On August 5, 2024, the Government released Decree 695/2024 (the “Decree 695”) that regulates Title II “State Reform” of Law 27,742 “Foundations Law” (“Ley de Bases y Puntos de Partida para la Libertad de los Argentinos”).

A summary of the most relevant aspects on the regulations related to Government reorganization and Sale of state-owned companies are described below. Additional comments to the Foundations Law on these subjects are also available here and here.

1. Government reorganization

The Ministry of Economy shall propose to the National Executive Power the modification, transformation, unification, liquidation or dissolution of public trust funds in accordance with Section 5 a), b) and c) of Law 27,742 and other applicable provisions.

In addition, Decree 695 empowers the Ministry of Economy to issue complementary regulations to implement this procedure.

2. Sale of state-owned companies

2.1. Report

For the purposes of obtaining the National Executive Power’s authorization to proceed with the sale of state-owned companies, the Ministry or Secretary in control of the respective state-owned company (list that includes ENARSA, AYSA, Belgrano Cargas, Intercargo, Corredores Viales, among others) must submit to the National Executive Power a detailed report with a specific proposal of the most adequate procedure and modality for the sale of such any state owned company (the “Report”), after the intervention of the Agency for the Transformation of State-Owned Companies (Agencia de Transformación de Empresas del Estado).

2.2. Call for bids

Call for bids shall be published for, at least, seven (7) days, and the last publications shall be made, at least, thirty (30) days prior to the deadline for the submission of bids, according to the complexity of the procedure. Additionally, the call for bids must be published on the website of the enforcement authority responsible for the procedure.

For international call for bids, the call also must be published in at least one website that allows adequate access to foreign interested parties, for a term of three (3) days, at least forty-five (45) calendar days prior to the deadline for the submission of bids. The enforcement authority may also issue invitations to participate to all those human or legal persons, with national or foreign capital, that considers convenient.

2.3. Liquidation

In the case of sale of the above mentioned companies when the transfer of contracts under execution to the provinces is required, the Report shall also detail the amounts involved in any such contract, as well as any related agreements.

The company in liquidation, in cooperation with the Agency for the Administration of State Assets (Agencia de Administración de Bienes del Estado) must elaborate an inventory of its assets, including their valuation. If applicable, a priority order for the sale of the assets must be defined.

2.4. Other provisions

Prior to the closing of contracts, the Office of the Attorney General (Procuración del Tesoro de la Nación) and the Agency for the Transformation of State-Owned Companies may make observations and/or suggestions. In that event, the enforcement authority shall perform the referred modifications, and submit a final report to the National Executive Power for its approval. Once the procedure is completed, the enforcement authority shall draft a final report to the General Auditor Office.

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For additional information, please contact Nicolás Eliaschev and/or Javier Constanzó.