New Central Bank Regulation
The Central Bank (BCRA) has adopted a more liberal approach to the process regulating foreign exchange to allow exporters to deposit part of the proceeds from their sales abroad, and therefore improve their credit standing in dollars. The Government has also included in this facility, those companies that are participating in import substitution programs.
Companies may now enter into export trade finance transactions or obtain better terms of financing as funds could be assigned in escrow guarantees abroad for the repayment of the loan and eventually attached and collected in case of default. They can be used to pay the installments in case of restrictions to foreign exchange transfers, as it has been happening recently in Argentina. It may also facilitate the placement of bonds in the international market by local companies.
The funds deposited in these accounts abroad may not exceed certain amount in relation to the obligations assumed, for example, 100% of the amount owed for services and capital to cancel in the existing month and six months thereafter.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
