BUENOS AIRES - The Argentine government has authorized as much as $5 billion in financing from international entities that carry partial backing from multilateral credit organizations, according to a decree published in the official gazette on Monday.
The measure, signed by President Javier Milei, Economy Minister Luis Caputo and Cabinet Chief Manuel Adorni, is framed as a step to lower borrowing costs by accessing dollar-denominated loans that include partial multilateral guarantees.
Key provisions spelled out in the official publication note that such operations may include clauses that grant jurisdiction to New York courts. At the same time, the decree explicitly protects certain sovereign assets from being subject to these financing arrangements.
- Protected assets listed in the decree encompass central bank reserves and accounts.
- The protection extends to assets tied to essential public services.
- Tax and royalty revenues are also identified as assets excluded from the financing arrangements.
Administrative authority over the transactions is vested in the Treasury and Finance secretariats. Those bodies are empowered to establish the terms of the operations, contract required entities and manage the instruments necessary to execute the financings.
The decree took effect upon its publication in the official gazette, making the authorization operative immediately under the terms published.
The text of the decree emphasizes the dual framework of seeking lower funding costs through dollar-denominated borrowing while maintaining legal and asset safeguards identified by the government. The combination of partial multilateral guarantees and allowed jurisdiction clauses are presented as features of the permitted operations in the official notice.
That same notice confirms the roles assigned to the Treasury and Finance secretariats in determining the practical implementation of the financing, including negotiating terms and engaging external entities as needed. The decree therefore sets a procedural and legal framework for the potential issuance of up to $5 billion under the specified conditions.
Summary of the decree's components is straightforward: authorization for up to $5 billion in multilateral-backed financing; allowance for dollar-denominated loans with partial guarantees; potential inclusion of New York jurisdiction clauses; explicit protection for central bank reserves, accounts linked to essential public services, and tax and royalty streams; and delegation of execution authority to the Treasury and Finance secretariats, effective immediately upon publication.