The province of Tierra del Fuego has approved a debt of about 140 million dollars those that will be used to implement the Energy Transition Support Programme.
The millionaire debt will be contracted with the Development Bank of Latin America-CAF,por US$70 million over 15 years; and with him Asian Infrastructure Investment Bank, for US$ 65 million during the same period. Both include a 60 month grace periods from the first money transfer.
In the last few hours, Governor Gustavo Melella has promulgated and published in the Official Gazette the law authorizing the debt agreed upon a couple of weeks ago in the provincial Legislature.
The law authorizes “incur public debt up to an amount equivalent to US $141,500,000 or its equivalent in another currency, plus the corresponding interest and accessories, in order to finance the works, contracts and purchases necessary for the execution of the Tierra del Fuego energy transition support programme”, reads the text. The debt can be implemented “through loan agreements or other financial instruments agreed by the executive,” he adds.
With this, Tierra del Fuego adds new credit commitments until 2038. The province will have to face the payment of interest over the next 5 years for a total of approx 63 million dollars, local sources informed the newspaper of the end of the world.
The variable interest rate taken with the Development Bank of Latin America-CAF is 5.81%, while that of the Asian Infrastructure Investment Bank reaches 4.82%.
The first 70 million dollars
Source: Clarin
