Mendoza submits debt compensation agreement to provincial legislature

The government of Mendoza has submitted a bill to the provincial legislature to ratify a debt compensation agreement with the Argentine national government. Signed by Governor Alfredo Cornejo and Economy Minister Luis Caputo, the agreement falls under the Regime for the Extinction of Reciprocal Obligations.

Under the terms of the deal, the national government recognizes credits owed to Mendoza totaling approximately $121.28 billion. These credits stem from the Fiscal Consensus, housing works, and maintenance on national routes 40 and 143. After offsetting these credits against Mendoza’s existing debt of approximately $333.43 billion—largely consisting of a $325 billion financial advance—the province will owe the national government a remaining balance of $212.15 billion.

The new payment scheme is estimated to provide Mendoza with a financial benefit of $7.67 billion by improving maturity profiles and organizing reciprocal obligations. The agreement requires ratification by both chambers of the provincial legislature to take effect.