The Government of Chaco reported that it disbursed USD 34 million to pay the sixth installment of the international bond linked to the province's historical judicial liability. The due date was scheduled for 13 of August and, according to the provincial administration, it was settled in a timely manner within the nine-installment schedule established for the instrument.
The operation was confirmed by the Minister of Finance, Alejandro Abraam. The bond had been issued to settle obligations arising from accumulated judicial rulings and claims. With this payment, the province has completed two-thirds of the scheduled installments, although it still has three maturities remaining before concluding the amortization scheme.
The economic area placed the disbursement within a program for the organization and strengthening of public accounts. Its stated objective is to regularize inherited liabilities without compromising the daily operations of the State. The official presentation also linked compliance with legal certainty and credibility in front of credit markets and institutional investors.
From the Executive, they maintained that meeting international commitments can improve the conditions for private projects in infrastructure, agro-industry, and other productive activities. This reading expresses the Government's financial strategy: the payment reduces uncertainty about an existing obligation, but by itself does not constitute a new investment nor guarantee the inflow of capital or job creation.
The settlement of the sixth installment places the remaining balance in the final phase of the plan. The administration expects that the smaller amount of pending maturities will facilitate the scheduling of cash flow in the coming budgetary periods. The specific effect will depend on the amount and schedule of the three remaining installments and the overall evolution of provincial revenues and expenses. The announcement did not detail the added value of those pending maturities.
The confirmed fact is the payment of USD 34 million corresponding to the August maturity. The Government presented it as a sign of institutional solvency and reaffirmed that it will continue prioritizing the fulfillment of obligations. The full cancellation of the bond, however, has not yet occurred and will require completing the remaining installments of the program and the current schedule.
