Provided that until Dec. 31, 2024 financial entities with ARG CB prior authorization may distribute dividends in six equal, monthly, and consecutive installments.
Prior authorization in accordance with Section 6 of Distribution of results rules required
Amount up to 60% of sum that would have corresponded if cited rules were applied.
Such dividends distribution must be consistent with what is reported in the Information Regime Business plan and projections and capital self-assessment report.
Calculations and installments must be made in the same currency as indicated.
Updated regulatory text for the mentioned rules are found in annex to the new circular.
Effectiveness
The circular enters into force on Mar. 22, 2024, its rules are valid until Dec. 31, 2024.
Mar. 2024 ARG CB Official Publication
On Mar. 25, 2024, ARG CB published Communication A 7984 in the official gazette.
Apr. 2024 ARG CB Dividends, Forex
On Apr. 30, 2024, ARG CB issued Circular CONAU 1-1625, LISOL 1-1049, Communication A 7997related to foreign currency and the distribution of profits.
Financial entities that decide to distribute dividends per Communication A 7984, may distribute in 3 equal, monthly, consecutive installments up to corresponding amount.
Financial institutions must also give non-resident shareholders the option to receive their dividends, totally or partially, in 3 equal, monthly, consecutive installments.
Funds must be applied directly to primary subscription of Bonds for the Reconstruction of a Free Argentina (BOPREAL), pursuant to current exchange regulations.
BOPREALs received by non-resident shareholders may not be transferred to depositary entities abroad/sold with liquidation in foreign currency locally/abroad for 30/60 days.
Subscribing shareholders must give express consent/commitment to this condition.
Also on Apr. 30, 2024, ARG CB issued Circular CAMEX 1-1012, Communication A 7999.
Re profits/dividends payable to non-residents, that have not been paid for effect May1.
Customers may subscribe bonds for BOPREAL up to equivalent in local currency of the profits/dividends pending payment per distribution determined in shareholder meeting.
Subscription offer must have documentation to guarantee outstanding debt, and client must comply with foreign exchange regulations, and must also include an affidavit.
Clients may access forex market to pay profits/dividends, as long as requirements are met, by means of an exchange and/or arbitrage with funds deposited in local account.
Clients may access forex market to repatriate non-resident portfolio investments.
May 2024 ARG CB Official Publication
On May 3, 2024, ARG CB published Communications A 7997, A 7999 in official gazette.
Mar. 13, 2025 ARG CB Update
On Mar. 13, 2025, ARG CB published Circular CONAU 1-1669, Communication A 8214.
Until Dec. 31, 2025, financial institutions may distribute earnings in 10 equal, monthly, consecutive installments up sixty percent of the amount that would have been due.
Starting on Jun. 30, 2025, no earlier than penultimate business day of next months.
Such distribution of earnings must be consistent with objectives of monetary stability, Business Plan and Projections Information System, Capital Self-Assessment Report.
The calculation of the concepts as well as the amount of the indicated fees, must be conducted in the same currency as the meeting date or the payment of each fee.
Communication A 8214 comes into force on Mar. 14, 2025.
Mar. 17, 2025 ARG CB Official Publication
On Mar. 17, 2025, ARG CB published Communication A 8214 in the official gazette.
Regulators
ARG CB
Entity Types
Bank; BHC; BS; IA; Inv Co
Reference
OG, 3/17/2025; Cir CONAU 1-1669, Com A 8214, 3/13/2025; OG, 5/3/2024; Cir CAMEX 1-1012, Com A 7999, 4/30/2024; Cir CONAU 1-1625, LISOL 1-1049, Com A 7997, 4/30/2024; OG, 3/25/2024; Cir CONAU 1-1622, Com A 7984, 3/21/2024
