BCRA Extends Provisions on Payment of Goods Imports and Refinancing of Debt Securities

Through Communique “A” 7416 dated December 9, 2021, the Argentine Central Bank (the “BCRA,” after its acronym in Spanish) extended for six months, i.e., until June 30, 2022, the exchange provisions governing the payment of imports of goods and refinancing of debt securities in foreign currency and other financial liabilities.

The proceeds of exports of goods and services may be applied to the maturities of debt securities with public registry if: 

(i)    They have been issued as of January 7, 2021, and the term has not elapsed of the provisions of item 3.17 of the Amended and Restated Text (currently, until June 30, 2022).
(ii)    They have been delivered to creditors within the framework of debt security exchange transactions or refinancing of principal and/or interest maturities of the following 2 years for indebtedness abroad whose final maturity was after June 30, 2022, as of the date of their issuance.
(iii)    The average life of the new debt implies an increase of more than 18 months compared to the refinanced maturities.

To settle the foreign currency for debt securities issued when refinancing pre-existing debts with extension of the average life, the interest accrued during the first two years will apply to the extent that the new security does not record principal maturities during that period.

The use of the “Certification of increase in exports of goods in the year 2021” will also apply, under the same terms and conditions, to exporters of goods that register increases in the year 2022 compared to the year 2021.

Starting January 3, 2022:

-    Certifications for settlements of new foreign financial indebtedness may be used to access the foreign exchange market for: (i) payments of imports of goods and (ii) payments of services to related counterparties without prior approval, to the extent that it is a payment from an obligation’s maturity for a service rendered at least 180 calendar days prior to access or derived from a contract signed with similar anticipation.

-    The certification may be issued to the extent that this mechanism has not been used throughout the calendar year for an amount greater than the equivalent of USD 10 million (previously USD 5 million) including the certification requested.

Access to the foreign exchange market is permitted for payments to cancel a commercial debt for imports of goods that have guarantees issued by private insurers on behalf of national governments of other countries.

The settlement of export advances and 180-day pre-financing must be applied to the payment of imports within 5 business days of the negotiation of the foreign currency.

Finally, to calculate the cash position established in point 2.2.2. of the rules on “Overall net position of foreign currency,” the balance must be deducted from the guarantees for transactions with debit, purchase, and credit cards abroad for up to an amount equivalent to 5 consecutive days of consumption.