Extended deadlines of Art. 1, 3, 5 of General Resolution 17/2024 until Apr. 30, 2025.
Managing entities must adapt a form approved by Annex I as of its entry into force.
General Resolution 21/2024 comes into force on the date of its official publication.
On Aug. 1, ARG JST ruled on mandatory offer of option to defer 20%.
ARG JST issued General Resolution 17/2024 re mandatory offer to defer 20% of rate and administrative fees paid by savings plan subscribers and awarded contract holders
By completing the form in Annex 1, the subscriber can opt and access the deferral.
Background
Between 2018 and 2022, the Argentinian economy recorded a very high inflation rate.
The high inflation was due to various complex economic, fiscal and financial factors.
Argentinian peso suffered a significant devaluation against US dollar, other currencies.
Devaluation affected imports' cost and passed on a significant part to domestic prices.
It also contributed to rising inflation and generated a lack of confidence in legal tender.
Increases in prices of goods, particularly those of automobiles, whose direct allocation constitutes the object of savings plans under the modality of groups or closed circles.
Determined the increase in savings and amortization quotas for subscribers to pay.
Increased difficulties for subscribers to meet agreed payments, putting the system in crisis as a means of mass access to durable consumer goods such as automobiles.
The increase in the price of motor vehicles due to high inflation has affected the premiums, without reflecting the increase in salaries or in subscribers' income.
Inflation also affected the expenses corresponding to the registration of a vehicle.
Highlights
Entities that manage savings plans under closed group modality must offer subscribers holding contracts grouped before Dec. 31, 2022, the option of deferring 20% of rate.
The deferral in up to 12 consecutive installments due at time of exercising the option.
Deferral must be as effective date of this resolution and will expire on Dec. 31, 2024.
Subscribers with current contracts, in savings period and awarded, owing installments, and in this case have or have not received the vehicle, may choose the deferral option.
Also applies to those whose contracts have been terminated by resignation, rescission, or resolution as of the effective date of this resolution and from Apr. 1, 2018.
Fee stubs or coupons must indicate the total amount of the fee and the corresponding amount after deducting the percentage of the deferred rate and administrative fee.
The recovery of the amounts will be made by the subscribers through the payment of supplementary installments starting the month following the expiration of the term.
Management companies must forgive any punitive interest accrued for failure to pay.
Provide chance to register changes to collateral liens, re-register them free of charge.
Revoked the application of the limit provided in the contracts until Dec. 31, 2024.
The subscriber can reject the awards or let the deadline for their acceptance expire.
The companies will adopt measures leading to the best and clearest dissemination.
Management companies must conduct a dissemination campaign until Dec. 31, 2024.
For a transparent delivery cost regime of vehicles they allocate through savings plans.
It will not limit those affected by the deferral of installments regulated herein.
Effectiveness
General Resolution 17/2024 comes into force on the day of its official publication.
