Company: AKO-B
Filing Date: 2025-03-26
Form Type: 20-F
Source: 0001410578-25-000473
Chunk: 30

Company: ANDINA BOTTLING CO INC
Filing Date: 2025-03-26
Form: 20-F
Item: Item 3
Chunk 30
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The Argentine government has imposed, and may in the future impose further, restrictions on currency conversions and remittances abroad, which could affect the timing and amount of any dividends or other payment we receive from our Argentine subsidiary.
The Argentine government has imposed restrictions on currency conversions and remittances abroad. These controls have limited access to the foreign exchange market for Argentine residents, both companies and natural persons, including with respect to the payment of dividends in foreign currency abroad, as well as the payment of external financial debt and the payment of imports of goods and services, among others.
Under current Argentine law, and in spite of the new regulations issued by the current administration (Decree of Necessity and Urgency DNU-2023-70-APN-PTE, dated December 20, 2023, as well as other measures issued in the area of customs law and foreign trade), we continue to be restricted from accessing the official foreign exchange market to make dividend payments in U.S. dollar, euro or other foreign currencies to the Company from our Argentine subsidiaries without prior approval from the Argentine Central Bank. The current administration has indicated that it intends to provide more access to foreign currencies, but we cannot assure you that the implementation of these policies will be successful.
The significant restrictions on foreign exchange transactions imposed by the Argentine government have led to the existence of an informal foreign exchange market where foreign currencies quote at levels significantly higher than the official exchange rate. In the past, in some occasions, our Argentine subsidiary has only been able to purchase foreign currency at the informal exchange rate in order to remit dividends abroad. We cannot assure you that our Argentine subsidiary will not be required to access the informal foreign exchange market in order to purchase foreign currency in the future.
The Argentine government’s ability to obtain financing from international capital markets may be limited or costly, which may impair its ability to implement reforms and foster economic growth.
While Argentina had regained access to the international capital markets, actions by the Argentine government, or investor perceptions of the country’s creditworthiness, could curtail access in the future or could significantly increase borrowing costs, limiting the government’s ability to foster economic growth. Limited or costly access to international financing for the private sector could also affect our business, financial condition and results of operations.
The government may standardize joint agreements that provide for wage increases for private sector employees, which could increase our operating costs.
In the past, the Argentine government has previously enacted laws, rules, and decrees that required private sector businesses to pay their workers more and offer them