The 90’s marked the beginning of a new macroeconomic context at a national level. Back then, the Ministry of Economy of the Province set out a regularizing process of its provincial debts with Banco Provincia and the federal government. These operations allowed the Province to put its accounts in order and significantly reduce its borrowing level.
Also, the favorable context made it possible for the province to tap the international capital markets. Therefore, the Province issued Eurobonds in the international markets for the first time in its history. The proceeds were allocated to infrastructure works significantly boosting public investment.
The first provincial Eurobond was issued in July, 1994. Since then the Province has had an active participation in the capital markets and become a well-known and valued issuer within the international market community.
Since that first issuance, the provincial financing activities have increased significantly in size, complexity and specificity level. Therefore, it was necessary to create an office with fulltime dedication to provincial financing. Consequently, on April 30, 1996, the Provincial Office of Financing Polices and Public Credit was created under the Treasury Secretariat of the Ministry of Economy.
Later, the Office was renamed as the Provincial Office of Debt and Public Credit. Mariano Moschione, the current director, is joined by a group of professionals, an administrative and a logistics team, who manage the provincial public credit, assess the available financing activities, issue debt in the domestic and international markets, as well as provide information about the Province to the diverse players in the international capital markets
1. To control, plan, manage and coordinate the Public Credit Subsystem.
2. Take part in devising credit aspects in financial policies, assessing the level and compositor of the provincial public debt.
3. Approve every indebtedness project – to be understood as every transaction related to public credit pursuant to Act No 10.189 Permanent Complementary to the Budget (Restated Text. Decree Nº 4502/98) by Act No 13.403- required by any organism or agency of the Provincial Administration.
4. Serve as link between the Province and the Economy and Production Ministry of the federal government regarding public debt matters.
5. Provide an opinion about every Law Bill or Draught Decree whereby any public credit transaction may occur – as stated in the paragraph above – on the part of the Provincial Administration.
6. Implement the technical laws to be adhered by the public jurisdictions and agencies, establishing the conditions for the public credit transaction – as stated in the third paragraph.
7. Issue and place provincial securities and carry out any other financing; manage the different issuances of provincial notes and bonds and other financial transactions conducted in the local and international capital markets, and monitor the performance of the contractual obligations.
8. Restructure the provincial liabilities and negotiate with the creditors to the Province, as the case may be.
9. Elaborate and keep updated a record of public credit transactions –as provided by the third paragraph – and coordinate with the General Accounting Office, the provincial Treasury and the Provincial Office of Public Credit the records of the existing debt, pursuant to the applicable laws.
10. Coordinate with the PROVINCIAL BUDGET OFFICE and the TREASURY the budgeting activities and the manner of paying amortizations and/or public debt services.
11. Manage the Debt Consolidation Regime provided by Act 12.836.
12. Make and present, on a regular basis, reports on provincial public indebtedness, describing the jurisdiction and agencies that have taken credits and issue statements about the work of the Provincial Office of Debt and Public Credit, through the available means of communication.
13. Keep informed the Province’s creditors and the different agents in the local and international capital markets, such as, placement banks, financial agents, credit rating agencies, stock exchanges and market participants, Clearing Houses, etc.
14. Collaborate with the pertinent provincial governmental areas with the steps related to municipalities’ financing.