On Febraury 19 2020, the Central Bank of the Argentine Republic (the “Central Bank”) by means of Communication “A” 6908 (the “Communication 6908”) eased the access to the foreign exchange market by financial institutions for the cancellation of credit lines granted for the financing of export or import operations.
In this regard, through the incorporation of point 4.6. to the Orderly Text of the Central Bank’s Foreign Exchange regulations, access to the exchange market for the cancellation of the aforementioned credit lines became more flexible by allowing financial institutions access to the exchange market for the pre-payment of the said credit lines, to the extent that the financing granted by the local entity has been pre-paid by the debtor.
Prior to the publication of Communication 6908, financial institutions could only access the foreign exchange market for the cancellation, at maturity, of commercial credit lines granted by foreign financial institutions, and applied to the financing of export or import operations of residents.
In order to access the foreign exchange market, it must be verified that the credit line to be cancelled qualifies as a commercial debt according to the definitions set forth in point 10.2.4. of the Orderly Text of the Central Bank’s Foreign Exchange regulations.
This publication does not offer a legal opinion on specific matters. If necessary, you should seek specialized legal counsel.
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