Circular CREFI 2 - 1. LISOL 1 - 90. OPASI 2 - 121. Wholesale and Second-Tier Banks. Definition of Qualified Investor, Operations, and Credit Risk Concentration and Fractioning Relationships — BCRA — AR

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 2252 29/09/94 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
CREFI 2 - 1.
LISOL 1 - 90.
OPASI 2 - 121.
Wholesale and Second-Tier
Banks. Definition of Qualified
Investor, Operations, and Relationships of Credit Risk Concentration and Fractioning

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

"1. Consider as a qualified investor, for the purpose of constituting deposits of any nature and carrying out passive loan or acceptance operations in wholesale commercial banks as provided in Chapter I, Section 1 of Circular CREFI - 2, the following:
1.1. The National, provincial, and municipal governments, central administration, ministries, secretariats, their autonomous and decentralized agencies, state-owned companies and corporations, and legal entities of public law.
1.2. Common investment funds.
1.3. Pension and Retirement Funds and administrators regulated by Law 24.241.
1.4. Joint-stock companies and limited liability companies, cooperatives, mutual entities, social security organizations, civil associations, foundations, and labor union associations with union status, which conclude with the wholesale bank fixed-term deposits or savings account operations or passive loan or acceptance operations for amounts not less than $ 100,000, in any of those investment modalities.
1.5. Natural persons with real domicile in the country who conclude with the wholesale bank fixed-term deposits or savings account operations or passive loan or acceptance operations for amounts not less than $ 100,000, in any of those investment modalities.
1.6. Legal entities constituted abroad and natural persons with real domicile outside the country.

Establish at 100% of the computable equity responsibility of the granting entity on the last day of the month prior to the relevant one, the maximum ratio that credit assistance for all concepts included, under the terms of point 3.5. of Annex II to Communication "A" 2140, which second-tier banks grant to other financial entities may reach.
Provide that the credit risk concentration ratio referred to in point 2.2.2. of Annex II to Communication "A" 2140, which second-tier banks must observe for their operations with other financial entities, shall be 10 times their computable equity responsibility on the last day of the month immediately prior to the relevant one.
For the purposes of that ratio, operations included with another financial entity shall be computed during each month when the facilities granted exceed, on any day of the period, 15% of the computable equity responsibility on the last day of the month immediately prior to the relevant one.
Specify that the financial assistance that second-tier banks grant to clients outside the financial sector must observe all provisions and technical ratios applicable in the matter, including those on risk concentration as established in points 2.1. and 2.2.1. of Annex II to Communication "A" 2140.
The aggregate of operations with the aforementioned clients and with financial entities -computable in the latter case according to what is established in point 3. of this resolution- may not exceed the limit of 10 times their computable equity responsibility on the last day of the month immediately prior to the relevant one."

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio Miguel A. Kiguel
Manager of Standards for Deputy General Manager Financial Entities Area of Economics and Finance