Argentina’s provinces are re-enacting the past. In the last year, three have publicly issued deals backed in part by revenue from a federal government institution, recalling a time when securitizing co-participation revenue from the central government was all the rage. That was before the crisis of 2001-2002.

There is bound to be more of these deals, issued so far by Mendoza, Salta and Chaco as a way to finance housing developments, sources said. The federal government itself is understood to be acting as a primary, if not sole, investor, having deep coffers after it nationalized private pension assets in late 2008, a move that brought in somewhere in the ballpark of $30 billion. 

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