Exchange controls: Amendments to Foreign Currency-Made Payment of Principal and Interest of Debt Securities Issuances Registered Abroad

Through Communique “A” 7218 dated February 4, 2021, the Argentine Central Bank (BCRA, after its acronym in Spanish) stipulated that entities may also grant residents access to the foreign exchange market, as long as all of the following conditions are met:

• The debtor provides proof that exports were registered prior to the issuance of the debt securities or that the funds from the placement were used to meet foreign commitments. If at least one of these two conditions are not met, the issuance has prior BCRA approval.

• The average life of the debt securities is no less than 5 (five) years.

• The first capital payment is registered no sooner than 3 (three) years from the date of issuance.

• The local subscription does not exceed 25% (twenty-five percent) of the total subscription.

• As of the FX trade date, all the funds subscribed foreign and domestically have been settled in the foreign exchange market.