Extension of Terms for the Liquidation of Proceeds from Exports

Through Communication “A” 5751, effective as of May 4, 2015, the Central Bank of Argentina (the “Central Bank”) established an additional 180 calendar day term for the transfer and settlement of proceeds from exports when the transaction has been entirely pre-financed with funds transferred into the local foreign exchange market (the “FX Market”) and as from May 4, 2015, under export pre-financings, local and/or from abroad, and have been funded abroad.

The Communication provides that the term extension will be applicable if the following requirements are complied with:

1. the financial institution intervening on the transfer of the funds from the export pre-financings must supervise and follow-up the export transactions under the extended term;
2. the financial institution must inform the Central Bank on the expiration of the extended term within 30 calendar days as of the date of the shipment. For such purpose, the exporter must inform the intervening financial institution within 15 calendar days as of the date of shipment; and
3. the financial institution must comply with the “Follow-up of advance payments of exports and exports pre-financings” information regime.

In addition, Communication “A” 5751 establishes that the proceeds from exports collected in foreign bank accounts under the extended term and destined for the cancelation of local export pre-financings must be transferred to the corresponding accounts of local financial institutions within a 10 business day term as from the date of collection of the funds abroad.