Circular Liquidity and Solvency - LISOL 1. Consolidated Text

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 414 25/11/83
TO FINANCIAL ENTITIES:
Ref.: Circular LIQUIDITY AND SOLVENCY - LISOL - 1 We address you to accompany you with the consolidated text as of the date of the provisions issued by this Institution, which are applicable to the subject matter referenced. We greet you very respectfully. BANCO CENTRAL DE LA REPÚBLICA ARGENTINA Alfredo A. Besio Daniel E. de Pablo Deputy Manager of Standards Deputy General Manager for Financial Entities

ANNEXES: 48 sheets.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONTENTS
Circular LIQUIDITY AND SOLVENCY LISOL - 1
I - Relationship between deposits and other obligations and the equity responsibility of financial entities.
II - Fragmentation of risk in credit operations.
III - Immobilization of assets.
IV - Loans and other financial receivables with irregular compliance.
V - Common rules for Chapters I to III.
VI - Equity responsibility of financial entities.
VII - Procedural rules and formulas to be used (relative to the technical relationships of Chapters I to III).
25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONTENTS
I - Relationship between deposits and other obligations and the equity responsibility of financial entities. LISOL - 1

1. Obligations in national currency.
   1.1. Collection limit. 1.2. Included obligations. 1.3. Excluded obligations.
2. Obligations in foreign currency.
3. Prohibition on granting guarantees.
4. Regime for the acquisition and merger of national capital financial entities.
   25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONSOLIDATED TEXT
Circular LIQUIDITY AND SOLVENCY LISOL - 1
1 - Relationship between deposits and other obligations and the equity responsibility of financial entities.

1. Obligations in national currency
   1.1. Collection limit
   The deposits and other obligations in national currency of the entities included in the regime of Law No. 21.526 cannot exceed 20 times the amount of the equity responsibility of each entity.
   1.2. Included obligations.
   The following national currency obligations, regardless of the legal nature of the creditors:
   1.2.1. those credited in deposit accounts opened in the name of third parties under the denomination of current accounts, demand accounts, savings accounts, fixed-term deposits, pupil and judicial usuries;
   1.2.2. those assumed through financial transactions between third parties, regarding the capitals effectively transacted. In the case of co-guaranteed documents placed by another financial entity, they must only be computed by this latter;
   1.2.3. the sums received or collected for own or third-party operations, while they are not returned to the holder or cannot be applied to the payment or cancellation of the operation due to its maturity not having occurred or other cause;
   1.2.4. funds coming from the collection service, the realization of assets or collection of values on behalf of third parties;
   1.2.5. the sums received to acquire securities, effect placements in the market of financial transactions between third parties or other investments or payments of any nature, including those linked to exchange operations, to the extent they are not applied;
   1.2.6. other sums received from third parties that constitute deposits by disposition of the Central Bank;
   1.2.7. the orders to pay, regardless of their instrumentation, as well as drafts, bills of exchange, and transfers pending payment;
   1.2.8. those issued and those assumed with third parties adhered to credit systems inherent to the entity, regardless of their instrumentation, including those pending settlement;
   1.2.9. the other funds retained, received, or made available to third parties -including in the concept of loan, credited in account or in transit-, that under any title or denomination are registered in favor of one or several determined or undetermined holders, provided that such funds are subject to return or payment in money to the holder or to third parties, either at the own house, at another of the same entity or at another entity, or when they must be applied to reduce items of the active assets of the receiving entity;
   1.2.10. the rediscounts, advances, and other credit lines of the Central Bank, except:
   1.2.10.1. the margins that were not cancelled against deposits within the financial ordering instituted from 1.6.77;
   1.2.10.2. the loan regime intended to extend terms of credit operations of companies in the private sector (Circular REMON - 1 - 1 and complements).
   25.11.83 1

1 - Relationship between deposits and other obligations and the equity responsibility of financial entities. (Continuation) LISOL - 1
1.2.10.3. the allocations to attend the refinancing of debts in national currency with adjustment to the regime of Circular REMON - 1 - 11 and complements;
1.2.10.4. the "Consolidated Loan" (Circular REMON - 1 - 70 and complements);
1.2.10.5. the special loan limit (Circular REMON - 1 - 23 and complements), and
1.2.10.6. the compensatory loan assigned with adjustment to the regime of Circular REMON - 1 - 115 and complements.
1.2.11. those issued in the form of bonds, titles, certificates, or other negotiable instruments;
1.2.12. those assumed between entities;
1.2.13. the guarantees granted, and
1.2.14. the documents rediscounted in financial entities.
1.3. Excluded obligations.
The following national currency obligations:
1.3.1. the price balances for the purchase of movable and immovable goods intended for own use;
1.3.2. those linked to the proper functioning of the entity, such as:
1.3.2.1. the profits or surpluses pending distribution -including cash dividends, returns, fees, and other participations pending payment or crediting- until the moment of being made available to the holders;
1.3.2.2. the sums received from third parties placed by the entity at the disposal of professionals or managers, to attend the payment of accessory service provision, such as title study, background checks, powers of attorney, or appraisals;
1.3.2.3. the social security contributions and taxes, own or withheld from personnel, pending payment, and
1.3.2.4. the invoices for expenses, accrued salaries, dismissal indemnities, fees, etc., pending payment;
1.3.3. the sums that represent collections on account of matured loans or for the sale of movable and immovable goods, while they are not applied to reduce the active items;
1.3.4. those accrued in favor of third parties for interest, while they have not been credited in account or made available to the holders;
1.3.5. the greater value resulting from the application of adjustment clauses in deposit accounts or other obligations of that character opened in the name of third parties, and
1.3.6. the savings deposits constituted as a prior condition for the granting of loans for housing or other real estate, according to plans authorized by the former Federal Savings and Loan Box for Housing and those approved by the Central Bank.
25.11.83 2

B.C.R.A.
1 - Relationship between deposits and other obligations and the equity responsibility of financial entities. (Continuation) LISOL - 1
2. Obligations in foreign currency.
Collection limit.
The total of obligations that each entity assumes for deposits in foreign currency must be computed within the relationship established by the Central Bank for obligations in foreign currency.
25.11.83 1

B.C.R.A.
1 - Relationship between deposits and other obligations and the equity responsibility of financial entities. (Continuation) LISOL - 1
3. Prohibition on granting guarantees.
Entities cannot assume commitments (letters of credit, guarantees, or other guarantees, whatever their form or denomination) that imply the obligation to respond for financial facilities in national or foreign currency that holders of the private sector of the country obtain from abroad, except those specifically referred to imports of goods and services (contracts for work lease, technical advice for the installation and functioning of industrial plants, use of patents and licenses, etc.) or that are to be applied to needs that make up our export trade development. The cited prohibition also extends to loan operations formalized in foreign currency between holders of the country.
25.11.83 1

