Covid-19: Latin America Overview | Banking and Finance

In accordance with the Health Emergency framework, on May 28, 2020, the Argentine Central Bank (BCRA, for its acronym in Spanish) issued Communication “A” 7030, through which it set out a series of new foreign exchange controls for legal entities to access to the Argentine exchange market (MULC, for its acronym in Spanish) for the constitution of foreign assets.

Accordingly, this communication establishes that for the purpose of accessing to the MULC to carry certain operations forward such as (i) payment of imports and other purchase of goods abroad, (ii) currency purchase from residents with specific application, (iii) payment of dividends and debt services, and (iv) payment of capital and interests of foreign financial indebtedness, among other things, the financial institution involved shall obtain the BCRA’s prior approval unless that the client provide a sworn statement to register that at the moment of the access to the MULC:

  1. All holdings in foreign currency in Argentina are deposited in accounts with financial institutions and there are no liquid external assets available.
  2. A commitment is given to settle through the MULC, within five business days of their availability, any funds received abroad in the collection of loans granted to third parties, collections of term deposits or the sale of any kind of asset.

 

On the other hand, the Argentine Securities and Exchange Commission (CNV, for its acronym in Spanish) issued Resolution Nº 832/2020 through which extended the period to file annual financial statements to listed companies, closed mutual funds and financial trusts under the public offer regime. According to this resolution:

  1. Listed companies, closed mutual funds and financial trusts under the CNV regime shall have the possibility to file their annual financial statements (i) for the intermediate periods ended on February 29,2020 and March 31, 2020 within 70 calendar days after the end of the intermediate fiscal period, (ii) for the annual financial statements ended on January 31, 2020, February 29, 2020 and March 31, 2020, within 90 calendar days after the end of the annual fiscal year.
  2. Listed companies that exclusively issue short-term debt securities, for the intermediate periods ended on February 29, 2020 and March 31, 2020, shall file their quarterly accounting information within 78 calendar days after the end of the quarter.
  3. Listed companies under the CNV regime of small and medium-size enterprises (SMEs) shall file their financial statements, for the intermediate periods ended on February 29, 2020 and March 31, 2020 within 70 calendar days after the end on the quarter, and for the annual financial statements ended on January 31, 2020, February 29, 2020 and March 31, 2020 within 90 calendar days after the end of the annual fiscal year.
  4. Listed companies under CNV SMEs guaranteed notes, shall file their annual financial statements ended on January 31, 2020, February 29, 2020 and March 31, 2020 within 140 calendar days after the end of the annual fiscal year.
  5. Financial entities authorized to function under Law No. 21.526 and listed before the CNV for their activities related to the capital market shall file their financial statements for the intermediate periods ended on March 31,2020 within 60 calendar days after the end of the intermediate fiscal period.

In addition to the above, through the General Resolution Nº 841/2020, the CNV sets out that, in order to proceed with operations of sale of securities in foreign currency, or cross-border transfers, the securities shall be maintained in the local portfolio during five working days. The limitation to sell securities in foreign currency is applicable to natural persons and legal entities, without minimum amount and without distinction of any kind.