Circular Active Operations - OPRAC 1-39: Information on the Main Debtors of Financial Institutions - Procedural Rules

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION "A" 534
17/09/84

TO THE FINANCIAL INSTITUTIONS:

Ref.: Circular ACTIVE OPERATIONS - OPRAC - 1-39, Information on the main debtors of financial institutions. Procedural rules.

We address you with reference to the resolution disseminated by Communication "A" 485, linked to the implementation of an information system intended to collect from financial institutions data on the indebtedness of their main clients.

In this regard, we send you the models of forms 3973 and 3974, and the instructions, to be used starting from the information corresponding to the second quarter of this year to provide the aforementioned data and those related to economic groups or conglomerates.

We point out that the deadlines for the submission of the forms referring to the second and third quarter of this year have been set for 15.10.84 and 31.10.84, respectively.

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Eduardo G. Castro
Deputy Manager of Financing and
Studies of the Financial System

Carlos Fagioli
Deputy General Manager

CENTRAL BANK OF THE ARGENTINE RE-
PUBLIC
Department of Credit Analysis and of the Financial System

INDEBTEDNESS OF THE MAIN CLIENTS OF THE NON-FINANCIAL PRIVATE SECTOR - Amounts in millions of Argentine pesos, without decimals -

Order number	C l i e n t	Identification	Number	Activity code	Linked client	Economic group or conglomerate	Financial assets	Debtor's situation	Sales volume	Computable equity responsibility	Credits at regulated rate	Adjustable Credits	Acceptances	TOTAL
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15
Quarter	Year
Institution:	CODE

[*] The provision of this form must be requested through Form 337

Identification Order number	C l i e n t	Number	Activity code	Linked client	Economic group or conglomerate	Financial assets	Debtor's situation	Sales volume	Computable equity responsibility	Regulated-rate loans	Adjustable loans	Acceptances	TOTAL
1	2	3	4	5	6	7	8	9	10	11	12	13	14	15

Observations:

Place and date
CREDIT AREA (*)
GENERAL MANAGER
PRESIDENT
Signature and clarification
Signature and clarification
Signature and clarification

[*] - To be signed by the highest-ranking officer

1. General instructions

To provide the information referred to the indebtedness of its main clients in the non-financial private sector, entities shall use Form 3937, which must be submitted quarterly to the Central Bank, no later than the 16th day of the month following the corresponding calendar quarter.

It shall be completed in triplicate. The original and duplicate shall be sent to the Credit and Financial System Analysis department and the triplicate shall be filed at the entity's head office.

Form 3937 is subject to the information submission regime (Circular RUNOR - 1, Chapter II, point 1.)

Amounts shall be recorded in millions of Argentine pesos, without decimals, discarding fractions less than 500,000 and rounding those of 500,000 or more up to 1,000,000.

Numerical data shall be entered from right to left, without separations, hyphens or dots, and alphabetical data in reverse order, leaving a blank space to indicate word separation.

The recipient of the loaned funds shall be understood as the client. In the case of economic groups or conglomerates, the information shall not be consolidated.

2. Order number (column 1)

Debtors shall be numbered consecutively starting from 0001.

3. Client (column 2)

Borrowers with debt balances at the end of the quarter under report of $a 10 million or more, corresponding to all operations included in columns 12, 13 and 14, shall be reported. As of the third quarter of 1984, that minimum limit shall be updated in accordance with the variation experienced by the wholesale price index, general level, (INDEC) between the second month of each calendar quarter and April 1984.

In the case of natural persons and de facto partnerships, surnames and names shall be entered, in that order and in full, as they appear in the document used for their identification and, in the case of legal persons, the complete corporate name or designation contained in the constitutive contract shall be recorded. If the space is insufficient, the designation of the obligors shall be provided on more than one line, entering the data referred to in columns 3 to 15 only on the last line used for the respective client.

Such debtors shall be ordered according to decreasing debt balances (column 15). When no client records the minimum indebtedness level set, entities shall submit Form 3937, indicating that circumstance in the “observations” box.

