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Argentina Authorizes Up to 400 Billion Pesos in Advance Payments to Three Provinces

The decree lets the finance secretary set final amounts, recover funds through automatic coparticipation retentions and requires repayment within 2026 at a fixed 15% annual rate.

Overview

  • The national government published Decree 474/2026 on Thursday authorizing advance coparticipation payments of up to 400 billion pesos for Entre Ríos, Jujuy and Santa Fe to address short-term cash shortfalls.
  • The Secretary of the Treasury will evaluate each province’s capacity to repay and sign individual agreements that determine the exact disbursements and repayment schedule.
  • Repayment must occur during the 2026 fiscal year and the advances will carry a fixed nominal annual interest rate of 15% that accrues from the moment of disbursement.
  • The decree allows the Treasury to recover principal and interest by automatically withholding future coparticipation transfers from the beneficiary provinces, a mechanism that reduces later federal transfers until the advance is repaid.
  • In practice the government has already disbursed 150 billion pesos to Entre Ríos and the other provinces are weighing whether to request funds as leaders assess near-term needs against the hit to future receipts; the move follows similar 400 billion peso authorizations earlier this year for a separate group of provinces and responds to a worsening provincial fiscal picture in 2025.