Circular CREFI 1 - 26. Modification of points 2 of Circular CREFI 1 - 24, 1.14 of Chapter II and 1 of Chapter III of Circular CREFI 1 and amendments

BANCO CENTRAL DE LA REPUBLICA ARGENTINA __________________________________________________________________ COMUNICACION " A " 1973 I 26/06/92 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
CREFI 1 - 26.
Modification of points 2. of Circular CREFI-1-24,
1.14 of Chapter II and 1. of
Chapter III of Circular
CREFI-1 and amendments

We address ourselves to you to inform you that the Board of Directors of this Institution adopted the following Resolution:

"1 - Modify the text of the first paragraph of point 2 of Cir- cular CREFI-1-24, replacing it with the following:

"Until the fourth year following the closure of the subsidiaries, the entities may reopen them, authorizing them in the same location or relocated, with adjustment to what is provided in points 3 and 6, or transfer them to other entities, in this last case when they have operated in their own buildings, which would be part of the transfer, the agreements signed between the parties being subject to the approval of this Institution, which for this purpose will analyze whether the acquirers meet the requirements established in point 1. of Chapters II and III of Circular CREFI-1 and its modifications".

2 - Modify the text of point 1.14. of Chapter II of the Cir- cular CREFI-1 and its modifications, replacing it with the si- following:

"Not having subsidiaries pending authorization to the public nor request under consideration by the Central Bank to install a house, unless it concerns mobile agencies, subsidiaries operating solely for the purchase and sale of foreign currency or the acquisition of subsidiaries of other financial enti- ties in operation or in liquidation".

3 - Modify the text of point 1. of Chapter III of the Cir- cular CREFI-1 and its modifications, replacing it with the si- following:

"Foreign financial entities that plan their ex- pansion through the installation of subsidiaries in the country, must comply with the following requirements:

1.1. Those established in points 1.1. to 1.16. of Chapter
II, and

• 2 -
  1.2. Demonstrate, with respect to the new house, that its installa-
  tion can favor financial and commercial relations with the exterior and the existence of reciprocity with the countries of origin of its shareholders, according to what is provided in article 16 of Law 21.526"."

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA Oscar D. Rodriguez Liliana M. Conti Supervisor of Authorization General Submanager of Financial Entities"