Relevant News

• Exchange and purchase control of foreign currency
• Securities trading
• Health Emergency (COVID-19). Deferral and exceptions
• Labor Emergency. Deferral and prohibition of dismissals and suspensions
• Emergency Assistance Program to Work and Production
• Remote corporate meetings
• Medical use for cannabis
• Natural Gas Promotion Plan (Plan Gas.Ar)
• Amendments to the limitations regarding non-authorised activity in the continental shelf applicable to the Oil Companies Registry.

LEGISLATION

Communication “A” Nº 7079/20 – Deferral of limitations for access to MULC

By means of Communication “A” 7079/2020 the Central Bank of the Argentine Republic (“BCRA”), defers until August 31, 2020 the validity of certain requirements and limitations for access to MULC provided in Sections 2 and 3 of Communication BCRA 7030/2020.

General Resolution Nº 871/20 – Parking Period for Securities Trading

By means of General Resolution Nº 871/2020, the National Securities Commission (“CNV”), among others, reduces from 3 to 2 business days the minimum term required for holding of securities (“parking period”) for certain operations (e.g.: purchase of “MEP” US Dollar) and abrogates the parking for other operations.

Decrees Nº 875/20 and Nº 956/20 – Social, Preventive and Mandatory Isolation

By means of Decrees N° 875/2020 and Nº 956/2020, the Executive Branch provided the deferral until December 20, 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. Notorious changes were adopted regarding the jurisdictions reached by either DSPO or ASPO, in relation to previous Decrees on the matter (City of Buenos Aires is now under DPSO, for example)

Decree Nº 961/20 – Deferral of Labor Emergency

By means of Decree N° 961/2020, the Executive Branch defers until January 25, 2021 the labor emergency previously declared by Decree N° 34/2019, and consequently, dismissals with no justified cause during such term, shall imply employee’s right for double compensation.

Decree Nº 891/20 – Deferral of Dismissals and Suspensions

By means of Decree N° 891/2020, 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 or to public sector.

Decree Nº 845/20 – Exception of Labor Sanctions to Employers

By means of Decree N° 845/2020, the Ministry of Labor excepts the effects and sanctions provided under Sections 13 and 14 of Labor Promotion Law N° 26.940 for employers in breach of said law, until the end of the public emergency declared by Law Nº 27.541.

General Resolution Nº 4855/20 – Procedure for the Obtainment of Tax Benefits under Law Nº 27.562

General Resolution Nº 4855/2020 issued by Tax Enforcement Authority (“AFIP”), approves the procedure to obtain the tax benefits granted under Law Nº27,562 which due to the COVID emergency situation amplified the tax extension set forth under Law 27,541 to the unpaid tax obligations due until July 2020 and set forth additional tax benefits.

Administrative Decision Nº 2086/20 – Emergency Assistance Program to Work and Production

By means of Administrative Decision N° 2086/2020, 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 November 2020 salaries

Resolution Nº 938/20 – Creation of the REPRO II Program

By means of Resolution Nº 938/2020, the Ministry of Labor creates the “REPRO II” program destined to companies which although not comprehended in the list of critical sector of the “ATP” program, do suffer a relevant contraction in their invoicing and production due to the COVID-19 pandemic. The REPRO II program’s objective is to set forth a subsidy destined to the payroll of the companies submitting to said program. The Resolution determines the characteristics of the subsidy and the procedure and parameters to access the benefit under the REPRO II program.

Decree Nº 876/20 and Resolution Nº 4856/20 – Deferral of Suspension of Deadlines within Administrative Proceedings

By means of Decree N° 876/2020, the Executive Branch suspends from November 9th, 2020 to November 29th, 2020, the course of administrative deadlines within administrative proceedings. In addition, Resolution Nº4856/2020 issued by Tax Enforcement Authority, determines a new period of tax proceedings recess until November 29th, 2020.

City of Buenos Aires’ Protocol for Corporate Meetings

On November 18th, 2020, the Government of the City of Buenos Aires approved the protocol for the prevention and handling of COVID-19 cases applicable to face-to-face corporate meetings. The Protocol brings certain general recommendations for the celebration of companies’ government, administration or audit bodies meetings held for decision making purposes within company’s installations.

General Resolution Nº 45/20 - Assumption of the Alternate Director/Manager

By means of General Resolution N° 45/2020, the Superintendence of Corporations (“IGJ” for its acronym in Spanish), sets forth that alternate directors and/or managers are entitled to automatically join the board of directors or managers’ meeting without the need of holding a prior meeting in order to enable them to do so, provided the administrative body could not achieve the necessary quorum to hold sessions.

General Resolution Nº 46/20 - Remote Corporate Meetings

By means of Resolution N°46/2020, the Superintendence of Corporations (“IGJ” for its acronym in Spanish) sets forth that the possibility of holding remote meetings by the administration and governing bodies of companies and civil associations (under Resolution IGJ 11/2020) will remain being valid while the limitations on circulation continue due to the COVID 19 pandemic.

