Author: dev_

Vouga Abogados assisted Tape Pora S.A. in a new bond issue, entirely acquired by local investors, to partially finance the works related to the concession for the construction, duplication and adaptation of Route No. 7 “Gaspar Rodríguez de Francia” in the area between Pastoreo and Minga Guazú. The total amount of the bonds placed on this occasion amounts to 65,000 million guaraníes (about US$ 10 million).

The issuer and the bondholders have entered into purchase agreements for bonds issued and placed by the concessionaire through the Bolsa de Valores y Productos de Asunción S.A. (BVPASA), under the Global Issuance Program PEG04.

To ensure payment to investors, the concessionaire constituted an administration and source of payment trust through which it has transferred to the trust the surpluses of the administration and payment trust constituted in 2017, called Tape Pora 02, whose autonomous patrimony is constituted by the toll collection rights on the concessioned section of Route 7.

The incorporation of the new management and payment source trust named Tape Pora 04 implies a subordination of debt service by priority of payment of the bonds under the PEG02 Global Issuance Program as well as the bonds under the PEG03 Global Issuance Program, in relation to the bonds issued under the PEG04 Global Issuance Program.

The parties involved in the transaction were:

Tape Porã S.A. - Concessionaire, Issuer and Trustor.

Banco Atlas S.A.E.C.A. - Trustee.

BASA CASA DE BOLSA SOCIEDAD ANONIMA - Investor and Beneficiary The Vouga Abogados team involved in the transaction was led by Cynthia Fatecha (Partner - Banking & Finance) and Carlos Vouga Z. (Partner - Banking & Finance).

To learn more about this transaction or if you have any questions related to Banking & Finance, please contact Cynthia Fatecha (cfatecha@vouga.com.py), Carlos Vouga Z. (cvouga@vouga.com.py), Georg Birbaumer (gbirbaumer@vouga.com.py) or Lorena Salcedo (lsalcedo@vouga.com.py) 

Last May 19, the Executive Power issued Decree No. 3605 (the Decree) establishing an extraordinary regime of measures for the holding of assemblies and remote meetings of the corporate bodies of corporations using telematic means.

As stated in the Decree Recital, the objective is to provide a regulatory basis to enable the normal functioning of collegiate bodies, such as assemblies or board meetings, within the framework of the sanitary emergency and, at the same time, to comply with the sanitary measures in force.

Consequently, an exceptional authorization arises and for a limited period of time, until December 31, 2020, for the collegiate bodies of corporations to opt to use telematic means or digital and/or electronic platforms to hold remote meetings, which allow their members to be present and participate for the exercise of rights and obligations, in real time and simultaneously with the other participants, on the items on the agenda.

Pursuant to Art. 2 of the Decree, the holding of meetings by telematic means is an option of the collegiate body. In fact, the collegiate body has the power, but not the obligation, to convene and hold meetings remotely and by telematic means, provided that a series of requirements are met, which are set forth below:


1. Notice - The company shall publish the notice of meeting and shall state the following in the notice:

1.1. The telematic means through which participation may be made.
1.2. The company's valid e-mail address for communications.
1.3. The mechanism for the accreditation of the right to participate in the meeting within the established legal term. It is important to highlight that this requirement refers to the deposit of the shares no less than three business days prior to the date set, as provided in Article 1084 of the Civil Code, for which the shareholder's submission of a certificate in digital format issued by a depository entity (banking entity) or by a notary public, indicating the number of shares deposited, type of share, rights granted and number of votes, shall be considered acceptable. Likewise, the shareholder who sends the certificate via e-mail must notify the company the valid e-mail address to which the company must send the information regarding the meeting, as well as the information regarding whether he/she will participate in the meeting through a proxy, in which case he/she must attach the corresponding supporting document.

2. Invitation - The company shall send to the shareholder's mail the invitation to the meeting with the following information:

2.1. Telematic means through which the meeting will be held and information necessary for remote assistance.
2.2. Telematic means by which the information on the items on the agenda may be consulted.
2.3. How to participate in discussions and deliberations.
2.4. Form and means of casting the vote.

