The Board of the BCRA has set out guidelines for local governments to afford debts with overdue principal of issues of debt securities registered abroad, other financial indebtedness abroad as well as issues of debt securities denominated in foreign currency formally recorded in Argentina. This measure will be effective as from June 2.
Under this regulation the provinces must submit a proposal to the BCRA providing for the repayment of up to 40% of the principal owed; the remaining amount overdue must be refinanced with, at least, a two-year average maturity.
For maturities of this kind of transactions falling due up to July 18, the proposal may be submitted to the BCRA up to 2 business days before the maturity date. This decision of the BCRA seeks to continue following the downward trend of indebtedness in foreign currency at a pace consistent with Argentina’s foreign currency needs and exchange rate stability levels.
