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Writer: Carlos E Alfaro
alfaro@alfarolaw.com
Alfaro Abogados
Tel:+ 54-11 4393-3003
www.alfarolaw.com
SECURITIZATION
LAWYERS AT THIS FIRM
FIRM PROFILE
Alfaro-Abogados is a
full corporate services law firm founded with the
purpose of providing innovative legal solutions to the increasingly
complicated transactions of today´s global economy, particularly
in the
areas of debt restructuring, project finance, cross-border transactions,
transnational mergers and acquisitions, structured finance, complex
real
estate transactions, mortgage and asset securitization, leasing,
multijurisdiction corporate reorganizations, regulatory energy industry
issues, investment fund activities, local distribution, antitrust,
anti-dumping and customs regulations, bankruptcy and establishment
of
strategic joint ventures and other international transactional areas.
To serve its clients , in addition to its main office
in Buenos Aires,
Alfaro-Abogados has established offices in New York, London and
Madrid.
SECURITIZATION
MARKET STATEMENT
Securitization in Argentina was fuelled in the 90’s
by the work of the
National Securities Comision (CNV). One of the most significant
steps
towards the implementation of securitizations in Argentina was the
enactment of Law 24.441 (Financing of Households and Constructions),
which among other things extended to securitizations the tax benefits
that were recognized to the issuing of Negotiable Bonds by Law 23.576.
In addition, regulations enacted by the CNV and the Central Bank
have
followed financial entities to assign in trust loans and other credits
to third parties, as well as the issuing of securities backed by
securitized assets by Investment Funds.
The industry concentrated in asset backed securities,
trade and export
receivables. Offshore transactions have also been structured outside
the
framework of Law 24.441
The soundness of the structuring of most securitization
schemes was
successfully put to the test by the massive defaults that were caused
by
the prevalent recession since 1998 and in certain cases, some
securitizations were challenged by the application of mandatory
“pesification” rules.
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