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ALERT | MEASURES BCRA

SMS Alert 
Business Process Outsourcing 

MEASURES BCRA 
(Central Bank of the Argentine Republic) 

Release “A” Number 7030 (dated May 28, 2020) - Foreign Exchange – Adaptations 

The BCRA, by the present release, establishes additional requirements to make foreign payments as well as establishing extended deadlines to operate with Stock Exchange Dollar or Bond / Dollar Trade (CCL) under the situations detailed below. 

1. General provisions: 

To have access to the exchange market for transactions under chapters 3.1. to 3.11. and 4.4.2. of “Foreign & Exchange” the banking entity will need the prior approval of the BCRA or receive a sworn statement from the client stating that at the time of accessing to the exchange market: 

a) the total holdings of foreign currency in the country are deposited in accounts in financial entities and does not possess available liquid foreign assets. In case the client did have available liquid foreign assets at the beginning of the day where he accesses to the foreign exchange market, the sworn statement will be accepted if there is proof that said assets have been fully used during that day to make payments that would have had access to the local foreign exchange market. 

The rule considers foreign liquid assets, among others: holdings of foreign currency, gold coins or ingots in good standing, cash in foreign accounts and other investments that are of immediate access in foreign currency (e.g. trading bonds, funds in investments accounts managed by foreign investments companies, cryptoassets, funds in foreign payment providers, etc.) 

In consequence the existing foreign current liquid assets have to be used to pay for the above mentioned operations, previous to asking for access to the exchange market. 

b) the compromise to settle in the exchange market, within the following five working days of being disposable, those funds received from abroad originated from loans awarded to third parties, cashing of a time deposit or the disposal or selling of any kind of asset, when the asset would have been acquired, the deposit or the loan awarded after May 28, 2020. 

All other demands regarding the rest of the requirements by the exchange normative stay the same as well as to all other applicable concepts. 

Detail of chapters 3.1. to 3.11. and 4.4.2. of the “Foreign & Exchange” rules reached by the present normative. 

- 3.1. Import payments and other foreign goods 
- 3.2. Payments for services to non-residents 
- 3.3. Debt interest payments for goods & services imports 
- 3.4. Profit and dividend payments 
- 3.5. Capital and interest payments on foreign financial indebtedness 
- 3.6. Payments of registered debt securities in foreign currency and foreign currency obligations among residents. 
- 3.7. Payments of indebtedness in foreign currency of residents by trusts established in the country to guarantee service provision. 
- 3.8. Family assistance. 
- 3.9. Purchase of foreign currency by residents to be applied simultaneously to real estate properties with mortgage loans. 
- 3.10. Purchase of foreign currency by other residents -excluding entities- for the creation of foreign assets and derivative transactions. 
- 3.11. Other purchases of foreign currencies by residents with specific application. 
- 4.4.2. Payment of premiums, warranty constitutions and cancellations belonging to interest of hedge contracts of foreign residents’ obligations. 

2. Additional requirements for imported goods payment: 

Up to June 30, 2020 to access the exchange market to make advance payments of imported goods or cancelling the debt originated in the import of goods, compliance of the BCRA will be needed, unless the banking entity counts with: 


a) a sworn statement from the client stating that the associated total amounts of the payments linked to imports channeled by exchange market in the year 2020, including the payment requested hereby, does not exceed the amount by which the importer would have had access to the exchange market by computing the import of goods stated under his name in the SEPAIMPO system and made official between 01/01/2020 and the previous day accessed to the exchange market. 

b) the documentation that allows it to verify compliance with the remaining requirements established for the operation by the exchange regulations. 

The requirement provided in point 2) will not apply for: 

- The public sector. 
- Companies that, even privately lawfully established, are under State control. 
- Trusts established with contributions from the public sector. 
- Legal entities that provide critical medical elements to patients that make advance payments for those goods entered as a Private Request by the beneficiary of the Prepaid Insurance medical coverage.  
- Payment of imports with pending customs registration of COVID – 19 detection kits or other goods whose tariff or customs code are included in the Decree # 333/2020 and additions. 
- Payment of imports with pending customs registration subject that the amount to be cancelled by the client for similar payments made as of September 1, 2019 does not exceed US$ 250.000.- (two hundred and fifty thousand US dollars) including the amount for which access to the exchange market is now requested.  

The BCRA will make an ongoing control of compliance of the aspects mentioned here by using the information related to payments of imports of goods in the exchange market and detail of imports included in the SEPAIMPO. 

3. Financial loans with related companies:

It is established that up to June 30, 2020 an approval of the BCRA will be required to access the exchange market to cancel foreign capital indebtedness financial services when the creditor is a counterpart of the debtor. 

4. Transactions with securities:  

The normative extends the original established terms set forth by the release A 7001. As of May 29, 2020, in addition of the exit transactions through the exchange market, and in addition of the applicable requirements of each case, a sworn statement of the client will be required stating that: 

a) on the day that access to the exchange market is requested and during the previous 90 days, no selling transactions of foreign currency securities or transfers to the same foreign depositary entities have taken place. Up to June 30, 2020, the sworn statement mentioned herein will be considered that it comprises only the period elapsed since April 1, 2020, inclusive. 

b) a commitment of not selling or transferring securities in foreign currency to the same foreign depositary institutions from the moment that access is required and for the following 90 days. 

The original term established by the release A 7001 was of 30 straight days. 

Validity of the current release is as of May 29, 2020. 

Business Process Outsourcing Department 

info@sms.com.ar

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