Provinces under pressure wage demands and growing debt

Police crisis in Cordoba December and 62% increase in the dollar compounded the provinces in a double pressure on the side of wages and the growth of their debts. Last year many provinces went into debt in pesos but tied to the performance of official dollar, an instrument known as dollar linked. But the value of the dollar increased by 62%. The provinces are altogether some $ 2,500 million in this way, 300% more than in 2012.

They are also closely pressed by the joint public employees seeking similar adjustments to those obtained Cordoba police and other provinces who achieved rises of up to 50%.

The weight of wages on total expenditure is on average 47%, according to the Argentine Institute of Fiscal Analysis. In some, like Black River reaches 62% and on the other side San Luis is located with 31%.

The national government and warned them not to be cool silver in 2014.

It will only help in refinancing their debts to the nation. Here the most problematic cases: BUENOS AIRES Daniel Scioli assume a complex task in his brief visit to the U.S. After exhibiting at the Council of the Americas will occupy the few hours that will free to convince bankers and financiers is still viable to invest in the province. The governor of credit and need a high skill to face the new economic scenario that arise after the devaluation of the dollar.

The dollar commitments you must pay the province does not reveal, for now, officials Scioli. Is that in 2014, Buenos Aires plans to cancel about $ 625 million to multilateral agencies and international bondholders. In late November, when the budget accounted for $ 4,000 million, calculated at $ 6.40 dollar was adopted.

This value was in history and now requires the commitment of 937 million pesos extras. The issue dollar bonds link, 200 million were placed in 2013 gives them a bit of time: the first is due in February 2015.

However, there are two issues that disrupt sleep Scioli. One: the government was authorized by the Legislature to borrow 14,500 million pesos and now the clauses providing are more intricate. So the governor covered by U.S. banking offices. And the salary discussion with the public sector.

The province spends 52% of 180,500 million of its budget for the payment of salaries. Teachers and state exert pressure. The provincial CTA announced a strike (including medical, legal and employees) Wednesday 12