Accounting Disclosure of Effects Generated by Judicial Measures Regarding Impositions. Modification.

"2005 - Year of Homage to Antonio Berni"
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 4439 17/11/2005
TO FINANCIAL ENTITIES:
Ref.: Circular
CONAU 1 - 746
LISOL 1 - 444
Accounting Disclosure of the Effects Generated by Judicial Measures Regarding Impositions. Modification.
____________________________________________________________ We address you to inform you that this Institution has adopted the following resolution:

"1. Establish that, from December 2005, the monthly amortization of the amounts activated in accordance with the provisions of points 1. and 2. of Communication "A" 3916, for the granting of new long-term loans, may be deferred, according to the following procedure:
a) "New long-term loans" shall be understood as disbursements for financing in pesos and foreign currency to clients in the commercial portfolio of the non-financial private sector - including those mentioned in point 5.1.2.3. of Section 5. of the rules on "Classification of Debtors" -, whose average term at the time of granting is greater than 2 years, weighting the capital maturities and not considering, if applicable, estimates of the evolution of the Reference Stabilization Coefficient ("CER") and regardless of the destination and modality of instrumentality - such as loans with or without guarantee, assets in financial lease and bonds acquired by primary subscription, credits acquired from other entities (provided that at the time of purchase they meet the established conditions, considering the residual term greater than 2 years), excluding holdings of instruments issued by financial trusts.- Additionally, the originating entities of the aforementioned credits that are transferred to financial trusts may count within this concept the total of the amounts, net of amortizations and/or prepayments reported by the trustee. b) At the end of each month, and until December 2008 inclusive, the variation in the balances - capitals, in pesos and foreign currency not converted to pesos - of the "new long-term loans" with respect to the balance at the end of the immediately preceding month shall be determined. The variation in foreign currency shall be converted to pesos taking into account the reference exchange rate reported by the Central Bank for the last business day of the month and added to the variation in the balance in pesos. When the obtained amount is positive, the absolute value of the negative variation registered by the financing to the clients mentioned in paragraph a) regardless of their average term, which have implied disbursements of funds and excluding "new long-term loans", shall be deducted. This variation shall be determined by comparing the balances at the end of the respective month with the average of such financings corresponding to the balances at the end of September, October and November 2005, observing the mechanism indicated in the previous paragraph for operations in pesos and foreign currency.

-2- c) In the first period of application of the procedure, 50% of the positive result arising from the calculation performed according to paragraph b) shall constitute the theoretical amount whose amortization is admitted to be deferred.
The actual amount subject to deferral shall be the lesser of:
i) the aforementioned theoretical amount. ii) the amount equivalent to 10% of the computable equity responsibility of the second preceding month. iii) the amount determined by applying the provisions of point 2. of Communication "A" 3916.
In subsequent months, a similar procedure shall be used, taking into account that the theoretical amount whose amortization is admitted to be deferred shall be 50% of the positive result arising from the calculation performed according to paragraph b) plus the amounts that could not be deferred due to the application of any of the restrictions in paragraphs ii) and iii) above. Furthermore, from the second month, the restriction in paragraph ii) shall operate on the amount equivalent to 10% of the computable equity responsibility of the second preceding month minus the total accumulated deferrals. d) In the event that the monthly variation in the balances of the "new long-term loans" results negative or there is none, adjusted, if applicable, according to the procedure established in the last paragraph of paragraph b), it will be necessary to increase the amortization determined in accordance with point 2. of Communication "A" 3916. The amount of the increase shall be equivalent to 50% of the sum of that variation, considered in absolute value. e) The amount deferred monthly - reduced by what corresponds according to what is established in paragraph d) - shall be accumulated until December 2008 in an account opened for this purpose, whose balance shall not exceed 10% of the computable equity responsibility of the second preceding month. The balance recorded at the end of December 2008 shall be amortized from January 2009 in up to 36 equal, monthly and consecutive installments. In the event that decreases in computable equity responsibility result in excesses over the fixed limit, the excess must be amortized in the month in which it is determined. In the month in which the absolute value of the accumulated negative variation of the balances of the "new long-term loans", with respect to the balances at December 2008, is greater than the amount of the accumulated amortizations resulting from the previous calculation, an additional amortization shall correspond for an amount equivalent to the determined difference, which shall be imputed to the last remaining installments, following an inverse order. f) When early cancellations of financings included in paragraph a) occur, the entity or the financial trustee must recalculate the average life that would have resulted originally, considering in said calculation the prepayment made, which must be recorded as well as the reasons that originated it. Semi-annually, the entities or the financial trustees must send to the Superintendence of Financial and Exchange Entities an internal audit report in which the prepayments made during the period that have reduced the average life of said financings to less than 2 years will be detailed.

