In brief
On 5 July 2024, the Argentine Central Bank (BCRA) issued Communication “A” 8059 (“Communication“), introducing amendments applicable to the payment of interest on commercial and financial debt between related counterparties, to the extent that certain requirements set forth in the regulation are met.
In depth
The Communication issued by the BCRA waives the BCRA’s prior authorization requirement for access to the foreign exchange market (“FX Market“) for the following:
- Making interest payments on commercial debts for the importation of goods and services with related foreign counterparties as long as the interest matures on or after 5 July 2024
- Making interest payments on commercial debts and financial indebtedness with related counterparties to the extent that the payment is made through the simultaneous settlement of an amount equal to or greater than the amount of interest for which the access to the FX Market is required from new financial indebtedness with foreign countries or new direct investment contributions from non-residents.
The new funds may be brought into the country and settled (i.e., converted into local currency through the FX Market) by the debtor of the foreign indebtedness whose interest is cancelled by another resident company related to the debtor and its economic group.
The Communication became effective on 5 July 2024.
Click here to read the Spanish version.
