BCRA: Modifications and Clarifications to Communique “A” 7030

At the end of May, the Argentine Central Bank (the “BCRA”, after its acronym in Spanish) established, among others, that for operations corresponding to the outflow of funds through the Argentine foreign exchange market (“FX Market”), such as, for instance, the payment of imports of goods and services, prior approval will be required to the extent that certain requirements and conditions are met (see in this regard https://www.marval.com/publicacion/el-bcra-limito-el-acceso-al-mercado-de-cambios-a-quienes-tienen-dolares-13689&lang=en).

In line this, effective as of June 12, 2020, the BCRA made certain adjustments through Communiqué “A” 7042, providing, among other things, that:

1. The limitation to access the FX Market for the payment of principal and interest of all types of foreign debts as of March 19, 2020, for those who had pending or were thinking of requesting, financing in pesos to an annual nominal interest rate of up to 24% was revoked.

2. Liquid external assets available at the beginning of the day in which access to the FX Market is requested for an amount lower than the equivalent of USD 100,000, is permitted and will not be considered liquid external assets available those funds that are deposited abroad as reserve or guarantee funds within the framework of foreign financial indebtedness or funds constituted as collateral for derivative transactions arranged abroad.

In the event that liquid external assets were available for an amount greater than the aforementioned, certain special cases are contemplated, such as, for instance, funds deposited in foreign bank accounts corresponding to collections of exports of goods and/or services.

3. The amount foreseen for the advance payment of imports of goods was increased from USD 250,000 to USD 1,000,000 without the need of prior approval by the BCRA. Thereby, the amount pending regularization for similar payments made from September 1, 2019 must be considered and the amount requested for access to the FX Market must also be contemplated.

4. The term of 90 calendar days without having selling securities with settlement in foreign currency or transfers thereof to depository entities abroad will be considered as from May 1, 2020 (before it was April 1, 2020).

Moreover, on 06.25.20, the BCRA issued Communique “A” 7052, through which it made new adjustments, establishing, among other things, the following:

1. To extend until July 31, 2020 (before it was until June 30, 2020), the requirement of having prior BCRA approval to have access to the FX Market for the payment of imports of goods or for the payment of debts originated in the import of goods, to the extent that certain conditions are met.

In this regard, this prior approval is required when the total amount of payments associated with imports of goods carried out through the FX Market during 2020, including the payment which is being requested, does not exceed the amount for the which the importer would have had access to the FX Market when calculating the imports of goods under the monitoring system of payments for imports of goods (SEPAIMPO) and that were made official between January 1, 2020 and the day before the access to the FX Market.

2. It also extends until July 31, 2020 (before it was until June 30, 2020) the requirement of having prior BCRA approval to access the FX Market for the payment of principal of foreign financial indebtedness when the creditor is a related party, clarifying that it will not be applicable to financing with local financial institutions.

3. As from July 6, 2020 access to the FX Market is allowed without the need of prior BRCA approval for deferred or at sight payments of imports of goods corresponding to transactions shipped from July 1, 2020 or which, having been previously shipped, they might not have arrived in the country before that date.

4. The amount foreseen for the advance payment of imports of goods is increased to the equivalent of USD 3,000,000 (before it was USD 1,000,000) without the need to have prior BCRA approval when it comes to the provision of medicines or other goods related to medical care or supplies necessary for their local production.