The vice head of Interior Cabinet, Lisandro Catalánsecond of Guillermo Francos announced the launch of Federal Reparation Regime what will be published this Friday in the Official Gazette. The objective of the proposal, as he stated, ““is to walk together with the governors towards true federalism” and stated that the plan seeks “organize the accounts of the Nation and the provinces to begin a new stage in Argentina.”
“Clean slate” I synthesize Catalan to the spirit of the regulations. The official said, in a press conference at the Casa Rosada, that the initiative proposes “to be clear about the compensations and for the provinces to be able to direct their own destiny.”
In this regard, he pointed out as one of the benefits of the regime, both for the Nation and for the provinces that are offered, “alternative ways to pay off debts.”
The official intention is to net the debts between the Nation and the provinces, although “without money.” This is the reason why the negotiation will be open to all types of proposals that the provinces may suggest.
At the negotiation table, the payment of the Nation’s debts will be evaluated with tools such as: transfers of national companies whose activity is carried out in the province; shares of national companies; fiscal lands, or national routes that then “serve the provinces to grant concessions and improve their infrastructure”he explained.
Catalán insisted that “We are not closed to any tool that the provinces may propose. Our objective is for this regime to be a dialogue table where we can listen to each other and reach consensual agreements for the benefit of both parties.”
Deadlines
The official clarified that The proposal is voluntary that there will be 30 administrative business days to notify it and then 60 days to achieve reconciliation of liabilities. One of the biggest difficulties will be reconciling debts because there will be different evaluation criteria. Also, the valuation of any assets offered by the Nation will be questioned.
Those provinces that do not have debts are the ones that will be in the best position for negotiation. Although The government, it is also true, has quite a few “carrots” to offer.
Although formal talks have not yet begun with the governors, Catalán hinted that the initiative did not go down badly. The Federal Reparation regime will be in the hands of the Ministry of Economy, headed by Luis Caputo.
This measure is complementary to the analysis of all the companies and assets that the national State has, carried out by the Privatization Secretariat in charge of Diego Chaher.
The benefit for the provinces is to resolve their liabilities and in this way be subject to credit at reasonable rates or be able to issue debt.
Source: Ambito
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