Circular CAMEX 1-584: Single and Free Foreign Exchange Market

"2007 - Year of Road Safety"
CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION "A" 4684 29/06/2007
TO FINANCIAL ENTITIES,
TO EXCHANGE HOUSES, AGENCIES AND OFFICES:
Ref.: Circular
CAMEX 1 - 584
Single and Free Foreign Exchange Market.

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We address you to inform you that it has been decided, with effect from 02.07.07 inclusive, to replace the text of Communication "A" 4672 with the following:

"1. Additionally incorporate to the requirements established in point 1 of Communication "A" 4443 of 22.11.05, which must be met by borrowing operations to be entered into the local foreign exchange market as customer advances and export pre-financing, the following:

e. The exporter shall not register pending debts for advances and pre-financing that were in effect on 08.09.05 and that are settled with goods whose shipping term is less than 365 days according to what is established in point 2. of Communication "A" 4443 and complementary ones, for which the shipment of the goods whose collections will be destined to the cancellation of said operations has not occurred by the date of entry of the new operation. The financial entities responsible for monitoring the owed advances and pre-financing will issue certificates of compliance with the requirement established in the present considering the requirements established in Communication "A" 4443, for the purposes of enabling the entry of new operations for the mentioned concepts.

f. What is established in the preceding point e. will not be applicable when the pending debt in effect on 8.09.05 concerns:

i. Financing granted by International Organizations, their linked agencies, Official Export Credit Agencies, and foreign banks, granted firmly for a term or average life of no less than 3 years, which operationally meet the requirements established in point 6. of Communication "A" 4443, modified by Communication "A" 4493.

ii. Financing that had met, by the date of disbursement of the funds, the conditions established for the acceptance of the cancellation of debt services with export collections for project financing that increase the company's export capacity or in infrastructure works that enable greater exports of goods, established in paragraphs a, b and c of point 1. of Communication "A" 4420, and to the extent that the borrowing is cancelled no later than the due dates provided in the contracts that were in effect on 8.9.2005.

In these cases, the entity responsible for monitoring the pre-financing in question will be responsible for carrying out the verifications provided for in point 1.d. of Communication "A" 4420, request from the exporter the professional opinions deemed necessary to ensure that the project qualifies under the terms of the mentioned conditions, and inform by note to the Sub-Department of Foreign Exchange Regulations of the framework and pending due dates as of the date of the present of the operation.

g. In the case of export pre-financing operations, whether granted by:

i) banking entities of the country or abroad, ii) financial entities whose activities are under the specific regulatory orbit of the banking supervision body of the country of residence of the entity granting the financing, iii) official export credit agencies, iv) international organizations or their linked agencies, v) other funds from abroad when: a) they are constituted entirely with resources from pension and retirement funds, and/or b) they have, on the date of granting the pre-financing directly or through controlled funds, in effect credit lines with international organizations or their linked agencies destined to finance foreign trade operations.

2. The financial entities responsible for monitoring advances and pre-financing of exports under the terms established in Communication "A" 4443, must prior to removing said borrowings from the tracking system of Communication "A" 3609 and complementary ones, have the documentation that supports their cancellation or the change of condition of the loan."

We salute you very attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Jorge L. Rodríguez Raúl O. Planes
Principal Manager of
Foreign and Exchange
General Sub-manager of Operations