On August 26, 2021, through Communiqué “A” 7348 (the “Communiqué”), the Argentine Central Bank (the “Central Bank”), established an exception to allow local residents and entities to refinance outstanding commercial debts into financial loans.
Under this Communiqué, local individuals and local legal entities that obtain, enter and settle in the Foreign Exchange Market (the “FX Market”) new financings from foreign residents, may apply the pesos resulting from the settlement to the payment through the FX Market commercial debts for imports and services in force as of June 30, 2021, excluding them from the prior authorization of the Central Bank. This exception applies even for the payment of services to foreign related parties.
This exception is applicable upon compliance with the following requirements:
Refinancing of commercial debt of up to USD 5 million (five million US dollars);
The new financial debt must (i) be for an amount not less than the amount of the commercial debt so refinanced; (ii) have an average duration (including principal and interest) of not less than two years from the settlement of the funds in the FX Market and (iii) no principal maturities for the first three months after settlement. This report should not be considered as legal or any other type of advice by Allende & Brea.
