1. Enforceable Debt

The balances have been perfected due to articles 17 and 18 of Decree 455/99, instrumented through Resolution 326/99 S.H. and Disposition 26/99 C.G.N.

 

 

2. Loans Payable

The $1,615,500,000 balance represents the debt for the Unified Fund of the Official Accounts maintained by the Central Administration with the National Bank of Argentina.

This entry includes $368,693,548.90, which represents the fund deposited in the Unique Treasury Account, related to the Decentralized Agencies that operate within the System.

The rest represents mostly those funds that, according to the definitions of joint Disposition CGN 65/96 - 58/96 TGN, because of being of "... earned by third parties not belonging to the National State, are under their custody or disposal, with the object of assuring compliance with the regulations and terms previously established..."

Those balances that at the end of fiscal year, regardless having been analyzed, have given no assurance as to its correct classification and exposure, were registered in this entry with an amount reaching $504,399,416.33 up to the documentation that allows its identification and correct imputation is received during the next fiscal year.

1. Direct Debt

The direct debt, as it is defined by the article 58 of Law N° 24.156, is the one contracted by the Central Administration as its principal debtor.

 

The concepts that integrate it are those provided by article 57 of said Law. Its evolution during the fiscal year is reported in the Statement of the Public Debt, exhibited in this Volume and the accounting subaccounts which compose its balance are pursuant to the following detail:

CONCEPT	CURRENT	NON-CURRENT	TOTAL
Non enforceable accrued interest	2,139,993,700.85	.	2,139,993,700.85
Current part of other debts	2,661,229.92	.	2,661,229.92
Current part of foreign public debt	11,143,883,002.53	.	11,143,883,002.53
Current part of payable foreign loans	2,568,839,365.09	.	2,568,839,365.09
Current part of payable commercial debt	110,316,352.33	.	110,316,352.33
Long-term payable commercial accounts	.	29,149,198.02	29,149,198.02
Current part of domestic public debt	1,260.51	.	1,260.51
Domestic public debt	.	6,749,944,089.93	6,749,944,089.93
Foreign public debt	.	63,505,324,317.91	63,505,324,317.91
Payable domestic loans	.	55,683,727.31	55,683,727.31
Payable foreign loans	.	19,727,547,127.03	19,727,547,127.03
Payable documents	.	2,365,635,714.97	2,365,635,714.97
TOTAL	15,965,694,911.23	92,433,284,175.17	108,398,979,086.40

 

2. Indirect Debt

The Central Administration's indirect debt defined in Article 58 of Law 24.156, is the one contracted by any individual or entity, public or private, other than the Central Administration, but that counts with its endorsement or collateral.

 

In relation to the aforementioned, even though such debt is not registered in the S.I.D.I.F. in "assets and liabilities accounts", due to its nature of contingent liability, its registration is carried out in memorandum accounts (see Note 18), being its quantity and its elements provided by the Public Debt Administration Office, as main unit of registration of the operations of public credit, in accordance with what was established by the article 69 of the above mentioned law.

 

The following table exhibits the elements added to the most important entries that compose the indirect public debt (it includes the non enforceable interest accrued):

CONCEPT	BALANCE AS OF 31 DEC. 1998
Multilateral	3,665,315,884.90
Bilateral	648,066,226.80
Private Banks	652,364,467.63
Suppliers	26,634,219.11
TOTAL	4,992,380,798.44

 

3. Interest accrued non enforceable at the end of fiscal year.

The National Accounting Office has requested the Public Debt Administration Office to make an estimation and inform about it, with the objective of registering and exposing the amount and details of the interests involved, carrying out the registration related to the answer received and pursuant to the following detail:

It includes the anticipated perception of the resources in the Resolutions S.H. guideline 447/98 and 533/98, to be accrued in future fiscal years, and the results to be carried out by operations of bonds' exchanges originated in the collateral's liberation of the Brady Plan.

As regards the Public Enterprises liquidated and closed, as it has been exposed in the proceeding Note 8 and with the limitations there indicated, the balance shows the contingency for the liabilities of the liquidated and closed enterprises that the National State must assume through the Secretariat of Financing, once the said process of liquidation has been completed.

