Circular Active Operations - OPRAC 1 - 59. Dispensable credit treatment for natural and legal persons linked to financial institutions

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A615 29/03/85
TO THE FINANCIAL INSTITUTIONS:
Ref.: Circular ACTIVE OPERATIONS - OPRAC-1
-59. Dispensable credit treatment for natural and legal persons linked to financial institutions We address you to inform you that this Institution adopted the following resolution:
"1st - Replace points 4.3.1.2. and 4.3.1.3. of Chapter I of Communication "A" 49, with the following:
4.3.1.2. Ratio with respect to the total of the computed items. The sum of included assets may not exceed 2.5% of the total yielded by the items indicated in point 4.3.1.1., calculated on the balances at the end of each monthly period.
4.3.1.3. Ratios with respect to computable net worth.
4.3.1.3.1. The total of credit facilities granted to a linked natural or legal person, in pesos or foreign currency, may not exceed 6.25% of the net worth responsibility of the granting financial institution. For those clients, the exceptions referred to in points 3.1., 3.2. and 3.4.3. of Chapter II of Communication "A" 414 and the special treatments provided in points 1.1.1. and 1.1.3. of the aforementioned chapter and the exemption provided in point 6. of Communication "A" 228 shall not apply.
4.3.1.3.2. The sum of included assets may not exceed 25% of the computable net worth responsibility of the institution, calculated on the balances at the end of each monthly period.
2 - Compliance with those ratios shall be operated observing, as from April 1985, the following gradual reductions of the limits currently in force:
a) Ratio with respect to the total of the computed items.
0.25 of a percentage point monthly, during ten consecutive months.

-2- b) Ratios with respect to computable net worth.

• Total of facilities granted to a client.
  0.625 of a percentage point monthly average, during ten consecutive months.
• Sum of assets included in the joint assistance.
  2.5 percentage points monthly, during ten consecutive months.
  The execution of this regularization program shall not imply the granting of new credit assistance, under any concept, even when the reductions in the degree of indebtedness of the linked borrowers determine margins below the preceding regulations. 3 - For the adjustment to the ratio of point 4.3.1.3.1. of the operations exceeded by application of the reduction provided in this resolution or the exceptions contained in points 3.1., 3.2. and 3.4.3. of Chapter II of Communication "A" 414 and in points 1.1.1. and 1.1.3. of the same and the exemption provided in point 6. of Communication "A" 228, the institutions must formulate adjustment plans within 30 days of this resolution. 4 - Determine that in all cases in which the link is established through the directors or administrators of the financial institutions, the persons who have served in those positions during the three years prior to the date of the corresponding credit agreements must be taken into consideration for that purpose." We greet you very attentively. BANCO CENTRAL DE LA REPÚBLICA ARGENTINA Eduardo G. Castro Néstor J. Taro Departmental Submanager Departmental Manager Manager of Financing and Studies c/f Submanager General of the Financial System a/c