Claim to the BCRA for restrictions on drafts of the Caja de Valores

Urgent24 already reported that the company IRSA deposited in the Caja de Valores the amount of a payment to external creditors but the Caja de Valores was not authorized by the Central Bank to turn the 'cable', that is to execute the transfer.

Caja de Valores is the entity that takes care of the collective deposits of marketable securities that are operated in the associated markets.

When a client account is opened, the Liquidation and Compensation Agent automatically opens an account in the Caja de Valores, where their securities will be protected until the client decides to sell them. The collective deposit must be made at the order of the depositors and on behalf of the principal. No ownership or use is transferred, only the custody of the securities.

It is not a minor issue but very worrying although the public does not understand that with its restriction, the BCRA is causing a default unwanted from an Argentine private company, the last thing you can imagine in the present critical scenario.

The expiration of public titles Letes, today Friday 13/09 could suffer similar situation, but already affected the National Treasure, of not correcting it in the BCRA.

Clearstream (1 of the 2 deposits of European international central securities, owned by Deutsche Börse AG) recommended to his clients that open local accounts to receive payment, thus appealing to an emergency response. And insufficient.

As with any legal entity, by decision of the BCRA, the Caja de Valores is banned from accessing the MOME exchange wheel (MAE financial entities or agents – Electronic Open Market – or MAE adherent agents, negotiate foreign exchange abroad against liquidated currencies in a currency trading wheel).

Informally, the BCRA informed the Caja de Valores that, if the conditions of emission so establish, they would give access to the cable operations to the transmitters but this has not happened in the formal, and if the Fund receives MEP (dollar Bag) it pays MEP and if it receives Cable it pays Cable.

The financial market has explained the problem to the Secretary of Finance of the Nation, Santiago Bausili, who promised to solve the problem during a meeting with the authorities of the Central Bank but it will only be in the afternoon, apparently, the meeting.

Not even in the worst K days were the drafts of the Stock Exchange worked.

IRSA (NYSE: IRS) (BCBA: IRSA) complied with the obligation to turn funds into a custodian bank. The IRS19 bond holders whose custody is in accounts abroad have not yet been credited with the payment. The company suggests contacting the custodian about current regulations.

– Sebastian Maril (@SebastianMaril) September 13, 2019

It reminds me of when Argentina with CFK paid the BoNY but it could not / wanted to turn the funds through the precautionary measures of Griesa. History is always repeated in this country in southern Bolivia. pic.twitter.com/A0SN3Er6kr

– Sebastian Maril (@SebastianMaril) September 13, 2019

Therefore, the BCRA is limiting the payment of indefeasible obligations of Argentine companies to its international creditors, even though these companies deposited the essential money in the BCRA.

This situation forces us to remember that this infraction is foreseen as "Fact of the Prince".

In the Law of administrative contracts, "Fact of the Prince" is the expression that designates any measure that, taken by a public authority, ends up increasing the cost of executing contractual benefits. Some of these measures entitle compensation, when they emanate from the Administration you have hired.

In Civil Law, "Fact of the Prince" is a case of force majeure consisting of a prescription of public power. For example, an expropriation or a requisition.

In the already known case of IRSA, of the $ 130 million that the presiding company has already paid Eduardo Elsztain, it is estimated that some $ 35 million They were already deposited in the accounts of investors who hold their securities in custody at Caja de Valores.

However, around US $ 95 million of the issuance of the ON (Negotiable Obligation) is “Hosted” in an international depository society.

The money has to be turned into an international clearing house (in this case Clearstream), which is a company that maintains custody of the Negotiable Obligations issued by IRSA. Then he is responsible for distributing the payments among each of the investors who have their credits in international accounts.

This situation is very complex and, in other cases, it causes a very difficult situation to overcome for the Argentine private sector.