Overview
- Governor Ricardo Quintela announced on Wednesday that La Rioja will reintroduce Bonos de Cancelación de Deuda, known as 'Los Chachos', as a temporary tool to back public‑sector salary increases.
- Officials say the issuance will be sector‑targeted and phased in, will not be used to pay the medio aguinaldo, and could first apply to July salaries that are paid in August if administrative steps proceed.
- La Rioja has been in formal default since it informed creditors in February that it would not meet some maturities and is negotiating a debt restructuring with bondholders.
- The provincial government has sought a federal coparticipation advance reportedly worth 85,000 million pesos and is publicly clashing with national figures such as Economy Minister Luis Caputo while making tactical political outreach to figures like Patricia Bullrich.
- The BOCADE program was approved in January 2024 for 22,500 million pesos and circulated from July to December 2024, and its return could trigger legal, market and political reactions that will depend on the outcome of ongoing debt talks and any federal response.