In brief
On 22 January 2026, the Central Bank of Argentina (the BCRA, after its Spanish abbreviation) issued Communication "A" 8390 (the “Communication”), introducing amendments to the regime applicable to Argentine companies' access to the official foreign exchange market (the MLC, after its Spanish abbreviation) for the pre-cancellation of foreign currency debts with local financial institutions.
The new regulation expands the mechanisms available for such prepayments, providing greater flexibility. In this regard, it is no longer limited solely to the issuance of new debt, but also allows for the use of foreign currency financing granted by local financial institutions, provided that certain conditions are met.
In depth
The Communication provides greater flexibility for the refinancing of certain foreign currency debts, including: (i) foreign currency financing granted by local financial institutions; (ii) publicly offered promissory notes denominated and subscribed in foreign currency; and (iii) fiduciary debt securities issued by trustees of publicly offered financial trusts, denominated and subscribed in foreign currency (the “Debts”).
In this regard, the Communication allows companies to access the MLC to prepay the Debts (both principal and interest) in two ways: (i) through the issuance of securities, or (ii) through the settlement through the MLC of foreign currency financing from a local financial institution that is not granted from a foreign credit line. All of this is subject to compliance with certain conditions set forth in the Communication.
Prior to the Communication's entry into force, access to the MLC to prepay principal and interest on foreign currency debt securities was only permitted when the transaction was carried out through the issuance of a new debt security, publicly registered in the country, denominated and subscribed in foreign currency, and whose average life and maturity schedule met the requirements established in the applicable regulations.
The Communication entered into force on 22 January 2026.
Jeronimo Argonz and Juana Bardin, Associates, have contributed to this legal update.
Download the Spanish version of Argentina: Changes to the Regulations Applicable to the Payment of Debt in Foreign Currency.