On October 22, 2020, by means of Communiqué “A” 7146, the Argentine Central Bank (“Central Bank”), provided for adjustments to the rules on “non-financial credit providers”, extending the application of the Law on Financial Institutions to “other non-financial credit providers”, establishing that they will be bound by the rules on “Protection of users of financial services”, with respect to the financing they provide.
Among the adaptations incorporated by the Communiqué, the following stand out:
• The registration in the “Registry of other non-financial credit providers” is mandatory for the other non-financial credit providers (“Non-Financial Providers”), and for the non-financial companies that issue credit and/or purchase cards (“Non-Financial Companies”), when they have granted financing for an amount exceeding $10 million.
• As of March 1, 2021, Non-Financial Providers and Non-Financial Companies must comply with the provisions of the “Transparency” and “Claims” Sections of the “Monthly Accounting Information System”.
• The extension of the application of certain provisions on “Interest Rates in Credit Operations” to Non-Financial Providers and Non-Financial Entities, with respect to financing not included in the Credit Card Law, is determined.
• Non-Financial Providers and Non-Financial Companies, must submit a compliance report with the corresponding certifications, which must be prepared as established by the Central Bank.
• It is clarified that the provisions will not apply to mutual and cooperative associations.
• Finally, the Communiqué establishes a schedule of adaptation, which will be completed on March 1, 2021.
This report should not be considered as legal or any other type of advice by Allende & Brea.
