The OCDE member states have granted the Province credit lines for different purposes, among which are:
• Bilateral loans from the governments of Italy and Spain;
• Credit lines provided by Credit Lyonnais Bank and guaranteed by COFACE (a French Foreign Trade Insurance Company);
• Financing obtained by the Japanese Export and Import Bank (JEXIM) and the International Cooperation Japanese Bank (JBIC), both organisms are from the Japanese government.
The funds provided by these Official Agencies have been allocated to finance necessary equipment imports to help provide the basic public services.
The debt service payments from these loans are guaranteed by the Tax Co-participation funds.
The debt portion represented by the bilateral loans is the only portion in default (since the 2001 debt default). The Province has entrusted (pursuant to Law N°13.154/04) the federal government to negotiate, on the Province’s behalf, these loans’ restructuring process. The negotiations are underway.
