Credit assistance for more than $41 billion for Salta

Credit assistance for more than $41 billion for Salta
Credit assistance for more than $41 billion for Salta

The Province of Salta will take financial assistance from the Banco de la Nación for more than forty-one billion pesos to be applied in full to the partial payment of the capital owed to the Trust Fund for Provincial Development of the national government.

The financial conditions for the requested amount of $41,219,634,878 were approved through Decree 394, which was published last Friday in the Official Gazette.

Regarding the conditions, it is reported that the capital will be repaid in 24 consecutive monthly installments, with a grace period of 12 months, Badlar interest rate of private banks plus a bonus of 6 basis points, and the capital and interest services will expire on the last business day of the month, guaranteed by resources from the federal revenue sharing system.

“The financial conditions of the credit assistance that the Banco de la Nación Argentina will provide to the Province of Salta are hereby approved,” states Article 1 of Decree 394, which also authorizes the Minister of Economy, Roberto Dib Ashur, to carry out actions aimed at formalizing administrative acts and contracts.

In the recitals, it states that Article 5 of Law 8363 of the Budget for Fiscal Year 2023, extended for Fiscal Year 2024 by Law 8416, empowers the Executive to carry out the procedures aimed at materializing the debts contemplated in said Law or those that may be accessed in the future with the national public sector.

It indicates that the provisions established by National Law 25,917 and its amendment 27,428, referring to the federal regime of fiscal responsibility and good government practices, are being complied with and that Article 44 of Law 8363 authorizes the Executive to refinance or restructure overdue or maturing debts, provided that it represents an economic or financial benefit, or an improvement in amortization periods or interest rates.

He added that in his speech the General Accountant of the Province stated that, due to the destination of the funds to be received from the debt operation being processed and the legal nature of the creditor entity, the precepts of articles 5 and 44 of Law 8363 of the budget for the fiscal year 2023, extended for the fiscal year 2024 by Law 8416, are complied with.

The General Accountant concluded his opinion on the technical viability of the assistance and noted that the last paragraph of article 69 of the Provincial Constitution was not violated, since the debt services do not exceed a quarter of the ordinary resources of the provincial treasury.

Nor does it exceed 15% of net current resources from co-participation transfers to municipalities, as established in article 21 of Law 25.917 and its amendment 27.428 federal fiscal responsibility regime. The State Attorney’s Office also intervened.

Urtubey’s debt

Last April, the provincial legislature authorized the Executive by law to take a loan of 40 billion pesos from Banco Macro to refinance the multimillion-dollar debt in dollars of the Bicentennial Fund left by the government of Juan Manuel Urtubey. The loans were to pay off the capital installment of the Bicentennial Bond for 40 million dollars, which was due on June 1.

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