Decree Nº 883/20 – Medical Use of Cannabis Plant

By means of Decree Nº 883/2020 (the, “Decree”), the Chief of Staff approves the regulation of Law Nº27,350 about "Medical and Scientific Research of Medical Use of the Cannabis Plant and its Derivatives". According to the Decree, the “National Program for the Study and Investigation of the Medical Use of the Cannabis Plant, its Derivatives and Non-Conventional Treatments” (the, “Program”), among other objectives, aims to implement measures for the free supply by the Government of cannabis derivatives to those patients who were indicated with their use with exclusive public coverage, or by private medical insurance companies, according to applicable law. The Decree also sets forth a specific registry for patients who carry out cannabis cultivation for medicinal, therapeutic and/or palliative purposes (“REPROCANN”) who shall obtain an authorization to such purposes. The regulation also allows the enforcement authority to execute agreements and articulate actions with academic and scientific institutions and public and private organizations which address this matter for the analysis of the products derived from the cannabis plant or experimental farming and also sets forth that said authority will, by means of the proper regulations, create the conditions which were necessary in order to guarantee the provision of necessary supplies and facilitate the medical and scientific investigation of the cannabis plant and its derivatives and the treatment under the Program. The Decree also determines that the National Government shall provide technical collaboration in order to promote public production of cannabis and its industrialization for medical use and of research in public laboratories. Finally, the Decree repeals the previous regulation of Law 27,350 (Decree Nº 738 of September 21, 2017).

LATEST NEWS IN THE HYDROCARBON SECTOR

Decree Nº 892/20 - Argentine Natural Gas Production Promotion Plan (“Plan Gas.Ar”)

By means of Decree Nº 892/2020, the Executive Branch approves the “Argentine Natural Gas Production Promotion Plan 2020-2024” (Plan Gas.Ar), providing incentives for the production of natural gas. The Plan includes a daily volume of 70.000.000 m3 for a 4 years term (or up to 8 years for offshore projects). The Plan provides the offering of preferential in firm export conditions up to a daily volume of 11.000.000 m3 during nonwinter seasons. The Decree also provides that Central Bank (“BCRA”) shall establish mechanisms to facilitate access to the free exchange market (“MULC”) for repatriation abroad of direct investments, profits and foreign financial debts related to investments within the Plan.

Resolution Nº 317/20 – Gas Supply Bidding Process (“Plan Gas.Ar”)

By means of Resolution Nº 317/2020, the Secretary of Energy calls the Gas Supply Bidding Process for the award of a quota of 70 million cubic meters of natural gas per day for 365 days of each year, and an additional volume for each of the winter periods from 2021-2024 inclusive. The date for submitting the offers under the bidding process is Wednesday December 2nd, 2020 from 10 am to 15 pm. Distributors and sub-distributors companies interested in adhering to the supply and demand scheme for the period 2020-2024 shall send an adhesion note via TAD system.

Communication “A” Nº 7168/2020 – Access to MULC Regulations for Operations Under Plan Gas. Ar

By means of Communication “A” 7168/2020, the Central Bank of the Argentine Republic (“BCRA”), sets forth new regulations applicable to operations entered into and settled as of November 16th, 2020 which were destined to the financing of projects under Plan Gas.Ar. The Communication establishes that in connection with such operations: (i) BCRA’s prior consent shall not be required for transferring abroad utilities and dividends by nonresident shareholders, provided said transfer complied with the requirements set forth under the Communication; (ii) BCRA’s prior consent shall not be required in order to pay foreign indebtedness (capital and interests) provided the loan had at least a 2-year duration and the rest of the requirements set forth under the Communication were met; (iii) BCRA’s consent shall not be necessary in order to repatriate direct investments done by non-residents up to the amount of the direct investment contribution settled in the MULC as from November 16th, 2020, provided the requirements set forth under the Communication for such purposes.

Resolution Nº 74/20 – Limitations for Registration with National Oil Companies Registry

By means of Resolution Nº 74/2020, the Secretary of Energy modifies Article 18 of Annex I of Disposition Nº 337/2019 of the Undersecretary of Hydrocarbons and Fuels, regarding the prohibitions for registration with National Oil Companies Registry related to non-authorized activity in Argentine Continental Shelf.

Resolution Nº 373/20 – Update of the Regulation About Transport and Distribution Gas Piping Installations Affecting Property

Resolution Nº 373/2020 issued by Gas Enforcement Authority (“ENARGAS”) modifies Sub-Annexes I.I.1 and I.I.3 and Annex II of Resolution ENARGAS NºI-3562/15 which set forth certain parameters which are used to calculate the canon corresponding to gas easements. The Resolution shall become effective as from November 11th, 2020

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