Solidary Financial Trusts for Assistance to Public Sectors

On May 21, 2020 the Argentine Securities and Exchange Commission (the "CNV" after its acronym in Spanish) issued Resolution No. 839 (the "Resolution") modifying CNV Rules (2013 Text as amended) and implementing the new regulations applicable to Solidary Financial Trusts.

The Resolution implemented the new legal regime applicable to Solidary Financial Trusts and was issued with the aim of assisting and / or managing financing resources to be allocated, directly and / or indirectly, to entities and / or institutions of the national, provincial and / or municipal public sectors  that entails social impact.

The Resolution aims to contribute to the national policies intended to alleviate the adverse effects of the crisis generated by the COVID-19 pandemic.

The new Solidary Financial Trusts may be established either as an individual issuance or under a Global Program for the issuance of Solidary Financial Trusts.

Entities and / or institutions of the national, provincial and /or municipal public sectors may act as settlors under Solidary Financial Trusts.

Finally, the Resolution provides that the trust securities issued under Solidary Financial Trusts must be identified as “Trust Securities with Social Impact” and distinguishes the investors as “Socially Responsible Investors”.