These changes are intended to make it easier for companies to obtain the necessary foreign currency on the exchange market to make payments abroad. The changes will contribute to improving the flow of trade and investments.
Through Communication A 8059/2024 of the Central Bank (BCRA) published this Monday in the Official Gazette, the agency modified the prior compliance requirements for access to the exchange market for the payment of interest on commercial and financial debts.
According to the regulations, the BCRA has eliminated prior approval for certain interest payments. For example, from now on, “prior approval from the BCRA will not be required for the payment of interest on commercial debts for the import of goods and services with related counterparties abroad, provided that the interest becomes due on or after July 5, 2024.”
This means a significant simplification of the process, which will allow companies to make their payments more quickly and efficiently. The text also announced that the BCRA will soon send financial institutions updated sheets of the rules for “Exterior and changes” that incorporate these new modifications.
Dollar: conditions of the standard
It also adds on the payment of interest without prior consent in other cases such as for the payment of interest on commercial debts not included in point 1 above and interest on financial debts, when the creditor is a counterparty related to the debtor, provided that the following conditions are met:
- Payment is carried out simultaneously with the liquidation for an amount not less than the amount of interestthrough which the exchange market is accessed:
- New financial debts with foreign countries with an average life of no less than 2 (two) years and that contemplate at least 1 (one) year of grace for the payment of capital, in both cases counted from the date on which access to the market is established.
- New contributions from direct investment by non-residents.
New financial debts with foreign countries and new contributions of foreign direct investment that are used within the framework of this point: “May be entered and settled by the debtor of the debt with foreign countries whose interests are cancelled or by another “resident company related to the debtor and its economic group”.
It also specifies that “they cannot be computed for the purposes of other mechanisms considered in the exchange regulations.”
Finally, he stressed that the changes introduced by the BCRA are aimed at facilitating companies’ access to the foreign exchange market to make payments abroad. This should help improve the flow of trade and investment between Argentina and the rest of the world.
Source: Ambito
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