Argentina

DLA Piper advised the Province of Chubut on the issuance of series CXVIII Class 2 Treasury Notes for an aggregate principal amount of AR$45.5 billion in debt secured notes due 2026. The debt securities were issued on May 20, 2026 and were structured with a dual fixed-rate mechanism, accruing interest at the higher of (i) a 27.00% nominal annual fixed rate or (ii) the Private TAMAR Rate plus a fixed spread of 5.50% nominal annual. The debt securities will be fully amortized at maturity on September 21, 2026. The DLA Piper team was comprised of Partner Justo Segura and Associates Federico Vieyra, and Ignacio Comparato (all Buenos Aires). DLA Piper in Latin America’s team offers full-service business legal counsel to domestic and multinational companies with interests in and operations throughout the region. Our integrated approach to serving clients combines local knowledge with the resources of the DLA Piper global platform. With more than 400 lawyers practicing throughout Argentina, Brazil, Chile, Mexico, Peru, and Puerto Rico, in addition to our US-based cross-border attorneys, our teams frequently work with our professionals throughout the LatAm region, Iberian Peninsula, and around the globe. DLA Piper’s global platform of 90+ offices in more than 40 countries enables us to serve all our clients’ legal and business needs, whether they are based in Latin America or wish to do business there. For more information, visit Latin America | DLA Piper.

Argentina’s National Executive Branch has approved new regulations (Regulations) governing Title II of the Labor Modernization Act No. 27,802, establishing Labor Assistance Funds (FALs). The Regulations are designed to facilitate compliance with severance obligations under the Employment Contract Law and applicable professional statutes, with coverage limited to duly registered employees. They take effect on November 1, 2026. Below, we summarize the Regulations, their scope, and key provisions. Scope of application The Regulations cover all private-sector employers, with the exception of public-sector employment relationships (as defined under Section 8 of the Financial Administration Act No. 24,156) and relationships expressly exempted under the last paragraph of Section 58 of Law No. 27,802. Small- and medium-sized enterprises are defined pursuant to former Secretary of Small and Medium Enterprise (SEPyME) Resolution No. 220/2019. Non-profit entities meeting the parameters of this Resolution, as registered before the Customs Collection and Control Agency (ARCA), are likewise covered. Legal description and structure of FALs FALs are structured through collective investment vehicles authorized by the National Securities Commission (CNV), such as mutual funds (Section 1, first paragraph, Law No. 24,083) or financial trusts (Civil and Commercial Code, Chapter 30). In all cases, asset segregation and specific earmarking of resources are required. Such vehicles are subject to the regulatory, supervisory, and enforcement jurisdiction of the CNV. Employers are required to maintain an Individual Employer Account, which is a separate, independent, non-transferable, and non-attachable fund of a pooled nature (i.e., not attributable on a per employee basis) (Section 59, Law No. 27,802) administered by an Authorized Entity. Each account is assigned a unique identifier (FAL ID) that the employer must report to ARCA. Financial trusts must implement operational continuity mechanisms no later than 24 months before the trust's maturity date, providing for renewal or orderly asset migration. Key operational definitions The Regulations provide the following definitions related to the operation of FALs: Registered employee: An employee whose employment relationship has been enrolled and reported in compliance with applicable labor and social security law at least 12 months prior to termination (Section 58, Law No. 27,802). Waiting period: Six complete and consecutive monthly accrual and payment periods, counted from the calendar month in which ARCA records the actual payment of the first employer contribution (Section 15). Deficient registration: FAL coverage is limited to amounts computed on the basis of data actually registered, without prejudice to the employer's full liability for any resulting deficiency under applicable labor law (Section 13). Portability: The transfer by an employer of accumulated funds to another CNV-authorized collective investment vehicle, provided no payment obligations are outstanding, and ARCA is duly notified. The CNV will establish applicable timeframes and frequency (Section 14). Monthly contribution and employer relief The monthly contribution is included within the Unified Social Security Contribution (CUSS), with ARCA acting as the transfer agent for the Individual Account. Non-payment, unavailability, or insufficiency of funds will not give rise to any liability on the part of the National Government or ARCA. FAL contributions may not be offset against any tax, social security, or customs obligations of the employer. Employer contribution relief (Section 76, Law No. 27,802) applies exclusively to employment relationships covered by the FAL and not subject to the Labor Formalization Incentive Regime (RIFL), while the latter remains applicable. Relief is prorated in accordance with the distribution of employer contributions across social security sub-systems (Laws Nos. 19,032; 24,013; 24,241; and 24,714). It may not be carried forward across periods or generate offsetting credits. Tax treatment Employer contributions to the FAL are deductible for income tax purposes (Section 60, Law No. 27,802). Investment returns, interest, and other income generated by fund assets, including dividend-equivalent distributions, are exempt from income tax. Amounts received by employees as severance payments are accorded the same income tax treatment applicable to the indemnification payments that they replace. Accounts and transactions of the collective investment vehicles implementing FALs are exempt from the Tax on Banking Debits and Credits (Section 25, incorporated into Executive Order No. 380/2001). Fees charged by Authorized Entities are capped at a global maximum of one percent per year on total assets under management (Section 20). Validation and payment procedure Upon termination of the employment relationship, the employer must submit to the Authorized Entity an electronic sworn statement (declaración jurada) containing: The employer's tax identification number (CUIT) and registered address The employee's full name and labor identification number (CUIL) The employee's bank account details The date and grounds for termination, with a copy of the terminating act or agreement (including any Section 241 LCT mutual termination agreement executed with the required formalities) A detailed severance computation The amount to be transferred, and The case number, if applicable. The Authorized Entity's verification is limited to: Confirmation of the employee's bank account ownership Confirmation of the employee's registered status, and Completeness of the sworn statement. Once the requirements are satisfied, funds must be transferred within five business days of the complete and accurate submission. The accuracy of severance calculations is the exclusive responsibility of the employer. Enforcement and sanctions Enforcement authority is exercised concurrently, each within its respective jurisdiction, by the Secretariat of Labor, Employment, and Social Security (STEySS); ARCA; and the CNV. The administrative fine set forth in Section 75 of Law No. 27,802 is assessed by the STEySS pursuant to the procedural framework of Law No. 18,695, and enforced by ARCA through tax enforcement proceedings (Law No. 11,683). The three agencies will establish a joint information-sharing mechanism for the detection of noncompliance. Effective date and implementing regulations The Regulations take effect on November 1, 2026 (Section 27). STEySS, ARCA, the CNV, and the Secretariat of Finance of the Ministry of Economy are required to issue all necessary clarifying and implementing regulations within 45 business days from the publication of Executive Order No. 408/2026 in the Official Gazette. 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DLA Piper advised the Province of Buenos Aires, Argentina, in connection with its issuance of public debt securities in the aggregate principal amount of AR$113 billion (the “TAMAR Notes”), maturing in 2027, and CER-adjustable peso-denominated public debt securities maturing in 2028, in the aggregate principal amount of AR$203 billion (the “CER Notes”). The Province of Buenos Aires will use the net proceeds to finance public investment projects currently underway or expected to commence and to repay public debt obligations. The debt securities, which mature on April 30, 2027, will be repaid in full at maturity and will accrue interest at a rate equal to the TAMAR rate plus a fixed margin of 7 percent per annum. The DLA Piper team representing the Province of Buenos Aires included Partner Justo Segura and Associates Federico Vieyra and Ignacio Comparato, all based in Buenos Aires. DLA Piper’s Latin America team offers full-service business legal counsel to domestic and multinational companies with interests and operations throughout the region. Our integrated approach combines local knowledge with the resources of DLA Piper’s global platform. With more than 400 lawyers practicing throughout Argentina, Brazil, Chile, Mexico, Peru, and Puerto Rico, together with our US-based cross-border attorneys, our teams frequently collaborate with colleagues across the Latin America region, the Iberian Peninsula, and around the world. DLA Piper’s global platform of 90+ offices in more than 40 countries enables us to serve clients’ legal and business needs, whether they are based in Latin America or seeking to do business there. For more information, visit Latin America | DLA Piper.