3. Obligations for the company during the assembly act:

3.1. To allow simultaneous participation (audio and video) of accredited persons.
3.2. To allow the participation with voice and vote of the accredited persons and of the members of the body (chairman and secretary of the assembly, trustee).
3.3. Allow access to the documents to be analyzed by the body.

4. Obligations for the company after the meeting:

4.1. Transcribe or print in the corporate book the deliberations and resolutions of the meeting, indicating the persons who attended and participated in the meeting; the transcription must be signed by the persons determined by law (president, secretary, two shareholders or their representatives, trustee). Pursuant to the provisions of the Decree, with the inclusion of the attendees in the minutes and the corresponding telematic records, the requirements for signing the meeting attendance book are deemed to be fulfilled.
4.2. To have a complete recording of the meeting, in digital format, which must be kept for five years and be available to shareholders and competent bodies.

It is also important to remember that the deadline for calling ordinary meetings has been extended to June 30, 2020, which means that such meetings may be held throughout the month of July 2020.

Finally, we point out that the Decree must be regulated by the General Directorate of Individuals and Legal Structures and Beneficial Owners.

For any questions regarding this or other corporate matters, please contact Cynthia Fatecha (cfatecha@vouga.com.py) or with Perla Alderete (palderete@vouga.com.py)

Vouga Abogados, in collaboration with the Paraguayan Industrial Union (UIP), will give a webinar next Friday, May 22 at 18:00 hours (-4 GMT), where relevant legal issues that should be taken into account by entrepreneurs when making decisions necessary for the protection of their company and to ensure the preservation of employment will be discussed.

The lecture will address tax and fiscal issues, contractual issues, digital signature and competition law, as well as other issues related to the prevention and management of disputes and other means of dispute resolution.

Panelists:

Perla Alderete - Partner (Labor and Corporate)

Mirtha Dos Santos - Partner (Litigation)

Rodrigo Fernández de Nestosa - Partner (Corporate)

Andrés Vera - Senior Associate (Tax and Corporate)

To reserve a place and apply for registration, please contact Ing. Cynthia Figari at (+595)0971-388166 or fill out the following form 

https://docs.google.com/forms/d/e/1FAIpQLScIMvyaKRhIKuGWO32QSurdUO6Wo-2nDB-jbauE9JSS5xMwaA/viewform 

The Central Bank of Paraguay (BCP), in its capacity as the regulatory authority for Electronic Payment Means Entities (EMPEs), issued Resolution No. 6/2020 on April 16, 2014, amending Resolution No. 06/2014 “Regulations for Electronic Payment Means”.

The main motive behind Resolution No. 06/2020 is the need to promote and facilitate the operations of the SPVs, thus adapting them to the current market requirements, promoting the efficiency and stability of the financial system, fostering legal certainty, providing an efficient service to the financial consumer and ensuring the transparency of the rules that regulate payment instruments and services.

Among the most important novelties introduced by Resolution No. 06/2020 are the following aspects:

• The new resolution allows the electronic money account to be used also by the EMPE according to the account holder's instructions to make drafts, payments and/or transfers to the beneficiary. Previously only the account holder could use it.
• Increases the term for determining inactive accounts to 180 calendar days from the time the last transaction was made. Previously the term was 90 calendar days.
• Previously, Resolution No. 6/2014 only established the possibility of transferring the balances of inactive accounts to a bank account of the holder or that the EMPE enables a bank account, on behalf and order of the holder, regardless of the amounts of the balances. Resolution No. 6/2020 establishes two procedures, depending on the amount of the balance: (i) balances equal to or greater than two minimum wages, must be transferred to the deposit account in a financial institution specified by the holder in the service provision contract with EMPE or, in case of not having a bank account, EMPE must enable a bank account, for the account and order of the holder; and (ii) balances lower than two minimum wages, must remain in EMPE at the disposal of the holder, and EMPE must arbitrate the necessary means to communicate the holder the situation and proceed to the corresponding refund.
• The previous text of Resolution No. 06/2014 determined that it could not exceed 40 minimum wages. Likewise, the limit of three minimum wages was established for the monetary value of conversions and accreditations in account per calendar month; previously the limit was the amount determined by the Secretariat for the Prevention of Money or Asset Laundering (SEPRELAD) for low-risk clients.
• It is clarified that only commissions (if any) for cash reconversion and cash withdrawal may be deducted.
• Eliminates the list of minimum documents required to request the authorization to operate as an SPE. The new text indicates that the required documentation will be determined by the BCP through complementary regulations to Resolution No. 06/2020.
• Allows SMEs to set up Clearing Houses to achieve interoperability of transfers between their clients.
• The possibility of making deposits in the BCP as a guarantee is included. Previously, the only guarantee option was the constitution of an autonomous patrimony. Likewise, the possibility of offering guarantee mechanisms other than those authorized (deposits in the BCP and autonomous patrimony) is maintained, with the prior authorization of the Central Bank of Paraguay.
• Regarding the network of agents and points of sale, previously it was only established that no SPE could prohibit or restrict agents or points of sale from accessing or using other systems or means of payment duly authorized by the Central Bank of Paraguay. Neither could it, in any case, establish limits and/or penalties for the case that agents use the services offered by another different SPE; Resolution No. 6/2020 clarifies that the prohibition of restrictions is extensive to advertising actions, and brand visibility of the services offered by another different SPE and commercial actions that any SPE performs with any agent or point of sale.
• With respect to the limits on non-bank wire transfers, (i) it establishes a new transactional and operational limit, whereby the amount of non-bank wire transfer transactions made between electronic money accounts may not exceed, on a monthly basis, three minimum wages; (ii) allows the beneficiary, who has an electronic money account or bank account, to make partial withdrawals of the amount transferred; (iii) establishes that each non-bank electronic transfer that is not withdrawn by the beneficiary within ten calendar days from the moment the transfer is sent, must be transferred again to the sender or holder.
• The prohibition for EMPE to perform financial intermediation, pay interest, directly or indirectly by itself or through an intermediary, is maintained; however, it now allows EMPE to act as a service channel for financial entities.

In addition to the Electronic Means of Payment Regulations, SPEs are regulated by an extensive body of regulations that complement these regulations. The main regulations are the following:

• Resolution No. 1, Minute No. 77 dated 11.20.18, regulating the opening of Electronic Payment Medium Institutions

This resolution establishes the procedure for obtaining authorization to operate as an SPEEM, and is divided into three steps:

The first step establishes all the requirements that must be contained in the application letter together with the information that must necessarily be attached, among others:

• Information about the entity (name, address, telephone numbers, etc.);
• RUC;
• copy of the articles of incorporation of the company;
• shareholder list (including certain documentation corresponding to each shareholder);
• report of the entity that will act as trustee of the trust for the constitution of guarantees for the users' balances or, in case of offering different guarantee mechanisms, the detail, modality and arguments that justify the effectiveness of their execution;
• the list of the members of the Board of Directors of the company together with a list of the executive officers and attorneys-in-fact, with specific personal data (including certain documentation corresponding to each person);
• a business plan with specifically determined guidelines;
• an operational and organizational plan with precise guidelines;
• the contract signed with the telecommunications service provider;
• technical and economic conditions for the provision of telecommunications services;
• the certificate of no objection issued by the National Telecommunications Commission (CONATEL);
• the model adhesion contracts to be subscribed between EMPE and the agents, as well as with the points of sale, the technological service providers and the users; such contracts must follow the guidelines established in the regulations; and
• any additional information that the BCP deems necessary to verify the net worth situation and the origin of the shareholders' resources, as well as the technical capacity, experience and reputation of the administrators.

In turn, the second step indicates the procedure to be followed by the BCP once the application has been received. The procedure consists of a formal review of the documentation submitted, followed by the issuance of final legal and technical opinions which, if favorable, will allow the publication of the application in newspapers of wide circulation and then the submission of the draft authorization resolution to the BCP's Board of Directors.

Finally, the third step establishes that after 180 days from the issuance of a favorable Resolution of the BCP's Board of Directors, the SPVME will proceed to start operations. In the event of failure to start operations within such period, following a report from the Superintendency of Banks, the authorization to operate may be revoked, and a new presentation may not be submitted within a period of one year.

