Circular Active Operations OPRAC 1-57. Credit Policy. Complementary Rules

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMMUNICATION "A" 612 29/03/85
TO FINANCIAL ENTITIES:
Ref.: Circular ACTIVE OPERATIONS OPRAC - 1

• 57. Credit Policy. Complementary Rules

We address you to inform you that this Institution adopted the following resolution:

"Establish the provisions set forth below, which modify the corresponding rules made known through Communications "A" 467 and "A" 490:

1º - The credit support, in national or foreign currency, that each financial entity grants may not exceed 100% of the calculable net worth of the clients, established in accordance with the rules contained in point 6.1 of the Annex to Communication "A" 467, whether they are natural or legal persons, groups or economic sets, a maximum ratio which in the case of related borrowers shall be 12.5%.

2º - A ratio that does not exceed in all concepts 200% of the calculable net worth of the client will be considered as a reasonable impact on the entire financial system.

3º - Programs for adjustment to graduated credit relationships may not exceed 1.1.87 for the general clientele and 1.1.86 for related natural and legal persons. The adjustment to the established regulations should be carried out gradually without abruptly affecting the level of assistance previously provided to users, and credit support may be granted outside the established limitations when it is indispensable to temporarily accompany a higher level of activity of the applicants, in accordance with plans aimed at achieving their classification within the determined deadlines.

4º - Documentary credit operations and letters of credit are included for the purposes of the relationships specified in points 1º and 2º of this resolution.

5º - For the purposes of recalculating non-compliant credit operations referred to in point 9 of the Annex to Communication "A" 467, an adjustment clause based on the

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  evolution of the combined price index, with an effective annual interest rate of 18% on updated capitals."

We salute you very attentively
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Eduardo G. Castro
Deputy General Manager
Manager of Financing and Studies of the Financial System a/c Néstor J. Taró Departmental Manager c/f General Deputy Manager