DLA Piper advised the Province of Chubut on the issuance of US$650 million in international debt securities due 2036, as well as on a cash tender offer for the outstanding US dollar-denominated secured notes due 2030. The Debt Securities were issued on April 29, 2026 and bear interest at a 9.450% nominal annual rate. The Province plans to use the proceeds to buy back some of the BOCADE Public Securities maturing in 2030 and to fund infrastructure projects and public works. This includes optimizing the Lago Musters–Comodoro Rivadavia, Rada Tilly, and Caleta Olivia Regional Aqueduct, as well as supporting related projects and purchasing equipment and instruments needed to open the High Complexity Hospital of Trelew “María Humphreys.” The DLA Piper team comprised of Partners Joshua Kaufman (New York), Marcelo Etchebarne, Justo Segura, Of Counsel Nicolás Teijeiro, and Associates Daiana Suk, Federico Vieyra, Ignacio Comparato and Martina Miret (all Buenos Aires). DLA Piper’s Latin America team offers full-service business legal counsel to domestic and multinational companies with interests and operations throughout the region. Our integrated approach combines local knowledge with the resources of DLA Piper’s global platform. With more than 400 lawyers practicing throughout Argentina, Brazil, Chile, Mexico, Peru, and Puerto Rico, together with our US-based cross-border attorneys, our teams frequently collaborate with colleagues across the Latin America region, the Iberian Peninsula, and around the world. DLA Piper’s global platform of 90+ offices in more than 40 countries enables us to serve clients’ legal and business needs, whether they are based in Latin America or seeking to do business there. For more information, visit Latin America | DLA Piper.