Circular CAMEX 1-1027: Foreign Exchange and Changes. Adjustments.

"AÑO DE LA DEFENSA DE LA VIDA, LA LIBERTAD Y LA PROPIEDAD" "AÑO DE LA DEFENSA DE LA VIDA, LA LIBERTAD Y LA PROPIEDAD"

COMMUNICATION "A" 8112 03/10/2024
TO FINANCIAL ENTITIES,
TO EXCHANGE OPERATORS:
Ref.: Circular
CAMEX 1-1027:
Foreign Exchange and Changes. Adjustments.
___________________________________________________________________________ We address you to inform you that this Institution adopted the following resolution:

1. Establish that clients who access the foreign exchange market to pre-cancel debts within the framework of what is provided in points 3.5.3.1. and 3.6.4.4. of the consolidated text on Foreign Exchange and Changes in the context of a refinancing, repurchase and/or early redemption of existing debt operation from the settlement of funds deposited from abroad by the issuance of new debt titles that contemplate a minimum of 1 (one) year of grace for the payment of capital and that imply a minimum extension of 2 (two) years with respect to the average life of the remaining capital of the pre-cancelled debt, may also access to:

1.1. pay the equivalent of up to 5% (five percent) of the amount of the capital of the repurchased or redeemed debt as a repurchase premium, early redemption or similar, provided that the settlement of funds deposited from abroad by the issuance of new debt titles exceeds the amount of pre-cancelled capital, by at least an amount equivalent to the amount of the premium paid;

1.2. pay the interest accrued on the repurchased and/or redeemed debt up to the closing date of the repurchase and/or redemption operation, without the need for a settlement of funds for the equivalent amount; or

1.3. pay on the closing date of the repurchase and/or redemption operation, without the need for a settlement of funds for the equivalent amount, the issuance expenses or other services provided by non-residents derived from the issuance of the new debt titles issued and/or the repurchase and/or redemption operation.

2. Establish that the requirement of deposit and settlement provided for in point 3.5.1. of the consolidated text on Foreign Exchange and Changes will be considered fulfilled for the portion of the new debt titles that are delivered by a resident to their creditors as a participation premium, repurchase, early redemption or similar in the framework of an exchange, repurchase and/or early redemption operation of outstanding debt titles, provided that:

2.1. the nominal value of the new titles delivered, as a participation premium, repurchase or early redemption or similar, does not exceed the equivalent of 5% (five percent) of the capital value of the debt effectively exchanged or repurchased; and

2.2. the new debt titles contemplate a minimum of 1 (one) year of grace for the payment of capital and imply a minimum extension of 2 (two) years with respect to the average life of the remaining capital of the exchanged or repurchased debt.

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3. Establish that within the framework of what is provided by point 3.16.2. of the consolidated text on Foreign Exchange and Changes, entities may also accept a sworn declaration from the client in which they state that their holdings in excess of the contemplated amount correspond to funds deposited in bank accounts abroad originating from what was obtained by the subscription abroad of a new debt title in the last 60 (sixty) calendar days and that will be destined to carry out a refinancing, repurchase and/or early redemption operation of debt titles or financial debts with the abroad, contemplated in point 3.5. of the consolidated text on Foreign Exchange and Changes.

Likewise, we inform you that we will subsequently send you the sheets that, in replacement of those previously provided, will be incorporated into the reference regulations.

We salute you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC
Eva E. Cattaneo Tibis Marina Ongaro
Manager of Standards of Foreign Exchange and Changes General Manager of Financial Regulation