Relevant News

• Exchange and purchase control of foreign currency
• Health Emergency (COVI-19). Deferral and exceptions
• Prohibitions for dismissals and labor suspensions
• Freezing of leasings and mortgages
• Suspension of administrative business days
• Values for hydrocarbon exploration and exploitation canon

LEGISLATION

Communication A 7106/20 – Acquisition of Foreign Currency and Securities Trading

By means of Communication “A” 7106/2020 the Central Bank of the Argentine Republic (“BCRA”) set forth new restrictions for the acquisition of foreign currency and provides certain regulations regarding securities trading (“contado con liqui”). Among others, Communication provides the following: (i) consumptions in foreign currency by individuals by the use of debit and credit cards shall be deducted from the maximum monthly purchase limit of foreign currency (USD 200) corresponding to current and following months; (ii) five days “parking” is eliminated from acquisition operations of securities settled in foreign currency by individuals; (iii) non-residents shall not be allowed to arrange sales of securities settled in foreign currency in Argentina unless such securities were acquired as of September 16, 2020 and remained in their portfolio for at least one year; (iv) securities transactions arranged abroad and securities acquired abroad shall not be settled in pesos in Argentina (“contado con liquid inverso”); (v) extends to 90 days the prohibition of foreign currency buyers set forth in Section 3.8 of the “Exterior and Change Regulations” to operate with securities settled in foreign currency. The Communication also set forth certain restrictions for the acquisition of foreign currency within the MULC regarding repayment of capital of financial debts abroad expiring between October 15, 2020 and March 31, 2021. In said regard (and among others), repayment of capital exceeding the amount of One Million Dollars per calendar month, shall be subject to the submission with BCRA of a “Refinancing Plan” of the debt agreed with creditor in order to be allowed to access MULC for a maximum amount of 40% of the debt on its original terms.

General Resolution Nº 4815/20 – New Tax on the Acquisition of Foreign Currency

By means of General Resolution Nº 4815/2020, Tax Enforcement Authority (“AFIP”) set forth that operations taxed with “Impuesto PAIS” (such as acquisition of foreign currency for saving purposes, expenses in foreign currency abroad by the use of credit/debit card, etc), shall also be charged with a 35% additional tax on account of Income Tax and/or Personal Assets Tax.

Communication A 7104/20 – Restrictions to Foreign Currency Funding

By means of Communication “A” 7094/2020 the Central Bank of the Argentine Republic (“BCRA”) set forth that the granting of funding in foreign currency to Big Exporting Companies, as defined therein, shall require prior authorization of the BCRA, and not exceed the limits provided in Section 7.1 of the “Credit Policies”.

Communication A 7094/20 – Access to MULC

By means of Communication “A” 7094/2020 the Central Bank of the Argentine Republic (“BCRA”), among others, defers until October 31, 2020 the validity of the requirements and restrictions for access to MULC provided in Sections 2 and 3 of Communication BCRA 7030/2020.

General Resolution Nº 856/20 – Parking period for Securities Trading

By mean of General Resolution Nº 856/2020, among others, the National Securities Commission (“CNV”) raises to 15 working days the minimum term during which a buyer of securities in Argentine Pesos shall hold to same before transferring abroad (“parking”).

Decree Nº 754/20 - Social, Preventive and Mandatory Isolation

By means of Decree N°754/2020, the Executive Branch provided the deferral until October 11, 2020 of both the obligatory “Social, Preventive and Mandatory Distance” (the “DSPO”) and “Social, Preventive and Mandatory Isolation” (the “ASPO”), as set forth in said Decree, closure of national borders and the prohibition of suspending phone and internet services in case of lack of payment. Public transportation shall continue to be limited for essential workers.

Decree Nº 767/20 - Freezing of Mortgages Installments

By means of Decree Nº767/2020, the Executive Branch defers until January 31, 2021 the freezing of the value of the installments of mortgages and pledge loans, and the suspension of foreclosures proceedings.

Decree Nº 766/20 - Freezing of Real Estate Lease Canon

By means of Decree Nº766/2020, the Executive Branch defers until January 31, 2021 the suspension of eviction proceedings. The Decree also defers until same date the validity term of certain real estate lease agreements set forth therein and the freezing of the value of lease canon, providing the mechanism and due dates for payment of the resulting difference.

Decree N° 761/20 – Deferral of Dismissals and Suspensions

By means of Decree N°761/2020, the Executive Branch defers for a 60-days period the following: (i) dismissals without cause and dismissals due to reasons of lack or diminution of work or force majeure events; and (ii) suspensions of workers due to reasons of lack or diminution of work or force majeure events, except for suspensions decided in accordance with Section 223 bis of Labor Contract Law. The Decree also sets forth that dismissals and suspensions decided contravening Decree’s dispositions shall have no effects. The provisions of the Decree shall not apply for labor contracts starting after the effective date of the Decree.

Resolution N° 4819/20 – Reference Values Applicable to Exportations

By means of Resolution N°4819/2020, the General Direction of Customs set forth new values of reference for the exportation of certain food products provided therein.

Decree N° 756/20 – Deferral of Prohibition to Interrupt Public Services

By means of Decree N°756/2020 the Executive Branch defers the prohibition to suspend the provision of public services (such as electric energy, gas, water, phone, internet and cable) to certain consumers in case of lack of payment of up to seven invoices expiring as of March 1st 2020.

Decree N° 755/20 – Suspension of Deadlines within Administrative Proceedings

By means of Decree N°755/2020, the Executive Branch suspends, from September 21, 2020 to October 11, 2020, the course of administrative deadlines within administrative proceedings.

Administrative Decision 1760/20 - Emergency Assistance Program to Work and Production

By means of Administrative Decision N°1760/2020, Chief of Staff incorporated the recommendations issued by the Evaluation Committee of the Program to Work and Production which include, among others, the extension of the ATP Program regarding complementary salary, and deferral and reduction of payments of contributions to social security system and subsidized rate credits regarding September 2020 salaries.

General Resolution N° 4828/20 – Precautionary Measures and Tax Enforcement Proceedings

By means of General Resolution N°4828/2020, Tax Enforcement Authority (“AFIP”) defers until October 31, 2020 the suspension of (i) application of precautionary measures against small and medium companies (“PyMES”) and (ii) initiation of tax enforcement proceedings.

LATEST NEWS IN THE HYDROCARBON SECTOR

Decree N° 771/20 – Values for Hydrocarbon Exploration and Exploitation Canon

By means of Decree Nº771/2020, the Executive Branch set forth the maximum value to be annually paid as of 2021 by holders of hydrocarbons exploration permits and/or exploitation concessions per square kilometer, to be calculated according to the value of oil barrel.

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