BCRA News, UIA Management

Dear Partners,

We are contacting you to convey some news regarding:

1. BCRA News, UIA Management: Advance payment for machinery is partially made more flexible (Communication A 7030 and amendments)

1. BCRA news, UIA procedures: The advance payment of supplies and machinery is partially made more flexible (Communication A 7408)

Based on the efforts made by UIA and the information provided to the authorities on the existing problems, yesterday the Central Bank of the Argentine Republic (BCRA) published the Communication “A” 7408 que relaxes the conditions for making advance payments for the importation of capital goods.

Starting December 1, companies will be able to make advance payments, demand payments or cancel commercial debts for capital goods that have not been nationalizeda through the exchange market, without requiring the approval of the BCRA, up to a limit of US$ 1 million. 

If the amounts to be paid for these concepts exceed US$ 1 million, payments for machinery may be made -without the authorization of the BCRA- through the following scheme: advances for 30% of the values ​​to be imported; The sum of advance payments, cancellation of commercial debt and demand payments cannot exceed 80%; the remaining 20% ​​is “released” tofrom the nationalization of capital goods.

Themeasure unlocks the situation of a group of industries, taking into consideration the efforts that the UIA has been carrying out to regularize payments that allow access to capital to reactivate industrial production.