Argentine Central Bank Regulates RIGI's Foreign Exchange Incentives

Communication “A” 8099 issued by the Argentine Central Bank  (BCRA) on August 29, 2024, regulates the FX incentives for any Single Project Entity (VPU), provided for in Law 27742 Bases and Starting Points for the Freedom of the Argentine People, and regulated through Decree 749/24.
 

The most relevant provisions are:

1.    Commercial debt for imports of goods 
Commercial debt granted by the foreign supplier for the import of capital goods may be computed as repatriated and settled through the FX Market by a VPU adhered to the RIGI when the VPU has demonstrated the registration of customs entry of the goods for a value equal to or greater than the total amount of the financing. The VPU may access the foreign exchange market (FX Market) to pay such commercial debt to the extent that they can be computed as repatriated and settled through the FX Market. 

2.    Foreign financial indebtedness
VPUs may access the FX Market to pay, even before its maturity date, accrued interest and/or outstanding principal on, among others, foreign financial indebtedness repatriated and settled through the FX Market.

3.    Guarantees
VPUs may access the FX Market for the transfer abroad of funds received in Argentina as creditor for a foreign indebtedness granted to a VPU, provided that, for example, the funds correspond to a collection of principal and/or interest on the indebtedness from payments made by the VPU or from any modality that has allowed collection in Argentina as a result of a default of the VPU.

4.    Collections for exports of goods
Within the framework of the financial operations enabled to apply collections of exports of goods and services, a VPU’s application to pay unpaid accrued interest up to the date of application and/or outstanding principal, provided they correspond to the portion of the principal equivalent to the proportion of the funds the VPU received for the financing that can be computed as repatriated and settled through the FX Market, will be admitted.

5.    General outflow transactions
To access the FX Market using the benefits established in the RIGI regarding the collection of exports of goods and services, in addition to the specific requirements of the transaction, the amounts repatriated, and settled through the FX Market for any concept must be, at the time of each request, equal to or greater than the amount resulting from adding each outflow transaction for any concept, except for the admitted payments of interest and/or principal, and the payments of dividends and/or principal of local financing.

6.    Other provisions 
The BCRA established that the RIGI foreign exchange benefits may not be accumulated with existing or future exchange incentives. If there are reductions or elimination of foreign exchange restrictions that imply a more beneficial treatment, the VPU will be able to benefit from them by applying them immediately.