Circular CONAU 1 - 220. Update of Accounting Standards - Debtors of the Financial System

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMUNICACIÓN "A" 2562 17/07/97
TO FINANCIAL ENTITIES:
Ref.: Circular CONAU 1 - 220 Update of the accounting standards - Debtors of the Financial System. We address you to deliver the modifications introduced in the informational regime of "Total Debtors" and "Main Debtors of the Financial System", which will be unified into "Debtors of the Financial System" and will be effective starting from the information corresponding to September - its submission will be made on October 20 of the current year -. Credit card issuing companies of the closed system must declare as "Total Debt" of the holders of the non-financial sector the unpaid balance, financed by them or in default, resulting from the last "closing" whose payment due date has occurred, plus the amount of the registered coupons whose due date occurs in the next "closing". The same concept must be taken into account by financial entities to determine the credit card debt of their customers. Furthermore, from the effective date of this communication, for the purposes specified in point 3.2. Identification, only "type" CUIT, CUIL or CDI will be accepted. Finally, the provisions of point 5 of Annex I to Communication "A" 2216 are extended to this regime, in the sense that at the request of the clients included in this informational regime, within 10 calendar days of the request, the financial entity must communicate to them the last classification assigned to them, along with the grounds justifying it according to the evaluation performed by the entity, the total amount of debts with the financial system and the assigned classifications resulting from the last information available in the "Debtors of the Financial System". Attached are the sheets that should be incorporated or replaced in Circular CONAU-1. We salute you very attentively. BANCO CENTRAL DE LA REPÚBLICA ARGENTINA Ricardo O. Maero Alejandro G. Henke Manager Principal Manager Information Regime Technical Coordination Area ANNEXES: 10 sheets WITH COPIES TO NON-FINANCIAL ENTITIES ISSUING CREDIT CARDS UNDER THE "CLOSED SYSTEM" MODALITY

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 9th. Date: 17.07.97 Communication “A” 2562 Circular CONAU 1 – 220
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C. MONTHLY ACCOUNTING INFORMATION REGIME

1. General Standards.
2. Balance of balances.
3. Status of debtors.
4. Information on monthly averages of daily balances and complementary.
5. Debtors of the Financial System.
6. Composition of economic groups.
7. Financing to the Public Sector.
8. Consolidation status of local entities with significant subsidiaries and affiliates in the country
   and abroad.
9. Consolidated status of debtors with significant subsidiaries and affiliates in the country
   and abroad.
10. Requirement and integration of minimum capital.
    10.1. Individual
    10.2. Consolidated
11. Operations with persons or companies linked to the financial entity, fragmentation of
    credit risk and credit graduation.
12. Minimum liquidity requirements.
13. Liquidity position.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 1st. Date: 17.07.97 Communication “A” 2562 Circular CONAU 1 – 220
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DEBTORS OF THE FINANCIAL SYSTEM
PROCEDURE STANDARDS

1. General Instructions.
   Amounts will be expressed in thousands of pesos with one decimal. For the purposes of rounding magnitudes, values will be incremented by one unit when the second digit of the fractions is equal to or greater than 5, discarding those that are lower. The data requested in sections A, B and C of point 3 below will have monthly frequency, while those required in D will be sent only when the information already sent varies.
2. Debtors included.
   The entire client base of the entity will be reported except the Central Bank of the Republic Argentina. The recipient of the borrowed funds or the beneficiary of the guarantees or other facilities granted will be understood as a debtor. In the case of groups or economic groups, the information will not be consolidated.
3. Data requested.
   The following information will be provided regarding each of the included debtors.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 1st. Date: 17.07.97 Communication “A” 2562 Circular CONAU 1 – 220 Page: 2 of 9 A - Identifying Data:
3.1. Name.
3.1.1. Natural persons and partnerships. Surnames and names, in full, as they appear in the documents used for their identification.
3.1.2. Remaining legal entities. Trade name or denomination, in full, according to the constitutive contract.
3.2. Identification.
3.2.1. Type.
The details in point 5.5.1.4.1. of Chapter II of Circular RUNOR-1 must be taken into account.
3.2.1.1. Natural and legal persons.
General Tax Directorate (code 11)

