Patacón (bond)
Encyclopedia
The Patacón was a bond
issued by the government of the province
of Buenos Aires
, Argentina
, during 2001. The patacones were used to pay government bills, including state employees' salaries during a period when the economic crisis caused regular currency (Argentine peso
s) to be scarce. Patacones then circulated in the economy in much the same way as pesos.
First issued during the peso/U.S. dollar convertibility regime, just like other complementary currency
Patacones could be attractive due to a revenue scheduled for payment in 2003 in pesos (practically equivalent to dollars). When the convertibility was abandoned amid fears of hyperinflation, the attractiveness of this revenue practically disappeared. The basis for the acceptability of complementary currency
shifted to their use to pay taxes.
However, the value of Patacones became eroded as the series "B" was issued because as a way to put pressure on the Government to cancel a large debt, the company that printed them eliminated many safety features deemed too expensive, thus making them easier to counterfeit. Also, the revenue of series "B" was scheduled for payment just in 2006. The economic importance of Buenos Aires province ensured the acceptability of Patacones because there were plenty of large companies that found use for them as payment of provincial charges. Patacones were accepted outside the Buenos Aires province and eventually circulated (albeit informally) in border areas of neighboring countries.
The name patacón is derived from a former Argentine national currency, and had been used in various places as a variant name for the Peso
. It was colloquially or jokingly used as a synonym of "money". The popular comic hero Patoruzú
had revived the use of this word -a wealthy, generous Indian ever ready to hand large heaps of bank notes to anyone in need, urging them to accept "these Patacones".
Other complementary currencies
in Argentina at that time were the Crédito
, the LECOP
and the Argentino
.
Bond (finance)
In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest to use and/or to repay the principal at a later date, termed maturity...
issued by the government of the province
Provinces of Argentina
Argentina is subdivided into twenty-three provinces and one autonomous city...
of Buenos Aires
Buenos Aires Province
The Province of Buenos Aires is the largest and most populous province of Argentina. It takes the name from the city of Buenos Aires, which used to be the provincial capital until it was federalized in 1880...
, Argentina
Argentina
Argentina , officially the Argentine Republic , is the second largest country in South America by land area, after Brazil. It is constituted as a federation of 23 provinces and an autonomous city, Buenos Aires...
, during 2001. The patacones were used to pay government bills, including state employees' salaries during a period when the economic crisis caused regular currency (Argentine peso
Argentine peso
The peso is the currency of Argentina, identified by the symbol $ preceding the amount in the same way as many countries using dollar currencies. It is subdivided into 100 centavos. Its ISO 4217 code is ARS...
s) to be scarce. Patacones then circulated in the economy in much the same way as pesos.
First issued during the peso/U.S. dollar convertibility regime, just like other complementary currency
Complementary currency
Complementary currency is a currency meant to be used as a complement to another currency, typically a national currency. Complementary currency is sometimes referred to as complementary community currency or as community currency...
Patacones could be attractive due to a revenue scheduled for payment in 2003 in pesos (practically equivalent to dollars). When the convertibility was abandoned amid fears of hyperinflation, the attractiveness of this revenue practically disappeared. The basis for the acceptability of complementary currency
Complementary currency
Complementary currency is a currency meant to be used as a complement to another currency, typically a national currency. Complementary currency is sometimes referred to as complementary community currency or as community currency...
shifted to their use to pay taxes.
However, the value of Patacones became eroded as the series "B" was issued because as a way to put pressure on the Government to cancel a large debt, the company that printed them eliminated many safety features deemed too expensive, thus making them easier to counterfeit. Also, the revenue of series "B" was scheduled for payment just in 2006. The economic importance of Buenos Aires province ensured the acceptability of Patacones because there were plenty of large companies that found use for them as payment of provincial charges. Patacones were accepted outside the Buenos Aires province and eventually circulated (albeit informally) in border areas of neighboring countries.
The name patacón is derived from a former Argentine national currency, and had been used in various places as a variant name for the Peso
Peso
The word peso was the name of a coin that originated in Spain and became of immense importance internationally...
. It was colloquially or jokingly used as a synonym of "money". The popular comic hero Patoruzú
Patoruzú
Patoruzú is a comic character created in 1928 by Dante Quinterno and is considered the most popular hero of Argentine comics. Patoruzú is a wealthy Tehuelche cacique with great state properties in Patagonia, and is possessed of both superhuman physical strength and a charitable yet naive heart...
had revived the use of this word -a wealthy, generous Indian ever ready to hand large heaps of bank notes to anyone in need, urging them to accept "these Patacones".
Other complementary currencies
Complementary currency
Complementary currency is a currency meant to be used as a complement to another currency, typically a national currency. Complementary currency is sometimes referred to as complementary community currency or as community currency...
in Argentina at that time were the Crédito
Crédito
The Crédito was a local currency started on 1 May 1995 in Bernal, province of Buenos Aires, Argentina, on a garage sale, which was the first of many neighbourhood barter markets that emerged in Argentina during the economic crisis....
, the LECOP
LECOP
The LECOP was a bond issued by Argentine national government. LECOP , stands for Letra de Cancelación de Obligaciones Provinciales ....
and the Argentino
Argentine argentino
-Gold currency:The Argentino was an Argentine currency equal to 5 pesos oro sellado.The 1/2 argentino coin was issued in 1881 and 1884 and it weighs 4.0322 grams. The argentino coin was issued from 1881 to 1896 and it weighs 8.0645 grams...
.