He central bank authorized financial entities to acquire Treasury Bills issued by the province of Tucumán for up to the outstanding amount of $100,000 millionwithin the framework of Treasury Bill Issuance Program of the province 2024.
This program was created by Provincial Decree 624/2024 and, through the Communication “A” 7993 of the BCRA, the monetary regulator established that it will not issue any objection to financial entities being able to purchase these provincial bills, although they must comply with what is established regarding the fractionation of credit risk for banks in the Central regulations.
It should be remembered that the “Financing of the non-financial public sector” standardsestablish the mechanisms under which banks can finance the provinces.
What type of financing does the standard refer to?
He non-financial public sector It includes the National Government and the provincial and municipal governments and the Autonomous City of Buenos Aires, including the central administration, ministries, secretariats and their decentralized and autonomous departments, and other entities controlled by them.
It also includes the trusts and trust funds whose final beneficiary or trustee, determined by the respective contracts or provisions that govern them, belongs to the non-financial public sectorincluding the remaining trusts or trust funds in which the works financed have said sector as the final recipient.
In this case, it is debt that the province of Tucumán, governed by Osvaldo Jaldo, issued in order to meet the financial needs of its management and will be able to place it in the banks thanks to the authorization of the BCRA.
Source: Ambito
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