B.C.R.A.
1 - Relationship between deposits and other obligations and the equity responsibility of financial entities. (Continuation) LISOL - 1
4. Regime for the acquisition and merger of national capital financial entities.
In the case of entities included in the provisions related to the acquisition and merger of national capital financial entities, the regularization regimes of the positions regarding the relationship for direct and indirect obligations must be considered in each case.
25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONTENTS
II – Fragmentation of risk in credit operations. LISOL - 1

1. Maximum support for any concept to a client against the equity responsibility of the respective financial entity.
2. Included operations.
3. Excluded operations.
4. Method to compute the total of facilities granted to each client.
5. Distribution of credit portfolios.
6. Transitional provisions.
   25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONSOLIDATED TEXT
Circular LIQUIDITY AND SOLVENCY LISOL - 1
II – Fragmentation of risk in credit operations.

1. Maximum support for any concept to a client against the equity responsibility of the respective financial entity.
   1.1. The total of facilities granted to a client, in national or foreign currency, must not exceed 25% of the equity responsibility of each financial entity.
   This percentage also applies in the case of sets or economic groups of the private sector, considering them as a single client.
   In the case of a related natural or legal person, the total of facilities must not exceed 12.5% of the equity responsibility of the granting entity.
   1.1.1. The granting of credit support to a group or economic set can be considered for up to 50% of the computable equity responsibility of each entity, provided that the credit complement that represents this higher proportion, over the limit of 25% added to the other facilities in national and foreign currency that the group or economic set has in the granting institution, does not exceed 10% of the assistance that it has agreed upon for the entire financial system. In no case must the credit margin to a natural or legal person integrated into the set exceed the cited relationship of 25%.
   1.1.2. The facilities provided in point 1.1.1. can be granted only in fully justified cases, where there are adequate elements of judgment regarding the recoverability of the credit. For the determination of the total amount of facilities assigned by the financial system, the applicants must present a sworn declaration of the debt balances, amounts of guarantees, and other computable concepts, which does not have an age greater than 30 days.
   1.1.3. The excesses presented by the set or economic group referred to in point 1.1.1., derived from the credit assistance granted to companies that are contractors or concessionaires of the National, provincial, or municipal State, their autonomous entities, state-owned, mixed, or majority state-owned companies, can be admitted to the extent that the support has the object of making possible the fulfillment of the respective contracts or concessions and up to the amount that results from applying, to each of such companies, the general regulation of 25%.
   1.1.4. The special treatments provided in points 1.1.1. and 1.1.3. do not apply to facilities to a related natural or legal person.
   1.2. It is considered that two or more natural or legal persons form a set or economic group when in fact or in law, the unit of decision, the equity control, or the Participation in the capital, among other modalities of the corporate structure of the set, reveals the existence of a relationship of natural person or controlling society - controlled.
   To these effects, the guidelines provided in Chapter I, point 4. of the Circular on Active Operations "OPRAC - 1" must be taken into account.
   1.3. For the purposes of this relationship, one must consider not only the assistance dispensed directly by the respective entities, but also those operations that are incorporated into their assets by portfolio transfers between entities.
   1.4. It is the responsibility of each entity to adopt the guarantee precautions conducive to ensuring the collectability of its credits and other financial investments, based on the analyses that must be carried out regarding the situation of each client.
   25.11.83 1
   B.C.R.A.

II - Fragmentation of risk in credit operations (continuation) LISOL - 1
2. Included operations.
2.1. Loans and financings in their different modalities, including temporary overdrafts in current account and credit operations granted under the denomination of securities bought (bills of exchange, transfers, drafts, checks, and others of assimilable nature);
2.2. participations in the capital of companies;
2.3. acceptances;
2.4. sureties, guarantees, and other eventual responsibilities;
2.5. documentary credits and letters of credit;
2.6. facilities emerging from financial lease contracts, and
2.7. any other facilities and commitments that could directly or indirectly affect the equity of the entities.
25.11.83 1

B.C.R.A.
II - Fragmentation of risk in credit operations (continuation) LISOL - 1
3. Excluded operations.
3.1. Prefinancing of promoted exports (Chapter I, point 2.1. of the Circular on Active Operations "OPRAC - 1");
3.2. financing of promoted exports and to exporters (Chapter I, point 2.3. of the Circular on Active Operations "OPRAC - 1" and "OPRAC - 1 - 9");
3.3. loans that are granted to other local financial entities, and
3.4. loans, guarantees, and any other facilities that are granted to:
3.4.1. the Nation, provinces, and municipalities;
3.4.2. the companies and other public entities that belong to or are controlled by any of the three levels of Government, when the credit operations have the guarantee of the National Treasury, and
3.4.3. the companies that carry out investment projects declared of national interest or that are included in national legal regimes of economic promotion, only during the execution stage of those programs.
3.5. the forward purchase and sale contracts of foreign exchange, a criterion that is also applicable to the existing operations of exchange insurance, contracted within the regime made known through Communication "A" 31 and complements;
3.6. the commitments of fund provision that the entities assume with applicants in loan syndication operations, until they manifest themselves in debt balances in the so-called "managing bank" or in the eventual case that in that later stage the latter assumes the obligation to guarantee to the remaining participating institutions the reimbursement of the funds they contribute for the required financing.
3.7. the exclusions provided in points 3.1., 3.2. and 3.4.3. do not apply to credit facilities to a related natural or legal person.
25.11.83 1

B.C.R.A.
II - Fragmentation of risk in credit operations (continuation) LISOL - 1
4. Method to compute the total of facilities granted to each client.
It must be made on the basis of:
4.1. the balances owed by the respective clients or of the receivables that the entity registers for the use that they have made of the granted facilities, when it comes to loans or financings.
To these effects, the capital effectively lent must be considered, excluding the interests (whether received in advance or matured) and the updates by application of adjustment clauses or derived from modifications in the exchange rates in the credits in foreign currency. Notwithstanding, for the processing of new agreements for any concept, as well as in the renewals, extensions, forbearances (express or tacit), or in the assumption of contingent commitments, the updated value of all those obligations must be weighted for the computation of the facilities grantable to a client;
4.2. the funds disbursed for the integration of the contributions, in the case of commitments of Participation in the capital of companies;
4.3. The current amounts of the acceptances and of the eventual obligations effectively assumed, when the respective agreements refer to the granting of sureties, guarantees, and other contingent responsibilities;
4.4. the unused balances of the opened documentary credits and issued letters of credit, and
4.5. the origin value of the goods affected to the granting of facilities emerging from financial lease contracts, deducting the corresponding amortizations and increased by the accrued rents to be collected.
Both the amortizations and the accrued rents must be computed exclusively by the net amounts of the application of adjustment clauses and of the implicit interests in each operation.
4.6. Regarding the other facilities and commitments that could directly or indirectly affect the equity of the entities, the criteria that, within the guidelines fixed for the preceding cases, correspond to the nature of the respective operations must be applied.
25.11.83 1

