31. Economic context and main foreign exchange regulations
Due to the uninterrupted currency flow faced by the Argentine government from the COVID-19 pandemic and the domestic and international economic and financial situation, the BCRA (Central Bank of Argentina) issued Communication “A” 7030 of May 28, 2020, as supplemented, the BCRA set forth that for a financial institution to grant access to a customer to the free and foreign exchange market to pay the imports of goods or services, the payments of principal and interest from financial payables to foreign parties, and the payment of profits and dividends, among other concepts, the BCRA’s previous approval is required.
On September 15, 2020, the BCRA issued Communication “A” 7106 to tighten effective exchange controls for accessing the free and foreign exchange market for the creation of external assets or to settle principal related to financial payables abroad.
This does not apply to (i) loans granted by international bodies or related agencies or secured by them; (ii) loans granted to the debtor by official credit agencies or secured by them; (iii) if the amount for which the foreign exchange market is accessed to settle principal does not exceed USD 1 million per calendar month.
The refinancing plan for payables falling due through December 31, 2020, had to be filed with the BCRA before September 30, 2020. For those falling due between January 1, 2021, and March 31, 2021, they should be filed at least 30 calendar days before the expiry of principal to be refinanced.
Moreover, on February 25, 2021, the BCRA issued Communication “A” 7230, to extend the terms set in Communication “A” 7106 for principal falling due between April 1 and December 31, 2021. The refinancing plan should be filed with the BCRA before Match 15, 2021, for principal falling due between April 1 and April 15, 2021. In the remainder cases, they should be filed at least 30 calendar days before expiry of principal to be refinanced.
Moreover, as of April 1, 2021, the amount for which the debtor accesses the foreign exchange market to settle principal in relation to the loans contained in Communication “A” 7106, point 7, is raised from USD 1 million to USD 2 million.
On July 10, 2021, new measures issued by BCRA were released. These measures established additional restrictions to the operations in the foreign exchange market.
On October 28, 2021, through Communiqué “A” 7385 (as subsequently amended by Communiqué 7422, as revised, and Communiqué “A” 7433 of January 6, 2022), the BCRA introduced new amendments (effective as from November 1, 2021) in the supplementary provisions related to the payments of imports of goods established in foreign trade and foreign exchange regulations.
Moreover, on March 3, 2022 and October 13, 2022, through Communications “A” 7466 and "A" 7621, BCRA broadened the regulation scope to all those debt installments higher than USD 2 million becoming due until December 31, 2022 and December 31, 2023, respectively.
On June 27, 2022, the BCRA (Central Bank of Argentina) issued Communiqué “A” 7532 (i), in which it established a new additional period of up to 10 consecutive days to settle foreign exchange transactions related to advances, prefinancing, and postfinancing amounts from abroad. These transactions must be entered within 5 business days from the date of collection or disbursement, as established by the Foreign Exchange regulations. Additionally, through Communiqué “A” 7570, subject to compliance with a series of conditions, the BCRA set forth the possibility of extending the deadline to enter and settle these types of transactions to 180 days, (ii) the possibility of early settlement of local foreign currency financing against the requirement of entering a new export prefinancing from abroad, (iii) the possibility of early settlement of debt securities registered in the country and denominated and subscribed in foreign currency against the requirement of entering new foreign financial debt and/or settling a new debt security registered in the country and denominated and subscribed in foreign currency.