Argentine Foreign Exchange Regulations
On April 30, 2025, the Central Bank of the Argentine Republic (the “Central Bank”) issued Communications “A” 8233 and “A” 8234, through which this regulatory authority established the issuance of BOPREAL Series 4, also allowing subscription in relation to certain debts with related counterparties.
The main aspects of these Communications are described below:
- What are the objectives of Communications “A” 8233 and “A” 8234?
The Central Bank may offer a new series of BOPREAL (identified as Series 4) to the market. Additionally, subscription is allowed for debtors of past due capital and interest services with related counterparties that are subject to prior approval from the Central Bank.
2. What debts are eligible to subscribe to BOPREAL Series 4?
It applies to five types of debt:
i. Imports of goods with customs entry registration up to 12/12/23.
ii. Services from non-residents provided or accrued up to 12/12/23.
iii. Profits and dividends of non-resident shareholders pending payment or already received in the country.
iv. Interest on debts for imports of goods and services with related counterparties.
v. Capital and interest on foreign financial debt with related counterparties.
3. Which subscribers are eligible to subscribe to BOPREAL Series 4?
Legal entities that register the aforementioned debts. In the case of payments for profits and dividends, subscribers can be resident legal entities, as well as non-resident persons, in the latter case, for profits and dividends collected since 09/01/19.
4. Are there maximum subscription amounts?
Yes, as detailed below:
| Type of Debt | Maximum Amount to Subscribe |
|---|---|
| Imports of goods: | Up to the amount of outstanding debt with customs registration until 12/12/2023. |
| Services to non-residents: | Up to the amount of outstanding debt for services provided or accrued until 12/12/2023. |
| Profits/dividends: | • Residents: up to the ARS equivalent amount of pending profits.• Non-residents: up to the amount received since 09/01/2019, adjusted by CPI. |
| Commercial interest with related parties: | Up to the amount corresponding to interest due until 07/04/2024. |
| Financial debt with related parties: | • Interest: up to the amount of interest due until 12/31/2024.• Capital: up to the amount of due capital. |
5. What are the main requirements to verify?
Requirements vary according to the type of debt that causes the subscription of BOPREAL Series 4. The following common requirements must be met:
i. The debt must be declared in the latest “Survey of External Assets and Liabilities” (if applicable).
ii. Fulfill complementary requirements related to:
a. Restrictions on liquid external assets.
b. Limitations on securities operations (blue-chip swap, Dollar MEP, CEDEARs, etc.).
c. Exclusion of Clients in the Argentine Tax Authority (ARCA) database for false invoices/documents.
d. Verification of Tax IDs without operational inconsistencies.
6. What restrictions apply after subscribing to BOPREAL Series 4?
The subscriber will not be able to use the foreign exchange market to cancel the debt subject to the BOPREAL subscription, except if the payment is made with funds from capital/interest collections of the BOPREAL, deposited in a local account through exchange or arbitrage.
7. What happens if the client fails to meet the requirements?
The subscription could be rejected by the Central Bank or the client could be disqualified from accessing the foreign exchange market for related operations.
8. What are the main terms of BOPREAL Series 4?
The main terms and conditions are described below:
| Subscribers: | See question 3. |
| Maximum period: | Until October 31, 2028. |
| Subscription currency: | ARS at the exchange rate of Communication “A” 3500 on the business day prior to the bidding date. |
| Payment currency: | USD at amortization, with early redemption option in favor of holders. The cancellation of said option exercise can only be in ARS dollar linked. |
| Form of subscription and payment of services: | Debit or credit, as applicable, from the financial entity’s account at the Central Bank. |
| Interests: | Interest will accrue on the basis of a 360-day year consisting of 12 months of 30 days each, at a maximum annual rate of 3% to be defined in the auction announcement, which may be payable quarterly or semi-annually in USD. |
| Amortization: | In USD, with the possibility of full maturity at expiration or with partial amortization scheme (to be defined). |
| Redemption option in favor of the investors: | Early redemption alternative in favor of holders may be considered. In that case, the bidding of the notes will include redemption rights on said instruments in the terms and proportions defined by the Central Bank, which can only be exercised at nominal value payable in ARS at the exchange rate of Communication “A” 3500. To enable the redemption options in favor of the investor, a strip of said proportions of the total nominal is provided one month before each option exercise date. These strips will pay USD at maturity or can be executed against ARS dollar linked to the Central Bank on the established date of the redemption option. |
| Bidding Process: | Single or multiple price. |
| Settlement and registration agent: | CRyL. |
| Secondary market: | The auction announcement will define whether these instruments will be traded or not in the BYMA/A3 Markets venues, and “euroclearable” markets. |
Marcelo Villegas | Socio
T: +54 (11) 4872 1600 – mvillegas@nyc.com.ar
Eduardo Romero | Of Counsel
T: +54 (11) 4872 1600 – eromero@nyc.com.ar
Emiliano Silva | Socio
T: +54 (11) 4872 1600 – esilva@nyc.com.ar
This publication is prepared to inform our clients. It is not intended to be exhaustive and should not be considered as legal advice due to the general nature of its content.