After obtaining the guarantees, the Government made official that it is moving forward with a loan from banks for US$ 5,000 million

The Executive Branch argued that it is a measure aimed at reducing the cost of financing the National Treasury and expanding the sources of credit available to the State.

The decision was formalized by a decree published this Monday in the Official Gazette and signed by the president Javier Mileythe chief of staff, Manuel Adorniand the Minister of Economy, Luis Caputo.

As established by the rule, the Secretariats of Treasury and Finance, which act as the coordinating body of the financial administration of the public sector, will be able to advance in the contracting of loans in dollars “with international financial entities of recognized track record”.

These loans will have partial guarantees from multilateral credit organizations, a tool that the economic team used to improve financing conditions, that is, to pay lower interest rates in dollars, compared to what a loan from Wall Street would require.

One of the central aspects of the decree is the authorization to include clauses of extension of jurisdiction in favor of state and federal courts of the city of New York in the contracts linked to these operations. This is a common concession for this type of loan. The Global bond contracts, for example, also have the New York law that governs them.

However, the rule clarifies that this acceptance of foreign jurisdiction does not imply a waiver of immunity from execution on certain assets considered strategic.

These include the reserves and accounts of the Central Bank, public domain assets, assets linked to essential public services, diplomatic and consular assets, military equipment, cultural heritage and the rights to collect taxes and royalties, among others.

The decree also empowers the Economy to define the terms, rates, currencies and other financial conditions of the operations, as well as to select the participating financial entities, hire payment and registration agents, agree on commissions and sign all the necessary documentation to complete the loans.

Although the decree does not announce an immediate placement, the Government is preparing the administrative and legal ground to make an announcement in the short term.