In 1997 Tucuman became the first Argentine province to issue a securitization of coparticipation tax revenues from the federal government, in a deal worth $200 million. Now those pioneering efforts could be hampered by political and fiscal turmoil, after a recent economic emergency law passed by the province's legislature prompted Fitch IBCA to place the double-B-minus rated notes on rating alert with negative implications.

A tumultuous political transition and the province's near $1 billion debt led legislators to pass the law, which is largely aimed at controlling the size and cost of the public sector.

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