Key Benefits:
Sanctioned: January 6, 2002.
Partially promulgated: January 6, 2002.
The Senate and Chamber of Deputies of the Argentine Nation assembled in Congress, etc. sanction with force of Law:
PUBLIC EMERGENCY LAW AND REFORM OF THE CHANGE REGIME
PART IPublic emergency declaration
ARTICLE 1 Determine in accordance with article 76 of the National Constitution, the public emergency in social, economic, administrative, financial and exchange matters, delegating to the national executive branch the powers covered by this law, until 31 December 2004, according to the bases specified below. (Paragraph replaced by art. 1 Act No. 25.820 B.O. 4/12/2003. Watch: from the day after its publication in the Official Gazette.)
(Note Infoleg: by art. 1st of the Act No. 27,345 B.O. 23/12/2016 is extended until 31 December 2019 the social emergency in the terms of the law Act No. 27,200 . Monitoring: from its promulgation)
(Note Infoleg: by art. 1st of the Act No. 27,200 B.O. 04/11/2015 until 31 December 2017 the validity of this Law. Vigilance: from its promulgation. Previous: Act No. 26,896 B.O. 22/10/2013; Act No. 26,729 B.O. 28/12/2011; Act No. 26.563 B.O. 22/12/2009; Act No. 26.456 B.O. 16/12/2008; Act No. 26,339 B.O. 4/1/2008; Act No. 26,204 B.O. 20/12/2006; Act No. 26.077 B.O. 10/1/2006; Act No. 25,972 B.O. 17/12/2004).
1. Proceed to the reordering of the financial, banking and exchange market.
2. Reactivate the functioning of the economy and improve the level of employment and income distribution, with an emphasis on a development programme for regional economies.
3. Create conditions for sustainable economic growth that are compatible with the restructuring of public debt.
4. Rule the restructuring of the obligations under way, which are currently being implemented, affected by the new exchange regime established in article 2.
PART IIFrom the currency regime
ARTICLE 2 The national executive branch is empowered, for the reasons of public emergency defined in Article 1 to establish the system that will determine the relationship of exchange between foreign peso and foreign currency, and to issue exchange regulations.
PART IIIAmendments to the Convertibility Act
ARTICLE 3 Please refer to articles 1, 2nd, 8th, 9th, 12th and 13 of Act No. 23,928, as amended by Act No. 25,445.
ARTICLE 4 Amend the text of articles 3°, 4°, 5°, 6°, 7° and 10 of Act No. 23.928 and its amendment, which shall read as follows:
"Article 3 El The CENTRAL BANCO OF THE REPUBLIC ARGENTINA may purchase currency with its own resources or issue the necessary weights for that purpose, and sell them, at the price established under the system defined by the national executive branch, in accordance with article 1 of the Law on Public Emergency and Change Reform.
"Article 4° . At all times, the reserves of the BANCO CENTRAL OF THE ARGENTINA REPUBLIC in gold and foreign currency will be affected to the backing of the monetary base. When reserves are invested in deposits, other operations in interest, or in national or foreign public securities payable in gold, precious metals, US dollars or other similar solvency currencies, their compute for the purposes of this law shall be made at market values.
"Article 5 El The CENTRAL BANCO OF THE REPUBLIC ARGENTINA must reflect in its balance and accounting states the amount, composition and investment of reserves, on the one hand, and the amount and composition of the monetary base, on the other hand.
"Article 6 . The goods that make up the reservations mentioned in the previous article constitute a common garment of the monetary base, are inembarkable, and can be applied exclusively to the purposes provided for in this law. The monetary base in pesos is constituted by the monetary circulation plus the deposits in view of the financial entities in the BANCO CENTRAL OF THE ARGENTINA REPUBLIC, in current account or special accounts.
"Article 7° . The debtor of an obligation to give a certain sum of weights fulfills its obligation by giving the nominally expressed amount on the day of its expiry. In no case will monetary update, price indexing, cost variation or debt repotentiation be admitted, whatever its cause, whether or not the debtor is in arrears, with the exceptions provided for in this law.
The legal and regulatory provisions are repealed and the contractual or treaty provisions that contravene the provisions of this provision will be inapplicable.
