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Foreign Exchange Market: Access Conditions for Companies

Companies with access to credit lines at subsidized interest rates and those that make forex transactions of securities will require the prior authorization of the BCRA to buy foreign currency in the Free and Single Foreign Exchange Market.

MSMEs that benefit from promotional credit lines stipulated in the framework of the COVID-19 health emergency may only purchase foreign currency if channeled to new imports of any goods or supplies required for productive purposes. Hence, no debt due as of March 19, 2020 can be disbursed out of these credit lines without the prior authorization of the BCRA. As long as credit lines are standing, companies will be limited to sell securities in foreign currency and to transfer them to depository institutions abroad.

The BCRA also establishes that companies may purchase foreign currency, provided that they submit an affidavit stating that on the purchase day and the preceding 30 days they have sold no securities in foreign currency or transferred them to depository institutions abroad. In addition, they must commit themselves not to make those transactions as from the time they require access and for the subsequent 30 days.

The BCRA’s resolution sets out that any company requiring access to the forex market for the payment of principal and interest of any foreign debt pending as of March 19, 2020, must have prior authorization of the BCRA, except in case they submit an affidavit to the institution stating that they have no credit in pesos pending as provided for in Communication A6937, as supplemented, and will apply for no such credit in the following 30 subsequent days.

The companies with credit in pesos pending payment as set forth in Communication A6937, as supplemented, will not be authorized to sell securities in foreign currency or transfer them to depository institutions abroad until they pay all their outstanding debts.

In addition, the Communication establishes that institutions must require that their clients submit an affidavit stating that, on the purchase day and the preceding 30 days, they have not sold securities in foreign currency or transferred them to depository institutions abroad.

April 30, 2020.

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