Requirements to extend commercial indebtedness for import financings of goods

Through Communication “A” 4,881, the Argentine Central Bank established, as of December 1, 2008, the requirements under which commercial indebtedness for import financings of goods referred in Communication “A” 4,484, which are past due or are about to, may be extended, so as to allow the indebtedness to maintain its qualification as “commercial indebtedness” and not “financial indebtedness”.

Communication “A” 4,484 enumerates the import financings of goods that qualify as commercial indebtedness; out of which, import financings qualify as financial indebtedness.

The requirements established by the Communication are the following:

1.    Extensions must be of at least 180 days from the date of the original financing deadline; after a first extension, there can only be another one subject to the same minimum term.

2.     Extensions can be agreed until December 31, 2009.

3.     Extensions must be agreed with the first creditor or with local financial entities.

4.     The extension must be informed to the Argentine Central Bank, through the local financial entities, within 10 business days from the date they are agreed upon.