Presidential Legislative Decree No. 6/19, of 2 May 2019, approved the Legal Regime governing Commercial Paper, providing certain private and public entities with a new financing mechanism based on the issuance of short-term debt securities, with a maximum term of 1 (one) year.

The statute sets forth the requirements to be met for a given entity to be able to issue this type of security, notably the need for certified accounts and adequate guarantees, as well as the existence of a minimum level of liquidity, own funds and risk rating, as per the terms to be defined by the Capital Market Commission (“CMC”). The regime provides the terms and conditions applicable to the relevant informative memorandum, among other duties to inform, and establishes the role and obligations of sponsors involved in the issuance of commercial paper.

Presidential Legislative Decree No. 6/19 entered into force on 2 May 2019.

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