4. Identification - Type (column 3)

The corresponding code shall be entered, in accordance with the following table:

Natural persons:

01 - National Identity Document

02 - Enlistment Booklet (only if the debtor does not have a DNI)

03 - Civic Booklet (only if the debtor does not have a DNI)

Legal persons:

11 - General Directorate of Taxation - Income tax

12 - National Institute of Cooperative Action (only cooperative societies not registered for income tax).

Unforeseen situations:

99 - Only if the debtors are not in the situations covered by the preceding codes, because they do not possess the indicated documents or registrations. In these cases, the type of identification shall be detailed in an annex, using, in coordination with the other entities with which the client operates, in order to avoid the application of different criteria.

5. Identification - Number (column 4)

The number corresponding to the type of identification used shall be recorded. When the income tax registration number is reported, care must be taken that this data is not outdated.

6. Activity code (column 5)

The number corresponding to the debtor's main activity shall be recorded, in accordance with the Activity Code.

7. Related client (column 6)

Code 1 shall be recorded if the debtor is related to the financial institution. If this condition does not apply, code 0 shall be recorded.

8. Economic group or conglomerate (column 7)

If the borrower is not part of an economic group, code 0 shall be recorded. Otherwise, code 1 shall be inserted and Form 3974 shall be completed.

B.C.R.A.	INSTRUCTIONS FOR THE COMPLETION OF FORM 3973 "INDEBTEDNESS OF THE MAIN CLIENTS OF THE NON-FINANCIAL PRIVATE SECTOR	Annex I to Communication "A" 534

9. Financial Assets (column 8)

The percentage of financial assets, calculated in accordance with the provisions disseminated by Communications "A" 467 and 490, recorded for each client in the month prior to that in which the last financing operation was granted, shall be recorded without decimals.

10. Debtor's situation (column 9)

The corresponding code shall be inserted, in accordance with the following table:

1 - In normal situation

2 - With arrangements

3 - With arrears

4 - At risk of insolvency

5 - In judicial management

6 - In bankruptcy or liquidation

To carry out this classification, the instructions for the completion of form 3827 "statement of debtors' situation" shall be followed.

11. Sales volume (column 10)

In the case of corporations, the annual amount of sales of goods and/or services and other income from ordinary operations - adjusted for inflation - shall be recorded, according to financial statements corresponding to the last fiscal year, updated based on the variation in the wholesale price index, general level, (INDEC) between the second month of the calendar quarter being declared and the closing month of said fiscal year.

If the financial statements available to the entity are more than 14 months old, counting the last month of each calendar quarter inclusive, or if they are clients not organized as corporations, the amount of sales of goods and/or services and other income from ordinary operations recorded during the 12 months immediately preceding the last month of the calendar quarter under report shall be recorded, updated in accordance with the variations experienced by the aforementioned index between the second month of the quarter being declared and the month to which each of the partial data refers. This information must be certified by a public accountant.

12. Computable equity responsibility (column 11)

The amount of said concept shall be recorded, determined by applying the criteria disclosed by Communications "A" 467 and 490 and updated in accordance with the variation experienced by the wholesale price index, general level, (INDEC) between the second month of the calendar quarter being declared and the month to which the information refers.

13. Credits at regulated rate (column 12)

The balance owed by each client at the end of the quarter under report shall be recorded, for principal and interest, of the facilities that accrue a rate not higher than that established by the Central Bank for credits allocated to the "general clientele" sublimit of the Consolidated loan and, for principal and adjustment, of the operations adjustable based on the growth of the Loan Update indices (Communication "A" 185) and financial (point 3.1.2. of Chapter II of Communication "A" 49), recorded in the "Loan" (Codes 131700 and 131801).

14. Adjustable credits (column 13)

The balance owed by each borrower at the end of the quarter being reported shall be declared, for principal and adjustment, of updated credits granted under the conditions determined in the provisions referring to the special loan limit (Communication "A" 146 and complementary), with allocation of funds from said line or own resources, and those granted with allocation to the capacity of loans from non-transferable fixed-term deposits adjustable by combined price index (Communication "A" 440), recorded in the "loans" item (Codes 131700 and 131801).

