issues debt.

“Yesterday (Tuesday), I heard the Provincial Economy Minister Silvia Batakis announcing the issuing of provincial bonds; yesterday and not two weeks or two months ago,” said Lorenzino.

The Minister questioned a possible indebtedness by Buenos Aires provincial government saying that “anytime a province issued debt to pay wages, the provinces ended up in trouble. The debts had to be dealt by the national government with a debt programme with the provinces.”

“I believe that the problems that arouse from issuing debt can be seen in other countries, I believe it should be studied with much concern,” said Lorenzino

In relation to the dialogue between the provincial government and the national, Lorenzino said that “we are permanently supporting each province, we speak permanently. Dialogue is not a problem.”

— Herald with Telam