BCRA: Access to FX Market for New Local Issuances Denominated in Foreign Currency Allowed

The Argentine Central Bank (the “BCRA”, after its acronym in Spanish), by means of Communique “A” 6838 (the “Communique”), provided that new local public debt issuances denominated in foreign currency, whose principal and interest payments are payable in Argentina in foreign currency, will have access to the foreign exchange market upon maturity for principal and interest payments. As long as they were subscribed in foreign currency and the entirety of the funds obtained were settled for pesos in the foreign exchange market.

The Communique provided that the obligation to settle the foreign currency proceeds for pesos obtained by Argentine residents for such issuances through the foreign exchange market as a condition to access such market for their repayment will not apply. Or only if the conditions provided for in item 4 of Communique “A” 6814 are complied with.

The Communique substantially reproduces the contents of Communique “A” 3820 which existed under the prior foreign exchange regime.