B.C.R.A.
II - Fragmentation of risk in credit operations (continuation) LISOL - 1
5. Distribution of credit portfolios.
It corresponds to pay particular attention to the diversification of placements both in loans and other modalities of financing, as well as in the portfolio of guarantees, so that the operations that represent significant proportions of the equity responsibility of the entity remain circumscribed to reasonable magnitudes within the total of the active portfolios.
25.11.83 1

B.C.R.A.
II - Fragmentation of risk in credit operations (continuation) LISOL - 1
6. Transitional provisions.
6.1. The relationship of 12.5% of the equity responsibility of the granting entity, referred to in the third paragraph of point 1.1., is applied after a gradual reduction period of the proportion of 25% that also governed for those users. To this end, it is reduced, starting from August 1983, one percentage point monthly for twelve consecutive months and half a percentage point monthly in the thirteenth.
6.2. The entities must propose framing plans for the exceeded operations due to the suppression of the special treatments and exceptions contemplated in points 1.1.1., 1.1.3., 3.1., 3.2. and 3.4.3. for natural and legal persons linked.
25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONTENTS
III – Immobilization of assets LISOL - 1

1. Limitations.
2. Concepts included.
3. Concepts excluded.
4. Deductible concepts.
5. Regime applicable to goods taken in defense or in payment of credits.
   5.1. General conditions.
   5.2. Valuation criterion.
   5.3. Imputation of differences.
   5.4. Shares or participations in the capital of companies whose holding configures the situation included in the prescriptions of article 28, clause a), of Law No. 21.526.
   5.5. Other provisions.
   25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONSOLIDATED TEXT
Circular LIQUIDITY AND SOLVENCY LISOL - 1
III – Immobilization of assets

1. Limitations
   The immobilizations of assets must not exceed the following relationships:
   1.1. the total of the immobilizations must not exceed 100% of the equity responsibility of each financial entity, except those included in the regime provided in point 5;
   1.2. within that limitation, the investments in securities referred to in point 2.8. must not exceed 3% of the equity responsibility of the respective entity, and
   1.3. in the cases of new financial entities authorized to install themselves, without prejudice to the compliance with what is prescribed in point 1.2., the total of the immobilizations must not exceed 50% of the equity responsibility of the entity at the start of its operations.
   This percentage increases by 10 points at the close of each of the successive complete annual fiscal years, until reaching the proportion established with general character in point 1.1. at the close of the fifth fiscal year.
   25.11.83 1

B.C.R.A.
III – Immobilization of assets. (Continuation) LISOL - 1
2. Concepts included
2.1. The real estate, movable property, installations, machines, vehicles, and other goods of the entities, intended for their functioning;
2.2. the real estate owned by the entity intended for housing, club, or recreation of the personnel;
2.3. the goods for future use of the entities,
2.4. the paid installments, if they have not been imputed to income accounts, on leased goods when the respective lease with purchase option had been contracted;
2.5. the investments -construction, introduction of improvements, renovations, etc.- that originate from the use of third-party goods;
2.6. the goods subject to realization;
2.7. the investments in goods intended for rent or for their sale;
2.8. the investments in non-negotiable securities in stock exchanges, except those issued by the national, provincial, and municipal governments;
2.9. the goods taken in defense of credits, not included in the conditions stated in point 5., and
2.10. any other immobilized asset not covered with provisions.
The investments in movable or immovable goods computable according to the preceding rules must be considered by their net amounts, deducting the current debts coming from their acquisition.
25.11.83 1

B.C.R.A.
III – Immobilization of assets. (Continuation) LISOL - 1
3. Concepts excluded.
3.1. The medium and long-term loans,
3.2. the operations referred to in articles 22, clauses e) and j), and 24 clauses f) and k), of Law No. 21.526, and
3.3. the investments in shares of other financial entities (article 29 of Law No. 21.526).
25.11.83 1

B.C.R.A.
III – Immobilization of Assets. (Continuation) LISOL - 1
4. Deductible Items.
4.1. The investments that national financial entities (official and private) make or have made—including the value of goodwill—by reason of the purchase of subsidiaries of entities in liquidation, bid for by the Central Bank, according to the following percentages:
4.1.1. during the first year, counted from the date the purchase agreement is signed, 100%, and
4.1.2. during the second year, 50%.
4.2. The deductible investments as provided in the preceding point must not exceed in any case 20% of the computable net worth registered by the respective entity in the month in which the corresponding purchase operation begins.
25.11.83 1

B.C.R.A.
III – Immobilization of Assets. (Continuation) LISOL - 1
5. Regime applicable to assets taken in defense or in payment of credits.
5.1. General Conditions.
5.1.1. Assets taken in defense or in payment of credits are excluded from the preceding rules for a period of 3 years, counted from the date of their incorporation into the entity's equity.
5.1.2. Assets not realized by the end of the period established in the previous subsection are subject from that moment to the current regulations on immobilized assets.
5.2. Valuation Criteria.
The incorporation of assets taken in defense or in payment of credits must be carried out at the following values:
5.2.1. technical valuation performed by a firm of recognized professional capacity, when the balance of the credit being cancelled does not exceed 10% (ten percent) of the computable net worth of the creditor entity;
5.2.2. technical valuation carried out by an official bank or that resulting as the average of those performed by two firms of recognized professional capacity in those cases where the loan exceeds the indicated percentage, and
5.2.3. quotation value on the date of incorporation, when it concerns participations in companies with quotations on stock exchanges or securities markets and that do not imply the situation foreseen in point 5.4. of these rules.
5.3. Imputation of Differences.
For the differences arising between the valuation referred to in the previous point and the amounts of the credits deemed amortized, the following criteria apply:
5.3.1. if the valuation of the assets exceeds the amount of said credits, the excess is subject to the general conditions on immobilized assets;
5.3.2. if the value of the credits deemed cancelled is greater, the difference is charged to the provision constituted for uncollectible risk of the respective credit or, in its absence, to results.
5.4. Shares or participations in the capital of companies whose holding constitutes the situation included in the prescriptions of article 28, subsection a), of Law No. 21.526.
5.4.1. They are not considered as immobilized assets and are excluded from observing the provisions of points 5.1. and 5.3.1. of these rules;
5.4.2. after 2 years have elapsed from the date of incorporation of assets of this nature, entities must submit to the Central Bank a liquidation plan, with an advance of 60 days regarding the expiration of said term;
5.4.3. in the event that the Central Bank formulates observations on the submitted plan, the entity must adjust it in accordance with them within 10 calendar days of notification;
5.4.4. the failure to present the plan within the established terms, its rejection or non-compliance, gives rise to the application of article 41 of Law No. 21.526;
25.11.83 1

