The Ministers of Finance and Economy of the provinces of Buenos Aires, Chaco, Entre Ríos, Jujuy, La Rioja and Tierra del Fuego reaffirm their commitment to advance in the restoration of the sustainability of provincial debts with private creditors under foreign law in a coordinated manner and responsible.

 Guidelines for the implementation of sustainable provincial debt restructurings

 

The Ministers of Finance and Economy of the provinces of Buenos Aires, Chaco, Entre Ríos, Jujuy, La Rioja and Tierra del Fuego reaffirm their commitment to advance in the restoration of the sustainability of provincial debts with private creditors under foreign law in a coordinated manner and responsible.

 

They highlight the work carried out by the National Government in restructuring the Argentine debt and the need to advance in agreements on provincial debts that are aligned with the principles outlined at the aggregate level.

 

Continuing with the work carried out on January 12 at the Ministry of Economy, they highlight the importance of maintaining an adequate flow of communication and coordination on the progress in the different individual processes.

 

They reject the use of pressure tools of a judicial nature to force unsustainable solutions, affecting the principles of good faith that should prevail in all negotiations, while trusting that consensual processes will allow the restoration of debt sustainability through constructive negotiations between the parties, based on the provincial realities and their respective payment capacities.

 

They highlight the need to observe common guidelines that ensure added sustainability, discarding agreements that are only viable in the individual and isolated analysis of the national reality.

 

The Ministers agree to work in coordination implementing the following guidelines: 1.Restore debt sustainability within the framework of orderly processes, promoting agreements that are sustainable in the medium and long term.

2.Work cooperatively, providing mutual support according to the needs of each province.

3.Maintain a transparent and good faith dialogue with the different groups of bondholders.

4.Reach adequate commitments that provide equitable treatment between creditors, depending on the particularities of each province.

5.Avoid agreements that may bring short-term individual benefits, putting the sustainability of the provincial aggregate at risk and with it the interest of all creditors.

6.Incorporate into the sustainability analysis the implications of the macroeconomic context and the availability of foreign exchange to assess the possibilities of paying the resulting debt services.

7.Advance in proposals that allow obtaining payment flows compatible with paths of fiscal results consistent with a sustained economic recovery.