"Article 10. . Mantiénense derogadas, with effect from 1 April 1991, all the legal or regulatory rules that establish or authorize indexing by prices, monetary update, variation of costs or any other form of repotentiation of debts, taxes, prices or fees of goods, works or services. This derogation shall apply even to the effects of existing legal relations and situations, and no legal, regulatory, contractual or conventional clauses may be applied or invoked .including collective labour agreements colectivo of the previous date, as a result of adjustment in the amounts of pesos to be paid. "
ARTICLE 5° Keep, with the exceptions and scopes set out in this Act, the wording set out in article 11 of Act No. 23.928 for articles 617, 619 and 623 of the Civil Code.
PART IVRestructuring of obligations under this law
Chapter I
Financial system obligations
ARTICLE 6 The national executive branch shall have measures to reduce the impact of the change relationship set out in article 2 of this law on persons of visible or ideal existence who maintain debts in US dollars or other foreign currency with the financial system. It will have the necessary rules for their adequacy.
(Second paragraph derogated from article 2 of the Act No. 25.820 B.O. 4/12/2003. Watch: from the day after its publication in the Official Gazette.)
The national executive branch may establish compensatory measures to avoid imbalances in the financial entities covered and emerging from the impact of the measures authorized in the preceding paragraph, which may include the issuance of national Government titles in guaranteed foreign currency. In order to constitute such a guarantee, believe a right to export hydrocarbons by the term of CINCO (5) years by empowering the national executive branch to establish the corresponding liquota. To that end, other resources including international loans may be affected.
(Note Infoleg: By art. 1 Act No. 26.732 B.O. 28/12/2011 is extended by the term of five (5) years, from its expiry, the right to export hydrocarbons created by the second paragraph of this article, as well as the powers granted to the national executive branch to establish the corresponding liquors. Watch: from the day of publication in the Official Gazette. Previous extension: Act No. 26,217 B.O. 16/1/2007)
In no case shall the right to export hydrocarbons diminish the value of a well for the calculation and payment of royalties to the producing provinces.
The national executive branch shall have the measures to preserve the capital belonging to the savers who have made deposits in financial entities at the date of entry into force of Decree 1570/2001, restructuring the original obligations in a manner compatible with the evolution of the solvency of the financial system. Such protection shall include foreign currency deposits.
What is set out in the preceding paragraph may be implemented through the exchange of debt securities options of the national State. (Paragraph incorporated by art. 2° of the Act No. 25.820 B.O. 4/12/2003. Watch: from the day after its publication in the Official Gazette.)
ARTICLE 7 Debts or balances of debts originally agreed upon with financial system entities in force as at 30 November 2001 and converted to dollars by Decree No. 1570/2001 will remain in the original currency agreed upon, both capital and its accessories. Refer to article 1 of Decree 1570/2001.
The debtor balances of credit card holders and debits corresponding to consumptions made in the country shall be disclosed in pesos and payable in pesos. Consumptions made outside the country may only be recorded in dollars or other currencies. The outstanding debtor balances at the date of promulgation of this law shall be cancelled in pesos to the exchange relationship A STEP ($ 1) = A TOTAL STATE ($1).
Chapter II
Obligations arising from management contracts governed by public law
ARTICLE 8 Please note that, from the sanction of this Act, contracts entered into by the Public Administration under public law standards, including those of public works and services, adjustment clauses in the dollar or other foreign currency and index clauses based on price indexes in other countries and any other indexing mechanism are invalid. Prices and fees resulting from such clauses are set in weights to the exchange ratio A STEP ($ 1) = A STATEMENT (US$ 1).
ARTICLE 9 Authorize the national executive branch to renegotiate contracts under Article 8 of this Law. In the case of contracts aimed at the provision of public services, the following criteria should be taken into consideration: (1) the impact of tariffs on the competitiveness of the economy and on the distribution of income; (2) the quality of services and investment plans, where they were contractually planned; (3) the interest of users and the accessibility of services; (4) the security of the systems covered; and (5) the profitability of the companies.