III – Immobilization of Assets. (Continuation) LISOL - 1
5.4.5. the holdings of shares or participations referred to in this point 5.4. must be declared in disaggregated form in the "Detail of participations in other societies" table that integrates the quarterly/annual information regime.
5.5. Other Provisions.
5.5.1. The Central Bank may require specific schedules for the realization of assets taken in defense or in payment of credits and the formulation of rehabilitation plans under the terms of Law No. 22.529 when, in its judgment, such assets reach inappropriate values;
5.5.2. point 5.2. of these rules does not apply to assets taken in defense or in payment of credits registered in May 1982 as immobilized assets (point 2.9. of this Chapter).
25.11.83 2

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONTENTS
IV – Loans and other financial credits of regular compliance. LISOL - 1

1. General nature rule.
   25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONTENTS
Circular LIQUIDITY AND SOLVENCY LISOL - 1
IV – Loans and other financial credits of regular compliance.

1. General nature rule.
   The Central Bank will observe the evolution experienced by the financial system in this matter through the "Status of Debtors" (Formula No. 3827, "Monthly Accounting Information Regime" of Circular CONAU - 1) and will proceed to require the presentation of regularization plans when it deems convenient.
   25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONTENTS
V - Common Rules to Chapters I to III LISOL - 1

1. Computation of relationships.
2. Computable net worth of the financial entity.
3. Defaults.
   3.1. Impediments.
   3.2. Charges.
   3.3. Transitional Regime.
4. Adaptation Plans.
   25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONSOLIDATED TEXT
Circular LIQUIDITY AND SOLVENCY LISOL - 1
V – Rules to Chapters I to III

1. Computation of relationships.
   Entities must present monthly information on their positions regarding the relationships contained in Chapters I to III, adjusted to the guidelines for the integration of the respective formulas included in Chapter VII.
   25.11.83 1

B.C.R.A.
V – Rules to Chapters I to III. (Continuation) LISOL - 1
2. Computable net worth of the financial entity.
For the fulfillment of said relationships, entities must take into consideration their computable net worth on the last day of the month to which the pertinent information corresponds, determined according to the definition established in Chapter VI.
25.11.83 1

B.C.R.A.
V – Rules to Chapters I to III. (Continuation) LISOL - 1
3. Defaults.
3.1. Impediments.
Excesses to the relationships constitute impediments for the purposes of:
3.1.1. the transformation of financial entities (point 3.2. of Chapter I of Circular CREFI - 1);
3.1.2. the installation of subsidiaries of national financial entities in the country (point 1.3. of Chapter II of Circular CREFI- 1);
3.1.3. the installation of subsidiaries of foreign financial entities in the country (point 1.1. of Chapter III of Circular CREFI - 1);
3.1.4. the installation of operational subsidiaries and representation offices abroad, by national financial entities and local entities of foreign capital (points 1.1.4. and 2.1.1. of Chapter IV of Circular CREFI - 1);
3.1.5. the Participation of national financial entities or local entities of foreign capital in financial entities abroad (point 1. of Chapter V of Circular CREFI- 1);
3.1.6. obtaining authorization to operate in foreign currency (point 1.2.1. of Chapter X of Circular CREFI - 1);
3.1.7. the 10% bonus on the contribution in the case of entities adhering to the deposit guarantee regime (article 56 of Law No. 21.526) when they register excesses during the last 12 months, excluding the month in which it is settled (point 7.2.5. of Chapter I of Circular OPASI - 1).
3.2. Charges.
3.2.1. Excesses to the technical relationships must pay the charges indicated below, without prejudice to the impediments to which those give rise:
Relationship In times the maximum rate rediscount valid for the respective month
3.2.1.1. Financial liabilities / computable net worth.................... 0.8 Those of point 3.1
3.2.1.2. Fragmentation of credit risk........................................ 0.55 Those of point 3.1.
3.2.1.3. Immobilization of assets......... 0.35 Those of points
3.1.1. to 3.1.6
3.2.2. To determine the charges, the valid rediscount rate during the period of default will be that resulting from the sum of the maximum daily rediscount rates established by this Institution for that period;
3.2.3. the charges provided for in points 3.2.1.1. to 3.2.1.3. may be reduced in exceptional cases, when mitigating circumstances are given and weighing the causes that originated the default.
25.11.83 1

V – Rules to Chapters I to III. (Continuation) LISOL - 1
3.2.4. For defaults incurred up to April 30, 1980, the regime of charges fixed at that time is maintained;
3.2.5. adjustments of the amount of charges for rectification of information:
3.2.5.1. when, having incurred errors or omissions, entities must rectify their information on technical relationships, the amount of charges for any excesses that arise is obtained by the simple sum of those corresponding to each monthly period and independently for each exceeded regulation. The incidence on the financial and economic aspects of the entities will take place when the corresponding debit is made in the current account they maintain with this Institution;
3.2.5.2. the debt that derives from the rectifications referred to in point 3.2.5.1. must be updated applying the correction factor resulting from comparing the wholesale price index - general level - prepared by the National Institute of Statistics and Censuses and communicated by this Central Bank, corresponding to the first or second month prior to the moment when said debt would have become due and to the same antecedence to the date on which the debit is made in the current account that the entity maintains with this Institution,
3.2.5.3. the update provided for in point 3.2.5.2. does not apply in the case of entities that, spontaneously, present rectified information corresponding to previous monthly periods, which originate the payment of charges for excesses. The presentation is considered spontaneous when entities make it "motu proprio", provided that it is carried out at a time when there is no circumstance that, directly or indirectly, could make questionable the own determination of said act;
3.2.5.4. the excesses to the technical relationships that entities spontaneously declare as a consequence of the rectification of information corresponding to previous monthly periods, do not affect the projects for expansion of services or Participation in financial entities abroad, and
3.2.5.5. if, as a consequence of the adjustments made spontaneously, those entities would be subject to adaptation and rehabilitation plans - articles 2nd and 3rd of Law No. 22.529 - those projects will be admitted from the first month in which the situation is considered normalized.
3.3. Transitional Regime.
3.3.1. the charges of point 3.2. are not applicable until December 1983, inclusive, for any excesses that financial entities register in the technical relationships (financial liabilities in national currency, immobilization of assets and fragmentation of credit risk);
3.3.2. the measure referred to in the preceding point applies in each case from the month following that in which the respective financial entity would have been in conditions to definitively opt for the off-balance sheet revaluation of its real estate;
3.3.3. in the case of entities that were not holders of real estate on April 30, 1981 (excluding those acquired in defense or in payment of credits and those intended for financial leasing), the suspension established in point 3.3.1. applies from August 1981;
25.11.83 1
B.C.R.A.

