La Rioja, Argentina, has entered a state of default for 720 days, as it has not met its debt obligations associated with the Green Bond since February 2024. This is a notable distinction, as other provinces in Argentina continue to uphold their debt responsibilities on time. The province's financial troubles are attributed to recurrent letter defaults, the first of which occurred in August 2020, followed by a lengthy restructuring period of 400 days which eventually reinstated its commitments. However, it has now defaulted for a second time, marking it as a unique case in Argentina's financial landscape.

The history of the Green Bond stems from a $300 million issuance in 2017 aimed at financing the Arauco Wind Farm, a project that was constructed, operated, and ultimately sold to Pampa Energía. While La Rioja benefited from the sale of the wind farm, the bondholders who financed the project have seen no returns on their investment. This situation illustrates a severe mismanagement of financial commitments by the provincial government, drawing attention to the challenges faced by regions attempting to finance sustainable energy projects while maintaining operational viability.

The implications of La Rioja's default extend beyond immediate financial transactions; they may affect investor confidence and future financing opportunities for the province. As La Rioja stands alone in its default status while other provinces manage their debts, it raises concerns about governance, financial planning, and accountability within regional administrations in Argentina. The province must seek viable solutions to restore its financial health and rebuild trust among bondholders and investors alike.