Argentina: Communication "A" 7999 — Payment of dividends and profits using Bonds for the Reconstruction of the Argentine Republic

07 May 2024    1 minute read
FSR

In brief

On 30 April 2024, the Argentine Central Bank (BCRA) issued Communication "A" 7999 ("Communication") enabling the use of Bonds for the Reconstruction of the Argentine Republic (BOPREAL) for the payment of profits and dividends due to non-resident shareholders.

Contents

In depth

In particular, the Communication provides that:

  1. BOPREALs may be subscribed for up to the equivalent in local currency of the amount of profits and dividends payable to non-resident shareholders according to the distribution determined by the shareholders' meeting.
  2. Non-resident entities may subscribe for BOPREAL for up to the equivalent in local currency of the amount of profits and dividends collected as of 1 September 2019, according to the distribution determined by the shareholders' meeting, adjusted by the latest Consumer Price Index (CPI) available as of the subscription date.
  3. To subscribe for BOPREAL in primary bidding in the case of paragraph (i), there must be, among other requirements: (a) documentation that allows it to guarantee that the outstanding debt corresponds to profits and dividends from closed and audited balance sheets; and (b) a declaration of debt in the Statement of External Assets and Liabilities.
  4. For the subscription of BOPREAL in primary biddings in the case of paragraph (ii) above, there must, among other requirements, be documentation that allows it to guarantee that the outstanding debt corresponds to profits and dividends from closed and audited balance sheets.
  5. The BOPREAL may be applied to securities transactions for the purpose of canceling profits and dividends pending payment to non-resident shareholders without losing access to the foreign exchange market when such transactions are carried out for up to the amount of BOPREAL acquired in a primary subscription. Such securities transactions may be settled in third-party accounts abroad.

The Communication entered into force on 30 April 2024.

To access the Spanish version, please click here. 

Contact Information
Gabriel Adrián Gómez Giglio
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Buenos Aires
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