Javier Milei's government will authorize coparticipation fund advances to 12 provinces facing fiscal difficulties via decree, at a rate close to 15%. The measure addresses falling tax collections and aims to prevent salary payment issues. Officials note the rate is below market levels.
The national Executive, led by Javier Milei, will issue a decree in coming days to enable coparticipation advances for provinces in crisis. These loans will front funds legally due to districts, repayable with about 15% interest. The Casa Rosada describes them as a standard tool, cheaper than market rates.
Beneficiaries include Catamarca, Salta, Río Negro, Tucumán, Corrientes, Chubut, Misiones, Mendoza, Chaco, Tierra del Fuego, and La Rioja, among others, with a total cap of $400 billion. The decision stemmed from talks between the president, Cabinet Chief Manuel Adorni, and Ministers Luis Caputo and Diego Santilli with affected governors.
Provincial crises worsen due to sustained drops in coparticipable tax collections, with automatic transfers falling over 11% in real terms in March compared to February. Districts like Jujuy, Catamarca, and Santa Fe have seen salary disputes and security force conflicts.
Buenos Aires, the largest district, is excluded for now despite its tensions. The measure aims to prevent a domino effect in the federal system, differing from discretionary Treasury contributions by rooting in coparticipation law.
