Government Excluded Provinces and City of Buenos Aires from Public Debt Reprofiling

On November 29, 2019 Decree No. 796/2019 (the “Decree”) was published in the Official Gazette. In the Decree the government provided that the deferral of maturities of certain short-term government debt titles provided for by Decree No. 596/2019 will not affect such securities listed in the Annex of such decree whose registered holder as of October 31, 2019 and at the time of payment was a part of the Non-Financial Public Administration of the provinces or the  City of Buenos Aires.

The recitals of the Decree note that “(…) the application of the mentioned decree [596/2019], with the amendment provided for in Decree No. 609 of September 1, 2019, has generated financial imbalances in certain local jurisdictions and conditions the payment of their obligations under the Fiscal Responsibility Federal Regime contemplated in Law No. 25,917, as amended and supplemented, and their financial relations with the NATIONAL STATE” for which “(…) it is essential to provide new measures which will allow such jurisdictions to service their obligations under the Fiscal Responsibility Federal Regime, and the Fiscal Consensuses passed by Laws No. 27,429 and 27,469”, as a consequence of which the Decree was enacted.