Circular Collections and External Payments COPEX 1-153

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION "A" 1345
21/02/89

TO THE FINANCIAL INSTITUTIONS AUTHORIZED TO OPERATE IN FOREIGN EXCHANGE AND EXCHANGE BROKERS:
RES DE CAMBIO:

Ref. : Circular COLLECTIONS AND EXTERNAL PAYMENTS CO- PEX - 1 - 153

We address you and through you the interested parties, with reference to the provisions made known by Communication "A" 1340 of 20.2.89, to inform you that, effective as of the 22nd of this month, this Bank has resolved the following:

1. Scope of the provisions

Loans in foreign currency to finance exports (point 1.5. of Circular CO-PEX - 1), may be negotiated through the Free Exchange Market, for up to 50% of the FOB value of the product originating the financing, provided that an equal amount is brought in through the Official Exchange Market.

Loans brought in under these conditions must be canceled with the proceeds of the exports before 540 days from the date of this Communication, and their cancellation shall be made in accordance with the general regime in force at that time for the negotiation of foreign currency from sales abroad.

In case of non-compliance, the amount brought in through the Free Exchange Market shall pay the charge provided in Communication "A" 932 of 14.10.86, and the portion brought in through the Official Exchange Market shall be subject to the general provisions in force in the matter.

2. Other provisions

2.1. Loans in foreign currency to finance exports that are brought in through the Official and Free Exchange Markets in accordance with the provisions of point 1. above, must make the pertinent declaration, in form No. 5005 in the usual manner, in accordance with the provisions made known by Communication "A" 433 of 12.1.84 and complementary provisions.

2.2. Obligations for imports of merchandise, whose due dates occurred between the 4th and the 20th of this month, which remain unpaid, shall have 5 business days, from the date of this Communication, for their cancellation through the Official Exchange Market at the Special Exchange rate, provided that they comply with the provisions of point 2.8.2. of Communication "A" 1340 of 20.2.89.

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Abelardo J. Tejada
Manager of
Foreign Trade
Elías Salama
General Manager