The aforementioned process has been estimated in relation to the "debts" of the net positions of such enterprises, according to the information provided by the SubSecretariat of Property Regulation.

Due to the provisions of article 18 of Decree N° 455 of April 29, 1999, which gave the Secretariat of Financing the power to depurate the assets and liabilities that did not constitute liquid and salable credit, the balances of the following subaccounts were analyzed: Debtors by indorsement, Expenditures Paid by Third Parties Account, Other Credits Receivable, Short and Long Terms Accounts Receivable and Deffered Liabilities.

The power the said regulation assigned to the above-mentioned Secretariat, has been delegated by its head to the National Accounting Office through Resolution N° 326/99 S.H., which has been instrumented by Disposition N° 26/99 C.G.N.

Due to the aforementioned, the balances have been analyzed, proceeding to:

1. enter under Results, those liquid or salable debt or credit.

The representative balances of the credits and debts of Public Enterprises under liquidation with other agencies of the National Public Sector (except financial Bodies), were included within the aforementioned depuration as provided by article 6° of Decree N° 2394/92.

2. long-term reclassification of those debts, whose collection was not foreseen within the following fiscal year and constitute the provision for uncollectables in those cases where the related organism informed a low probability of collection.

3. enter the receivable and payable balances, which give no assurance of their rights of collection or payment, under the accounts Other Assets to be Assigned and Other Liabilities to be Assigned. Its analysis will continue during the following fiscal year due to the aforementioned reason, and with the objective of determining its correct registration.

 

 

Those accounting balances included in the Enforceable Debt, which were not of that nature, were depurated, charged to the Previous Fiscal Year's Results, within the article 18´s guideline.

As regards the accomplishment of article 17 of said decree, an authorization for the different Financial Administrative Services (SAF) of the Central Administration was requested, as responsible of the registration. Such authorization was in order to be able to proceed to the dicharge of the debts as of December 31, 1996, and enforceable and not paid at the end of fiscal year 1998, also charged to The Previous Fiscal Year's Results.

The detail of the adjustments is included in the document Verification's Result, appointed to the Control Bodies.

At the end of Fiscal Year, trials that involve the Central Administration are not quantified in amounts or cases; therefore, it has been impossible to show the resulting contingencies of such situations in these statements.

The National Accounting Office will have the objective of creating a methodology that provides constant information during the following fiscal year, in order to have comprised information of the situation in relation to lawsuits of the Central Administration as a whole.

The Investment Saving Financing Account of the National Public Sector permits the analysis of the economic-financial joint management of the National Administration, National Universities, the State-Owned Societies and Enterprises, allowing the identification of the nature, dimension and impact of the economic-financial transactions carried out by the above-mentioned sector with the rest of the economy; and, therefore, providing the necessary elements for the elaboration of policies.

The theoretical universe taken into consideration for the elaboration of the scheme Saving-Investment-Financing comprises the transactions with the rest of the economy of the budgetary consolidated National Administration, National Administration, Non Financial Societies and State-Owned Enterprises.

The operations taken into account in the elaboration of the aforesaid consolidated statement refer to the accrual process for the expenditures and collections for the National Administration's resources; while the Public Enterprises' flows have been taken into consideration from the moment they are accrued. As an unique exception to the above-mentioned, the transfers among the bodies that are part of the analyzed universe, have been taken on an accrual basis with the objective of allowing an effective and adequate process of consolidation among the different subuniverses.

The consolidation has developed in two levels. Firstly, the identification of the transfers carried out within the National Administration has taken place. Such transfers were carried out as contributions and figurative expenditures and, in the rest subsectors, as current capital transfers. Secondly, the transfers among the subsectors that are part of the Non Financial National Public Sector have been identified.

