Asset servicing - Argentina
Income collection
Effective 1 September 2019 the Argentinian Government (Decree No. 609/2019) and the Central Bank of Argentina (Communication “A” 6770) introduced a number of modifications on the existing foreign exchange regulations and restrictions on the repatriation of funds in local and foreign currency.
Due to the existing restrictions and until further notice, repatriation services via Clearstream Banking are not available.
Debt securities
| Service offered | Remarks |
| Notification to customers | |
Standard Asset Servicing reporting via SWIFT MT56x, Xact Web Portal and Xact File Transfer. | See Section 8 “Asset servicing” of the Customer Handbook. See Connectivity manuals on the Clearstream website. |
| Payment of proceeds | |
Proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received. Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value. The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR. | For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Customer Handbook. |
Equities
| Service offered | Remarks |
| Notification to customers | |
Standard Asset Servicing reporting via SWIFT MT56x, Xact Web Portal and Xact File Transfer. | See Section 8 “Asset servicing” of the Customer Handbook. See Connectivity manuals on the Clearstream website. |
| Payment of proceeds | |
Dividends proceeds are calculated based on the positions recorded at the close of business on the record date and paid to the customer's account upon successful receipt and reconciliation of funds. Proceeds will be paid with the value with which they are received. Funds under the Available for Cash Loan (ACL) concept, when applicable, are paid with good value. The payment method to be applied is reported via MT564 IPAR and Xact Web Portal IPAR. | For further details on entries qualified as ACL, please refer to the section “5.6 Financing: availability of funds” of the Customer Handbook. |
Funds are usually available in CBL (depending on the payment method used by the paying agent) as follows:
| Currency proceeds | Payment method | Credit of funds | Value |
ARS | MEP | PD+1 | PD |
USD | Fed funds | PD | PD |
Cash bill | PD+1 | PD+1 |
The CVSA acts as paying agent in most cases. Funds are usually available on PD or PD+1. CVSA executes the payment upon receipt of funds from the issuers.
Payments are made in the denomination currency of each security, unless:
- A currency option exists and has been exercised by the customer; or
- The terms and conditions of the issue state that income proceeds are payable in a currency other than the denomination currency.
Interest payments on USD-denominated debt securities are calculated on the basis of 30 days per month and 360 days per year. Calculation of accrued interest on other debt securities varies from issue to issue.
Debt securities may be subject to periodic amortisation. The amortisation frequency varies from issue to issue and may be annual, quarterly or monthly. Positions in amortised issues are booked in CBL at their initial nominal values; positions in detached coupons (tradeable as separate securities) are booked at the initial nominal values of the securities from which the coupon has been detached.
Fees
CVSA charges CBL for the collection of income, deducting the charges from CBL’s total position with CVSA. CBL, in turn, deducts these charges from the customer’s income proceeds.
Note: Charges for services rendered by CVSA are subject to 21% Argentine VAT.
Applicable charges are as follows.
0.05% of value paid on government bonds (amortisations are not charged)
0.35% of value paid for other public bonds and private bonds
1% on dividends (a)
0.75% on capital distributions and subscriptions (a)
(a) fees above ARS 93.50 have a discount of 70% up to a ceiling of ARS 313.10 and an additional discount of 85% thereafter.
Corporate actions
| Service offered | Remarks |
| Notification to customers | No specific deviations from standard reporting provided by CBL apply to the Argentine market. |
Standard reporting. | |
| Instruction to CBL | |
CBL collects and processes customer instructions for voluntary events, such as exchange offer or purchase offer. |
Proxy voting services
Proxy voting services are not available in CBL for this market.
Entitlement compensation rules
Please refer to Entitlement Compensation Rules - Argentina.