Circular CONAU 1-1673 LISOL 1-1101: Distribution of Results. Net Global Foreign Currency Position. Adjustments.

"Año de la Reconstrucción de la Nación Argentina" COMMUNICATION "A" 8235 30/04/2025 TO FINANCIAL ENTITIES:
Ref.: Circular
CONAU 1-1673,
LISOL 1-1101:
Distribution of Results. Net Global Foreign Currency Position. Adjustments.
___________________________________________________________________________ We address you to inform you that this Institution has adopted the resolution that, in its pertinent part, establishes:

"- Order that financial entities that resolve to distribute results within the framework of what is provided for in Communication A 8214 must grant the option to each non-resident shareholder to receive their dividends – wholly or partially – in a single cash installment – from the effective date of this communication – provided that these funds are applied directly to the primary subscription of Bonds for the Reconstruction of a Free Argentina (BOPREAL), in accordance with the current exchange regulations.

The BOPREAL received by non-resident shareholders may not be transferred to depositary entities abroad nor sold with settlement in foreign currency in the country or abroad for a period of thirty (30) and sixty (60) calendar days counted from their primary subscription, for two-thirds and one-third, respectively, each month, of the subscribed nominal amounts.

Subscribing shareholders must provide their express consent and commitment to this condition when requested. Without prejudice to the foregoing, these BOPREAL may be applied freely and entirely for other operations – including their use as collateral for financings requiring financial entities or in the capital market –.

The eventual foreign currency position that financial entities might hold due to the subscription operation of these BOPREAL until crediting to non-resident shareholders will be excluded from the calculation of their 'net global foreign currency position'."

Regarding this, we send you the sheets that, in replacement of those previously provided, should be incorporated into the ordered texts on Distribution of Results and Net Global Foreign Currency Position. In this sense, it is recalled that on this Institution's website www.bcra.gob.ar, by accessing "Financial System - LEGAL AND REGULATORY FRAMEWORK - Regulations and summaries - Ordered texts of general regulations", the modifications made with texts highlighted in special characters (strikethrough and bold) will be found.

We salute you attentively.

-2-
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Dario C. Stefanelli Marina Ongaro
Manager of Issuance and
Regulatory Applications
General Deputy Manager of Financial Regulation

ANNEX

7.1. The counter-cyclical capital margin that financial entities must apply to their exposures in Argentina, in accordance with what is established in point 4.2., is established, from 01/04/16, at 0%.

7.2. For the purposes of determining the distributable result, the increase in the computable equity responsibility (RPC) resulting from the application of point 11.4 of the TO on Minimum Capital of Financial Entities and the lower provisions and higher RPC resulting from the treatments established in point 2. of Communication A 6946 (and amendments) – for financings to SMEs destined for the payment of salaries – in point 2. of Communication A 7427, in point 3. of Communication A 7659 and in Communication A 7928 – which postponed until 01/01/25, on an optional and irrevocable basis for financial entities in groups B and C that are not branches or subsidiaries of banks classified as globally systemically important (G-SIB), the application of point 5.5 of IFRS 9 – must be deducted from the computations provided for in Sections 2. and 3.

7.3. Until 31/12/25, financial entities that have prior authorization from the BCRA – in accordance with what is provided for in Section 6. – may decide to distribute results in 10 equal, monthly, and consecutive installments (starting from 30/06/25 and no earlier than the penultimate business day of the following months) for up to 60% of the amount that would have corresponded in accordance with these rules.

Such distribution of results must be consistent with the objectives of monetary stability and with what is reported in the Information Regime Business Plan and Projections and Capital Self-Assessment Report.

The computation of the concepts provided for in Sections 2. to 5., as well as the amount of the indicated installments, must be carried out in homogeneous currency of the date of the assembly or of the payment of each of the installments, as the case may be.

7.4. Financial entities that resolve to distribute results within the framework of what is provided for in point 7.3. must grant the option to each non-resident shareholder to receive their dividends – wholly or partially – in a single cash installment – from 30/04/25 – provided that these funds are applied directly to the primary subscription of Bonds for the Reconstruction of a Free Argentina (BOPREAL), in accordance with the current exchange regulations.

The BOPREAL received by non-resident shareholders may not be transferred to depositary entities abroad nor sold with settlement in foreign currency in the country or abroad for a period of 30 and 60 calendar days counted from their primary subscription, for two-thirds and one-third, respectively, each month, of the subscribed nominal amounts. Subscribing shareholders must provide their express consent and commitment to this condition when requested. Without prejudice to the foregoing, these BOPREAL may be applied freely and entirely for other operations – including their use as collateral for financings requiring financial entities or in the capital market –.

