The Government paid 18 billion pesos in compensation to the urban and suburban passenger transport companies in the interior of the country, to compensate for the financial imbalances in the sector compared to the Autonomous City of Buenos Aires.

The assigned amount will be distributed in two installments of $9,000 million each. According to Resolution 423/2023 of the Ministry of Transport, published this Monday, July 24 in the Official Gazette, payments will be made in July and August.

This is the distribution corresponding to the “Compensation Fund for Public Transport of passengers by urban and suburban motor vehicle in the interior of the country”, created by Law No. 27,467 of the 2019 Budget, and extended by Law No. 27,701 for the year 2023.

Within the framework of this Fund, according to the police text, 97% of the total provided for each monthly period (monthly in arrears) will be paid first, completing the balance of the remaining 3% within a period of 30 calendar days from the total fulfillment of the payment of the receivables for the liquidation of 97%.

The Ministry of Transportation clarified that the liquidated debts will be transferred to the beneficiary provincial and/or municipal jurisdiction, “so that it transfers the funds directly to the companies that provide provincial and municipal services, unless otherwise required by reliable means to the province by the municipal jurisdiction.”

In turn, the provinces and municipalities must contribute to the urban and interurban passenger transport system by motor vehicle, either through transfers, in money and/or in kind, to the provider companies, an amount equal to that contributed by the National State, that is, they must return the investment loan to the Government within an agreed term.

Law No. 27,701 established the extension of the Compensation Fund for the sum of $85,000 million, as the floor from which the operation of the system will be reviewed to update the amount (inflation).

Source: Argentine News Agency