He Ministry of Economy instructed the Provincial Development Trust Fund (FFDP) to sign a financial assistance agreement with the Tierra del Fuego provinceto refinance amounts owed up to $3.6 billion with the agency, through resolution 925/2023 published today in the Official bulletin.
It provides for the amount to be paid in four consecutive monthly installments, with the first due date set for the last business day of next September.
The grace for the capital will be until August 31, while the applicable interest rate was set at 0.10% annual nominal, the same as the agreements that the Nation recently established with other provinces.
The principal of the loan will be adjusted from the disbursement, according to the CER (inflation) corresponding to the period between August 31 and the date of each maturity.
Last month, the State signed two similar agreements with Salta and Tucumán, which reach $14,000 million and $22,400 million, respectively.
As in said agreements, Tierra del Fuego must provide the Ministry of Finance with information to monitor its finances.
In addition, to ensure compliance with the agreement, it was determined that the province cede its rights over the sums to be received by the Coparticipation Regime until the total payment of the capital and interest owed.
In other words, in the case of non-payment, the National State is authorized to withhold the amounts destined for co-participation.
The agreement will enter into force once it is approved at the level of the provincial state.
The recitals state that, although Tierra de Fuego shows “signs of recovery” in its income”, it still shows “a situation of fiscal and financial deficit”, which motivated them to request assistance “to face compliance by of the Provincial Treasury of commitments that cannot be delegated in time and form”.
The FFDP was created on February 27, 1995 and its objective is, among other things, to assist and finance programs that contemplate the reorganization of the debts of the provincial states, their renegotiation or cancellation; or promote development.
Source: Ambito
