BCRA: Amendments to Foreign Exchange Regime

The Argentine Central Bank (the “BCRA”, after its Spanish acronym) by means of Communique “A” 6825, which amended Communiques “A” 6796 (previously amended by Communique “A” 6814) and Communique “A” 6818, has relaxed foreign exchange regulations with the purpose of facilitating imports of capital goods.

Access to the foreign exchange market granted to Argentine residents with financial indebtedness with foreign counterparties or trusts established in Argentina to guarantee the payment of principal and interest of such indebtedness has been extended to include commercial debt for imports of goods and/or services with foreign financial institutions or official export credit agencies.

Moreover, the 90-day term for the nationalization of certain goods as of the date of access to the foreign exchange market has been extended, so that in the case of advance payments of imports of capital goods such term will be of 270 calendar days again as of the date of access to the foreign exchange market.

Such extension of term only applies to tariff positions; those categorized as BK (Capital Goods) in the MERCOSUR Common Nomenclature (Decree No. 690/02, as amended) are also included.

For the remainder of goods, the term continues to be 90 calendar days as of the date of access to the foreign exchange market. In the event that one advance payment includes capital goods and other non-capital goods, the operation will be subject to the term of the goods which represent a higher proportion of the total value paid.