President Javier Milei gave his approval to the signing of a guarantee contract between Argentina and the CAF together with the signing of a counter-guarantee contract between the Executive and the Jujuy government, by Decree 817/2024, published this Thursday in the Official Gazette.
In this way, the national administration supports Jujuy’s payment commitment to the Development Bank of Latin America and reaffirms its responsibility as guarantor to comply with the agreed terms and deadlines without compromising the country’s public accounts.
In this regard, the official text stated that the CAF “has proposed to the National Government the signing of a Guarantee Contract so that the Argentine Republic can guarantee the financial obligations that the Government of the Province of Jujuy incurs as a result of the signing of the aforementioned CAF Loan Contract.”
What is the purpose of the CAF loan?
CAF’s financial assistance to the northern province is given in order to cooperate in the execution of the “Program for Improving Access and Educational Quality (PROMACE) Stage II”, which has as its general objective “Support improvements in equity and access to relevant education and quality, through the creation and strengthening of educational infrastructure, and the linking of educational paths with job training and vocational training for adolescents, young people and adults with a focus on innovation and productive development in the province.”
Along these lines, the Decree specified that “the execution of the aforementioned Program is structured in 3 components: (i) Educational Infrastructure; (ii) Connection with the Productive Context; and (iii) Administration of the Program.”
CAF: how payment of the commitment will be ensured
In this context, he explained that “attentive to the need for ensure payment of the commitments arising from the CAF Loan Agreement referred to and to preserve the public credit of the Argentine Republic, the National Government has proposed to the Government of the Province of Jujuy the signing of a Counter-Guarantee Contract by means of which the latter is obliged to cancel the payment commitments assumed, within the terms provided for in the aforementioned CAF Loan Contract.”
In this regard, it stipulated that “in the event that the respective cancellation does not occur, the Government of the Province of Jujuy will authorize the National Government to carry out the corresponding procedures for the automatic debit of funds from the Federal Tax Sharing Account or the regime that replaces it, for up to the total amount owed.”
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