The information about the amounts to be consolidated in each case was obtained in the following way:

1. The Expenditures and Figurative Contributions were taken from the S.I.D.I.F. for their accrued amounts. The amounts exposed in transfers of the bodies pertaining to the other subsectors to other bodies of the same group were based on the amounts declared by the respective bodies. There has been, in few and justified cases, differences as regards the criteria of exposure among the enterprises, therefore, in such circumstances, the information that proved the mayor document support was taken as a basis.

2. The information about the Current Transfers of the National Administration to the National Universities and to the Public Enterprises was obtained from the data consigned in the S.I.D.I.F. with an entry or balancing item in the respective bodies' statements. Meanwhile, the information referring to the flows in the inverted sense to the one indicated was obtained from the compatibility of the data resulting from the statements presented by the Public Enterprises and National Universities to the National Accounting Office with the information registered in the Integrated System of Financial Information.

 

 

The difference between the accrued transfers and the ones converted into cash was taken into consideration in the financial account as a variation of the receivable transfers. The aforementioned difference was due to the criteria used for the accounting of the consolidated transfers.

The changes or variations in the Quick Assets, which have been taken in each institutional level for their net amount, deserve a special consideration, resulting in each case as a decrease or increase. This is due to the fact that it is that balance the one that matters at the moment of the determination of the management's financing. It is important to point out that, nevertheless, the sale-purchase of goods and services and the payments of taxes that the different subsectors make among them with the objective of maintaining the importance of the operations resulting from their own activity, have not been consolidated in this report.

As regards the methodology adopted for the attainment and treatment of information, it is important to point out that the budgetary information of the National Administration was obtained from the data registered in the Integrated System of Financial Information (S.I.D.I.F.). The current revenues, the capital resources and the financial sources were taken into consideration according to the sum collected in each case; while the current and capital expenditures, the figurative expenditures and the financial applications were consigned for their accrued amounts. The figurative contributions were an exception for the general resources' rule, for it was the only case where the accrual stage was considered with the objective of preserving the aforesaid criteria of consolidation.

The information referring to the Investment Saving Financing Account of the National Universities was taken from the statements provided by the National Accounting Office through the Secretariat of the Universities' Policies of the Ministry of Culture.

36 National Universities, the National Institute of Art and the Miguel Lillo Foundation integrated this institutional level, in 1998. Out of these, the Secretariat of the Universities' Policies did not send the Account of the National Universities of Tres de Febrero, La Plata, Comahue and Cuyo.

The consolidation carried out for the subsector shows the expenditures accrued during the fiscal year and the revenues collected during the same period, except in the cases the transfers were used to finance the universities, which as it was above-mentioned had to be taken in their accrual stage.

The consolidated scheme for the State-Owned Societies and Enterprises registers the totality of the expenditures and resources of the State's Enterprises, including its own resources and expenditures.

The Enterprises were classified in two groups: Running Enterprises and In Liquidation. This was done previous to the consolidation and over a subsector basis. The aforementioned was due to the uneven economic and financial impact resulting from the varying nature and operative of such bodies. Some enterprises found themselves subject to important changes as a consequence of the privatization process, as most of them are in a transition stage until being transformed in residual entities for their final liquidation. This difference provides a mayor analysis and an ordered scheme aiming at the global process of consolidation.

The "Undersecretariat of Patrimony Regulation" for the enterprises in Liquidation and the Running Enterprises were the subsector's most important sources of information.

The subsector's own bodies provided the resources and expenditures executions, according to Resolution 544/98 about the ending of fiscal year and the Laws 24.156 and 24.938.

The totality of the "Consolidable Enterprise Public Sector" was not included in the executed values of the respective budgets. This was due to the fact that the following enterprises did not comply with the rules or dispositions: Yacimientos Mineros Aguas del Dionisio, AFNE, SEGBA and ENCOTEL (who did not send any sort of information), on the one hand, and SISTEVAL (who did not send the Table 2.7 Investment-Saving-Financing Account - State Societies and Enterprises) required by Resolution 544/98 of the Secretariat of Financing, on the other hand. These enterprises, as a whole, represent the 1,41% of the total expenditures of the Public Enterprises included in the Consolidated National Public Sector.

SIF