(Note Infoleg: by art. 1 of the Act No. 25.790 B.O.22/10/2003, the extension is available until 31 December 2004 for the renegotiation of contracts for public works and services. Such negotiation may cover certain sectors of public services or certain contractions in particular. By art. 1 Act No. 25,972 B.O. 17/12/2004 extended, as at 31 December 2005the term of this Law No. 25.790. Watch: from the day after the date of publication in the Official Gazette.
ARTICLE 10. The provisions provided for in articles 8 and 9 of this Act shall in no case authorize contractors or public service providers to suspend or alter the performance of their obligations.
Chapter III
of obligations arising from contracts between individuals, not linked to the financial system
ARTICLE 11. The obligations to give existing sums of money as of January 6, 2002, expressed in DOLARES STADOUNIDENSES or other foreign currency, not linked to the financial system, whatever its origin or nature, whether or not the debtor is in arrears, will be converted to a reason for a DOLAR STADOUNIDENSE (U$ 1) = A PESO ($ 1), or its equivalent in another foreign currency.
If, by application of the corresponding coefficients, the value resulting from the thing, good or benefit, is higher or lower than the time of payment, any party may request an equitable readjustment of the price. In the case of successive tract or deferred performance obligations this readjustment may be requested annually, except that the duration of the contract is less or when the difference in values is notoriously disproportionate. If there is no agreement in this regard, justice shall decide on the matter. This procedure may not be required by the party in arrears and this procedure is imputable. Judges called to understand conflicts that might arise for such reasons should adopt measures to preserve the continuity of the contractual relationship in an equitable manner for the parties.
In the absence of agreement between the parties, the parties are empowered to follow the mediation procedures in force in the respective jurisdictions and to take place before the competent courts to settle their differences.
In this case, the debtor party may not suspend payments on account or the creditor refuse to receive them. The national executive branch is empowered to make clear and regulatory provisions on specific situations, based on the doctrine of article 1198 of the Civil Code and the principle of shared effort.
This rule does not modify the situations already resolved through private agreements and/or judicial decisions.
(Article replaced by Article 3 of the Act No. 25.820 B.O. 4/12/2003. Watch: from the day after its publication in the Official Gazette.)
PART VFrom the title exchange
ARTICLE 12. Within the time period and in the manner in which the regulation is established, the national executive branch shall have the necessary precautions to proceed with the exchange of national and provincial titles that have been issued as substitutes for the national currency of legal course throughout the country, subject to agreement with all provincial jurisdictions.
PART VIProtection of users and consumers
ARTICLE 13. Please refer to the national executive branch to regulate, temporarily, the prices of critical inputs, goods and services, in order to protect the rights of users and consumers, the eventual distortion of markets or actions of a monopolistic or oligolic nature.
PART VIISupplementary and transitional provisions
ARTICLE 14. Invite the Provinces, Autonomous City of Buenos Aires and Municipalities to adhere to the provisions of Articles 8, 9 and 10 of this Law.
ARTICLE 15. Replace the application of Act No. 25,466, for the maximum period provided for in article 1 or until the time at which the national executive branch considers the emergency of the financial system to be overcome, with regard to deposits affected by Decree No. 1570/2001.
ARTICLE 16. Replace the application of Act No. 25.557 for the term of up to NOVENTA (90) days. For the period of CENTO OCHENTA (180) days the dismissals are suspended without justified cause. In the event of dismissals in contravention of the provisions of this Act, employers shall pay the injured workers twice their compensation, in accordance with the current labour legislation.
(Note Infoleg: by art. 1 Decree No. 1224/2007 B.O. 11/9/2007 the condition provided for in the first paragraph of article 4 of the Law No. 25.972.)
(Note Infoleg: By art. 4° of the Act No. 25,972 B.O. 17/12/2004 extended the suspension of unjustified dismissals by this article and its amendments, until the unemployment rate developed by the National Institute of Statistics and Census (INDEC) is less than TEN per ICSENT (10%).
In the event of dismissals in contravention of such suspension, employers shall pay to the workers concerned the additional percentage established by the national executive branch, for compensation in accordance with article 245 of the Labour Contract Act No. 20,744 (t. 1976) and its amendments.
