29 Dic 23 Bill – Amendments to public credit operations

Agustin Cerolini, Matías Ferrari, Natalia Artmann and Valentina Circolone

On December 27, 2023 the Bill for Bases and Starting Points for the Freedom of Argentines (the “Bill”) was introduced to the Argentine National Congress (the “Congress”) by the Executive Power (the “PEN” for its acronym in Spanish), which introduces amendments to the regulations applicable to public credit operations.

First, the Bill repeals article 1 of the Law No. 27,612 on sustainability of the public debt, so that the issuance of public securities in foreign currency and under foreign legislation and jurisdiction that exceeds the maximum percentage established in the budget of the corresponding fiscal year will no longer require a special law of Congress.

On the other hand, the Bill replaces articles 13 and 206 and repeals subsection a) of article 37 of Law No. 27,440 that promotes the financing of SMEs (“PyMEs” for its acronym in Spanish). In this sense, article 13 enables the negotiation of «MiPyMEs Electronic Credit Invoices» through tools or computer systems that facilitate factoring, assignment, discount and/or negotiation of invoices, without being considered as markets and without prior authorization to operate from the National Securities Commission («CNV» for its acronym in Spanish), eliminating any reference to who may participate as buyers and/or acquirers and/or assignees and/or endorsees. Likewise, the Bill eliminates any reference to middle- and low-income populations contained in article 206 of such law. On the other hand, by repealing subsection a) of article 37 of the above-mentioned law, the Bill allows shareholders or those who have been members of the management, administration or supervisory bodies of entities subject to the regulation and supervision of the CNV at the time of their appointment and during the 12 previous months to be members of the board of directors of the CNV.

Finally, the Bill repeals article 17 of Law No. 26,831 on Capital Markets, which establishes the employment and incompatibilities of the members of the board of directors of the CNV regime.