Argentine Central Bank Allows Using Exports Collections to Pay Financial Obligations

On April 18, 2024, the Argentine Central Bank issued Communication “A” 7994, allowing the use of collections from exports and services to pay principal and interests on financial debts abroad, if these conditions are met:
 
1.    foreign funds have been repatriated and sold through the FX Market after April 19, 2024,
2.    the average life of the foreign financial debt is over 3 years,
3.    the first principal payment is made after a year since the funds were repatriated and sold for ARS through the FX Market.
 

Likewise, access to the FX Market may be granted to pre-cancel principal and interests from a foreign financial debt while simultaneously settling a new financial debt granted by a local financial entity from a foreign credit line, within at least 3 business days from the maturity date of the principal or interest service to be paid, if:

1.    the new foreign financial debt is paid after April 19, 2024,
2.    the average life of the new debt is greater than the average remaining life of the debt being precanceled,
3.    the aggregate principal maturities of the new debt at no time exceed the aggregate principal maturities of the debt being canceled.