The Argentine province of La Rioja will issue in 45 days “BOCADES” (Bonos de cancelación de deudas = Debt cancellation bonds)  in the denominations of 1,000; 2,000; 5,000; 10,000 and 50,000 pesos. At the current official rate of exchange they are worth 1.20; 2.40; 6; 12 and 60 U.S. dollars respectively.

The Provincial Law approved 22,500 million, but the in the first stage 15,000 million will be issued.

These will be issued to pay a portion of Provincial salaries, as well as amounts owed to suppliers.

They will be accepted in payment of all taxes, services and purchases from provincial entities..

A process to be able to deposit them to bank accounts is being studied.

They will be commonly known as Chachos, referring to the image in the front of Angel Vicente “Chacho” Peñaloza, a provincial leader who fought against the centralist power of Buenos Aires. 

Ricardo Quintela, La Rioja’s Governor, declared that the province has been forced to issue of these bonds because of the “cruel adjustments” in the amounts that the Federal Government is sending back to the provinces.

Source: Infobae.

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