The current situation in the Argentine financial market has shown a rebound in the confidence of foreign investors, who observe a stabilization in the exchange rate of the dollar that encourages them to grant loans. According to specialists, provinces with solid resources, such as those in Patagonia, Córdoba, Santa Fe, and Buenos Aires, are considering the possibility of issuing debt securities in foreign currency.
The return to the international debt market by the provinces has raised expectations, especially after more than seven years of absence in this market. The Minister of Economy of Santa Fe, Pablo Olivares, emphasized that this initiative would open doors for future issuances. However, the technical teams from some provinces warn that the process of issuing securities abroad is complex and requires at least four months of preparation, so there are still districts in the early stages of this procedure.
Portfolio Personal Inversiones forecasts that several Argentine provinces could soon return to the international debt market, backed by their payment compliance history and lower comparative indebtedness. Additionally, with the current fiscal situation, there is an opportunity to capture financing to offset the reduction in spending implemented by the national government.
The City of Buenos Aires and the provinces of Santa Fe, Córdoba, Neuquén, and Buenos Aires are among the main candidates to access the international debt market, supported by their solid fiscal accounts and previous management. Experts suggest that, at current rates, a new issuance of securities could maintain the sustainability of provincial debt and promote financing diversification.
In this regard, it is noted that provinces like Santa Fe have explored the interest of international investors in New York, although they have not yet finalized new issuances. Miguel Arrigoni, CEO of First Capital, warns that the fiscal adjustment implemented by the national government has created a favorable scenario for provinces to seek funding by issuing debt in international and local markets to cover budget deficits.
The stability in provincial revenues from royalties, energy sectors, agriculture, and foreign currency exports, combined with the excess global liquidity, favors the provinces' ability to access financing. With a history of fiscal balance and primary surplus, some provinces, including Córdoba, Neuquén, and Santa Fe, are well-positioned to undertake new bond issuances and roll over their debt responsibly.