This provision shall not apply to employers in respect of contracts entered into in relation to dependency, under the terms of the Employment Contract Act No. 20,744 (t. 1976) and its amendments, beginning on 1 January 2003, provided that they involve an increase in the total workforce that the employer owned as at 31 December 2002. Watch: from the day after the date of its publication in the Official Gazette.
Additional: By art. 1 Decree No. 1433/2005 B.O. 23/11/2005 was set at 50% the additional provided for in the second paragraph of Article 4 of Law No. 25972. Watch: from 1 December 2005. Previous percentage: 80% (art. 1 Decree No. 2014/2004 B.O. 7/1/2005)
Previous extensions: Decree No. 823/2004 B.O. 28/6/2004; Decree No. 369/2004 B.O. 2/4/2004; Decree No. 1351/2003 B.O. 6/1/2004; Decree No. 256/2003 B.O. 26/6/2003; Decree No. 662/2003 B.O. 21/3/2003 and Decree No. 883/2002 B.O. 29/5/2002).
By art. 1 Decree No. 2639/2002 B.O. 20/12/2002 provides that the last part of this article shall not apply to employers, in respect of new workers who are incorporated, in relation to dependency under the terms of Act No. 20,744, beginning on 1 January 2003, provided that their incorporation represents an increase in the total workforce that the employer owned as at 31 December 2002. )
ARTICLE 17. Negative net results originating in the application of the exchange rate referred to in Article 2 of this Law on Assets and Liabilities in Foreign Currency Existing at the date of its sanction, shall only be deductible in the Tax on Gains in the proportion of a VEINTE BY SCIENTO (20%) per year in each of the first five years that close after the law is in effect. The above provisions shall be applicable only to subjects whose annual income or property exceeds the limits set forth in article 127, Chapter XIII, Title I, of Law No. 11.683, t.o. in 1998 and its amendments.
ARTICLE 18. Amend article 195 bis of the Code of Civil and Commercial Procedure, which shall read as follows:
"When precautionary measures that directly or indirectly affect, obstruct, commit or disrupt the development of essential activities of the National State, the Provinces, the Autonomous City of Buenos Aires, the Municipalities, their centralized or decentralized divisions, or of entities affected by any activity of State interest, appeal may be filed directly with the Supreme Court of Justice of the Nation. The submission of the appeal shall have in itself a suspensive effect of the ruling. The Supreme Court of Justice of the Nation will require the remission of the file. Received this, it will confer transfer with quality of cars to the party that requested the measure for the period of CINCO (5) days. Once the transfer has been transferred or the time has expired to do so, after hearing the Attorney General of the Nation will issue a ruling confirming or revoking the measure. "
ARTICLE 19. This law is of public order. No person can claim against irrevocably acquired rights. Default any other provision that opposes the provisions of the provision.
ARTICLE 20. For all the purposes of this law, the Bicameral Monitoring Commission shall control, verify and dictate the actions of the Executive. Views in all cases will be considered by both Chambers. The Bicameral Commission will consist of six senators and six deputies elected by the Honorable Houses of Senators and Deputies of the Nation, respecting the plurality of the political representation of the Chambers. The President of the Commission will be appointed on the proposal of the opposition political bloc with more legislators in Congress.
(Note Infoleg: by art. 27 of the Act No. 26.122 B.O. 28/7/2006 states that the Bicameral Follow-up Commission, established by this article, will only maintain the competence provided for in article 4 of the Act No. 25.790.)
ARTICLE 21. The national executive branch shall bear in mind the exercise of the powers delegated to it at the end of its validity and on a monthly basis, through the Chief of Staff of Ministers at the time of the participation of each House of Congress, as provided for in article 101 of the National Constitution.
ARTICLE 22. Contact the national executive branch.
IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE SEIS DAYS OF THE MONTH OF JANUARY OF THE YEAR.
# 25,561
EDUARDO O. CHANGE. . JUAN C. MAQUEDA. . Eduardo D. Rollano. . Juan C. Oyarzún.
NOTE: The bold text was observed.
(Note Infoleg: By art. 1 Decree No. 50/2002 B.O. 9/1/2002 is established on 6 January 2002 as the date of entry into force of Law 25.561.)
(See art. 1 Decree No. 689/2002 B.O. 2/5/2002 Exception (Transport of gas) to the provisions of this Law.)