The Central Bank enables new scenarios for the payment of imports
On June 25, 2020, pursuant to Communiqué No. "A" 7052, the Argentine Central Bank (the "Central Bank") provided additional adjustments and clarifications to Communiqué No. "A" 7030, issued on May 28, 2020. Communiqué No. “A” 7030 issued to set a series of restrictions to the access to the Foreign Exchange Market (the “FX Market”), had already been modified by Communiqué No. "A" 7042 on June 11, 2020.
Extension of the validity of the provisions of Communiqué No. "A" 7030
Restrictions on the access to the FX Market for the payment of imports and to cancel principal of foreign financial indebtedness when the creditor is a related party to the debtor remain in force until July 31, 2020.
New adjustments to the restrictions on payment of Imports
Deferred payments or on demand of new imports: The Central Bank exempts from the restrictions provided for by Communiqué No. "A" 7030 to the payment (deferred or on demand) of imports that have been shipped after July 1, 2020 or that, having been shipped earlier, have not arrived to the country before that date.
In other words, according to the new regulation, it will be allowed to access the FX Market for said payments even in the event that: (a) the aggregate amount of import payments and prepayments made during the year 2020 - including the intended payment - exceeds (b) the aggregate amount of imports of goods that are registered in its name in the system for monitoring the payment of imports of goods (“SEPAIMPO”) and that the clearing custom (i.e., nationalization) was between January 1, 2020 and the day prior to access to the FX Market.
Advance payments for imports of medicines: Access to the FX Market for advance payments on imports was raised from USD1,000,000 to USD3,000,000 for imports of products related to the provision of medicines or other goods related to the medical and/or health care of the general public or supplies required for their local production.
However, prior written authorization from the Central Bank for advance payment of imports of goods in the event that the foreign supplier is a related party is still required.
Exemptions to the restrictions for non-residents
Transfers to foreign bank accounts of individuals entitled to the following compensations and economic benefits granted by the National Government shall not require the prior written authorization of the Central Bank provided by Communiqué No. "A" 6855: (i) the compensations to individuals incarcerated by military courts (Law No. 24,043 as amended), (ii) the extraordinary economic benefits granted to the heirs of politically disappeared individuals (Law No. 24,411 as amended), and (iii) the economic benefits granted to individuals who were born during the political imprisonment of their mother (Law No. 25,914 as amended).
This report should not be considered as legal or any other type of advice by Allende & Brea or as including all the subjects of the topics described herein.