The national government maintains its position of not authorizing additional debt for the province of Buenos Aires and will only approve the rollover of maturities.
Sources from the Ministry of Finance told Agencia Noticias Argentinas (NA), "The reasons have already been explained by the minister (Luis Caputo) and there are no changes."
The governor of the province of Buenos Aires, Axel Kicillof, seeks authorization to borrow $3 billion, of which about $2.5 billion would be needed to refinance maturities.
The Casa Rosada (Government House) aims to stop the additional $500 million in borrowing by invoking the Federal Fiscal Responsibility Regime.
The province of Buenos Aires bases its request on the need to meet foreign currency debt maturities previously contracted.
The additional financing would be applied to infrastructure investment, including road and energy works.
From a legal standpoint, the national government points out that the province has increased its current spending in real terms beyond the limits set by the Fiscal Responsibility Law.
This deviation would imply that part of the debt would be used indirectly to finance operational expenses, which is prohibited by the regulations.
In turn, the province defended its stance, stating that it remains within the technical debt limits.
