Accounting Disclosure of Effects Generated by Judicial Measures Regarding Impositions

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMUNICACIÓN “A“ 3916 03/04/2003
TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 394
CONAU 1 - 567
Accounting disclosure of the effects generated by judicial measures regarding impositions.
____________________________________________________________ We address you to inform you that this Institution has adopted the following resolution:

“1. Admit, by financial entities, the recognition of the differences resulting from the compliance with judicial measures originating in cases where the applicable current regulations regarding deposits in the financial system are challenged, within the framework of what is provided by Law 25.561, Decree 214/02, and complementary provisions.

The amount of the recognition is that obtained from the difference between the balance or lower amount that corresponds - according to the judicial measure adopted - of the foreign currency of origin converted at the exchange rate applied in the settlement - in case it was made in pesos - or the reference rate of the Central Bank - when it was made in dollars, using in case the passing rate that this Institution disseminates - and the relevant amount accounted for according to current regulations (conversion to pesos at the rate of $ 1.40 for each US dollar or its equivalent in other currencies plus the application of the Reference Stabilization Coefficient - “CER” -) on the date of the settlement. If there is no reference exchange rate, the closing selling rate for banknotes of the Bank of the Argentine Nation will be used.

Payments made in dollars are also considered when, as a consequence of what is provided by the judicial measure, the constitution of a deposit in foreign currency for part or all of the deposit in question has been ordered.

2. Admit that the amount determined according to the methodology established in the preceding point 1, be registered in the account enabled for that effect and amortized from April 2003 - at the latest - in 60 equal, monthly, and consecutive installments, not constituting a deductible concept for the purposes of calculating Computable Patrimonial Responsibility. The sums determined after April 2003 will be amortized - at the latest - within the term indicated, counted from the month of their activation.”

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio José Rutman
Issuance Manager Principal Manager of Norms of Norms

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