B.C.R.A. DISTRIBUTION OF RESULTS
Section 7. Transitional Provisions.
Version: 18th COMMUNICATION "A" 8235 Validity:
30/04/2025 Page 1

ORDERED TEXT ORIGIN OF THE NORM OBSERVATIONS
Sec. Point Para. Com. Annex Ch. Sec. Point Para.
1. "A" 4589 1. According to Com. "A" 5827 and
6464.
2.
1st and 2nd "A" 4589 2. According to Com. "A" 4591 (point 6.), 5273, 5827, 6327 and 6464.
2.1. "A" 6327 12.
2.2. "A" 6396 4.
2.3. "A" 6327 12.
2.4. "A" 4589 2.3.
2.5. "A" 4589 2.4.
last "A" 6327 26.
3.
1st "A" 4589 3. According to Com. "A" 4591 (point 8.), 5072, 5273, 5827, 5985, 6464 and "B" 9104.
3.1. "A" 4589 3.1. According to Com. "A" 4591 (point
8.) and 6428.
3.2. "A" 4589 3.3. iv) According to Com. "A" 4591 (point
8.) and "B" 9104.
3.3. "A" 4589 3.3. According to Com. "A" 4591 (point
8.), 6428 and 6464.
3.4. "A" 5737 4.
last "A" 4589 1.1. to
1.4.
According to Com "A" 4591, 5072 and 6464.
4. "A" 5827
5.
"A" 4591 1. According to Com. "A" 5282 and
5827.
5.1. "A" 4591 1. Incorporates the interpretative criterion of Com. "C" 46841.
According to Com. "A" 5393.
5.2. "A" 4591 1. According to Com. "A" 4686, 4702,
5072, 5180, 5282, 5369,
5580, 5827, 6013, 6464 and
"B" 9104.
6. "A" 6768
7.
7.1. "A" 5938
7.2. "A" 6946 3. According to Com. "A" 7007, 7108,
7143, 7181, 7427, 7659 and
7928.
7.3. "A" 6939 According to Com. "A" 7007, 7035,
7181, 7312, 7421, 7659,
7719, 7984 and 8214.
7.4. "A" 8235

B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE ORDERED TEXT ON DISTRIBUTION OF RESULTS

4.1. Admit from 18/06/18 that the positive NGFCP may reach up to 30% of the RPC, as long as the total excess with respect to the general limit originates solely as a consequence of:
a) increase in the position in National Treasury bills in US dollars compared to those held on 15/06/18; and/or b) position in National Treasury bills in US dollars on 15/06/18 maintained as excess admitted to the limit in force on that date; and/or c) increase in the position in Treasury bills linked to the US dollar compared to those held on 13/05/19.

It includes public titles in foreign currency that entities receive in exchange for National Treasury bills – within the framework of Law 27.556 – that have attributed to this point on the business day immediately preceding that on which they are delivered in exchange.

4.2. Exclude for the determination of the NGFCP loan contracts in pesos with variable remuneration based on the variation in the quotation of the US dollar (Section 8. of the TO on Credit Policy), agreed until 27/05/2020, that are not covered with term investments with variable remuneration based on the US dollar (point 2.5.6.6. of the TO on Term Deposits and Investments).

4.3. The eventual foreign currency position that financial entities might hold – within the framework of what is established in point 7.4. of the TO on Distribution of Results – due to the subscription operation of BOPREAL until crediting to non-resident shareholders will be excluded from the calculation of their NGFCP.

B.C.R.A. NET GLOBAL FOREIGN CURRENCY POSITION
Section 4. Transitional Provisions.
Version: 17th COMMUNICATION "A" 8235 Validity:
30/04/2025 Page 1

ORDERED TEXT ORIGIN OF THE NORM OBSERVATIONS
Sec. Point Para. Com. Annex Sec. Point Para.
1.
1.1. "A" 3889 1. According to Com. "A" 4135,
4140, 4150, 4577, 6396,
6663, 6776 and 7786.
1.2. "A" 4350 2. According to Com. "A" 5834,
5847, 5851 and 7029.
1.2.1. "A" 4350 2.
1.2.2. "A" 5847 1. According to Com. "A" 5851.
1.2.3. "A" 7545 1.
1.2.4. "A" 7556 5. According to Com. "A" 7571.
1.2.5. "A" 7556 5.
1.2.6. "A" 7556 5.
2.
2.1. "A" 3889 1. According to Com. "A" 4577,
4598, 5834, 5851, 6128,
6233 and 6507.
2.2. "A" 3889 1. According to Com. "A" 4350,
4598, 5536, 5611, 5627,
5834, 5851, 5891, 5917,
5935, 5997, 6128, 6233,
6501, 6507, 6526, 6735,
6754, 6759, 6763, 6770,
6774, 6775, 7003, 7022,
7071, 7101, 7405, 7416,
7417, 8025, 8093 and 8154.
Includes regulatory clarification.
3.
3.1. "A" 3889 1. According to Com. "A" 4350,
5356, 5550, 6091, 6638,
6754, 6759 and 7939.
3.2. "A" 5550 2.
4.
4.1. "A" 6526 7. According to Com. "A" 6699, 6735
and 7093.
4.2. "A" 6846 4. According to Com. "A" 7029 and
7036.
4.3. "A" 8235

B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE ORDERED TEXT ON NET GLOBAL FOREIGN CURRENCY POSITION