Blue-Chip Swap Transactions for UVA Mortgage Loans: Restrictions Now Relaxed

On June 7, 2024, the Argentine Securities Commission (CNV) issued General Resolution 1004, readjusting its regulations for transactions made with funds from Units of Purchasing Value (UVA) mortgage loans granted by financial entities. The new adjustments apply if the proceeds from sales are used for real estate transactions.

The CNV emphasized the importance of the development of mortgage loans for the capital market. This is the reason why it exempts from the requirements and conditions in its regulations the sales transactions of securities with settlement in foreign currency and in local Dollars (Dólar MEP), carried out by residents or legal entities with funds originated from UVA mortgage loans, up to the amount of such loans.

The transactions are exempted from:

1.        compliance with the minimum holding period for securities in the portfolio,

2.         the information regime required for selling with settlement in foreign currency and local jurisdiction,

3.       the restrictions to the sale in foreign currency whenever there are outstanding REPOs, securities financings, and/or any type of financing acquired through operations in the capital market.

Regarding the limitation to carry out or settle sales transactions of securities with settlement in foreign currency if there are outstanding REPOs and/or securities financings, the Resolution includes the promissory notes issued in foreign currency with a cash payment clause in that currency and which have been discounted through trading in markets registered with the CNV among the exempted financing.