The publication of the contract model calms the waters between Nación and Córdoba, a relationship that has suffered important confrontations over the years.
President, Alberto Fernandezfinally supported the request that Juan Schiarettigovernor of Cordovapresented several months ago with the objective of obtaining the necessary guarantees to complete a loan for 29 million Dollars of the Abu Dhabi Development Fund (FDAD). This fund, belonging to the government of United Arab Emirates and intends to finance water works of an aqueduct plan that is being carried out in that province.
This Monday, through Official bulletin, the model contract that will be signed between Argentina and the fund of the Arab country, as well as between the national government and the province of Córdoba, was announced. It is worth mentioning that the jurisdiction in charge of Schiaretti had expressed his discontent due to the delay faced by the National Executive in this process.
Schiaretti, who is also a presidential candidate for the We Do for Our Country alliance, had traveled to Arab Emirates in November of last year, where he signed an agreement with the FDAD for the construction of the Traslasierra and Río Seco aqueduct.
The Córdoba government began the file eight months ago, which is currently in the Dispatch Directorate and Legislation dependent on the Ministry of Economy.
The publication of the contract model calms the waters between Nación and Córdoba, a relationship that has suffered important confrontations over the years. Under this contract, the Argentine Republic undertakes to guarantee compliance with the financial obligations of the Province of Córdobawhich is the ADFD borrower.
The objective of these contracts is to ensure compliance with the loan contract between the Province of Córdoba and the ADFD. The guarantee contract establishes that, if the Province of Córdoba does not fulfill its obligations, the Argentine Republic will pay the ADFD instead. In summary, the counterguarantee contract establishes that Argentina undertakes to grant a guarantee to ADFD for the amount of the loan.
Details of the Decree
- Article 1: Approves the model guarantee contract between the Argentine Republic and the ADFD.
- Article 2°: Approves the model counterguarantee contract between the Argentine Republic and the Government of Córdoba.
- Article 3: Empowers the Minister of Economy to sign approved contracts.
- Article 4°: Empowers the Minister of Economy to agree and/or sign modifications to approved contracts, as long as they do not constitute substantial changes.
- Article 5°: Empowers the Minister of Economy to carry out all acts related to the implementation of the guarantee contract.
- Article 6°: Publish the decree in the Official Gazette.
Implications
The agreement between the Argentine Republic, the ADFD and the Government of Córdoba represents an important injection of capital for the development of infrastructure in the province. The guarantee contract provides the ADFD with greater security in the event of default by the Government of Córdoba, while the counter-guarantee contract ensures that the The Argentine Republic will comply with its obligations.
The decree approved by the National Executive Branch It is an important step for the implementation of the agreement.
Source: Ambito
