Companies under the Gas Plan will Have Access to the MULC

The Board of the BCRA has approved the conditions for companies participating in the Plan for the Promotion of Natural Gas Production 2020-2024 to access the exchange market in order to repatriate investments and any income they may generate, as well as to repay principal and interest on financial debts for investments made as from November 16, 2020.

This plan was created by Executive Order No. 892/2020 that delegates authority to the BCRA to lay down the conditions under which companies participating in projects under the “Plan for the Promotion of the Argentine Natural Gas Production-Supply and Demand Scheme 2020-2024” can access the forex market.

The Board has further established that the companies may access the forex market to transfer abroad profits and dividends to non-resident shareholders as from the lapse of the second year of the investment, where they agree with closed and audited balance sheets for an amount not exceeding that established in the shareholders’ meeting.

In the case of repayment of principal and interest, the life of the foreign debt in question will average at least two years. The repatriation of non-residents' direct investments will be allowed as from the second year and up to the amount of the direct investments exchanged in the forex market.

In the case a local company makes a reduction in its share capital and/or reimbursement of irrevocable capital contribution, it may access the forex market, provided that it has submitting documentation evidencing its compliance with the relevant legal procedures and, if applicable, the latest “Survey of External Assets and Liabilities”.

In all cases, institutions must keep any supportive documentation that may allow it to check the genuine nature of transactions and to ensure that the funds are used to finance projects under the Gas Plan.

November 19, 2020.