Circular CAMEX 1-717: Single and Free Exchange Market

2013 - YEAR OF THE BICENTENNIAL OF THE GENERAL CONSTITUENT ASSEMBLY OF 1813

COMMUNICATION “A” 5487
17/10/2013

TO THE FINANCIAL INSTITUTIONS,
TO THE EXCHANGE HOUSES: AGENCIES: OFFICES AND EXCHANGE BROKERS:

Ref.: Circular
CAMEX 1 - 717

Single and Free Exchange Market.

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We address you in order to inform you that the following has been provided with effect from 18.10.2013 inclusive:

1. Establish the application of the regulations in force for the operations included in point 4.2. of Communication “A” 5236, to the operations included in point 2.1. of Communication “A” 5236 and in subparagraphs b. and c. of point 2. of Communication “A” 4308 of 4.03.2005 which was replaced by Communication “A” 5314 of 14.06.2012.

2. Residents of the country from the non-financial private sector who bring in new financial indebtedness from abroad shall have access to the local exchange market for the acquisition of foreign currency for the subscription of the registrable Argentine Savings Bond for Development (BAADE), provided that the following conditions are met:

a) The financings brought in from abroad must be for terms of average life considering principal and interest, of no less than three years.

b) Access for the acquisition of foreign currency to apply to the integration of the subscription of registrable BAADE shall be through the simultaneous application of the funds resulting from the entry through the local exchange market of the funds of the external financing.

c) The debtor must undertake to keep the BAADE acquired in its portfolio throughout the entire life of the security. The bonds may only be disposed of before maturity to the extent that it is with settlement in foreign currency.

d) The debtor must undertake to settle in the local exchange market the principal and interest services collected in foreign currency, or where applicable, the collections in foreign currency for the disposal of the bonds before maturity, within 10 business days following the date of their receipt.

3. The principal and interest services of the external financings brought in under this operation may be attended by Argentine exporters of goods, in a manner identi-

cal to that applicable in the exchange regulations to export prefinancings, with the following additional requirements being applicable in this case:

a) That the entry of the financing through the local exchange market be registered under the concept that will be specifically used for the entry of these operations.

b) Only foreign currency from collections of shipments with an officialization date not earlier than 17.04.2016 may be applied to the cancellations of these financings. Likewise, it shall be admitted that the financings affected by this operation and to be cancelled directly abroad with the application of Argentine exports of goods, may be for terms shorter than those provided in point 2.a., to the extent that they are renewed for successive periods complying jointly with the minimum required average life term. In these cases, the exporter must undertake that if for any circumstance it fails to renew the lines affected by this operation, it shall proceed previously to their cancellation, to the entry through the local exchange market of the settlement in foreign currency of the bonds affected by the non-maintenance of the additional external indebtedness contemplated in the operation.

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Jorge L. Rodríguez
Principal Manager of
Foreign and Exchange
Juan I. Basco
General Deputy Manager of Operations