V – Rules to Chapters I to III. (Continuation) LISOL - 1
3.3.4. from the month resulting in accordance with what is indicated in point 3.3.2., the rules linked to the formulation of adaptation plans (point 4. of this Chapter) and the other provisions issued by this Institution regarding cases where defaults to said regulations are presented (previous point 3.1.) are applicable.
25.11.83 1

B.C.R.A.
V – Rules to Chapters I to III. (Continuation) LISOL - 1
4. Adaptation Plans.
4.1. Entities that incur in defaults during three consecutive months or six alternating months in a period of twelve consecutive months, must present an adaptation plan - unless previously required by the Central Bank - within 30 days following the month in which the excess that determines that obligation occurred, based on the increase in net worth or, in its case, on the elimination of excesses to the relationships.
This provision is applicable for each of the established relationships;
4.2. without prejudice to paying, once the plan referred to in the previous point is approved, a charge at a rate fixed by this Institution;
4.3. in the event that the Central Bank formulates observations on the submitted plan, the entity must adjust it in accordance with them within ten calendar days of notification;
4.4. the failure to present the plan within the established terms, its rejection or non-compliance, gives rise to the application of article 41 of Law No. 21.526, and
4.5. as long as the regularization plan has not been approved by the Central Bank or non-compliance is incurred, dividends and other cash remuneration cannot be distributed to capital, profits cannot be remitted, nor payments of fees, participations or bonuses dependent on results made.
25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONTENTS
VI - Net Worth of Financial Entities LISOL - 1

1. Minimum Requirements.
2. Periodic update of minimum capitals of financial entities.
3. Computable net worth of financial entities.
   3.1. Determination. Computable Items.
   3.2. Deductible Accounts.
   3.3. Other Computable Amounts.
   3.4. Capital Contributions.
   3.4.1. Capital contributions through the delivery of real estate.
   3.5. Facilities granted to national private banking for the acquisition of shares of financial entities offered in public auction.
4. Mergers and transformations of financial entities.
   4.1. Mergers of financial entities without transformation into another class of entity. 4.2. Transformation of financial entities into others of a different class.
5. Other Conditions.
6. Prohibitions and Limitations.
7. Transitional situations related to plans for grouping in the minimum capitals of operating entities and defects in their integration.
8. Sanctions.
   25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONSOLIDATED TEXT
Circular LIQUIDITY and SOLVENCY LISOL - 1
VI - Net Worth of Financial Entities

1. Minimum Requirements.
   1.1. Financial entities must maintain as a minimum the net worth reported by "B" communications.
   1.2. For the purposes foreseen in this Chapter, the following categories are defined:
   1.2.1. Category I: entities located in the City of Buenos Aires and those established in the districts of Almirante Brown, Avellaneda, Berazategui, Esteban Echeverria, Florencio Varela, General San Martín, General Sarmiento, La Matanza, Lanus, Lomas de Zamora, Merlo, Moreno, Morón, Quilmes, San Fernando, San Isidro, Tigre, Tres de Febrero and Vicente López of the Province of Buenos Aires or in those that may be created in the future by splitting or segregating said districts;
   1.2.2. Category II: entities established in the cities of Córdoba, Mendoza and Rosario;
   1.2.3. Category III: Entities located in the cities of La Plata, San Miguel de Tucumán, Santa Fe, and in the following Departments of the Province of Mendoza: Godoy Cruz and the part of those of Guaymallen, Las Heras, Maipú and Lujan, which make up the agglomeration known as "Gran Mendoza";
   1.2.4. Category IV: Entities that operate in the cities of Bahía Blanca, Mar del Plata, Salta and San Juan, and
   1.2.5. Category V: Entities established outside the geographic areas detailed in the preceding zones.
   1.3. Entities that have two or more subsidiaries in a place of higher category than that corresponding based on their headquarters, must maintain the net worth required for that one. When they only have one subsidiary in a place of higher category, they must observe 50% (fifty percent) of said requirement, provided that the resulting amount is not lower than the net worth corresponding to their other houses by their location. In such a case, this latter applies.
   If the amount resulting from applying the percentage franchise that corresponds were lower than the total amount of the net worth disposed for the category of immediate subsequent higher requirement in which another of the houses of the financial entity in question is located, then the total minimum capital corresponding to the category in which this last house is located applies. Likewise, commercial and investment banks authorized to carry out operations in foreign currency must adjust to the provisions of point 1.3., Chapter X of Circular CREFI - 1.
   25.11.83 1

B.C.R.A.
VI - Net Worth of Financial Entities LISOL - 1
2. Periodic update of minimum capitals of financial entities.
2.1. The minimum capitals of financial entities are adjusted semi-annually on June 30 and December 31 of each year applying the percentage variation that occurs in the last month of each calendar semester with respect to the last month of the previous semester, in the wholesale price index, general level, prepared by the National Institute of Statistics and Censuses.
2.2. Entities must integrate by December 31 of the year, the difference between the computable net worth they possess and the requirements derived from the update that applies on July 1 of the same year.
25.11.83 1

