Through Communique "A" 7196 dated January 6, 2021, the Argentine Central Bank (the "BCRA," after its acronym in Spanish):

  • Extended from 30 to 45 calendar days the term prior to the payment date in which Argentine residents are allowed to access the market to pay principal and interest on financial indebtedness with foreign counterparties or foreign-currency-denominated debt securities.
  • Allowed collections in foreign currency from the export of goods and services to be applied to the payment of principal and interest of issuances of publicly registered debt securities in the country or abroad made as of January 7, 2021. This is subject to their being made in the framework of the exchange of debt securities or the refinancing of interest service payment and/or principal of foreign financial debt  with maturity until December 31, 2022. And it applies to transactions with final maturity after March 31, 2021, provided that the average life of the new debt (taking into account the entirety of the transaction) implies an increase of no less than 18 calendar months in comparison with the extended maturities.
  • Allowed funds originating from the collection of exports of goods and services of debtors to be accumulated in local and/or foreign accounts earmarked to guarantee the repayment of the maturities of the debt issued as of January 2021. However, this only applies if the financings being guaranteed are foreign financings whose average life, taking into account the payments of principal and interest, are no less than 1 year and that they are earmarked for financing certain projects in Argentina.
  • Authorized Argentine residents with indebtedness originating as of January 7, 2021, which are earmarked for financing certain projects in Argentina, or the trusts created in the country to guarantee the repayment of principal and interest service payments of such indebtedness, to access the foreign exchange market to purchase foreign currency to create guarantees in foreign-currency-denominated accounts opened in local or foreign financial institutions if certain requirements are met.
  • For the issuance of debt securities denominated in foreign currency and publicly offered in the country or abroad as of January 7, 2021, to refinance pre-existing debts, the existing foreign currency settlement requirement will be deemed met for the equivalent of the amount of refinanced capital, the interests accrued up to the date of refinancing, and, if the new debt securities do not register principal maturities before January 1, 2023, an amount equivalent to the interest that would accrue until December 31, 2022 for the debt that is refinanced prior to maturity and/or for the postponement of the refinanced principal and/or for the interest that would accrue on the amounts thus refinanced.

Originally published February 3, 2021 .

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