The Argentine Central Bank (BCRA) issued Communication "A" 6869, dated January 16, 2020, which amends the regime applicable to the payment of dividends abroad to non-residents. The prior regime required the BCRA's authorization to access the foreign exchange market for the purchase of foreign currency in order to transfer abroad profits and dividends.

The Argentine Central Bank (BCRA) issued Communication "A" 6869, dated January 16, 2020, which amends the regime applicable to the payment of dividends abroad to non-residents. The prior regime required the BCRA's authorization to access the foreign exchange market for the purchase of foreign currency in order to transfer abroad profits and dividends. The new regime allows financial entities to grant resident entities access to the foreign exchange market for the purchase of foreign currency to transfer profits and dividends abroad, without the prior authorization of the BCRA, provided the following conditions are met:

a) Profits and dividends shall be declared in closed and audited financial statements.

b) The dividends in foreign currency shall not exceed the amount of dividends determined by the shareholders' meeting in local currency.

c) The total amount of dividends to be transferred cannot exceed 30% of the amount of new capital contributions made by such non-resident into local companies which were settled (i.e., converted into pesos) in the foreign exchange market as of January 17, 2020.

d) Access to the foreign exchange market must occur at least after 30 calendar days counted as from the settlement of the last capital contribution mentioned in (c) above. The contribution must be capitalized, without prejudice to the time required for its registration with the Public Registry.

e) The resident entity must be in compliance with the last due filing of the Survey of External Assets and Liabilities.

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