• Unique Tax Identification Key (C.U.I.T.).
• Unique Labor Identification Code (C.U.I.L.).
• Unique Identification Key (C.D.I.).
  3.2.1.2. Unforeseen situations.
  Only for unregistered state entities and natural or legal persons residing abroad who do not possess the indicated documents or registrations, the details in point
  5.5.1.4.2. of Chapter II of Circular RUNOR - 1 must be taken into account.
  3.2.2. Number.
  The one corresponding to the type of identification used.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 1st. Date: 17.07.97 Communication “A” 2562 Circular CONAU 1 – 220 Page: 3 of 9 B- Debt Data
3.3. Debt.
The balance on the last day of each month of the financings - for any concept - that the client registers will be reported, discriminated according to the openings referred to in the following sections. Balances incorporated by portfolio transfer from other financial entities will also be computed for this purpose.
3.3.1. Loans (codes 131100, 131200, 131400, 131500, 131700, 131800, 132100, 132200,
135100, 135200, 135400, 135500, 135700, 135800, 136100 and 136200), Other credits by financial intermediation (the items included in the Procedure Standards for the integration of the Status of debtors) and Financial lease assets (codes 151003, 151006,151009,155003,155006 and 155009).
3.3.2. Participations in other companies (codes 161003, 161004, 161006, 161007, 161009,
161012, 161013, 161015, 161023, 161027, 161028, 161029, 161030, 165003, 165006, 165009, 165018 and 165021).
3.3.3. Guarantees granted (those included in the Procedure Standards for the integration of the Status of debtors) and Off-Balance Sheet Accounts - Debtors (Codes
711046,711081,711082,715046,715081 and 715082).
3.4. Guarantees.
The debt will be distributed according to the guarantees available.
3.4.1. With self-liquidating preferred guarantees (those detailed in the penultimate paragraph of
point 3.1. of the Procedure Standards for the integration of the Status of debtors).
3.4.2. With other preferred or assimilable guarantees (those contemplated in points 6.1.2.2.2.
and 6.1.3.2. of the Procedure Standards for the integration of the Status of debtors).
3.4.3. Without preferred or assimilable guarantees (those indicated in points 6.1.2.2.3. and 6.1.3.3.
of the Procedure Standards for the integration of the Status of debtors).

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 1st. Date: 17.07.97 Communication “A” 2562 Circular CONAU 1 – 220 Page: 4 of 1 The guarantees to be computed must not exceed the amounts of the corresponding facilities granted, considered individually.
3.5. Counter-guarantees.
The guarantees granted will be distributed according to the counter-guarantees available.
3.5.1. With self-liquidating preferred counter-guarantees (those indicated in the penultimate paragraph of
point 6.2.1. of the Procedure Standards for the integration of the Status of debtors).
3.5.2. With other preferred or assimilable counter-guarantees (those established in point 6.2.2.
of the procedure standards for the integration of the Status of debtors).
3.5.3. Without preferred or assimilable counter-guarantees (those contemplated in point 6.2.3. of the
Procedure Standards for the integration of the Status of debtors).
The counter-guarantees to be computed must not exceed the amounts of the corresponding guarantees granted, individually considered.
3.6. Provisions.
Provisions for uncollectibility and devaluation risk constituted regarding the client's debt.
3.6.1. For debts (codes 131300, 131600, 131900, 132300, 135300, 135600, 135900,
136300, 141300, 142300, 145300, 146300, 151212 and 155212)
3.6.2. For participations (codes 161091 to 161098, 165091 and 165092).
3.6.3. For eventual commitments and off-balance sheet accounts (codes 340018,721046 and 725046).
Within this concept, provisions for uncollectibility risk that are constituted globally on the portfolio do not correspond to be computed.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
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3.7. Situation.
Classification category corresponding to the client according to the "Status of debtors".
3.8. In addition to what is stated regarding the preceding points, in those cases of clients
whose debt balance (for any concept) at some point during the month exceeds 0.5% of the Computable Equity Responsibility of the entity corresponding to the previous month or $ 75,000, of the greater of both, despite reporting their balance at the end of the month, that amount will be supplied.
3.9. Weighted average rate contained in the operations recorded in section 3.3.1.

