Argentina to settle public works debts with bonds worth up to ARS 221.119 billion

The Argentine Government authorized the expansion of three peso-denominated debt issues to settle up to ARS 221,119.5 million in recognized obligations to public works and transport contractors. The measure, established by Joint Resolution 59/2026, provides for the delivery of Treasury bills and bonds instead of paying the claims in cash at the time of the transaction.

The scheme covers claims for work certificates, stockpiled materials, and price adjustments corresponding to the period from January 1, 2022, to December 31, 2025. It also includes outstanding obligations under public works contracts terminated since 2024.

A basket of securities maturing between 2026 and 2027

The settlement will be carried out using three capitalizing peso-denominated securities, distributed in proportions of 33%, 33%, and 34%. The basket combines a Treasury bill maturing on October 30, 2026, a Treasury bond maturing on January 15, 2027, and another maturing on April 30, 2027.

The authorized increases total up to ARS 171 billion in nominal value: ARS 60 billion for the bill, ARS 51 billion for the January bond, and ARS 60 billion for the April bond. The overall settlement limit, however, amounts to ARS 221,119,509,519 in cash value. The difference reflects the fact that the securities will be delivered at their technical value, calculated according to their financial terms as of the business day before each delivery.

Opting in requires accepting the bonds and waiving claims

Access to the mechanism is not automatic. Eligible companies must opt in to the Simplified Regime for the Extinguishment of Obligations under Public Works Contracts and agree that their recognized claims will be settled using public securities. According to the terms reported for the scheme, opting in entails withdrawing administrative or judicial claims related to the contracts covered and waiving certain financial claims related to those works.

Therefore, acceptance determines not only the form of payment: it also entails conditions regarding claims associated with the receivables. The specific scope of these waivers depends on the documentation and obligations covered; the available information does not allow individual cases to be assessed.

What changes—and what does not—in public accounts

The transaction replaces outstanding obligations to contractors with public debt maturing in the future. Because the instruments are capitalizing, interest accrues to the principal and is paid together with it at maturity. Thus, the measure does not involve an immediate cash outlay, but it does not eliminate the State’s financial commitment: it shifts payment to October 2026, January 2027, and April 2027.

The resolution stipulates that the transaction be charged to Ministry of Economy budget appropriations allocated to meeting the obligations of the Secretariats of Transport and Public Works. It also states that the issues fall under the public credit authorizations provided for in the 2026 Budget. These details describe the approved mechanism; by themselves, they do not determine the overall fiscal impact or the outcome of its implementation.

In practical terms, contractors who opt in will receive instruments whose value and maturity differ from an immediate cash payment. The effect on each company will depend on the terms of the securities, its contractual situation, and the terms accepted under the scheme; this information does not constitute legal advice or an investment recommendation.