Argentina updates

Aviation

Contributed by Freidenberg Freidenberg & Lifsic
Plane and simple changes to airfares
  • Argentina
  • 12 September 2018

In the context of deregulating the aviation sector and attracting low-cost carriers, the Ministry of Transportation recently issued Resolution 656/2018, which allows domestic carriers to charge any fare that they wish under certain circumstances. Before this resolution, domestic carriers could charge no lower than the Civil Aviation Authority threshold.

National Commercial Court decision sets favourable precedent for Argentine aviation industry
  • Argentina
  • 20 June 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
  • 07 March 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
  • 24 January 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
  • 01 November 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.


Banking

New measures introduced to encourage foreign investment
  • Argentina
  • 07 April 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
  • 06 January 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
  • 23 September 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
  • 28 November 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.


Corporate Finance/M&A

New legal framework to boost local start-ups
  • Argentina
  • 19 April 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
New resolution issued on offshore reconnaissance permits and related commercial rights
  • Argentina
  • 24 September 2018

The Ministry of Energy and Mining recently issued Resolution 197/2018, which details the requirements and procedures relating to obtaining reconnaissance permits and the commercial use of data obtained during reconnaissance activities along the Argentine Continental Shelf. Although the Ministry of Energy and Mining has already granted a number of offshore exploration licences, significant potential for offshore basin exploitation remains.

Resolution on offshore reconnaissance permits
  • Argentina
  • 30 July 2018

This update has been removed at the request of the authors.

Latest round of renewable energy tender process success
  • Argentina
  • 27 November 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
  • 14 August 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
  • 29 May 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.