ARTICLE

Financing of investment projects in order to increase exports

The Argentine Central Bank has modified the text of the Communication “A” 4,420, as amended, and its implementing regulations related to the financing of investment projects in order to increase exports.
September 25, 2009
Financing of investment projects in order to increase exports

Through Communication “A” 4,970, enacted on August 14, 2009, the Argentine Central Bank (the “Central Bank”) restated and amended Communication “A” 4,420 and its implementing regulations, principally by setting forth shorter minimum terms for financings and deadlines for filing such transactions with the Central Bank. Such amended requirements will apply to all such transactions filed with the Central Bank from August 18, 2009.

The main changes introduced by the new Communication are the following:

a. The average life of the financing for the project, considering the payment of principal and interests, must be not less than two years, instead of the three years originally established in the former rule.

b. Within no more than 30 consecutive days from the first outlay of the new indebtedness, the election of the option for the project financing must be notified to the Central Bank through the participating financial entity appointed by the exporter. In this aspect, Communication “A” 4,970 significantly shortens the term for such filing, which the former rule had set at between 45 and 180 consecutive days.

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