The Ministry in charge of Luis Caputo approved the request of the province of Salta, which seeks to cancel in advance a debt with the Provincial Development Trust Fund. This measure reflects an attempt to restructure and stabilize provincial finances in a context of increasing financial commitment.
Trust funds are those revenues received by the provinces that serve as a sort of guaranteed budget for more than one year.
Ignacio Petunchi
He Ministry of Economy approved the early cancellation of a debt that the Salta province kept with him Provincial Development Trust FundThis fund, created by the National State, has as its main objective to financially assist the provinces so that they can meet their obligations.
In this way, through the Resolution 794/2024 Published this Monday in the Official Gazette, the process of financial assistance and debt refinancing between the National State of Argentina, the province of Salta and the Trust Fund for Provincial Development began.
According to the Annex of the Resolution, the balance of the debt originated in the loans granted to the province, as of August 8, 2024, amounts to the sum of 63,685,353,597.71 pesos (sixty-three billion six hundred eighty-five million three hundred fifty-three thousand five hundred ninety-seven pesos and seventy-one cents).
Key points of the standard for Salta
- Salta’s debt: The province of Salta had contracted a significant debt with the Trust Fund through different financial assistance agreements.
- Cancellation request: The province of Salta formally requested the early cancellation of this debt. Therefore, the Ministry of Economy, after evaluating the financial situation of the province and the possibilities of refinancing, authorized the early cancellation.
- Cancellation mechanism: An agreement will be established between the National State, the Trust Fund and the province of Salta to formalize the cancellation of the debt.
According to the official text, the cancellation of the debt represents a significant relief for the province, since it reduces its financial burden and allows it to allocate resources to other priorities.
The flexibility of the Trust Fund is also noteworthy, as it allows for the early cancellation of debts, adapting to the needs of the provinces. The National State, through the Ministry of Economy, continues to provide financial support to the provinces, seeking to strengthen their economies and improve the quality of life of their inhabitants.
Source: Ambito
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