Circular LISOL 1 - 109. CONAU 1 - 167. OPRAC 1 - 388. Valuation of holdings of national public securities. Complementary rules

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 2321 21/03/95 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 109.
CONAU 1 - 167.
OPRAC 1 - 388.
Valuation of holdings of national public securities. Complementary rules

We address you to inform you that this Institution adopted the following resolution:

"- Establish that, effective as of February 1, 1995, financial entities may apply the accepted valuation criteria for holdings of national public securities accounted for in investment accounts to other holdings regarding which there is no financing capacity under the terms defined in point 1.2 of the resolution disseminated by Communication "A" 2266 and its complementary, provided they observe the following conditions:

1. They are maintained for a minimum term of one year, counted from the incorporation of the holding into this registration modality.

2. It is applied in relation to holdings equivalent to up to 75% of the excess integration of computable equity responsibility recorded on the last day of the second month prior to that corresponding to the minimum capital requirement of that month.

3. The valuation criterion employed regarding these holdings is disclosed in a note to the quarterly and annual financial statements, quantifying the difference resulting from having used -for accounting registration purposes- the corresponding quotation value.

4. For the purpose of determining the computable equity responsibility as term "Vc" of the expression referred to in point 3.1 of Chapter VI of Circular LISOL - 1 (text according to Communication "A" 2277), the positive difference resulting from comparing the book value of the holdings attributed to this registration modality with the quotation value at the close of operations on the last business day of the month is deducted.

5. Information is provided on the incorporation into this registration modality of existing holdings in February, effective as of that month, by means of a note addressed to the Superintendency of Financial and Exchange Entities, which must be presented no later than March 31, 1995.

6. They are accounted for separately by currency of issuance, in accounts named "Public Securities - Holdings in investment accounts - Additional Margin".

7. The provisions established for public securities registered in investment accounts are applied in other aspects, as provided in Communication "A" 2266 and complementary, including that regarding cases of non-compliance.

8. The amount referred to in point 4., corresponding to the month closing the annual fiscal year, is withheld for the purpose of establishing the distributable balance of the relevant draft distribution of profits."

We salute you very respectfully.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio Miguel A. Kiguel
Manager of Standards for General Manager
Financial Entities Area of Economics and Finance