April 13 2006
On March 7 2006 the Argentine Central Bank issued Communication A/4507, which regulates the transfer of foreign currency to Argentina for the payment to local financial entities of financial debts and financial guarantees granted by foreign residents. The communication came into effect on March 8 2006.
It sets down the general principle that payments by foreign residents to local financial entities of financial debts and financial guarantees made through the local foreign exchange market shall be exempt from the mandatory 30% deposit set out in Section 4 of Decree 616/05 and Point 6 of Communication A/4359 only if the Central Bank grants prior authorization.
The communication provides the following exceptions to this general principle, under which prior Central Bank authorization is not required to exempt the payment from the deposit: (i) collections of financial debts incurred by the foreign resident before the date on which Decree 616/05 came into force (ie, June 10 2005); and (ii) collections of the following guarantees:
For further information on this topic please contact Gabriel G Matarasso or Diego Juan Abelleyra at Marval, O'Farrell & Mairal by telephone (+54 11 4310 0100) or by fax (+ 54 11 4310 0200) or by email (firstname.lastname@example.org or email@example.com). The Marval, O'Farrell & Mairal website can be accessed at www.marval.com.ar.
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Gabriel G Matarasso
Diego Juan Abelleyra