The Argentine Central Bank established new requirements applicable to loans with foreign currency disbursements and to payments of loans with foreign currency, when such transactions are granted by local financial entities.
Through Communication "A" 5362, effective as of October 18, 2012, the Argentine Central Bank stated that foreign currency loan disbursements granted by local financial institutions are subject to the commitment of the customer to transfer the proceeds into the local foreign exchange market (the "FX Market"). Such transfer shall be made through the intervening financial institution granting the loan and on the disbursement date.
The commitment to transfer the proceeds into the FX Market is not applicable when the financing is granted through the subscription of a bond, as long as such proceeds of such bond are subject to the obligation to be transferred through the FX market.
In addition, Communication "A" 5362 provides that the collection of credits granted to Argentine residents in foreign...