The maximum term to convert the proceeds of foreign financial indebtedness into pesos extends to 365 days

By means of Communication “A” 3712 passed by the Argentine Central Bank (“BCRA”) on 3 September 2002, the referred conversion into pesos through the local foreign exchange market is mandatory regarding foreign indebtedness of the non-financial private sector under bonds and financial loans. Later, the BCRA extended such obligation to the financial sector regarding its issuances of bonds, financial loans (including repo transactions with securities) and foreign financial lines of credit (Communication “A” 3972 dated 30 June 2003).

On 18 May 2004, by means of Communication “A” 4142, the BCRA fixed a maximum term to comply with such obligation: 30 calendar days as from the date of disbursement of the funds. On 17 March 2005, by means of Communication “A” 4321, the BCRA extended such maximum term to 90 calendar days for disbursements of more than US$ 50,000,000.

Those were the maximum applicable terms until the new Communication “A” 4643 was issued. The recently issued BCRA regulation unifies and extends the maximum term for the conversion into pesos of the proceeds under new foreign financial indebtedness which now, independently of the amount of the transaction, is 365 calendar days as from the date of the disbursement of the fund.