Argentina: Santa Fe secures record pension deficit compensation

The government of Santa Fe has received 110 billion pesos in cash from the National Social Security Administration (Anses) to address the 2026 pension fund deficit. This historic compensation was achieved through the Regime for the Extinction of Reciprocal Obligations (REOR), a mechanism allowing the province to offset debts with the national government.

The agreement recognizes a total net credit of 142.742 billion pesos in favor of Santa Fe, which includes funds from the Fiscal Consensus and public works agreements. To facilitate the payment, the province utilized part of a 400 billion peso coparticipation advance, of which it must return 90 billion pesos (22.5%) this year. The remaining balance can be paid in installments with a 1.25% monthly interest rate or offset against other credits.

Provincial Economy Minister Pablo Olivares stated that the mechanism is unprecedented, noting, “we have managed to have the Nation send us the funds first and then go deducting what they owe us.” The move aligns with Governor Maximiliano Pullaro’s objective to sustain the provincial pension system and prevent its transfer to Anses.