Emerging Markets Rates and Currencies Handbook

65 Citi | Emerging Markets Currencies Handbook 2021 Argentina 3. Principal and interest under financial and trade loans in foreign currency granted by local banks can be paid by borrower through the FX Market. 4. Imports of goods and imports of services from non- affiliates can be paid on the maturity date. Importers can purchase foreign currency to anticipate import payments to non-affiliates but must demonstrate that the corresponding import has taken place within 90 calendar days from the day of the foreign currency purchase, or 270 days for capital goods. 5. Until June 30, 2022, access to the FX market to pay import of goods and principal of related commercial debt requires BCRA’s prior approval. However, there are certain exceptions described in detail in BCRA Communications “A” 7193 (as modified by Communications “A” 7239 and 7253) that amended section 2 of Communication “A” 7030. 6. Argentine companies and non-residents cannot buy foreign currency with no specific purpose without BCRA´s prior approval. Multilateral agencies and ECAs, embassies and consulates, international courts, special missions, commissions and bilateral organizations established by treaties or special agreements to which Argentina is a party, can purchase foreign currency if the purchase is related to their normal activities. 7. Payment of dividends to non-resident shareholders is permitted for up to 30% of new foreign direct investment in an Argentine company. The following conditions must be met: (i) the foreign currency related to the investment must have been sold through the FX Market on January 17, 2020 and thereafter; (ii) payment can only be made 30 calendar days as of the last sale in the FX Market; (iii) evidence of final capitalization of the investment in the local company (or commencement of such process before the Public Registry of Commence to be concluded within 365 days thereafter); and (iv) the payment obligation must be duly registered with BCRA in accordance with informative regime established in Communication “A” 6401 as modified by “A” 6795. All other dividend payments to non-resident shareholders require prior BCRA approval. 8. Repatriation of direct investments by non-Argentine residents in Argentine companies that do not control local financial institutions is permitted, provided that the capital contribution was transferred and sold for pesos in the FX Market as of October 2, 2020 and that the repatriation occurs at least 2 years afterwards. Registration Requirements All inflows and outflows of foreign currency must be channeled and duly registered by financial entities through the Régimen Informativo de Operaciones Cambiarias (RIOC) established by the BCRA. Citi Argentina Bartolome Mitre 502/530 Buenos Aires C1036AAJ Argentina FX Sales Contact: +5411 4329 1844