B.C.R.A.
VI - Net Worth of Financial Entities. (Continuation) LISOL - 1
3. Computable net worth of financial entities.
3.1. Determination. Computable Items.
The computable net worth of financial entities, for the purposes of the regulatory rules of the prescriptions of articles 30 and 32 of Law No. 21.526, is determined by deducting from the balance corresponding to the "Net Equity" Chapter (Code 400000) of the Minimum Chart of Accounts, the amounts of the accounts indicated in point 3.2. The concept "Net Equity", according to the definition contained in the respective chapter of the Chart Manual, comprises the difference between the asset and the liability of the financial entity, which includes the positive or negative effect of the results of the current exercise, on the date of each information. Financial entities may also compute as an item integrating said net worth the account "Provisions - Unforeseen Risks" (Code 340009) from the month in which, if they were to be released from the requirement to continue constituting the provision for unforeseen risks, they cover the new portfolio risks that may have occurred - from the date of the presentation by which they requested to be exempted from its constitution - through direct transfers to the item "Provisions for uncollectible risk" from the funds accumulated up to the moment of being exempted from that obligation in the account "Provisions - Unforeseen Risks". With regard to the facilities granted to national private banking for the acquisition of financial entities offered in public auction, the provisions of point 3.5. of this chapter must be observed.
3.2. Deductible Accounts:
Name Codes
"Diverse Credits - In Argentine pesos - Residents in the country - Capitals – Shareholders" 171103 "Diverse Credits - In Argentine pesos - Residents abroad - Capitals – Shareholders". 172103 "Participations in other societies - In Argentine pesos - In entities controlled financial" 161003 "Participations in other societies - In Argentine pesos - In entities financial uncontrolled - Permanent" 161006 "Participations in other societies - In Argentine pesos - In entities financial uncontrolled - Transitory" 161009 "Participations in other societies - In foreign currency - In entities controlled financial" 165003 "Participations in other societies - In foreign currency - In entities financial uncontrolled - Permanent" 165006
25.11.83 1

B.C.R.A.
VI - Patrimonial Responsibility of Financial Entities. (Continuation) LISOL - 1

Denomination Codes
"Foreign Subsidiaries" 220000
"Intangible Assets - Organization and Development Expenses - Original Value" 210012 "Items Pending Allocation - Debit Balances - In Argentine Pesos - Others" 231009 "Items Pending Allocation - Debit Balances - In Foreign Currency - Others" 235009

3.2.1. The balances of the various accounts "Participations in other companies" and "Organization and Development Expenses" are taken net of the corresponding provisions for depreciation risk (Codes 161091 and 165091) and of the accumulated amortization (Code 210015), respectively.

3.3. Other computable amounts.
To the amount thus obtained, the difference resulting from the off-balance-sheet revaluation of the entities' real estate properties according to the norms communicated in this matter is added, minus the updated residual amount shown in the accounting records.

3.4. Capital Contributions.
For all purposes of the legal or regulatory provisions related to the capital and reserves of financial entities, their integration and increase, contributions must be made in cash. The Central Bank may consider and authorize proposals for increases based on the entry of goods intended for own use. Such authorization must be requested prior to the initiation of any other legal procedure or as required by the competent authority.

3.4.1. Capital contributions through the delivery of real estate.

3.4.1.1. Financial entities that must present plans for regularization or classification in technical relations or in minimum capitals, may increase their share capital -with prior authorization from the Central Bank- through the incorporation of real estate as such, provided that this does not imply the exploitation on their own account of industrial, commercial, agricultural, or other types of companies, and

3.4.1.2. the goods thus received must be sold within a maximum period of 3 years counted from the date of their effective entry into the entity's assets,
unless during that period it is decided to allocate them for own use.

3.5. Facilities granted to national private banking for the acquisition of shares of financial entities offered in public tender.

3.5.1. Local private financial entities of national capital that are awarded tenders called by the Central Bank for the sale of share packages of other financial entities or that make capital contributions to enable the
25.11.83 1

B.C.R.A.
VI - Patrimonial Responsibility of Financial Entities. (Continuation) LISOL - 1 awardee to acquire those participations, are authorized not to deduct from their respective computable patrimonial responsibilities, for the purposes of the regulatory norms of articles 30 and 32 of Law No. 21.526, the amounts disbursed for that purpose during the first three years, according to the following schedule:

3.5.1.1. during the first year 100%;
3.5.1.2. during the second year 67%, and
3.5.1.3. during the third year, 33%;

3.5.2. the financial entities that make the capital contributions referred to in point 3.5.1. must inform the Central Bank and the awardee entity of their decision to make use of the temporarily admitted option, a circumstance that excludes the purchasing entity from exercising such authorization to the same extent, and

3.5.3. for the determination of the computable patrimonial responsibility for the purposes of the regulatory norms of articles 30 and 32 of Law No. 21.526, the awardee entities indicated in point 3.5.1. must not deduct the participations in the share capital of other financial entities, recorded in the item "Participations in other companies", to the extent that they are matched by obligations towards third parties contracted with specific allocation.
25.11.83 1

B.C.R.A.
VI - Patrimonial Responsibility of Financial Entities. (Continuation) LISOL - 1

4. Mergers and transformations of financial entities.

4.1. Mergers of financial entities without transformation into another class of entity.
They must adapt to the updated patrimonial responsibility by complying with regularization plans to be developed within a maximum period of four years. These plans must provide for relative annual increases (quotient between the annual increase and the patrimonial responsibility at the start of each year) that are equal or decreasing.

4.2. Transformation of financial entities into others of a different class.

4.2.1. Upon beginning operations in the new class, the respective entity must have integrated the total updated patrimonial responsibility at that moment. If the new updated capitals are not yet known, the entity has 30 calendar days counted from the date they are communicated, to reach the new minimum patrimonial responsibility.

4.2.2. In cases where simultaneously with the transformation there occurs the merger, absorption, or purchase of the share package or goodwill of other financial entities, upon beginning operations in the new class, at least 75% of the patrimonial responsibility referred to in point 4.2.1. must be integrated.
The remainder of the required sum will be integrated within a maximum period of 2 years through relative annual increases that are equal or decreasing.

4.2.3. The provisions of points 4.2.1. and 4.2.2. above apply to financial entities whose transformation into another of a different class is authorized from June 16, 1983.
25.11.83 1

B.C.R.A.
VI - Patrimonial Responsibility of Financial Entities. (Continuation) LISOL - 1

5. Other conditions.

5.1. In the case of entities where share transactions occur that, by their absolute or relative magnitude, modify the decision-making power to form the social will, the regularization programs in force are cancelled, and the minimum patrimonial responsibility corresponding to the class and location must be fully integrated within a maximum period of 60 days counted from the date the Central Bank rules on the transfer.

5.2. Financial entities must prove a minimum of 5 years of operation within their class to be able to open subsidiaries in higher-tier locations.

