Governors Consider Refinancing 400 Billion in Federal Revenue Advances

Provinces that received a loan of 400 billion pesos in April as an advance on federal revenue sharing are considering refinancing those commitments. This loan, granted by the Ministry of Economy at an annual rate of 15%, was arranged to prevent governors from turning to the capital markets or banks with higher rates. The states that requested assistance include Catamarca, Chaco, Chubut, Corrientes, La Rioja, Mendoza, Misiones, Río Negro, Salta, Santa Cruz, Tierra del Fuego, and Tucumán. Currently, three provinces have decided to request refinancing from the National Executive, and a fourth is under evaluation; its approval will depend on the Ministry of Economy. In the first quarter of 2026, the primary surplus of the governorships fell from 0.4% to 0.2% of GDP, suggesting that the provinces could enter into deficit. Provincial public debt reached 3.4% of GDP, an increase of 0.2 percentage points compared to the same period in 2025. The consolidated debt stock of the provinces and CABA totaled 326 billion pesos, with a 7% growth in constant terms compared to 2024. 74.4% of the debt corresponds to bonds, while 20.1% comes from international organizations.