15. Acceptances (column 14)

The balance owed by each taker at the end of the quarter being declared shall be recorded, for principal effectively traded, corresponding to intermediation operations in financial transactions between third parties resident in the country, recorded in item 141103, net of the amounts included in account 321103.

16. TOTAL (column 15)

The sum of the amounts reported in columns 12, 13 and 14 shall be recorded.

17. Other operations

In this line, the balance at the end of the quarter being declared of the concepts and operations not reported in columns 12, 13 and 14 shall be recorded, recorded in items 131700, 131801 and 141103 (net of taxes included in account 321103).

18. GRAND TOTAL

The amount recorded in this line must equal the sum of those reported in the "Subtotal" lines of column 15 and "Other operations" and also the algebraic sum of the balances at the end of the quarter being declared of the items of the "Chart of Accounts" 131700, 131801, 141103 and 321103.

19. Observations

In this table the entities shall make the clarifications they deem pertinent and all additional information required of them by the Central Bank.

MODEL

CENTRAL BANK OF THE ARGENTINE REPUBLIC
Department of Credit Analysis and of the Financial System COMPOSITION OF THE GROUPS OR ECONOMIC UNITS CODE Entity: Quarter Year First Information Group of economic unit: (1) Update (1) Num-Identification ber of order Member Type Number Code of acti- vity Of debt or 1 2 3 4 5 6 Observations:
Place and date:
CREDIT AREA (2) GENERAL MANAGER PRESIDENT
Signature and clarification Signature and clarification Signature and clarification

[I] Mark with “X” when applicable. (2) To be subscribed by the highest-ranking responsible person.

[*] The provision of this form must be requested through Form 337

B.C.R.A.	INSTRUCTIONS FOR THE INTEGRATION OF FORM 3974 "COMPOSITION OF THE GROUPS OR ECONOMIC UNITS"	Annex I to Com. "A" 534

1. General instructions

To report the composition of the groups or economic units to which the debtors included in Form 3973 belong, the entities shall use Form 3974.

Its integration shall be done in triplicate. The original and the duplicate shall be sent to the Department of Credit Analysis and of the Financial System and the triplicate shall be filed at the entity's head office.

Form 3974, which is subject to the regime on presentation of information (Circular RUNOR - 1, Chapter II; point 1.), shall be sent, one copy for each economic group, together with Form 3973 in its first presentation and, in the future, it shall be accompanied to said form only in cases of data updates.

The numerical data shall be recorded from right to left, without separations, hyphens or dots, and the alphabetic data in reverse order, leaving a blank space to indicate the separation of words.

2. Group or economic unit

The surname and names or corporate name or denomination (in full) of the natural or legal person, respectively, controlling the group shall be reported. That designation shall be maintained in the updates of the information made in the future.

3. First information - Update

A cross shall be inserted in the corresponding box, depending on whether it is the first information sent on the economic unit or the update of the one previously supplied, due to modifications or additional data being available.

When updates are made, it will only be necessary to fill in the line corresponding to the member whose data are altered, keeping the order number assigned in the first information or, in the case of new incorporations, adding the order number immediately following the last one used in the form referring to the components of the same group previously presented. In cases of removals, Form 3974 must be integrated in full.

4. Order Number (column 1)

The members shall be numbered consecutively starting from 001.

5. Member (column 2)

The natural or legal person controlling the economic unit shall be recorded and then the remaining components of the same group, in accordance with the criteria established in the second paragraph of the instructions for the integration of column 2 of Form 3973.

For these purposes, the provisions contained in point 1.2. of Chapter II of Communication "A" 414 shall apply.

6. Identification - Activity code (columns 3, 4 and 5)

The instructions for the integration of columns 3 and 5 of Form 3973 shall be followed.

7. Debtor (column 6)

The corresponding code shall be noted, in accordance with the following table:

0 - Is not a debtor in the entity

1 - It is a borrower included in Form 3973

2 - It is a debtor not reported in Form 3973

8. Observations

In this table, entities shall provide the clarifications they deem appropriate and all additional information required of them by the Central Bank.