On 10 June 2024, the Argentine Securities and Exchange Commission (“CNV”) issued Resolution 1004/2024 (the “Resolution”), which introduced amendments, at the request of the Argentine Central Bank (“BCRA”), on negotiable transactions with foreign currency settlement and in local jurisdiction (MEP) carried out by resident individuals or legal entities with funds from mortgage loans adjusted by the Acquisition Value Unit (“UVA”).
The Resolution exempted:
- Compliance with the minimum holding period in the portfolio, in sales transactions, in order to proceed with them.
- The prior informative regime to be able to sell securities with settlement in foreign currency and in local jurisdiction (MEP).
Settlement and Clearing Agents (“ALyC”) may transfer funds from UVA mortgage loan transactions, up to the amount of such loans, provided that the funds are intended for the purchase of real estate in the country. These funds must be deposited in a demand bank account owned or co-owned by the seller of the property, in a financial institution. In addition, LFAs must ensure compliance with the conditions before processing these transactions.
In addition, the Resolution adds an exception to the limitation for settling sales transactions of marketable securities with settlement in foreign currency in cases where there are positions taken in surety bonds and/or repos. Now, promissory notes issued in foreign currency with a cash payment clause in such currency, which have been discounted through trading in markets registered by the CNV, are also exempted.
The Resolution came into force on 10 June 2024.
