Further Relaxation in FX Restrictions and Extension of Term for Inflow of some Export Proceeds

1. Measures adopted by the Central Bank of the Republic of Argentina to relax the FX Market

The Central Bank of Argentina (“BCRA”) modified the current foreign exchange regime through Communiqué “A” 6137 (“Communiqué 6137”) issued on December 30, 2016, directed at foreign exchange agencies and financial institutions, respectively.

In that sense, Communiqué 6137 orders: (i) to abrogate the maximum amounts for the purchase and sale of foreign currency of residents and non-residents; (ii) to abrogate the maximum amounts for foreign currency arbitrage in Argentina; (iii) to abrogate the requirement of inflow of export proceeds from services (except for those services related to the export of goods), along with the limits to personal transfers; and (iv) to abrogate the restrictions of access to the FX Market for direct investments made by residents, portfolio investments abroad made by residents, loans from residents to non-residents, purchase and sell of foreign currency and travelers’ checks and purchase and sale of foreign currency for domestic ownership or related to transfers made by residents.

Likewise, through Communiqué 6150 issued on January 13, 2017, the BCRA ordered the abrogation of: (i) the requirement of compliance with the minimum mandatory waiting period of one hundred and twenty (120) calendar days for the payment of foreign debts and repatriation of portfolio investment made by non-residents, and (ii) the minimum term of financial indebtedness to foreign countries, also previously set at 120 days.

Finally, through Communiqué 6163 issued on January 20, 2017, the BCRA ordered further relaxed access to the FX Market by authorizing the access of residents for: (i) the inflow and payments related to transactions with non-residents; (ii) the inflow and payment of debts with local financial institutions and/or issuance of debt securities denominated in foreign currency; and (iii) the purchase and sell of foreign assets owned by them and those related to transfers between residents. Simultaneously, the BCRA authorizes certain residents to access the FX Market for direct investments made by residents, portfolio investments abroad made by residents, loans from residents to non-residents, purchase and sale of travelers’ checks and purchase and sale of foreign currency for domestic ownership or related to transfers made by residents.

2. Measures adopted by the Argentine Treasury and Trade Secretariat

Through Resolution No. 1-E/2017 issued on January 4, 2017, the Argentine Treasury reduced to zero (0) days the term set forth in Articles 2 and 4, subsection a) of Decree No. 616/2005 and amendments thereto, abrogating the terms for agreeing and paying all foreign debts incurred by natural and legal persons and to transfer the funds collected to foreign markets.

Furthermore, through Resolution No. 47-E/2017, issued on January 19, 2017 (“Resolution No. 47”), the Argentine Trade Secretariat amended Resolution No. 269/2001 and the amendments thereto, relaxing and extending the terms set forth therein to exporters in the Republic of Argentina.

Resolution No. 47 stated that exporters whose transactions are covered by the tariff position set forth in the Common Nomenclature of MERCOSUR must submit the proceeds from such exports to the local financial system within three thousand six hundred and fifty days, that is to say, ten years.

Thus, Resolution No. 47 unifies the terms for submitting the proceeds from the exports of goods, regardless of the tariff position of the exported goods.

Likewise, Resolution No. 47 expressly sets forth that such terms apply to the applications in progress as of January 20, 2017 (date of its publication in the Official Gazette).