• Resolution No. 10, Act No. 8 dated 01.31.19, regulating the Information Regime for SOEs.

The resolution in question establishes the form and frequency in which the SPEs must send the information to be submitted to the BCP. At the same time, it empowers the Superintendency of Banks to expand the information to be sent by the SPEs, as well as its frequency. It also attributes the administrative sanctions of Laws No. 489/95 and 6104/18 to the failure to comply with the duty to submit the information in the established form.

The means of communication established as the recipient of the required data to be sent by the SOEs is by e-mail. Only the data to be reported on an annual basis must be submitted in printed form. It is indicated that the BCP will provide model forms for reports that must be used necessarily and in all cases contain in a clear and visible manner the entity to which the reported period belongs and express “This form is a sworn statement”.

The different data to be reported to the BCP are classified according to the frequency with which they must be reported.

(i) The total balance held by users, stores, agents and points of sale; the balances recorded in the trust; the daily amount of collateral deposited in the trust; and the name of the financial institutions depositing the funds must be reported daily. This data must be sent to the BCP the next business day after the close of the reported day.

(ii) To be presented monthly are the number of existing users, the number of active and inactive accounts, the number of complaints or claims with their respective procedures and results; the number and type of access channels by district; the number of accounts by district remitting and receiving non-bank wire transfers and making payments at merchants; the number of transactions by district remitting and receiving non-bank wire transfers and making payments at merchants; the number of transactions by district remitting and receiving non-bank wire transfers and making payments at merchants; the total number of accounts, transactions and amount by type of service or product; the number and amount by type of service or product; the total number of accounts, transactions and amount by type of service or product; the number and amount by type of service or product; the number and amount by type of service or product; the amounts of transactions by districts that remit, receive non-bank wire transfers and make payments at merchants; the total number of accounts, transactions and amounts by type of service or product; the number and amounts of accounts migrated to the financial system due to inactivity and linkage; the number of relevant incidents of service interruption, fraud, theft and/or robbery. These data must be submitted to the BCP within the first five working days following the close of the reported month.

(iii) Audited financial statements must be submitted annually; audited financial statements of the trust; and the report of external audits and security certifications carried out on both the technological infrastructure and the applications used for the operation of the SPEs.

• Resolution No. 11, Minute No. 63 dated 09.09.2019, granting authorization to administer the EMPE Clearing House and recognizing it as a payment system.

This resolution authorizes the company BEPSA DEL PARAGUAY S.A.E.C.A. to operate as administrator of the EMPES Clearing House and recognizes it as a Payment System, pursuant to the provisions of Law No. 4595/2012 “Payment and Securities Settlement Systems”. Likewise, the resolution approves the General Rules of Adhesion and Operation of the EMPES Clearing House and establishes that the settlements, product of the compensations made in the EMPES Clearing House must be made unfailingly in the settlement accounts held by the EMPEs in the BCP.

• CIRCULAR SB. SG. No. 00072/2020 - Request for information to the PMSCs

This Circular establishes that all modifications to contracts entered into between the SPEs and Agents, Points of Sale, Technological Service Providers and Users must be sent to the BCP within five days after the signing of the instrument.

For further information regarding SPEs, please contact Carlos Vouga (cvouga@vouga.com.py), Cynthia Fatecha (cfatecha@vouga.com.py) and Georg Birbaumer (gbirbaumer@vouga.com.py).

On April 15 at 10:00 a.m. (GMT -4), our Labor Law specialist Walter D. Vera, will give a webinar on labor rights in times of the Coronavirus pandemic (COVID-19).

The webinar is free and open access and you can register by clicking on the following link:

https://us04web.zoom.us/webinar/register/WN_oSdJjMcKQiyPWV0oX7bC1w

We have updated our COVID-19 Legal Information Center with the latest news and relevant information about the measures adopted by the Government and their legal impact, such as:

1. Extensions.
2. Containment measures in labor and financial matters.
3. Fiscal measures
4. Clarifications to the Decrees.

