Overview
- Buenos Aires lawmakers approved up to USD 3.685 billion in borrowing, covering Treasury bills and four operations for the central administration, the executive, AUBASA and Buenos Aires Energía.
- National authorization is required to activate the package, so the refusal effectively stops the province from obtaining fresh funds.
- Economy Minister Luis Caputo said only rollovers that cut interest costs or extend maturities will be cleared because the province is breaching fiscal rules.
- Chief of Cabinet Manuel Adorni said the Council of Mayo will propose a bill to prohibit provinces with a primary deficit from seeking new debt except to refinance or in cases of high credit risk.
- Provincial officials say they have not received formal notice and insist the requested funds are to cover maturities, noting that CABA, Córdoba and Santa Fe recently obtained national approval to issue debt.