Government agrees with Buenos Aires to include debt payment in 2026 budget

The Argentine government has reached an agreement with the Autonomous City of Buenos Aires to include the payment of coparticipation debt in the 2026 Budget. This decision is expected to be part of the project that has already received a report in committee.

The agreement between the national government and the Autonomous City of Buenos Aires (CABA) represents progress in resolving the coparticipation debt. Reports indicate that this measure will be incorporated into the 2026 Budget project, which has already been favorably reported in the relevant committee of the Lower House. The negotiations, though not detailed extensively, reflect efforts to align finances between the central government and the capital. This step aims to regularize pending payments from the federal fund distribution, a recurring issue in Argentina's inter-jurisdictional relations. Exact amounts or implementation timelines are not specified in the available information, but the consensus points to prompt inclusion in the budget framework.

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Deputies voting in the Argentine Congress on debt payment approval
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Deputies approved payment of 171 million dollars to 2001 debt holders

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The Chamber of Deputies gave preliminary approval to an agreement with two funds litigating since the 2001 default. The initiative obtained 139 votes in favor and 97 against.

The Inter-American Development Bank approved a US$ 550 million guarantee for Argentina aimed at security and justice reforms. The measure seeks to facilitate debt payments and access to private financing.

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The Buenos Aires provincial government closed a salary deal with unions that includes a 7% pay increase in two stages for July and August.

In the latest escalation of the Argentine University Financing Law Dispute, the University of Buenos Aires confirmed on May 5 that no funds from the 2026 Budget for its hospitals' operating expenses have been transferred, denying the national government's claims. This follows earlier demands for law implementation and endangers healthcare for over 700,000 patients annually.

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The Chilean Association of Municipalities accused Finance Minister Jorge Quiroz on Monday of showing no willingness to dialogue on the contributions project and requested to halt its processing until it is guaranteed that there will be no decrease in municipal revenues.

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