The Argentine Central Bank Modifies Certain Regulations for Accessing the FX Market to Repay Imports

On December 30, 2020, the Argentine Central Bank (the “BCRA,” after its Spanish acronym) issued Communique “A” 7193  (the “Communique”) pursuant to which access to the FX market to repay principal under foreign financial indebtedness with affiliate companies will still require prior BCRA approval until March 31, 2021, unless the funds have been transferred to Argentina through the foreign exchange market and exchanged for pesos as of October 2, 2020 and the indebtedness has an average life of no less than 2 years, as established by Communique “A” 7123  section .

To access the FX Market to repay imports, the Communique introduced the following changes:

1. Prior BCRA approval to repay imports of goods is extended until March 31, 2021 except when certain conditions established in the regulations are met (those conditions are available here  and here).

2. Prior BCRA approval is no longer required when the total amount of payments associated with the imports of goods was made through the FX market as from January 1, 2021, including the payment under request, and does not exceed US$1,000,000 calculated as follows:

• The amount for which the importer would have access to the FX Market when calculating imports of goods under the monitoring system of payments for imports of goods (SEPAIMPO) and that were made official  between January 1, 2020 and the day prior to accessing the FX Market, plus

• The amount of deferred or on-demand payment of imports of goods of the following transactions not included in the previous point: (i) operations shipped as from July 1, 2020 or previously shipped that have not arrived in Argentina before that date, (ii) aimed to cancel commercial debts with export credit agencies, foreign financial entities or guarantees thereof, (iii) made by the public sector, business organizations where the Argentine State has majority participation or public trusts, (iv) with pending customs registration of supply of critical medicines, (v) purchase of kits for the detection of COVID-19; minus

• The amount pending to be regularized for repayment of imports with pending customs registration made between September 1, 2019 and December 31, 2019.

Lastly, the Communique establishes that prior BCRA approval is no longer required for making advance payments  on product imports for the provision of medicines or other medical and/or healthcare goods or supplies that are necessary for their local preparation, when the total amount of that advance payment does not exceed US$ 3,000,000 pursuant to the above formula.