On 30 April 2025, the Argentine Central Bank (BCRA) issued Communication "A" 8233 and Communication "A" 8234, which allows the subscription of Bonds for the Reconstruction for a Free Argentina (BOPREAL) Series 4 to pay remaining debts with foreign parties (For background, see EY Global Tax Alerts, Argentina to issue 'Bonds for the Reconstruction for a Free Argentina', dated 10 January 2024 and Argentine Central Bank allows subscription of BOPREAL to pay profits, dividends to nonresidents, dated 03 May 2024)

BOPREALs may be subscribed for up to the amount owed at the date of subscription by those who have debts for:

• Imports of goods with customs entry registration until 12 December 2023
• Debts for services rendered by non-residents or accrued up to 12 December 2023
• Debts for profits and dividends of nonresident shareholders
• Interest due up to 4 July 2024 for commercial debts for imports of goods and services with related parties
• Interest due up to 31 December 24 on financial debts with related parties
• Overdue principal on financial debts with related parties

BOPREALs will be denominated in US dollars and accrue an annual interest rate of 3%, which may be payable quarterly or semi-annually in US dollars, to be defined when the tender is announced. The first tender is scheduled for mid-May.

At the time of subscription, documentation must be available to prove the debt exists, the amount owed and to verify that, among other things, the operation has already been declared.

Implications

This new measure aims to normalize the foreign exchange regime in line with the measures taken by the government to eliminate most remaining foreign exchange controls (For background, see EY Global Tax Alert, Argentina eliminates most remaining Foreign Exchange controls, dated 15 April 2025.