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SearchJoint Resolution 59/2026 expands three peso-denominated issuances to meet recognized obligations of the Transport and Public Works areas. Contractors will receive bills and bonds maturing between October 2026 and April 2027 instead of immediate cash payments.
The Argentine Government authorized the expansion of three peso-denominated debt issuances to cancel up to $221,119,509,519 in recognized obligations related to public works and transport contracts. The measure, formalized by Joint Resolution 59/2026 of the Secretariats of Finance and the Treasury, provides that the State will deliver Treasury securities to companies that have joined the applicable scheme, rather than disbursing the amount in cash when the claims are settled.
The transaction covers obligations under the Public Works and Transport areas and is part of the Simplified Regime for the Extinguishment of Public Works Contract Obligations. The resolution was signed on October 2, 2026, and published in the Official Gazette on October 6.
The mechanism covers claims for work certificates, stockpiling of materials, and price adjustments corresponding to the period from January 1, 2022, through December 31, 2025. It also includes outstanding obligations arising from public works contracts terminated from 2024 onward.
The scope is limited to the contracts and claims covered by the regime, including those carried out under the Public Works and Transport Secretariats and certain contracts financed by multilateral organizations. Joint Resolution 59/2026 does not automatically turn every debt owed to a construction company into an obligation that can be settled with these securities: application depends on the regime’s conditions and recognition of the claims.
The planned basket is divided among three peso-denominated capitalization instruments: 33% in a Treasury Bill maturing on October 30, 2026, 33% in a bond maturing on January 15, 2027, and 34% in another bond maturing on April 30, 2027.
The authorized expansions have nominal limits of up to $60 billion for the October bill, $51 billion for the January bond, and $60 billion for the April bond. They total $171 billion in nominal value, while the settlement cap is set at up to $221,119,509,519 in effective value. These amounts are not directly equivalent: the securities will be delivered at their technical value, calculated as of the business day before each delivery.
For participating companies, the recognized claim is replaced by public securities with specified maturities. Because the instruments are capitalization securities, interest accrues to the principal and is paid together with it at maturity, according to the terms of each security. Therefore, the transaction does not entail an immediate cash disbursement for the amount settled, but it also does not eliminate the financial obligation: it shifts payment to the dates set for the instruments.
The effect on the fiscal result should not be confused with this cash-flow schedule. Some media coverage and analysts’ comments maintain that, depending on the accounting treatment of the obligations, the transaction might not be counted as primary expenditure when the securities are delivered. That interpretation is not equivalent to a conclusion established by the resolution: the official text authorizes the expansions and provides for how the transaction will be recorded in the budget, but by itself does not establish what its consolidated fiscal effect will be under all metrics.
Settlement is not automatic. Contractors must join the regime and accept delivery of securities under the applicable terms. Coverage of the measure indicates that participation entails withdrawing administrative or judicial claims and waiving other financial claims related to the included works. Given the scope of this condition, it must be verified in the agreement and in the regime’s rules applicable to each case; it should not be extended to companies or claims outside the mechanism.
The authorization falls within the public credit powers provided for in the 2026 Budget. Its operational effect is to enable the use of instruments to settle recognized obligations up to the established cap, with maturities between October 2026 and April 2027. Actual use of the mechanism will depend on participation, determination of the claims, and delivery of the securities.
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