Company: TCMFF
Filing Date: 2025-05-19
Form Type: 6-K
Source: 0001104659-25-050264
Chunk: 10

Company: TELECOM ARGENTINA SA
Filing Date: 2025-05-19
Form: 6-K
Chunk 10
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 the IMF-supported program. On April 8, 2025, the IMF
Executive Board and the Argentine authorities reached a staff-level agreement in connection with an extended fund facility arrangement.
On April 11, 2025, the IMF’s Executive Board approved a 48-month, U.S.$20 billion extended fund facility arrangement for Argentina
and the immediate disbursement of U.S.$12 billion, allowing the Argentine administration to continue its efforts to restore macroeconomic
stability. See “Risk Factors—Risks Related to Argentina—Argentina’s ability to obtain financing from international
markets is limited, which could affect its capacity to implement reforms and sustain economic growth” in the TEO 2024 20-F.

Although a portion of TMA’s
commercial and financial liabilities are denominated in foreign currencies, TMA’s assets, operations and customers are located in
Argentina. Accordingly, financial condition, results of operations and cash flows depend to a significant extent on economic and political
conditions prevailing in Argentina. The Argentine government has exercised and continues to exercise significant influence over many aspects
of the Argentine economy. Accordingly, Argentine governmental actions concerning the economy could significantly affect private sector
entities in general and TMA operations in particular, as well as affect market conditions, prices and returns on Argentine securities,
including TMA’s outstanding securities. TMA operating results, financial condition and cash flows have been and will be affected
by fluctuations in the Argentine economy.

Effect of Inflation

Pursuant to IAS 29, the financial
statements of entities whose functional currency is that of a hyperinflationary economy must be restated. IAS 29 does not prescribe when
hyperinflation arises but lists several indicators of hyperinflation. Since July 1, 2018, Argentina has been categorized as a hyperinflationary
country, since certain macroeconomic indicators and events during 2018 evidenced that the qualitative and quantitative factors identified
in IAS 29 (the quantitative factor being that the country’s projected three-year cumulative inflation rate exceeds 100%) were satisfied.
Therefore, TMA has restated the TMA Financial Statements and the financial information in current Argentine Pesos as of December 31,
2024, for all periods reported in this TMA 6-K based on certain price indexes to account for the effect of inflation in Argentina. See
Note 2.1.b) of the TMA Financial Statements.

The Consumer Price Index
(“CPI”) has registered an increase of 117.8