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[POLITICS] · Argentina · 83 sources

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Argentine Senate passes gas subsidy cuts and BCRA reform FAST-MOVING

The Argentine Senate has passed two significant legislative reforms: the modification of the 'Zonas Frías' (Cold Zones) gas subsidy regime and a reform of the Central Bank (BCRA) organic charter.

The 'Zonas Frías' law restricts automatic gas subsidies to the Patagonia, Puna, and Malargüe regions. This move reverses an expansion implemented in 2021, effectively removing automatic benefits for approximately 1.6 million households in provinces such as Buenos Aires, Córdoba, Santa Fe, and Mendoza. Under the new law, residents in these areas can only access subsidies if they prove socio-economic vulnerability, with income limits set at three basic food baskets. Additionally, the subsidy will now apply only to the gas generation price (PIST) rather than the total utility bill, which may lead to increased costs for many users.

Separately, the Senate approved the BCRA organic charter reform, which will now return to the Chamber of Deputies for further review due to amendments. The reform aims to prohibit the Central Bank from providing direct or indirect financing to the National Treasury or provinces. It also establishes that the President and directors of the BCRA can be removed by an absolute majority rather than a two-thirds majority. The reform also allows the BCRA to utilize its external assets and reserves, including gold and liquid assets, to manage its operations.

Entities

Argentine Senate · Banco Central de la República Argentina · Central Bank of Argentina · Central Bank of the Argentine Republic · Diego Santilli · Javier Milei · Karina Milei · La Libertad Avanza · Patricia Bullrich · Senado de la Nación Argentina · Senate of Argentina

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