The Government makes the restrictions more flexible for companies that have to pay debt in dollars

He Central Bank (BCRA) provided greater flexibility for companies to access the Single and Free Exchange Market, for him payment of obligations in foreign currency abroad. This is within the framework of the favorable dynamics for the reserves of the financial regulator that drives private debt in coordination with money laundering.

The financial regulator made this measure effective through the Communication “A” 8129 in order to give more rein to that mechanism. The rule relaxes the process of purchasing foreign currency for the payment of debt maturities abroad by allowing debtors to begin to anticipate entry into the MULC 60 days before expiration.

These are new decisions in an attempt to go normalizing the situation of the exchange market, although the Government has not yet given clear signs that it plans to lift the restrictions completely.

Dollars for private debt: what the BCRA established

The norm of BCRA indicates that access to the exchange market may be given to residents who must make debt service payments or of local debt securities for the purchase of foreign currency prior to the accepted term.

The acquired funds will have to be deposited in accounts in foreign currency owned by them opened in local financial entities and access sand may be made within 60 calendar days prior to the due date of the payment to be made.

Access is will have to make a daily amount that does not exceed 10% of the amount to be paid at maturity and The intervening entity will have to verify that the debt, the service of which will be canceled with those funds.

The BCRA measure establishes as an additional condition to access the exchange market, that payment takes place after at least 365 calendar days have elapsed from its date of issue.

The measure It was decided to the extent that money laundering offers a more solid platform for dollars, with a declaration it was close to US$20,000 million, while the drop in rates encourages local companies to take on debt in dollars through Negotiable Obligations.

Private debt issuance grows

Argentine companies issued almost US$4,000 million in Negotiable Obligations in the last four months, in a clear record for corporate fixed income and an appetite on the part of investors that remains intact. City analysts highlight the entry of dollars via money laundering as one of the factors that lead companies to issue loans to capitalize on this financing opportunity. This, added to the stocks, allows them to finance themselves at a very low rate in dollars, “almost given away,” as they say.

Recently, the consultant Ricardo Arriazu; the former vice president of the Central Bank, Gustavo Cañonero; and the Harvard professor and researcher, Pablo Di Tella, suggested that the government gradually lift restrictions on the exchange market.

Within the framework of the Banking and Monetary Conference organized by the Central Bank, the three economists insisted on the idea of ​​​​the gradual lifting of restrictions. The BCRA measure goes in that direction.