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  5. Argentina: Communication "A" 7852 of the Argentine Central Bank - Adjustments to the exchange control regulations

Argentina: Communication "A" 7852 of the Argentine Central Bank - Adjustments to the exchange control regulations

02 Oct 2023    2 minute read
Transactions Foreign Exchange Control Regulations Argentine Central Bank

In brief

On 28 September 2023, the Argentine Central Bank issued Communication "A" 7852 ( "Communication"), whereby it established certain exceptions to transactions performed with securities.

Contents

In depth

The Communication provides that purposes of the sworn statement required to access the official fx market, as well as the sales of securities with settlement in foreign currency in the country or abroad, should not be considered when the totality of the funds obtained have been used or will be used within the following 10 days for the following:

  1. Performing payments of principal or interest on financial indebtedness disbursed on or after 2 October 2023, which provides for at least one-year grace period for payment of principal.
  2. Repatriating capital and income associated with non-residents investments, received as of 2 October 2023, to the extent that the repatriation occurs at least one year after the capital contribution.
  3. Perform payments upon maturity of principal or interest on debt securities issued as from 2 October 2023, with public registration in the country, quoted and subscribed in foreign currency, whose services are payable in the country and that contemplate at least two years of grace for the payment of principal.
  4. Performing payments of principal or interest on financial indebtedness abroad that did not generate disbursements because they were refinancing the principal and/or interest of any operation contemplated in items 1 and 3, to the extent that the refinancing does not anticipate the maturity of the original debt.
  5. Performing payments upon maturity of principal or interest on debt securities issued with public registration in the country, quoted in foreign currency and payable in the country, which do not generate disbursements for being a refinance of principal and/or interest of operations contemplated in item 3, to the extent that the refinancing does not anticipate the maturity of the original debt.

With respect to items 1 to 3, it must be declared under oath that such funds were used in connection with investments made in Argentina.

On the other hand, the Communication provides that with respect to the sworn statement on the liquid foreign assets and CEDEARS holdings, funds over the USD 100,000 limit allowed will be accepted as a result of the sale of securities in connection with transactions 1 to 5 above.

Click here to read the Spanish version.

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