You can access the information center by clicking on the following link:

https://vouga-paraguay.com/es/covid19/

To receive updated information in real time, we invite you to follow us on LinkedIn (VougaAbogados)  and Twitter (@Vouga_Abogados).

Next April 14 at 17:00 hours (GMT -4), our associate Eusebio López will participate in a webinar that will deal with the breach of equilibrium of contracts in times of crisis. Special emphasis will be placed on the ICC model clauses on Force Majeure and Unforeseeability.

The webinar is free and open access and you can register by clicking on the following link:

In order to support our clients in facing the effects of the legal measures implemented by the public authorities of Paraguay in relation to the sanitary emergency caused by the Coronavirus (COVID-19), we have implemented a COVID-19 Legal Information Center exclusively dedicated to provide information on the regulations and measures adopted by the Government and their legal impact. You can access the information center by clicking on the following link:
 
COVID-19 LEGAL INFORMATION CENTER

In our Legal Information Center COVID-19 you will also find articles of interest on the effects of these measures on legal relationships.

To receive updated information in real time, we also invite you to subscribe to our newsletter at https://www.vouga.com.py/esp/suscripcion.php, and follow us on VougaAbogados  (LinkedIn) and @Vouga_Abogados (Twitter).

The COVID-19 Legal Information Center is constantly updated as new measures are implemented. We suggest you visit it on a regular basis in order to access the latest news.

Consultation channel

We have formed a multidisciplinary work team, which is available to answer all legal questions that our clients may have, and support them in facing the operational and legal challenges that arise. For this purpose, and in order to handle your inquiries as quickly as possible, we ask you to contact us at: info@vouga.com.py or your usual legal advisor at VOUGA ABOGADOS.

Legal note: The information contained in the site does not constitute legal advice. Should you require advice on specific legal issues or facts relating to COVID-19, please contact your usual legal counsel at VOUGA ABOGADOS.

On Thursday, March 26, 2020, the Executive Branch enacted Law 6524/20 declaring a State of Emergency throughout the national territory.

Below is the link to the Official Gazette where the complete text of the Law is published:

http://www.gacetaoficial.gov.py/index/detalle_publicacion/62474

MEDIDAS JUDICIALES ADOPATAS DURANTE LA EMERGENCIA SANITARIA

En el marco de la emergencia sanitaria dispuesta por el gobierno nacional ante el riesgo de expansión del Coronavirus (COVID-19), el Poder Judicial (“PJ”)  ha adoptado una serie de medidas de contención y prevención durante el periodo de emergencia sanitaria declarada. En este mismo sentido lo hizo el Centro de Arbitraje y Medicación Paraguay(“CAMP”). A continuación, un resumen de las medidas más relevantes:

(I)            El Poder Judicial.

Dispuso la suspensión de las actividades judiciales y administrativas desde el 12 de marzo al 12 de abril de 2020, así como de los plazos procesales, administrativos y registrales, según lo previsto en las Acordadas Nos. 1376 y 1370 de la Corte Suprema de Justicia de fechas 11 y 25 de marzo de 2020 respectivamente.

No se encuentra encuentran afectadas por esta suspensión las siguientes acciones:

1.     La Jurisdicción Civil y Comercial de la Capital que cuenten con el expediente judicial electrónico o trámite judicial electrónico, con las siguientes especificidades:

(i)    La suspensión de plazos procesales serán reanudados a partir del 30 de marzo de 2020 hasta el 08 de abril del 2020.

(ii)   De los 26 Turnos entre los que se dividen Juzgados de Primera Instancia, los Turnos 1 a 17 cuentan con el trámite judicial electrónico, mientras que los Turnos 18 a 26 cuentan con el expediente judicial electrónico. Es decir, todos en todos ellos se reanudarían los plazos.

(iii)  No se podrán presentar demandas nuevas.

(iv)  Las audiencias, procedimientos, nuevas intervenciones y/o autenticación de documentos, se realizará a través de medios telemáticos a ser indicados por el juzgado.

(v)   Solo se podrán diligenciar los oficios electrónicos.

