Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Reuters
Reuters
Business

Argentina president to comply with "unfair" court ruling on Buenos Aires funding

FILE PHOTO: Argentina's President Alberto Fernandez arrives for a G20 Leaders' Summit in Bali, Indonesia, 15 November 2022. Mast Irham/Pool via REUTERS/File Photo

Argentina's president Alberto Fernandez said Monday his government would abide by a recent Supreme Court ruling and give a larger proportion of state funds to the opposition-controlled city of Buenos Aires.

The announcement signaled a reversal from a decision last week that drew a backlash, when Fernandez said he was rejecting a ruling from the court that increased funding to the capital.

"Judicial rulings are binding even when they are deemed to be disadvantageous and unfair," Fernandez said on Twitter, clarifying that the funds will be paid in peso-denominated bonds.

In a ruling last Wednesday, the Supreme Court ruled that the capital city should return to receiving 2.95% of federal funds, which it received before the national government cut the percentage in 2020 to 1.4%.

The city, the richest and most populous in the country, is controlled by a conservative mayor and has been pushing for a large slice of funds, which Argentina law requires be distributed between the country's regions.

On Thursday, Fernandez sparked a legal crisis when he pledged to ignore the "incongruous and impossible-to-enforce" ruling, which he called politically motivated ahead of general elections next year and said would hurt the other provinces.

(Reporting by Nicolas Misculin; Editing by Chizu Nomiyama)

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.