The BCRA has laid down regulations for implementing Executive Order 836/2021, which provides for better conditions of access to the forex market to companies that make investments to expand Argentina’s export capacity.
Those beneficiaries of projects falling under the scope of Executive Order 234/2021—setting the Investment Promotion Regime for Exports—which invest over USD500 million will be entitled to an extended benefit for every calendar year in which the benefit has not been used, regardless of the underlying reasons.
As for projects involving investments between UDS500 million and USD1,000 million, beneficiaries will be entitled for a term of 2 consecutive calendar years to freely allocate two times the percentage provided for in Executive Order 234/2021 for every calendar year the benefit has not been used. This benefit applies to foreign currency proceeds from exports related to the investment project, subject to a maximum of 40% of the investment.
For higher investments, the percentage provided for in Executive Order 234/2021 is tripled.
The BCRA established that the abovementioned 40% is to be measured annually, and access is enabled once the second year as from the first inflow of foreign currency used to start the project has elapsed. Moreover, unused funds may be deposited in foreign currency accounts held in local financial institutions or in correspondent banks abroad or in bank accounts held in financial institutions located abroad, except for those incorporated in countries or territories which fail to apply the recommendations of the Financial Action Task Force (FATF) or else apply them inadequately.
In the case of investments exceeding USD1,000 million, the annual cap shall rise to 60%.