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The activation resulting from the application of this procedure does not constitute a deductible concept for the purposes of calculating the computable equity responsibility.
2. Replace point 7.2. of Section 7. of the rules on "Relationship for immobilized assets and other concepts" with the following:
"7.2. Differences resulting from compliance with judicial measures.
Until 12.31.08, the activated amount of the differences resulting from compliance with judicial measures originated in cases where the current regulations applicable to deposits and other obligations for financial intermediation in the financial system, originally agreed in foreign currency within the framework of what is provided by Law 25.561, Decree 214/02 (ratified by Law 25.967, art. 64) and complementary provisions, shall not be computed for the purposes of determining compliance with the maximum limit contemplated in Section 4. The balance of the accounts in which the activated amounts of these differences are reflected, whose amortization is admitted to be deferred as a consequence of the granting of new long-term loans, shall also not be computed." We send you attached the sheets that in replacement of those previously provided correspond to incorporate in the ordered text of the rules on "Relationship for immobilized assets and other concepts". We greet you very attentively. BANCO CENTRAL DE LA REPUBLICA ARGENTINA Alfredo A. Besio José I. Rutman Manager of Emission of Norms Deputy General Manager of Norms a/c
ANNEX

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7.1. Shares or participations received in payment of credits.
The total of the shares or participations in the capital of companies received in payment of credits up to the limit of 20% of the social capital, without exceeding 20% of the votes, with respect to companies that do not provide complementary services, in accordance with the conditions established in Section 9. of the rules on "Graduation of credit", shall not exceed 40% of the computable equity responsibility of the financial entity of the month that corresponds, during the maximum periods established for the liquidation of holdings, in points 9.1.1. and 9.1.2. of said Section 9. This without prejudice to its computation as established in point 1.1. of Section 1. for the purposes of determining compliance with the maximum limit referred to in point 4.1. of Section 4. If excesses over the maximum limit of 40% referred to in the preceding paragraph are verified, the financial entity shall be subject to the provisions established in Section 5. Once the periods for the liquidation of holdings have elapsed, the excesses over the percentage of holding admitted to which point 3.2. of Section 3. of the rules on "Graduation of Credit" refers, must be deducted from the computable equity responsibility.
7.2. Differences resulting from compliance with judicial measures.
Until 12.31.08, the activated amount of the differences resulting from compliance with judicial measures originated in cases where the current regulations applicable to deposits and other obligations for financial intermediation in the financial system, originally agreed in foreign currency within the framework of what is provided by Law 25.561, Decree 214/02 (ratified by Law 25.967, art. 64) and complementary provisions, shall not be computed for the purposes of determining compliance with the maximum limit contemplated in Section 4. The balance of the accounts in which the activated amounts of these differences are reflected, whose amortization is admitted to be deferred as a consequence of the granting of new long-term loans, shall also not be computed.
7.3. Non-compliance.
It shall not be computed, until 12.31.05, to calculate the limitations established in point 2.3. of Section 2. of the rules on "Non-compliance of minimum capitals and technical relations. Applicable criteria.", the amount of the excess that this relationship registers, without exceeding the one verified at 12.31.03, deducting the assets taken in defense or in payment of credits incorporated into the entity's assets until 3.31.03. RELATIONSHIP FOR IMMobilized ASSETS B.C.R.A. AND OTHER CONCEPTS
Section 7. Transitional Provisions.
Version: 8a COMMUNICATION "A" 4439
Validity:
17/11/2005

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RELATIONSHIP FOR IMMobilized ASSETS
AND OTHER CONCEPTS
ORDERED TEXT ORIGIN NORM
Section Point Paragraph Com. Cap. Point Paragraph Observations
6.1. "A" 2227 unique 5.2.1. last According Com. "A" 2649.
6. 6.2. "A" 2227 unique 5.1.8. According Com. "A" 2736.
"A" 2227 unique 5.2.2.
7.1. "A" 3918 6. According Com."A" 4093 (point. 2.).
7.2. "A" 3954 1. According Com. "A" 4020, "A"
4124, "A" 4254, "A" 4402 and
"A" 4439, pto. 2.
7.
7.3. "A" 4093 8. According Com. "A" 4254.