5.3. If what is established in point 5.2. is not complied with or if a minimum of 3 years has not elapsed since share transactions occurred that, by their absolute or relative magnitude, modified the decision-making power to form the social will, the requirement established in point 1.3. for the case of a subsidiary in a higher-tier location is raised to 75%.
This provision applies while the period referred to in points 5.2. and 5.3. has not elapsed in each case.

5.4. Additionally, the conditions and requirements communicated in this matter through Circular CREFI - 1 and complementary circulars must be taken into account.
25.11.83 1

B.C.R.A.
VI - Patrimonial Responsibility of Financial Entities. (Continuation) LISOL - 1

6. Prohibitions and limitations.

6.1. Cash dividends may not be distributed, nor payments of fees, participations, or result-dependent gratuities of the entity be made, as long as the Central Bank has observed the adjustment plans or verifies their non-compliance.

6.2. In economic years closed from September 30, 1982, inclusive, financial entities may only distribute cash profits up to the lesser of the amounts corresponding to:

6.2.1. Unassigned Results (Column 2, Net Equity Chapter - Item U of the General Balance Sheet Reporting Regime Quarterly/Annual) reduced by the amounts that must be allocated to consolidate Net Equity, pursuant to legal or statutory provisions, or

6.2.2. Unassigned Results (Column 1, Net Equity Chapter - Items U and V of said balance sheet) after deducting an amount obtained by applying to the Net Result of the Year (Column 1, Statement of Results of the Reporting Regime Quarterly/Annual) the percentages established legally or statutorily for the purpose referred to in point 6.2.1.
Item V ("Global Adjustment of Accumulated Results") should only be taken in the part corresponding to unassigned results, that is, net of the adjustment of profit reserves.

6.3. For the purposes of such cash profit distributions, from the unassigned results adjusted for inflation, the positive effect derived from the accounting of technical revaluations of real estate properties carried out according to Central Bank dispositions must be deducted.
25.11.83 1

B.C.R.A.
VI - Patrimonial Responsibility of Financial Entities. (Continuation) LISOL - 1

7. Transitional situations regarding regularization plans in the minimum capitals of operating entities and defects in their integration.

7.1. Entities that were in operation on November 17, 1983, may defer, up to June 30, 1984, the integration of the amount of the updates corresponding to December 31, 1982, and June 30, 1983; entities that are complying with regularization plans duly approved will have the same period, in the proportion corresponding from the adjustment that applies as of July 1, 1983.

7.2. Defects in the integration of the patrimonial responsibility referred to in point 1.1. of this Chapter are admitted to the extent that they result from deducting from their assets the net amounts included in the accounts "Intangible Assets - Organization and Development Expenses - Original Value" (Code 210012) and "Intangible Assets - Organization and Development Expenses - (Accumulated Amortization)" (Code 210015), which come from improvements in third-party real estate made up to April 30, 1981.
25.11.83 1

B.C.R.A.
VI - Patrimonial Responsibility of Financial Entities. (Continuation) LISOL - 1

8. Sanctions.
   Non-compliance with the norms on minimum capitals has the following sanctions:

8.1. Creation of new entities
Revocation of the authorization to operate if the minimum required capital is not integrated within 60 days of being agreed upon.

8.2. Regularization Plans

8.2.1. Operating entities and mergers of financial entities without transformation into another class of entity.
Application of the measures that the law empowers the Central Bank to take, which may reach the revocation of the authorization to operate.

8.2.2. Transformation of financial entities.
Upon the first non-compliance, the authorization to operate will be revoked.
25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONTENTS
VII - Procedural norms and formulas to be used (relative to the technical relations of Chapters I to III) LISOL - 1

1. Information for the Central Bank.
2. Instructions for the integration of the formulas.
3. Statement of the relation for deposits and other obligations in national currency.
4. Fragmentation of credit risk.
5. Statement of immobilized assets.
6. Formulas to be used.
   6.1. Formula 2966.
   6.2. Formula 3269.
   6.3. Formula 2965.
   25.11.83 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONSOLIDATED TEXT
LIQUIDITY AND SOLVENCY Circular LISOL - 1
VII - Procedural norms and formulas to be used (relative to the technical relations of Chapters I to III)

1. Information for the Central Bank.

1.1. The information covers the calendar month, using the formulas indicated in each case and whose models appear in point 6 of this Chapter, which must be integrated in triplicate. The original and the duplicate must be sent to the Management of Control of Financial Entities together with Formula No. 3826 of "Balance Sheet of Balances" and the triplicate must be archived in the headquarters of each entity.

1.2. The submission of this information is subject to the regime provided for in Circular RUNOR - 1, Chapter II, point 1.

1.3. Entities must conserve the data and complementary spreadsheets on the basis of which the supplied information is prepared, for the purposes of its timely verification by the Central Bank.
25.11.83 1

B.C.R.A.
VII - Procedural norms and formulas to be used (relative to Chapters I to III) (continuation). LISOL - 1

2. Instruction for the integration of the formulas.

2.1. Amounts must be registered in thousands of $a, without decimals, discarding fractions less than $a 500 and increasing to one thousand fractions of $a 500 or more.
This rule is excepted for the information of the charge when its taxation for non-compliance with the relations applies, which must be recorded in Argentine pesos, with cents.

2.2. The data that, for each case, are established in the following points must be reported. In the space reserved for "Observations" additional information that each entity deems appropriate or that the Central Bank may eventually request is included.
25.11.83 1

B.C.R.A.
VII - Procedural norms and formulas to be used (relative to Chapters I to III) (continuation). LISOL - 1

3. Statement of the relation for deposits and other obligations in national currency.

3.1. It must be reported in Formula No. 2966 "Statement of the relation for deposits and other obligations in national currency".

3.2. Computable financial liabilities.
The balances to be considered for these purposes must be those registered at the close of operations each day. On days when no movement is registered, the balance corresponding to the immediate previous business day is repeated. The computation of loans within the regime for the purposes of regulating monetary resources must be carried out by their original amount (point 3.1.6. of Chapter IV of Circular REMON - 1).

3.2.1. Average balance of deposits.
It is recorded in row 1 and is calculated by dividing the sum of the daily balances of checking accounts, savings accounts, fixed-term deposits, and other deposits by the number of calendar days of the month under report. To this end, the daily creditor balances yielded by the items of the "Deposits" item of the Chart of Accounts identified with the following codes are taken:
311106; 311112; 311131; 311133; 311135; 311136; 311139; 311140; 311142; 311145; 311151; 311154; 311191; 311403; 311406; 311409; 311412; 311445; 311454; 311706; 311712; 311718; 311720; 311727; 311731; 311733; 311735; 311736; 311739; 311740; 311742; 311745; 311751; 311754; 312103; 312106; 312109; 312112; 312118; 312120; 312131; 312133; 312135; 312136; 312139; 312l40; 312142; 312145; 312151 and 312154.

