Argentina updates

Aviation

Contributed by Freidenberg Freidenberg & Lifsic
National Commercial Court decision sets favourable precedent for Argentine aviation industry
  • Argentina
  • June 20 2018

A recent National Commercial Court decision has set a favourable precedent for the aviation industry in Argentina. The court ordered the application of international conventions rather than local law and federal jurisdiction instead of commercial national jurisdiction. This application of international conventions by the Argentine courts is important, as it establishes the limited liability that is generally overlooked by domestic legislation.

Passenger wins damages following re-routing of non-stop flight
  • Argentina
  • March 07 2018

A passenger filed a claim against Iberia Lineas Aereas de Espana SA for a breach of contract after her non-stop flight to Europe was modified due to overbooking. The claimant argued that the defendant had fraudulently failed to fulfil its obligations. The Civil and Commercial Court of Appeals rejected the punitive damages awarded by the first-instance court, but increased and maintained compensation for moral and material damages, respectively.

Airlines propose solution to resolve airport fee issue
  • Argentina
  • January 24 2018

Under Resolution 706-E/2017, airlines must inform the Argentine National Civil Administration (ANAC) of how they will reimburse the discrepancy in airport fees paid by passengers who bought tickets in 2016 and travelled on or after January 1 2017, when a fee reduction was introduced. Most of the affected airlines have now proposed ways to comply with the resolution, which should avoid summary proceedings by ANAC for non-compliance.

Consumer associations file collective action regarding airport fees
  • Argentina
  • November 01 2017

Two Argentine consumer associations recently filed a collective action against the majority of airlines operating in Argentina in defence of passenger rights. The claimants alleged that the carriers should reimburse the difference between the airport fee paid by passengers in 2016 when their tickets were issued for flights in 2017 and the new airport fee, which was reduced from January 1 2017.

National Directorate of Air Transport evaluates passenger airline efficiency
  • Argentina
  • June 14 2017

Following the issuance of Resolution 445/16 by the Civil Aviation Authority (ANAC), the National Directorate of Air Transport was tasked with establishing a system to evaluate airlines' compliance with their flight schedules. The aim is to increase air transportation efficiency for passengers and provide the ANAC with additional tools to evaluate the performance of scheduled carriers.


Banking

New measures introduced to encourage foreign investment
  • Argentina
  • April 07 2017

Since the Macri administration took office in December 2015, several resolutions have been passed to encourage and simplify foreign investments in Argentina. Two recent Central Bank regulations relate to the relaxation of additional foreign exchange restrictions and a new bank account regime which makes it easier for foreign financial institutions to invest in Argentina.

New regulations for a digitalised financial sector
  • Argentina
  • January 06 2017

In 2016 there were several regulatory developments regarding the use of technology in the financial sector. The Central Bank of Argentina issued regulations aiming to integrate technological innovations in the financial sector to promote greater formalisation of the economy, increase access to banking services and facilitate access to and use of digital tools. These regulations highlight the Central Bank's intention to promote the use of new technologies for legal and financial transactions.

Central Bank lifts majority of foreign exchange restrictions
  • Argentina
  • September 23 2016

Since December 2015, a series of measures have been implemented to deregulate and implement progressively more flexible regulations regarding foreign exchange controls. Among other things, the changes relate to the acquisition of foreign currency, financial indebtedness and the repatriation of direct and portfolio investments by non-Argentine residents.


Company & Commercial

Single-shareholder corporations – changes needed
  • Argentina
  • November 28 2016

One of the major changes introduced by the amended General Companies Law is the possibility of setting up corporations formed by a single shareholder. While the introduction of single-shareholder corporations is a step in the right direction, the restrictions and requisites imposed therein evidence that this new type of organisation does not meet the expectations of the legal and business communities.

Simplified corporation introduced to facilitate SME business
  • Argentina
  • September 05 2016

In its continued effort to promote the revival of the Argentine economy, the government recently submitted a bill to Congress to create a new type of simplified corporation. At present, in order to undertake a business venture in Argentina – no matter how small – an entrepreneur must set up a traditional company, which will be subject to the same rules and taxes applicable to well-established big businesses.


Corporate Finance/M&A

New legal framework to boost local start-ups
  • Argentina
  • April 19 2017

Argentina is one of Latin America's most innovative tech hubs and home to several pan-regional unicorn start-ups. However, until now, it lacked an adequate legal framework to fund start-ups through venture capital, crowdfunding platforms or seed capital. In order to boost local financing of new projects, Congress recently approved the long-awaited Entrepreneurship Law, which is set to change the start-up environment.


Energy & Natural Resources

Contributed by Beretta Godoy
Latest round of renewable energy tender process success
  • Argentina
  • November 27 2017

Argentina has established a long-term state policy for energy development, which encourages the use of non-fossil fuels suitable for environmental protection and economic sustainability. In pursuance of this goal, the Ministry of Energy and Mining launched a set of tender proceedings for the procurement of electrical energy from renewable sources. Following the success of Rounds 1 and 1.5, Round 2 was recently published with the aim of adding 1,200 megawatts of renewable energy to the interface system.

Bill to promote distributed energy generation from renewable sources introduced
  • Argentina
  • August 14 2017

In order to unify various national regulations, the National Congress is analysing the Bill for the Promotion of Distributed Energy Generation from Renewable Sources. The bill's main aims are to unify inconsistent provincial laws in order to reduce local bureaucratic red tape, combine technical and security standards, simplify permit requirements and reduce lengthy review procedures in order to ensure timely installation and avoid added costs.

Federal Energy Agreement introduced
  • Argentina
  • May 29 2017

The national and provincial governments recently signed the Federal Energy Agreement. The agreement aims to develop and foster the implementation of energy policies at the provincial and federal level. The cooperation of the national and provincial governments is key to a long-term energy policy. The regulatory framework introduced for the different jurisdictions will ensure quality of service and help to develop the national energy network.

New renewable energy regime: an overview
  • Argentina
  • June 06 2016

The government has amended the Renewable Energy Act and issued a regulatory decree, which includes new promotional schemes to foster investment in renewable energy projects and reduce Argentina's dependency on fossil fuels. This update examines the decree, the benefits granted by the federal government in that regard and the terms and conditions of the first renewable energy project contest due to be launched by the Ministry of Energy.

New government set to introduce changes to energy sector
  • Argentina
  • January 11 2016

The recently elected government hopes to tackle the energy deficit and reduce the impact of subsidies on the public budget. In that regard, the Energy and Mining Ministry aims to suspend the government's utility bill subsidy system, include renewable energy in the energy matrix to reduce dependence on hydrocarbons, develop nuclear energy and increase domestic production of hydrocarbons through foreign investment.