Calculation base for determining the interest rate to be applied on credit cards

"2013 - YEAR OF THE BICENTENNIAL OF THE 1813 GENERAL CONSTITUENT ASSEMBLY" COMMUNICATION "A" 5477 08/23/2013 TO FINANCIAL INSTITUTIONS:
Ref.: Circular
OPRAC 1 - 701
Calculation base for determining the interest rate to be applied on credit cards.

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We address you to inform you that this Institution adopted the following resolution:
"- Replace the second paragraph of point 2.1.1. of Section 2. of the rules on "Interest rates in credit operations", with the following:
Credit lines instituted within the framework of promotion and/or social assistance programs and that additionally have an interest rate that does not exceed the survey rate published by the Central Bank of the Argentine Republic (BCRA) for deposits of more than one million pesos for the term of 30 to 35 days, of the third immediate previous month, according to the type of financial institution that corresponds (public or private), increased based on the cash reserve requirement, may be excluded from the computation base to be averaged." In this regard, we send you the sheets that, in replacement of those previously provided, should be incorporated into the rules on "Interest rates in credit operations". Likewise, it is recalled that on the page of this Institution www.bcra.gob.ar, accessing "regulations" ("ordered texts"), you will find the modifications made with texts highlighted in special characters (strikethrough and bold). We greet you attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC Matías A. Gutiérrez Girault Alfredo A. Besio Manager of Issuance of Rules Deputy General Manager of Rules
ANNEX

INTEREST RATES IN CREDIT OPERATIONS B.C.R.A.
Section 2. Financing linked to credit cards.
2.1. Compensatory interest.
2.1.1. Financial institutions.
The rate may not exceed by more than 25% that resulting from the average of the interest rates that the institution has applied, during the immediately previous month, weighted by the corresponding amount of personal loans without real guarantees granted in the same period. Credit lines instituted within the framework of promotion and/or social assistance programs and that additionally have an interest rate that does not exceed the survey rate published by the Central Bank of the Argentine Republic (BCRA) for deposits of more than one million pesos for the term of 30 to 35 days, of the third immediate previous month, according to the type of financial institution that corresponds (public or private), increased based on the cash reserve requirement, may be excluded from the computation base to be averaged. Financial institutions that estimate they fall under the case described above must request prior authorization from the BCRA. The Superintendence of Financial and Exchange Institutions will analyze the credit lines subject to the presentation according to the indicated guidelines, applying a restrictive criterion.
2.1.2. Other issuing companies.
The rate may not exceed by more than 25% the average of system rates for personal loans without real guarantee that the Central Bank of the Argentine Republic publishes monthly, prepared on the basis of information corresponding to the second previous month taking into consideration the provisions of the preceding point.
2.1.3. Form of computation.
2.1.3.1. The rates will be applied on the financed balances between the due date of the current monthly statement and the date of the first previous monthly statement where the owed balance appeared.
2.1.3.2. Between the date of the cash withdrawal and the due date of the payment of the monthly statement.
2.1.3.3. From the agreed dates for the total or partial cancellation of the credit until the effective payment.
2.1.3.4. From the due date until payment when claims are operated, not accepted or justified by the issuer and consented by the holder.
Version: 7th. COMMUNICATION "A" 5477
Effective date:
08/23/2013

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON "INTEREST RATES IN CREDIT OPERATIONS" ORDERED TEXT SOURCE RULE Sec. Point Par. Com. Annex Chap. Sec. Point Par. OBSERVATIONS
1.1. 1st "A" 49 Unique II 1.1. 1st S/Com. "A" 2390 (point 1.).
2nd "A" 3052
1.2.1. "A" 49 Unique II 1.1. 2nd S/Com. "A" 2390 (point 1.).
1.2.2. "A" 49 Unique II 1.1. 3rd S/Com. "A" 2390 (point 1.).
1.3. "A" 49 Unique II 1.2.
1.4. "A" 49 Unique II 1.3. S/Com. "A" 2689 (point 1.).
1.5.1. "A" 49 Unique II 1.4.
1.5.2. "A" 2385
"A" 2586
2.
2.
1st
1st
1.6.1. 1st "A" 3044
2nd "A" 476 1. 2nd
1.6.2. "A" 476 3. S/Com. "A" 476 (point 3.).
1.6.3. "A" 476 4.
1.6. Last "A" 3052
1.7.1. 1st "A" 49 Unique II 1.5. S/Com. "A" 3052.
2nd "A" 476 2. S/Com. "A" 3052.
1.
1.7.2. "A" 49 Unique II 1.5.
1st Law 25.065 (art. 16 par. 1st). S/ Com. "A" 3123, 3266, 4003 and 5323.
2nd "A" 5323 6. S/ Com. "A" 5477
2.1.1.
3rd "A" 5323 6.
2.1.2. Law 25.065 (art. 16 par. 2nd). S/Com. "A" 3123, 4003, 5150 and 5323.
2.1.3. Law 25.065 (art. 20).
2.2.1. Law 25.065 (art. 18).
2.2.2. 1st Law 25.065 (art. 21).
2nd Law 25.065 (art. 18 par. 2nd).
2.3. Law 25.065 (art. 16 Last par.).
2.
2.4. "A" 3052
3.1. "A" 49 Unique II 2. S/Com. "A" 2689 (point 2.).
3.2. 1st "A" 49 Unique II 2.1. 1st S/Com. "A" 2689 (point 2.).
3.2.1. "A" 49 Unique II 2.1. 1st S/Com. "A" 2689 (point 2.).
3.2.2. "A" 3052
3.
3.2.3. "A" 49 Unique II 2.1. 2nd S/Com. "A" 2689 (point 2.).