In the midst of your efforts Budget 2026 and reformsprovinces accelerate their operations to Placing debts abroad and in the domestic market They ask for the nation’s support.
The national government has provided guarantees, but views provincial debts from afar. “We don’t like it”First-level officials backed down. The explanation is that it is not the subnational states of the world that bear the debts, but rather it is channeled through the national states, in addition to being considered not generators of foreign currency. Additionally, they add a background Restructuring Of the provinces’ commitments, which have been repeated recently, although they recognize that in many cases, this situation was a response to the economic situation of the country.
However, many provinces already have guarantees for depositing debts abroad. Newcomer to this round of debt It was Buenos Aires, with Santa Fe, Chubut and Cordoba expected to follow. Other provinces are also in negotiations, such as Neuquén, Entre Ríos or Santa Cruz. The last governor, Claudio Vidal, “Anything is possible,” he stressed in an interview with El Cronista. “These are complex economic times, and we live in a province with diverse resources. If there is a possibility of obtaining a loan to generate more production, or infrastructure, which we lack, we can analyze it.”
The truth is that the situation between the provinces is different. The first two have been shown overseas in recent monthsCABA and Santa Fe did not have a debt restructuring. “This has never happened in history,” they explain from one area.
The city has allocated US$600 million to improve its maturity profile and seek a market solution for its debts. Santa Fe aims to raise up to $1 billion this month, although there is no specific date yet.
The city maintains that it is the only region that did not default on its debt in 2001 and one of the few regions that did not commit to the 2020 restructuring promoted by the national government and fulfill its obligations. The province of Maximiliano Pollaro added that it is one of the provinces with the lowest debt in the country and has just paid debt services worth US$92 million from its own resources.
The national government prefers that the provinces be funded in Local market. Cordoba It is the one that generates the greatest expectations, as it is expected to receive between 100 thousand million to 200 thousand million dollars. Next week when I go out to put on the titles.
Districts are seeking to fill funding gaps, much of it for infrastructure and some for expenses.
The explanation for this hole is in Curb certain transfers from the state, such as fuel tax or treasury (ATN) contributions.. Transfers automatic They are also showing a decline: measured in constant pesos until November 2023, total transfers are 9% lower than in 2023 and co-share transfers are 20% lower, according to Politicon Chaco.
The transfer of resources is on the negotiating table, however The Government confirms that no adjustment to the distribution of fuel tax or ATN will be included in the changes it formulates for the Budget. Participation criteria. They say they are not reviewing increases in funds allocated to Public workArguing that the sent budget expects a 40% increase in funds, despite the Conservatives’ insistence on the need for concrete investments in infrastructure in the face of deterioration, especially roads.
The nation’s preference for the local market and the need to add the guarantees offered by the provinces as a negotiating chip amid the already tense discussions on the budget, labor reforms and taxes. The governors will discuss the main points directly with the Minister of Economy, Louis CaputoWho has the final say on the release of the funds alongside the “custodian of the surplus,” Treasury Secretary Carlos Guberman.
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