- Argentina is a federal republic made up of 23 provinces and an autonomous city (Buenos Aires). It has a population of over 43 million people. - Sub-national governments rely on direct taxes like sales tax and property tax as well as federal transfers for revenue. More developed provinces receive a larger share of transfers. - Provinces have jurisdiction over areas like education and police, while the federal government oversees customs, defense, and foreign relations. - Provincial debt levels rose significantly after the peso was devalued in 2001. Mechanisms to collateralize debt include intercepting federal revenue shares and using natural resources royalties. Experience with provincial bonds has been mixed.

3. ARGENTINA
- Capital: Buenos Aires
- Current Population: 43,966,055 (Rank 32)
- Total Land Area: 2,780,400 𝑘𝑚2
- Level of Government: Federal, Provincial and
Local
- Currency: Argentine Peso (ARS)

4. Name of Subdivision ▾ Capital Population area in km²
1 Buenos Aires Province La Plata 16,123,980 305,908.2
2 Catamarca San Fernando del Valle de Catamarca 99,467.0
3 Chaco Resistencia 99,529.5
4 Chubut Rawson 224,187.2
5 Ciudad Autónoma de Buenos Aires Buenos Aires 2,703,744 173.6
6 Cordoba Córdoba 167,899.5
7 Corrientes Corrientes 88,770.8
8 Entre Rios Paraná 78,028.8
9 Formosa Formosa 75,912.3
10 Jujuy San Salvador de Jujuy 53,019.3
11 La Pampa Santa Rosa 142,631.5
12 La Rioja La Rioja 91,640.4
13 Mendoza Mendoza 151,274.6
14 Misiones Posadas 29,720.5
15 Neuquen Neuquén 93,556.3
16 Rio Negro Viedma 202,845.7
17 Salta Salta 156,368.9
18 San Juan San Juan 87,038.9
19 San Luis San Luis 77,381.2
20 Santa Cruz Río Gallegos 242,632.7
21 Santa Fe Santa Fe 133,835.9
22 Santiago del Estero Santiago del Estero 135,186.0
23 Tierra del Fuego Ushuaia 20,847.6
24 Tucuman San Miguel de Tucumán 23,156.4

5. Main Powers Election Process Election Cycle
Executive The president is the head of state, chief executive of the
federal government, and commander-in-chief of the
armed forces. The vice president replaces the president in
case of absence, incapability, death, or resignation and
also acts as the president of the senate.
The president is elected by qualified
majority. The vice president is
appointed by the president.
4 years
Judicial The supreme court is the highest court of law and
functions as a last resort tribunal, its rulings cannot be
appealed. It also decides on cases dealing with the
interpretation of the constitution.
The members of the supreme court are
appointed by the president with the
agreement of at least two thirds of the
present senate members.
Life appointment
Legislative The senate must introduce any changes to federal
revenue sharing policies, ratify international treaties,
approve changes to constitutional or federal criminal
laws, as well as confirm or impeach presidential
nominees to the cabinet, the judiciary, the armed forces,
and the diplomatic corps. The chamber of deputies holds
exclusive rights to levy taxes, draft troops, and to excuse
the president, cabinet ministers, and members of the
supreme court before the senate.
The senate has 72 members who are
elected through a closed-list
proportional representation system.
The chamber of deputies has 257
members that are elected through a
closed-list proportional representation
system.
Chamber of Deputies: 4 years; Senate: 6
years

6. SUB-NATIONAL REVENUES
• 3 MAJOR SOURCES OF DIRECT OWN SOURCE
REVENUES: 18%
1. SALES TAX
2. PROPERTY TAX
3. VEHICLE REGISTRATION TAX
• INDIRECT REVENUES: FEDERAL TRANSFERS
1. 2 UNCONDITIONAL TRANSFER
- GENERAL TRANSFERS
- COPARTICIPATION
2. 10 CONDITIONAL TRANSFER

7. SUB-NATIONAL REVENUES
• DISTRIBUTION AMONG PROVINCES
- MORE DEVELOPED PROVINCES: 43.7%
BUENOS AIRES, SANTA FE, MENDOZA, CORDOBA, & CITY OF BUENOS AIRES
- INTERMEDIATE PROVINCES: 19.1%
- LOW DENSITY PROVINCES: 27.3%
- LESS DEVELOPED PROVINCES: 9.9%
BASED ON ARBITRARY CRITERIA EMERGING FROM BILATERAL NEGOTIATIONS BETWEEN EACH PROVINCE
AND THE FEDERAL GOVERNMENT.

