More Time to Settle Post-Financed Export Proceeds

Through Communique “A” 7229, published on February 25, 2021, the Argentine Central Bank (BCRA, after its acronym in Spanish) amended paragraph 7.5.2. of the “Foreign Exchange” regulations, governing exports pre-financed and/or post-financed in full locally or from abroad, extending the deadline for repatriation and settlement of foreign currency arising from the shipment of post-financed exports. Until now, those extensions had only applied to pre-financing exports.

The BCRA stipulated that exporters may extend the deadline for the settlement of foreign currency until the expiration date of the credit with the longer term deducted and/or assigned by the exporter, as long as the following conditions are met:

• The exporter demonstrates that the amount received from post-financing the export has been settled in the foreign exchange market; and
   

• The requirements foreseen in paragraphs 9.3.4. and 9.3.5. for the issuance of the corresponding application certification are not met (i.e. proof that the exporter was cleared from liabilities with the foreign creditor, that the settled foreign currency was collected, that there was unchallenged assignment of the transaction with a foreign entity or the transaction was discounted by a foreign entity).