On October 3, 2024, the Central Bank of the Argentine Republic (“BCRA”) issued Communication “A” 8112, introducing new requirements to access the foreign exchange market for the payment of principal and interest on publicly registered debt securities and other external financing.
Main measures established:
1. Pre-cancellation of debts: access to the foreign exchange market is authorized to pre-cancel principal and interest of debt securities registered in the country, provided that the operation involves refinancing, repurchase or early redemption, financed with new external funds. This requires at least a one-year grace period for principal and an average life of the remaining principal of at least two years.
2. Payment of external debt: New debt securities issued in exchanges, repurchases or early redemptions will be considered paid in and settled, provided that the premium or compensation does not exceed 5% of the principal amount exchanged or repurchased. In addition, a minimum grace period of one year and an extension of at least two years in the average life must be contemplated.
3. Declaration of assets abroad: It will be possible to declare liquid assets over USD 100,000 deposited abroad if they come from the issuance of new debt securities during the last 60 days and are destined to refinancing operations, repurchase or early redemption of foreign debts.
