Key Takeaways
- The Buenos Aires Provincial Legislature authorized Governor Axel Kicillof to contract up to $3.685 billion in new debt, an approval that required a two-thirds majority in both chambers.
- Kicillof secured the necessary opposition votes by ceding influential government positions, including expanding the board of the state-owned Banco Provincia (Bapro) to incorporate opponents from the PRO and UCR parties.
- A crucial component of the cross-party agreement mandated the creation of a massive fund for the province’s 135 municipalities, committing approximately 350 billion pesos to local districts through 2027.
In a marathon legislative session that stretched into the early hours of Thursday morning, Buenos Aires Governor Axel Kicillof successfully navigated complex internal and external political hurdles to secure authorization for a crucial debt package totaling just over $3.5 billion to $3.685 billion. The massive borrowing authority is essential for managing provincial commitments due in 2026 and executing the recently voted provincial budget.
The approval, which required a qualified two-thirds majority in both the Chamber of Deputies and the Senate, was the result of weeks of intense negotiation and a significant distribution of political influence and state resources. Kicillof, a leading figure in the Peronist opposition, had to open his “political wallet” to ensure the stability necessary to finish his second gubernatorial term and potentially consolidate his political project ahead of the 2027 presidential cycle.
The agreement was two-fold, demanding concessions both within his own Fuerza Patria coalition and across the opposition spectrum, which includes the PRO, the UCR, and several fragmented “dialoguista” libertarian groups.
### A Price Paid in Posts and Power
Internally, Kicillof resolved differences with key Peronist allies, including La Cámpora (led by Máximo Kirchner) and the Massismo faction. The resolution involved rotating the presidency of the provincial Chamber of Deputies between a figure aligned with La Cámpora and a member of the Frente Renovador, ensuring both key factions maintain control over essential secretariats and the management of nearly 234 billion pesos in Chamber funds.
The concessions made to secure votes from the outside opposition were even more tangible. To gain the support of conservative and radical blocs, Kicillof authorized the expansion of the powerful Banco Provincia (Bapro) board. The current board of eight directors will be supplemented by six new non-voting *síndicos* (auditors), as well as several replacements for outgoing directors.
Key opposition figures named to Bapro board roles included Matías Ranzini and Adrián Urreli (both from the PRO party) and Marcelo Daletto (from the UCR). Other opposition representatives secured posts in various state bodies, such as the General Education Council and the Fiscal Tribunal—a body dedicated to resolving administrative tax disputes.
Despite the appointments, sources close to the Governor noted that Kicillof successfully delayed discussion on more institutionally critical issues, such as filling vacancies on the Supreme Court of Justice, leaving that negotiation for a later date.
### Opposition Support and Municipal Funding
The debt law received broad, if sometimes reluctant, support from opposition parties, including UCR+Cambio Federal, Coalición Cívica, and several groups previously aligned with Javier Milei, such as Unión y Libertad and Nuevos Aires. Only the hardline faction of La Libertad Avanza and the Left Front voted against the measure.
The PRO block, while generally voting in favor, formally rejected Article 1, citing a lack of detailed destination for all the new funds. Nevertheless, they supported the overall deal, particularly its most politically appealing component: a major fund for municipalities.
As part of the final legislative bargain, Kicillof committed to allocating up to 8% of the total approved debt amount, translating to approximately 350 billion pesos, directly to the 135 provincial municipalities. This money will be distributed in installments stretching until mid-2027. Legislators from groups like Somos Buenos Aires celebrated this clause, noting that it dedicates about 50% of the non-rollover debt to local autonomy, a key incentive that ultimately secured the necessary majority.
The success underscores Kicillof’s ability to engage in high-stakes political trade-offs, providing him with the economic tools needed to govern through financial uncertainty while simultaneously cementing his position as a formidable political operator in the national landscape.
Read More:
https://www.clarin.com/politica/kicillof-cedio-lugares-bapro-organismos-conseguir-ley-endeudamiento_0_ocR4rl18Ii.html
https://www.lanacion.com.ar/politica/los-votos-opositores-que-le-allanaron-el-camino-a-axel-kicillof-para-lograr-el-endeudamiento-nid04122025/