Overview
- Casa Rosada said it will deny fresh borrowing to the Province of Buenos Aires and only authorize refinancing that lowers rates or extends maturities.
- Luis Caputo grounded the decision in the 2004 Fiscal Responsibility Law, arguing the province lifted current spending above inflation and therefore fails the test for new debt.
- Manuel Adorni reinforced the line "without a deficit, there is no new debt" and ruled out a meeting with Governor Axel Kicillof, signaling a hardened stance from the national government.
- The Buenos Aires Legislature approved up to US$3.685 billion in financing, which Kicillof says is to cover maturities; provincial officials cite unequal treatment as CABA, Córdoba and Santa Fe recently received debt authorizations.
- The Council of Mayo unveiled a draft Law of Compromise for Fiscal and Monetary Stability that would prohibit deficit budgets, restrict provincial borrowing to rollovers, trigger automatic spending adjustments, and criminalize unauthorized spending or Central Bank financing.