(vi)  La presentación de sobres cerrados que contengan absolución de posiciones y alegatos, se presentarán en la Oficina de Atención del PJ ante el Actuario de Turno, quien se encargará de entregar al juzgado correspondiente.

(vii)El código QR insertado en las resoluciones judiciales (sentencias, autos interlocutorios, providencias, mandamientos) equivaldrá al original, debiendo el destinatario validarlo con el lector y dar cumplimiento a la orden judicial.

(viii)             Las sentencias definitivas serán notificadas electrónicamente a través de la bandeja de notificaciones que consta en el sistema electrónico.

(ix)  Se podrán interponer recursos de apelación y nulidad ante el Tribunal de Apelaciones, teniendo en cuenta las siguientes particularidades:

• De las 6 Salas entre las que se divide el Tribunal de Apelación, solo las Salas 5 y 6 cuentan con el expediente judicial electrónico, por lo que en éstas dos Salas se reanudarían los plazos.
• De las Salas 1 a 4 del Tribunal de Apelación, y la Sala Civil de la Corte Suprema de Justicia, cuentan con el expediente judicial electrónico o trámite judicial electrónico, por lo que en estos casos los plazos seguirán suspendidos –en principio- hasta el 12 de abril del 2020.-

 2.     Acciones, excepciones y consultas de inconstitucionalidad nuevas derivadas del Fuero Penal y de juicios sobre garantías constitucionales (amparo, habeas corpus, habeas data).

3.     Los procesos de los Fueros Penal y de la Niñez y la Adolescencia tramitados ante la Sala Penal de la Corte Suprema de Justicia.

4.     Medidas cautelares de urgencia, restituciones, maltrato y venias para viajar (a excepción de aquellas con fines de radicación) correspondientes al Fuero de la Niñez y la Adolescencia.

5.     Permisos para viajar de niños y adolescentes, así como los casos de violencia familiar tramitados ante los Juzgados de Paz.

6.     Audiencias de imposición y de revisión de medidas, órdenes de allanamiento, secuestro y anticipo jurisdiccional de pruebas correspondientes a los Juzgados Penales de Garantías.

7.      Juicios orales del Fuero Penal ya iniciados, así como los ya calendarizados con fecha de extensión hasta el mes de abril de 2020.

8.     Por Circular No. 3 de fecha 12 de marzo de 2020 del Consejo de Superintendencia, se comunicó que se podrán presentar tercerías de dominio en la Oficina de Atención Permanente.

(II)           Centro de Arbitraje y Medicación Paraguay.

El CAMP, dependiente de la Cámara Nacional de Comercio y Servicios de Paraguay, a pesar de ser una institución privada, es el principal referente para la realización de procesos arbitrales en el país. El mismo se ha visto afectado por las medidas sanitarias del Gobierno Nacional y, en dicho, contexto, por Comunicado del 21 de marzo de 2020 ha hecho saber al público en general que su Consejo Directivo ha resuelto:

1.     Suspender las actividades del CAMP del 23 al 27 de marzo de 2020.

2.     Asegurar la atención a puertas cerradas de la Secretaría del CAMP, atendiendo de manera remota a través de las direcciones de correo electrónico de 3 de sus colaboradores.

3.     Requerir a cada tribunal arbitral que resuelva, en uso de sus atribuciones, la suspensión de los plazos y las actuaciones procesales del 23 al 27 de marzo de 2020 o, si las partes lo acordaren, la continuación de los procesos por medios electrónicos.

Si desea obtener mayor informaciones sobre estas resoluciones y medidas adoptadas, favor póngase en contacto con Mirtha Dos Santos (mdsantos@vouga.com.py), Silvia Benítez (sbenitez@vouga.com.py), Alice Ferreira (aferreira@vouga.com.py) Elio Aguero (eaguero@vouga.com.py), Luis Marcio Torales (lmtorales@vouga.com.py) o Eusebio López (elopez@vouga.com.py) .  Desde VOUGA ABOGADOS estaremos monitoreando de forma constante las medidas que irá adoptando el Gobierno contra la propagación del Coronavirus (COVID – 19), actualizando diariamente en nuestra web https://www.vouga.com.py/esp/novedades.php.