Active Operations Circular - OPRAC 1 - 187. Regime for pre-financing promoted exports

CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION "A" 1127 01/12/87
TO FINANCIAL ENTITIES:
Ref.: Active Operations Circular - OPRAC - 1 - 187. Regime for pre-financing promoted exports.
We address you and, through you, the interested parties, to inform you that this Bank has decided to modify point 2.1.10.3. of Circular OPRAC - 1 (Point 2. of Annex II of Communication “A” 598 of 28.2.85 and 2nd of Communication “A” 651 of 15.5.85). I Scope of modifications:
Replace point 2.1.10.3. of Circular OPRAC - 1 (point 2 of Annex II of Communication “A” 598 of 28.2.85 and 2nd of Communication “A” 651 of 15.5.85) with the following:
“2.1.10.3. The special support from the Central Bank of the Argentine Republic to cover operations included in the preceding norms, the Central Bank of the Argentine Republic will grant an advance of funds under the conditions established in this norm. This support will be conditioned on the total pre-financing operations covered with Central Bank resources - including the supports from Communications “A” 886 and “A” 972 - not exceeding 75% of the Computable Equity of the requesting entity reported in the last form 2966 submitted to this Institution. For the amount exceeding 50% of the Computable Equity up to 75% referred to in the preceding paragraph, entities must constitute the special financial asset referred to in Communication “A” 793 of 31.10.85, in all cases, which will be pledged in favor of this Bank to the extent of the excess over 50% of the Computable Equity. In cases where excesses in the established limit are verified, entities must allocate pre-financing credit recoveries, in the first instance, to cancel such excesses, without prejudice to also being able to apply the increase in lending capacity”.
II. Other provisions.

1. In the “Observations” section of “Form 4028 for the constitution of the Special Financial Asset referred to in Communication “A” 793 of 31.10.85, entities must record the following:

• 2 -
  “The amount in australes allocated to the constitution of the Special Financial Asset of Communication “A” 793, of 31.10.85, is delivered as a pledge guarantee for the fulfillment of credits for pre-financing promoted exports referred to in Circular OPRAC - 1, Point 2.1. (Communication “A” 49 and its complementary and modifying communications), to the extent that the use of credit for the aforementioned concept exceeds 50% of the Computable Equity of this Institution”. The aforementioned declaration of constitution of pledge guarantee must be signed by the person/persons authorized to obligate the requesting entity with a pledge guarantee. On the first occasion, and subsequently if there are changes in the signatories, an authenticated copy of the respective powers of attorney or legal authorizations granted must be attached.

2. The information requested in point 3.1. a) of Communication “C” 3089 of 16.1.87, is replaced by that detailed in the Annex to this Communication.
   Sincerely yours,
   CENTRAL BANK OF THE ARGENTINE REPUBLIC
   Abelardo J. Tejada
   Deputy Manager of Foreign Affairs
   And Exchange
   Julio A. Piekarz
   Deputy General Manager
   ANNEX

B.C.R.A. INFORMATION TO BE PROVIDED ON THE BACK OF FORMULA 2406 Access to Comm. “A” 1127

1. Balance as of 30.10.85 Australes US Dollars
   Capital
   Capital adjustment ............................ ..............................
2. Debt balance at the close of the day immediately prior to the presentation (excluding operations of 31.10.85 - Credits and their corresponding cancellations) (1).
   Day … A u$s.
   Capital A u$s.
   Orders of the day A u$s.
   Cancellations of the day A....... u$s. ....................
   Sub-total A u$s.
3. Financial Asset
   Amount exempted from constitution
   (2) A u$s.
   ........... ……………………
   Total A u$s.
4. Computable Equity
   4.1. 50% A
   4.2. More than 50% up to 75% A
   4.3. 75% (4.1. + 4.2.) A
5. Financial Asset Bond
   5.1. Balance constituted with pledge A
   5.1.1. Orders of the day (3) A
   5.1.2. Cancellations of the
   day (3) A
   5.2. Balance constituted without pledge A
   5.2.1. Orders of the day (3) A
   5.2.2. Cancellations of the day (3) A
6. Communication “A” 853
   Balance as of ….. A u$s.
   Orders of the day A u$s.

-2-
Cancellations of the day A u$s.
........... ...........................
Total A u$s.
SUMMARY

1. Balance as of 30.10.85 A
2. Debt balance (4) A
   2.1. Comm. “A” 598 A
   2.2. Comm. “A” 886 A
   2.3. Comm. “A” 972 A
3. Constitution of Financial Asset A
4. Computable Equity A
   4.1. 50% A
   4.2. 75% A
   (1) - Includes Communications “A” 598, “A” 886 and “A” 972.
   (2) - According to B.C.R.A. authorization 645/ (3) - Form 4027 is attached YES NO 4028 YES NO (4) - Subtotal of point 2.