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After the complaints, Economía transferred funds to pay salaries in public organizations

2024-01-30T16:39:07.680Z

Highlights: After the complaints, Economía transferred funds to pay salaries in public organizations. The Government reversed course and the salaries will be collected in the next few hours. Banco Nación adopted this measure in response to the government's decision to restrict the quota of temporary advances to finance the payment of salaries of the non-financial public sector. The measure aimed to condition provincial administrations, which have had access to this financial line for 15 years. The Executive made the decision last week when the omnibus law began to bog down.


The Government reversed course and the salaries will be collected in the next few hours. There was an emergency meeting of the economic team. Caputo announced on Friday that he was going to tighten the adjustment.


In the midst of negotiations for the omnibus law and tensions with the governors,

the Government transferred funds on Monday to settle the conflict

that had broken out due to the

delay in the payment of salaries of employees of public organizations

that depend on the Nation.

The decision was made during an emergency meeting between the Ministry of Economy, the Central Bank and Banco Nación.

In this way, it is estimated that thousands of employees of organizations that depend on the central administration, such as national universities, hospitals and entities such as ANSeS, AFIP, INTA and INTI, among others,

will collect their salaries between this Wednesday and Thursday,

which which cleared the climate of uncertainty that had been generated since last Friday.

"Since this administration began, the universities and decentralized organizations (INTA, for example) were decided to transfer funds for salaries before the end of the previous month. This means that

if they do not pay in a timely manner, it is their own decision

. each organization or University," sources from the Treasury Palace said on Tuesday.

After sacrificing the fiscal package of the omnibus law,

the Central Bank restricted last Friday the advance of funds at a zero rate for the payment of salaries

.

The measure affected all banks, but

especially Banco Nación,

which was already at the

top of the quota

to grant this facility because it concentrated the largest number of salary accounts of public employees.

The measure aimed to condition provincial administrations, which have had access to this financial line for 15 years.

The President believes that the governors use these zero-rate funds to place them in fixed terms or other instruments

, while the Nation seeks to advance in a harsh fiscal adjustment to comply with the agreement with the Monetary Fund.

That reading and the frustration over the lack of support in Congress was what led Javier Milei last week to rant against the provincial leaders in a cabinet meeting, where he warned:

“I'm going to leave you without a peso.”

But the interruption of the financial benefit also reached organizations that depend on the Nation for the payment of salaries, as is the case of universities.

Thus, after unsuccessful negotiations that included the intervention of the chamber that brings together public and private banks Abappra, the rectors of several universities (half depend on Banco Nación) and organizations began to communicate yesterday that they were going to postpone the payment of salaries of

more than 20,000 employees,

news that unleashed a climate of nervousness on the campuses.

"Based on a circular from the Central Bank of the Argentine Republic ordered by the national authorities,

the Bank of the Argentine Nation informed our University that it will not be able to advance

, from this month and until further notice, the payment of salaries, as it is provided in the agreement between our institution and the banking entity," reported the

National University of Rosario

.

In this framework, the study house noted that "the payment of salaries for agents who receive them from Banco Nación will be made at the time the National Treasury completes the transfer."

In this way, some

11,000 teachers and non-teaching workers

who received their salaries between the 3rd and 5th of each month will have to wait until further notice.

Banco

Nación adopted this measure in response to the government's decision to restrict the quota of temporary advances

to finance the payment of salaries of the non-financial public sector.

This is a Central Bank rule established in October 2019 during Mauricio Macri's administration and which was renewed year after year, but now the authorities decided not to extend it.

The Executive made the decision last week when the omnibus law began to bog down.

In an unusual communication, the presidential spokesperson, Manuel Adorni, reported that the Central Bank was not going to extend the authorization (which expires this Wednesday) for

the provinces to borrow from provincial banks to meet urgent needs,

in reference to communication A7674.

In reality, the BCRA regulations not only reach the provincial banks that had that credit margin to pay salaries of the non-financial public sector, but also affect all financial entities, including Banco Nación.

"It not only affects universities, but also ministries and other organizations," official sources confirmed.

One of the affected departments is the

Posadas Hospital

, with 5,000 employees.

The authorities reported that "due to a new provision of the Banco de la Nación Argentina that exceeds the administrative area of ​​the hospital, the salaries corresponding to the month of January 2024 will be effective in the salary accounts of the staff from February 1 to 5 2024".

According to

Clarín

, the measure also reaches 7,000 workers at the National Institute of Agricultural Technology

(INTA)

, as well as the staff of the

National University of Art

(UNA), the University of

San Juan

(UNSJ) and the University of

San Luis

( UNSL).

The San Luis institution estimated that salaries will be paid "within

the first ten (10) days of the month."

The official decision fell like a bomb in the provinces, where the state sector depends on the advance of funds from provincial banks or Banco Nación for the payment of salaries.

In some districts such as Catamarca, they have already begun to acknowledge receipt of the closure of the tap from the Nation, which reflects the Executive's intention to share the cost of the adjustment with the provinces.

Until now, the Government

had been adjusting items in the national administration.

After canceling 7,000 contracts

and cutting overtime, the Chief of Staff last week ordered all ministries to reduce intermediate positions.

But the difficulties in obtaining the support of the governors for the shock plan led the Executive to toughen the measures.

In this context, the Minister of Economy, Luis Caputo, announced on Friday the elimination of the fiscal chapter of the omnibus law and the implementation of "a greater adjustment for politics, the Nation and the provinces", with the immediate

cut of discretionary transfers

destined for national programs, subsidies and public works.

Everything, to achieve "zero financial deficit."

Source: clarin

All business articles on 2024-01-30

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