Privatizations: the CNV facilitates the entry of state companies into the capital market

The National Securities Commission (CNV) established a special regime for companies subject to privatization. According to the agency, the measure seeks to facilitate the entry of these entities into the public offering regime, in accordance with the principles of transparency.

For this reason, the creation of a special and transitional two-year accounting regime was made official, in which entities must present their financial statements under the International Financial Reporting Standards (IFRS) and comply with simplified intermediate information requirements.

The official statement maintains that this flexibility aims to support the privatization process, facilitating compliance with financial requirements, especially for state entities that face difficulties in presenting balance sheets.

What are the key points of this resolution?

• Transitional accounting regime: A period of two years is established during which companies in the process of privatization They can present financial statements under a simplified accounting regime, which allows them to gradually adapt to International Financial Reporting Standards (IFRS).
• Flexibility in the presentation of information: During the transition period, companies will only have to submit a simple and synthetic information summary for the intermediate periods, which reduces the administrative burden.

As mentioned in the official text, the main objective of the rule is to facilitate the entry of state companies into the capital market, promoting transparency and good corporate governance.

The scope is expected to be broad, since the resolution applies to various state companies and companies, both those already included in privatization programs and those that may be included in the future. The president of the CNV, Roberto E. Silva, emphasizes that the regulations are designed to accompany the government’s measures and facilitate the integration of public companies into the capital market.

Which companies can be privatized, after the approval of the Bases law

The companies that are in a position to be privatized, after the approval of the Base Law, are eight. It is about AYSA, Energía Argentina, Intercargo, Belgrano Cargas, Sociedad Operadora Ferroviaria SE, Corredores Viales, Nucleoeléctrica Argentina Sociedad Anónima (NASA) and Yacimientos Carboniferos Río Turbio (YCRT). Although the Government also wanted to include Aerolíneas Argentinas, Radio y Televisión Argentina and Correo Argentino on the list, they agreed with the legislators to leave those companies out of the debate.

However, the Government moved forward with the declaration of Aerolíneas Argentinas, as a company subject to privatization, while some projects to proceed with its sale are advancing in Congress. On the other hand, the agency began the path towards the privatization of the dams of Comahue.