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Bus stoppage: the reasons, between the crisis over subsidies and the management of the "black box"

2024-03-07T13:18:51.503Z

Highlights: Bus stoppage on multiple lines in the Buenos Aires Metropolitan Area (AMBA) is the final result of an economic crisis that has affected the sector for 15 years. The trigger for this strike was the management of trust funds, which the Government called the "black boxes" of politics. The next rate increase in AMBA, which could ease the financial suffocation of the sector, will be in April and would be linked to inflation in January and February in Greater Buenos Aires (GBA)


The acceleration of inflation and the delay in the payment of subsidies once again put the public transportation system under strain. Trust funds and their administration, in the spotlight.


The

bus stoppage

on multiple lines in the Buenos Aires Metropolitan Area (AMBA) is the final result of an economic crisis that has affected the sector for 15 years, but which broke out in the last year and a half with the acceleration of inflation and the

arrears of rates and subsidies

.

However, the trigger for this strike was the management of

trust funds

, which the Government called the

"black boxes" of politics

.

This week, the Minister of Economy, Luis Caputo, took administrative control of those $1.7 trillion.

The public automobile transport businessmen say that

the Nation did not send the subsidy funds, which are usually channeled through the Transportation Infrastructure System Trust Fund (FFSIT)

, so some of the companies could not

pay salaries

this Wednesday, fourth business day of the month.

The current budget of this fund for 2024 is $479,216.31 million, and about $112,139.19 million, 23.4%, has already been executed.

Bus Strike in the AMBA: Cause of the Problem: Many bus lines did not pay salaries in a timely manner (the deadline is the 4th business day of each month).

This is because the Jurisdictions (Pcia Bs As and Nacion) must pay 50% of the subsidies that… pic.twitter.com/mVMvXl7xlm

— aaeta (@aaeta_arg) March 7, 2024

As of March 6, the debt of the Nation - to a greater extent - and of the City of Buenos Aires with the bus companies was $50,498 million for

lines 1 to 199

, which are the ones that travel only through the City or They cross General Paz Avenue or Riachuelo Avenue;

while the province owed $40,528 million for lines from 200 onwards, which only go through the municipalities, according to the Argentine Association of Automotive Transport Entrepreneurs (AAETA).

This

shortfall of $91,026 million

determined that

the

salaries of bus drivers

, represented by the Union Tranviarios Automotor (UTA),

were not paid .

The problem, official sources say,

would be resolved this Thursday.

Previously, many of the public service operating companies had not paid the

$140,000 bonus

agreed upon in the joint venture on time, as the Government was slow to recognize the new cost structure.

According to Resolution 15/2024 of the Ministry of Transportation, the bus lines that pass from the City to Greater Buenos Aires (called "SGI") are recognized $891.01, of which passengers pay with their fares a average of $187.50 and the State makes the difference with subsidies.

However, the companies maintain that

the "real" cost is close to $1,000.

Another official decision generated noise in the sector.

Last month the Government authorized that the renewal of the units be every 13 years (at most) instead of every 10 years.

That would have helped dilute the costs, but they were computed within the structure to lower the necessary compensation allocated by the State.

Simpler: the businessmen thought that Transportation was going to transfer an amount to renew buses every 10 years, when they had a 3-year advantage to compute benefits, but the State saved the money.

The next rate increase in AMBA

, which could ease the financial suffocation of the sector,

will be in April

and would be linked to inflation in January and February in Greater Buenos Aires (GBA).

NE

Source: clarin

All business articles on 2024-03-07

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