On 26 August 2021 the Argentine Central Bank (the “ACB”) issued Communication “A” 7348 (“Communication 7348”) which incorporates the possibility of accessing the foreign exchange market without prior authorization of the ACB to cancel commercial debts as of 30/06/2021, for the importation of goods or services for those who register settlements in the foreign exchange market for disbursements of new financial indebtedness.
Communication 7348 incorporates the following stipulations into the “foreign and exchange” rules:
- Cancellation of commercial debts with new financial indebtedness abroad.
- Clients with a certification issued by an entity regarding compliance with the requirements set forth in point b. shall be exempted from the ACB’s prior approval requirement for access to the foreign exchange market.
- The entity through which the settlement of the funds of the new foreign financial indebtedness has taken place may issue a certification, verifying all of the following conditions:
- The new foreign financial indebtedness should have an average life of not less than 2 years and should not have a principal maturity of at least 3 months after its settlement in the foreign exchange market.
- The amount of the certificates issued by the entity must not exceed the amount entered and settled by the foreign exchange market as of 27/08/21 under the foreign financial indebtedness in question.
- The entity must have an affidavit from the client stating that:
- Did not use this mechanism for an amount exceeding the equivalent of USD 5,000,000, including the requested certification.
- The new financial indebtedness abroad shall not be classified as:
- Pre-cancellation of capital and interest simultaneously with the settlement of new financial indebtedness with foreign countries, in accordance with the provisions of point 220.127.116.11 of the “Foreign and Foreign Exchange” regulations;
- A financing in foreign currency from local financial entities cancelled with the income from financial indebtedness abroad, in accordance with the provisions of point 18.104.22.168 of the “Foreign exchange and foreign exchange” regulations;
- A refinancing plan of capital maturities of liabilities in foreign currency up to 31/12/21, as provided for in point 3.17.3 of the “Foreign exchange and foreign exchange” regulations; and
- Financial operations authorized to apply collections of exports of goods and services, in accordance with the provisions of points 7.9 and 7.10 of the “Foreign exchange and foreign exchange” regulations.
- The certification may be used within 5 working days of the settlement of the funds of the new financial indebtedness abroad and the issuing entity must send it to the entity through which the client wishes to access the foreign exchange market.
- Incorporate, among the operations that have access to make payments of services to foreign related counterparties without the prior approval of the ACB, the payment from the maturity of the principal of debts in force at 30/06/2021 when the client has a certification from an entity issued within the framework of the provisions of point (i), for the equivalent of the value that is paid.
- Incorporate into the “Foreign and Foreign Exchange” rules the payment of principal on commercial debts in force as of 30/06/2021 for the importation of goods, provided that the customer has a certification from an entity issued within the framework of the provisions of point (i), for the equivalent of the value that is paid.
In all cases, compliance with the remaining general and specific requirements applicable to the transaction in accordance with the exchange regulations in force must be accredited.