8. EXPENDITURE RESPONSIBILITIES
• UNDER THE CONSTITUTION THE PROVINCES HAVE JURISDICTION OVER EDUCATION, MUNICIPAL
INSTITUTION, PROVINCIAL POLICE, PROVINCIAL COURTS, AND OTHER MATTERS OF PURELY PROVINCIAL
OR LOCAL CONCERN.

9. EXPENDITURE RESPONSIBILITIES
• THE FEDERAL GOVERNMENT HAS JURISDICTION ONLY OVER THE AREAS EXPLICITLY ASSIGNED BY THE
CONSTITUTION:
- CUSTOMS
-NATIONAL DEFENSE
-FOREIGN RELATIONS
-ISSUANCES OF CURRENCY
-FEDERAL PUBLIC DEBT AND PROPERTY
-REGULATION OF SHIPPING AND PORTS
-REGULATION PF BANKS AND BANKING ACTIVITY
-REGULATION OF INTERNATIONAL AND INTERPROVINCIAL TRADE AND COMMERCE.

10. REGULATORY FRAMEWORK FOR SUB-
NATIONAL DEBT OF PROVINCES
• THERE ARE NO NATIONAL REGULATION ON THE ABILITY OF SUB-SOVEREIGN ENTITIES IN ARGENTINA TO
RAISE DEBT.
• CONVERTIBILITY PLAN OF 1991
• THE CONSTITUTION ALLOWS EACH PROVINCE JURISDICTION OVER ITS BORROWING.

11. REGULATORY FRAMEWORK FOR SUB-
NATIONAL DEBT OF MUNICIPALITY
• AUTHORIZATION IS REQUIRED FROM THE MUNICIPAL COUNCIL AND IN SOME CASES, FROM PROVINCIAL
FINANCIAL AUTHORITIES.
• RESOLUTION 1075/93
• CENTRAL BANK RULE A3054
• RESOLUTION 571/95

12. SUB-NATIONAL INDEBTEDNESS
• THE PROVINCES HAVE PURSUED DIFFERENT DEBT STRATEGIES:
- BUENOS AIRES, ACCESS THE BOND MARKET IN 2001, ISSUING 4 BONDS FOR A TOTAL OF
US$ 737 MILLION.
- CORDOBA, TRIED PRIVATIZE EACH PROVINCIAL BANK AND ITS ELECTRICITY COMPANY TO PAY
SHORT TERM COMMERCIAL BANK LOANS WITH BULLET AMORTIZATION.

13. PROBLEMS ENCOUNTERED
• PROVINCES ENCOUNTERED LARGE PROBLEMS IN THEIR INDEBTEDNESS:
-FORMOSA
-CHACO
-CORODBA
-BUENOS AIRES
-JUJUY

14. PROVINCIAL DEBT SWAP
• THE TRANSACTION INVOLVED 18 PROVINCES AND US$18 BILLION.
• INTERNATIONAL CREDIT RATING AGENCIES
- FITCH RATINGS
- STANDARD & POOR’S
- MOODY’S

15. IMPACT OF DEVALUATION
• AFTER THE DEVALUATION, PROVINCIAL DEBT INSTANTLY INCREASE.

16. COLLATERAL FOR SUB-NATIONAL
BORROWING
• COPARTICIPATION REVENUES
2 BASIC MECHANISM FOR COLLATERIZING A BORROWING
1. INTERCEPT AT THE SOURCE OF THE DISPERSMENTS
2. INTERCEPT OF THE PROVINCIAL BANK (OR THE FINANCIAL AGENT OF THE PROVINCE)
• HYDRO CARBON ROYALTIES
- OIL AND GAS AS A COLLATERAL

17. EXPERIENCE WITH SUB-NATIONAL BONDS
• 2 TYPES OF PROVINCIAL BONDS
-COMPULSORY MONEY BOND
-OTHER COMPULSORY BOND