This decision is made within a specific legal framework, established by various provincial and national decrees and resolutions.
Through Communication “A” 8072/2024 of the Central Bank (BCRA) addressed to financial institutions and in which it communicates the decision to give them the green light to buy Treasury Bills issued by the province of Land of Fire.
According to the official text, the authorization has a maximum limit of $14,000,000,000 in circulation. This means that financial institutions as a whole They will not be able to invest more than that amount in these Notes.
This decision is made within a specific legal framework, established by various provincial and national decrees and resolutions. These documents detail the conditions under which this issuance of Treasury Bills and their acquisition by financial institutions can be carried out.
Furthermore, although this authorization is granted, it is clarified that financial institutions must continue to comply with other regulations related to the diversification of credit risk. This means that they cannot concentrate all their investment in a single issuer, such as the province of Tierra del Fuego.
Implying?
- Greater liquidity for Tierra del Fuego: the province will be able to count on more resources to finance its projects and expenses.
- Investment opportunity for banks: Financial institutions will have a new investment option, although with established limits and conditions.
Source: Ambito
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