Approval for Prepaying Foreign-Currency Debt: New Exception

The Argentine Central Bank (BCRA) issued Communication “A” 8390 on January 22, 2026, introducing amendments to section 3.6.4 of the Foreign Exchange and FX Rules, which refers to access to the foreign exchange market before maturity to cancel foreign-currency debt between residents covered by section 3.6.

The amendment does not alter the already existing general rule—under which early prepayment requires the BCRA’s prior approval, unless it falls within specific exceptions—but rather adjusts and incorporates exceptions within that framework.

 

Amendment to section 3.6.4.6

First, Communication A 8390 replaces section 3.6.4.6 and broadens its scope. Following the new wording, the exception covers not only the prepayment of principal and accrued interest on debt securities included in section 3.6 simultaneously with the settlement of a new debt security also included in that section, but also the prepayment of foreign-currency financing granted by a local financial institution that was not granted under a foreign credit line.
 

Likewise, the structural refinancing conditions typically required for this type of exception remain in place:
 

1. simultaneity between the prepayment and the settlement of the new instrument’s proceeds,
2. an extension of the weighted average life of the new debt as compared to the prepaid debt,
3. a non-accelerated amortization profile, such that the cumulative principal maturities of the new debt do not exceed, up to the maturity date of the prepaid debt, those that the prepaid debt would have had.

 

New exception: section 3.6.4.X (refinancing with new local financing)

Second, Communication A 8390 incorporates a new section 3.6.4.X, which adds an exemption from BCRA prior approval for paying principal and accrued interest of:
 

1. a debt security included in section 3.6, or
2. foreign-currency financing from a local financial institution not originating from a foreign credit line, when such prepayment is made simultaneously with the settlement of new foreign-currency financing granted by a local financial institution.

 

The new exception replicates the financial refinancing criteria established in other subsections of section 3.6.4: (i) simultaneity, (ii) longer weighted average life, and (iii) the restriction on the cumulative amortization schedule mentioned above.

In addition, when the debt being cancelled is foreign-currency financing from a local entity, the simultaneity requirement may be deemed satisfied if there is a certificate issued by the institution granting the new financing regarding settlement of the required amount within the last 48 business hours.

 

Practical scope

From a regulatory standpoint, Communication A 8390 expands the cases of refinancing exempt from prior approval by addressing in greater detail the interaction between securities included in section 3.6 and local foreign-currency financing, including both refinancing through new securities issuances and refinancing through new financing granted by local financial institutions.

In this way, the BCRA adjusts the wording of the regime to expressly include liability replacement alternatives that, subject to certain maturity and amortization profile conditions, may be implemented without prior authorization.