Communique Nro. 7375/2021 issued by the Argentine Central Bank and Resolution CNV 907/2021

Dentons
Contact

Dentons

The Argentine Central Bank (BCRA) issued the Communique Nro. 7375 establishing changes to the BCRA’s authorization for payments (i) of imports of goods and (ii) of financial debts originating from such imports.

Payments for import debts of only up to USD250,000 can be made. Before the new regulation, the amount was limited to USD1,000,000. These payments can only be made for goods to be imported or imported before 1 January 2020.

This new payment policy is valid until October 31st, 2021.

The main objective of this payment policy is to limit Argentina’s USD capital outflow.

On the other hand, the Argentina Securities and Exchange Commission (Comisión Nacional de valores, the “CNV” for its Spanish acronym) issued the resolution RG CNV 907/2021, published in the official Gazette on 06.10.2020.

This resolution has restricted the sale of dollar-denominated public bonds with local applicable law jurisdiction. This limit has been established at 50,000 nominal per week, net of the purchase of the same public bonds with settlement in foreign currency.

Moreover, the CNV has established that public bonds (except those subject to Argentina´s jurisdiction) may be (i) sold in dollars or any other foreign currency or (ii) transferred to or from foreign depository entities only if:

  • No dollar-denominated public bonds subject to Argentina´s law jurisdiction was sold 30 days prior to the sale and:
  • Public bonds subject to Argentina´s law jurisdiction cannot be sold within 30 days after the sale of the public bonds subject to foreign law jurisdiction.

This resolution aims at limiting both Argentina’s USD capital outflow and benefits obtained by trading with the different public bonds (issued under local and foreign law jurisdiction).

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Dentons | Attorney Advertising

Written by:

Dentons
Contact
more
less

Dentons on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide

This website uses cookies to improve user experience, track anonymous site usage, store authorization tokens and permit sharing on social media networks. By continuing to browse this website you accept the use of cookies. Click here to read more about how we use cookies.