In the midst of the adjustment, Córdoba goes out to place debt for $40,000 million and receives the green light from the BCRA

Through Communication “A” 8052/2024 of the Central Bank (BCRA) informed financial entities that it will not object to the purchase of Public titles issued by the province of Córdoba for a total amount of up to $40,000,000,000.

Communication Details

The authorization is part of the 2024 Debt Securities Program and the Municipal Ordinance. The conditions of the issue are detailed in Note NO-2024-63248129-APN-SH#MEC of the Treasury Department of the Ministry of Economy of the Nation.

• Financial entities must comply with the provisions on credit risk fractionation established in current regulations.

In other words, the BCRA gives the green light to banks and other financial entities. to buy bonds from the province of Córdoba, provided they meet certain conditions.

Key points

• The total amount of bonds that can be purchased is $40 billion.
• The bonds are part of the 2024 Debt Securities Program.
• Financial institutions must verify the conditions of the issue and the rules on the fractionation of credit risk.

In this way, the BCRA communicates that it has no objections to financial entities acquiring Public Securities of Córdoba, as long as the established conditions and regulations are met.

Placement context

Collection at the national, provincial and municipal levels is important for the execution of public policies and is usually affected for various reasons. In fact, the impact, for example, of the pandemic a couple of years ago, had a noticeable effect on the public treasury, both due to the reduction and postponement of maturities, as well as the drop in activity and the delay in payment. thereof. With the recovery of activity, the panorama changed and the resources collected experienced year-on-year growth. Currently, the trend has reversed again, with significant falls, according to a report that details the situation of Transfers to the provinces for tax resources of national origin.

According to the document of the Center for Political Economy of Argentina (CEPA), in June 2024, a drop in Resources of National Origin of 24.1% is observed in real terms. “In the same sense, the Federal Tax Co-participation showed a decrease of 20.0% yoy. While VAT collection fell 20.6% in real terms, Earnings fell by 18.1%. This resumes the downward trend that had been interrupted exceptionally in May.“.

According to the report, in terms of National Resources, after a great performance in 2022, the situation in 2023 showed a plateau in revenue collection. While in 2022, RONs grew in 11 of the 12 months, in 2023, they fell in 9 of the 12 months. In 2024, it accumulates 5 of the 6 months of collapses in real terms..

Regarding the Federal Tax Co-Participation, in 2022 it grew throughout the year, while in 2023 it showed irregular behavior, falling in 8 of the 12 months. In 2024, with the exception of May, in the rest of the months these resources suffered collapses in real terms.