(MENAFN- PR Newswire) LA RIOJA, Argentina, Feb. 26, 2024 /PRNewswire/ -- The government of the Province of La
Rioja (the "Province") informs that the Province is facing constraints in its ability to pay principal and interest due on February 24, 2024 under its bonds due 2028 (the "Bonds"). The Province is in the process of analyzing and evaluating how to best address the management of its financial commitments.
The Province faces unprecedented economic challenges. The contraction of Argentina's economy, high inflation and the devaluation of the exchange rate have had a direct effect on the Province's economy, resulting in a severe decline in provincial fiscal revenues. Most recently, the Province has not received co-participation funds from the federal government, as set forth under Article 83 of Law No. 27,701 (with reference to the 2023 national budget, which was extended to 2024), making the Province's revenues insufficient to cover expenditures related to essential services and programs. These factors have significantly limited the Province's ability to honor its financial commitments, including the Bonds.
In light of the foregoing, the Province has retained financial and legal advisors and intends to initiate consultations with its bondholders with the objective of reaching an amicable and consensual agreement in the shortest possible timeframe.
Additionally, subject to the outcome of preliminary conversations with bondholders, the Province will use its best efforts to pay as soon as possible the amount of interest due as of February 24, 2024.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Bonds have not been, and will not be, registered under the United States Securities Act of 1933 or any state securities laws.
Inquiries regarding this press release should be addressed to the Minister of Public Finance (e-mail: [email protected] ); (telephone: +54 380 4353867).
SOURCE The Province of La Rioja
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