Amendment to Communication A 1397 on Foreign Exchange Operations and Transfers of Funds with Abroad

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION "A" 1399 17/04/89

TO FINANCIAL INSTITUTIONS AUTHORIZED TO OPERATE IN FOREIGN EXCHANGE AND FOREIGN EXCHANGE BROKERS:

Ref.: Circular FOREIGN EXCHANGE OPERATIONS AND TRANSFERS OF FUNDS WITH ABROAD - CAMEX 1 - 196. ACTIVE OPERATIONS OPRAC - 1 - 226. COLLECTIONS AND PAYMENTS ABROAD COPEX - 1 - 158. EXTERNAL OPERATIONS OF THE PUBLIC SECTOR SEPEX - 1 - 25

We address you and through you all interested parties to inform you that this Bank has resolved the following:

I. SCOPE OF THE PROVISIONS:

To amend point 2., section II "Other Provisions", of Communication "A" 1397 of 13.4.89, which shall be worded as follows:

" 2. Foreign currency from exports of merchandise whose shipping permits have been registered with the National Administration of Customs up to 14.4.89, and from exports of products covered by Law 21.453, whose sales were declared to the National Grain Board up to the same date, must be sold to this Bank at the exchange rate that will be announced daily through the Exchange Operators Department, in the usual manner.

The requirement to sell to this Bank the foreign currency from exports shall be considered fulfilled when the same is applied to the cancellation of loans in foreign currency to finance exports (point 1.5. of Circular COPEX - 1, Communication "A" 12 and complementary) that had entered up to 13.4.89 through the former Official Market and the Free Exchange Market. To access said treatment, at least 50% of the proceeds from exports must be allocated to cancel loans entered through the former Official Exchange Market. The balance until completing the export income may be applied to cancel loans in foreign currency to finance exports negotiated in the Free Exchange Market.

In the event that a portion of the export income is not applied to the cancellation of loans under the conditions indicated above, it must be sold to this Bank under the terms of the first paragraph.

Foreign currency from exports of merchandise not registered with the National Administration of Customs, nor declared to the National Grain Board as of 14.4.89, that pay the duty established by Article 1 of Decree No. 519/89 of the National Executive Power, and that have loans in foreign currency to finance exports (point 1.5. of Circular COPEX - 1, Communication "A" 12 and complementary) entered up to 13.4.89 through the former Official Exchange Market and the Free Exchange Market, may be allocated to the cancellation of that financing under the same conditions as indicated in the second paragraph, and shall have the following exchange treatment: The foreign currency from the export must be sold to this Bank at the buyer's exchange rate of the Free Exchange Market of the Bank of the Argentine Nation at the close of operations of the previous business day, and may be repurchased at the exchange rate of Communication "A" 1397 set for the previous business day."

II. OTHER PROVISIONS

1. Prefinancing operations for Promoted Exports (Point 2.1. of Circular OPRAC - 1 Communication "A" 1205 and complementary).

a. Prefinancing operations for promoted exports granted up to 13.4.89 inclusive shall be canceled at the exchange rate of Communication "A" 1397 that this Bank will announce daily through the Exchange Operators Department.

b. With respect to the operations referred to in point 1. above, which had begun execution with the disbursement of funds of the first stages, new agreements, if any, and their cancellations shall be made according to the treatment provided in the previous point.

c. The provisions of points a. and b. above apply to operations in force under the regime of Communications "A" 598 and "A" 886 of 28.2.85 and 13.4.86, respectively.

d. New operations shall be agreed and canceled at the exchange rate of Communication "A" 1397 that this Bank will announce daily through the Exchange Operators Department.

2. Financing operations for Promoted Exports (point 2.3. of Circular OPRAC-1, Communication "A" 1205 and complementary and credit lines (formula 2417).

a. Operations presented for discount at this Bank, whose shipping permit is dated prior to this Communication, shall be settled at the exchange rate of Communication "A" 1397 that this Bank will announce daily through the Exchange Operators Department, with the following exceptions:

    1. Operations that include a copy of the deposit slip certified by the intervening entity for the payment of the duty established by Article 1 of Decree No. 519/89.

    2. Export income covered by point 2., section I, second paragraph of Communication "A" 1397 of 13.4.89, as amended by this Communication.

The operations indicated in points 1. and 2. above shall be settled at the buyer's exchange rate of the Free Exchange Market of the Bank of the Argentine Nation on the business day prior to the exchange closing of the operation.

B.C.R.A. COMMUNICATION "A" 1399 17/04/89

b. In the case of operations covered by point 2., section I, fourth paragraph of Communication "A" 1397 of 13.4.89, as amended by this Communication, the following procedure shall be followed: the discount operation of export bills shall be settled at the buyer's exchange rate of the Free Exchange Market of the Bank of the Argentine Nation at the close of operations of the previous business day, and exporters may acquire the corresponding foreign currency at this Bank at the exchange rate of Communication "A" 1397 set for the same date.

c. New transactions that certify having paid the duty under Article 1 of Decree No. 519/89 shall be settled at the buyer's exchange rate of the Free Exchange Market of the Banco de la Nación Argentina on the business day prior to the exchange closing date of the transaction.

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Abelardo J. Tejada
Manager of
Foreign Trade

Julio A. Piekarz
Deputy General Manager