• Aggregated data of the entity
  3.10. The total of the amounts owed by clients whose debt balance at the end of the month
  (Loans, Other credits by financial intermediation, Financial lease assets Participations in other companies, Guarantees granted and Off-balance sheet accounts) resulting less than $ 50 will be reported.
  3.11. The balance on the last day of the month of the total of the other items, integrating the
  items cited in points 3.3.1., 3.3.2. and 3.3.3., that were not attributed to any debtor will be reported. In the case that this amount represents more than 2% of the total of the items recorded in the previous section, the concepts that gave rise to it will be detailed.
  3.12. The balance on the last day of the month of the global provisions constituted on the
  portfolio will be reported.
  3.13. The total number of debtors whose debt balance at the end of the month is less than $
  50 will be indicated.
  D- Complementary data of the debtor.
  Of the clients defined normatively as "Main Debtors of the Financial System" (see point 5), in addition, the following must be presented:
  3.14. Main Activity.
  Number corresponding according to the Activities Code.
  3.15. Linkage.
  It will be reported whether the client is or is not linked to the financial entity.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
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3.16. Economic group.
It will be indicated whether the debtor is part of a group or economic group. In case affirmative, it will be included in the information system on "Composition of economic groups".
3.17. Other data.
3.17.1. Natural persons and partnerships.
3.17.1.1. Private address.
3.17.1.2. Owner / rents.
3.17.1.3. Marital status: single, married, widowed, separated.
3.17.1.4. Age.
3.17.1.5. Employment / self-employed.
3.17.1.6. Seniority in current activity.
3.17.1.7. Total annual income (gross).
3.17.1.8. Net worth.
3.17.2. Legal persons.
3.17.2.1. Legal address
3.17.2.2. Main headquarters of its activities
3.17.2.3. Date of the last balance presented to the entity.
3.17.2.4. Total Assets.
3.17.2.5. Current assets.
3.17.2.6. Exchange goods.
3.17.2.6.1. Current.
3.17.2.6.2. Non-current.
3.17.2.7. Total credits from sales.
3.17.2.7.1. Current.
3.17.2.7.2. Non-current.
3.17.2.8. Total Liabilities.
3.17.2.9. Current liabilities.
3.17.2.10.Accounts payable.
3.17.2.10.1. Current
3.17.2.10.2. Non-current
3.17.2.11.Unassigned results.
3.17.2.12.Net worth.
3.17.2.13.Ordinary profit (loss).
3.17.2.14.Financial and holding results.
3.17.2.15.Income tax.
3.17.2.16.Amortizations.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 1st. Date: 17.07.97 Communication “A” 2562 Circular CONAU 1 – 220 Page: 7 of 9 3.17.2.17.Distribution of accumulated results - Only cash or in-kind dividends according to ordinary assembly held on / / . 3.17.2.18.[ Investments + Use goods + Diverse goods (from the last exercise)] - [ Investments + Use goods + Diverse goods (from the previous exercise)]. The computable equity referred to in points 3.17.1.8. and 3.17.2.12 must be determined according to the criteria made known by Communications "A" 467 and 490. This amount must not have an age greater than 18 months with respect to the last day of the month under report for the case of natural and legal persons who keep books of accounting in accordance with the legal provisions governing the matter. However, if it were societies that, complying with regulations of control bodies, prepare accounting statements with a frequency lower than annual and with public accountant certification, it will correspond to extract the data from this last information, which cannot have an age greater than 9 months. As for the net equity resulting from asset declarations for not keeping accounting books, the age cannot exceed 12 months.
3.17.3. In addition, regarding legal persons of the non-financial private sector, whose balance
debt (for any concept) at some point during the month exceeds 2.5% of the Computable Equity Responsibility of the entity of the month prior to the one under report (always that the amount resulting from the application of this percentage is equal to or greater than $ 375,000) or $ 1,000,000, of the lesser of both, it must be reported:
3.17.3.1. Social object.
3.17.3.2. Date of constitution of the society.
3.17.3.3. Date of initiation of activities.
3.17.3.4. Date and number of registration of inscription of the society.
3.27.3.5. Detail of assets affected as guarantee for obligations assumed with third parties and value assigned in books.
3.17.3.6. List of shareholders, partners or associates who own 5% or more of the capital
social and/or of the total of the votes of the instrument with voting rights, as appropriate. When the shareholder is a legal person, the same information must be requested regarding each of the shareholders of this last one.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
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3.17.3.7. List of directors, managing partners and administrative councilors or equivalent authorities, trustees or members of the control bodies, whether holders or substitutes, external and internal auditors or, in their case, certifying accountants.
3.17.3.8. List of managers regardless of their level who by their functions in the company have influence on the decisions for the obtaining of credit support from financial entities. 3.17.3.9. List of attorneys, agents, administrators, representatives or persons who perform similar functions.
The information provided by clients regarding the accounting concepts contemplated in this point must be certified by a public accountant and their signature authenticated by the corresponding Professional Council, except when their total debt with the entity is less than 50 thousand pesos.
4. It will be understood, for the purposes of any normative reference, as "Main Debtors of the
Financial Entity".
4.1. Clients whose debt balance on the last day of each month is $ 200,000 or higher.
4.2. Clients whose debt balance at some point during the month exceeds 0.5% of the Computable Equity Responsibility of the entity corresponding to the previous month.
In no case will the sum of the clients reached by the definition recorded in point
4.1. be less than 50.
5. It will be understood, for the purposes of any normative reference, as "Large Debtors of the Financial System" those clients belonging to the non-financial sector, who, in the last
"Central of Debtors of the Financial System" disseminated by the Superintendence of Financial Entities and Exchanges, register a debt balance equal to or greater than $200,000.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Version 1st. Date: 17.07.97 Communication “A” 2562 Circular CONAU 1 – 220
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6. Validation.
It will be considered an error and the informational regime will be returned if the sum of what is reported in sections 3.3.1, 3.3.2., 3.3.3., 3.9., 3.10. and 3.11. does not coincide with the sum of what is registered in the Items: Loans (Code 130000), Other credits by financial intermediation (Code 140000 - those included in the Procedure Standards for the integration of the Status of debtors-), Financial lease assets (Code 150000), Participations in other companies (Code 160000), Provisions (Code 131300, 131600, 131900, 132300, 135300, 135600, 135900, 136300, 141300, 142300, 145300, 146300, 151212 and 155212, 161091 to 161098, 165091, 165092 and 340018) and Off-Balance Sheet Accounts (Code 711081, 711082, 715081, 715082, 721003, 721005, 721006, 721033, 721038, 721046, 725001, 725004, 725005, 725006, 725033, 725038 and 725046) of the Balance of balances.
7. Services to users:
7.1. Massive information
Receive in a massive way for a certain month, the complete information (Debtor, Debt, Entities, Situation Guarantees, Last complementary information) of the entirety of the large debtors and of those who were ever in irregular situation (3,4,5, or 6).
7.2. Point queries
Access to the information of any debtor is obtained, and the time series with the evolution of the complete information is obtained.