3.2.2. Average of the balances of other obligations by financial intermediation.
It is recorded in row 2 and is calculated by dividing the sum of the daily balances of the accounts included by the number of calendar days of the month under report. The daily creditor balances registered by the accounts of the Plan that have been assigned the following codes are computed:
321102; 321109; 321112; 321128; 321131; 321142; 321144; 321145; 321148; 321154; 321155; 321158; 321161; 321162; 321181; 322128; 322131 and 322181.
In account 321112, the amounts corresponding to operations included in the regimes established by Circular REMON - 1 - 1 (Communication "A" 22) and REMON - 1 - 155 (Communication "A" 366) are excepted. As for the items identified under the codes: 331106; 331109; 331112; 331127; 331131; 332106 and 332109, only the part of the daily balances that is reached by the current minimum cash norms is taken. Investment banks must also record, in addition to the mentioned obligations, those assumed by credits from abroad (average of daily balances of items 326125; 326126; 326127; 326128; 326131 and 326133 of the Chart of Accounts).

3.2.3. Average balance of contingent obligations.
It is noted in row 3 and is obtained by dividing by the number of calendar days of the month under report the sum of the daily balances of the accounts
25.11.83 1

VII - Procedural norms and formulas to be used (relative to Chapters I to III) (continuation). LISOL - 1 "Other guarantees granted" (Code 721033) and of the account "Documents rediscounted" (Code 721049).

3.3. In section II, the computable patrimonial responsibility defined in the terms of Chapter VI, point 3, is recorded.

3.4. Determination of the relation.
In section III, row 5, the maximum amount of admitted financial liabilities by the fixed relation (section II multiplied by the number of times in force) is recorded.
From its comparison with those actually assumed, to be included in row 6, the capture margin or the excess to the liability relation that is declared in row 7 arises.
In row 8, the number of times, with one decimal, that the patrimonial responsibility is contained in the amount of financial liabilities recorded in row 4 is registered.

3.5. Calculation of the charge.
Only in the case of a negative result being registered in row 7, section IV is integrated, noting in row 9 the amount, in Argentine pesos with cents, that corresponds to be paid for the eventual excess to the liability relation.
25.11.83 2

B.C.R.A.
VII - Procedural norms and formulas to be used (relative to Chapters I to III) (continuation). LISOL - 1

4. Fragmentation of credit risk.
   It must be reported in Formula No 3269 "Fragmentation of credit risk".

4.1. Table I. Information on excesses
In this table, entities must include the daily amounts representative of the total excesses verified, computed by calendar days. On days when no operations are carried out, the amount corresponding to the immediate previous business day must be repeated. When the entity does not register departures in this matter during the month under report, "No excesses" must be indicated. To establish the assistance granted to each client or economic group, the balances registered in their name in the different items of the Chart of Accounts must be taken, as detailed below:

4.1.1. Loans.
131100; 131700; 132100; 135100; 135700 and 136100, after deducting the operations that result excluded by the application of the provisions of point 3. of Chapter II.
The balances of the Account "Purchased Documents" will be attributed to the economic unit -signatory or endorser of the documents- that has been the recipient in the first instance of the funds from the system, for which purpose the balances of the items 131418; 131421; 135418; 135421; 136118 and 136121 will also be computed as long as that unit belongs to the non-financial sector, net of the pertinent documented interests. The debtor balances registered by the checking accounts included in the Deposits item -of clients included in these obligations- must also be considered.

4.1.2. Participations in other companies.
161015; 161018; 161021; 165018 and 165021.

4.1.3. Acceptances and contingent obligations.
141103 -net of the amount of account 321103 when it concerns operations linked with financial transactions between third parties, in order to compute the part that corresponds to the capital effectively traded- 145103 and 146103. 711033 and 715033 (to the extent that it corresponds to operations registered in the accounts 721033 and 725033).

4.1.4. Documentary credits and letters of credit (unused balances).
711009 and 715009, in the part that corresponds to the cited concepts.

4.1.5. Goods in financial leasing.
141106; 145106; 151003 and 155003, with the corrections derived from the application of the norms established in Chapter II, point 4.5.
25.11.83 1

VII - Procedural norms and formulas to be used (relative to Chapters I to III) (continuation). LISOL - 1

4.1.6. Other credits by financial intermediation and diverse credits.
141136; 141139; 141154; 142101; 145136; 145139; 145154; 146136; 146139 and 146154.

4.2. Table II. Determination of the excess and calculation of the charge.
When the information prepared shows excesses to the maximum admitted relation, the integration of this table proceeds for the purposes of the calculation of the corresponding charge. To this end, the excess is determined by obtaining the simple average of the daily balances, by dividing the total general by the number of calendar days of the respective month.

4.3. Table III. Distribution of credit support.
This table is prepared on the basis of the current balances of credit assistance for all concepts granted to users, recorded on the last day of the reported period, which are imputed to the accounting items recorded in point 4.1. of this Chapter. The amounts corresponding to the computable and excluded credit assistance are discriminated in accordance with the terms of point 3. of Chapter II.
25.11.83 2

B.C.R.A.
VII - Procedural Rules and Formulas to be Used (relating to Chapters I to III) (continued). LISOL - 1

5. Statement of Fixed Assets
   It must be reported in Formula No. 2965 "Statement of Fixed Assets".

5.1. General Criterion.
The amounts to be recorded are the balances as of the last day of the reporting period.

5.2. Table I. Detail of Concepts.

5.2.1. Section A. Computable Equity.
The total corresponding to the reported month is recorded, according to the definition contained in Chapter VI, point 3.

5.2.2. Section B. Fixed Assets.
Row 1. Participation in other non-listed companies.
The total of the balances resulting from the items identified in the Chart of Accounts with Codes 161021 and 165021 is recorded, after deducting participations received in defense or payment of credits during the period that are not considered as immobilization (point 5. of Chapter III), net of provisions for risk of devaluation (Codes 161091 and 165091) that may have been established for the computable balances. Participations acquired by virtue of franchises granted by tax relief regimes are excluded, as long as legal impediments to the free availability of the securities remain in force.

Row 2. Assets for use.
The balance of the item "Assets for Use" (Code 180000) of the Chart of Accounts and the higher residual value resulting from the extra-accounting revaluation of the real estate assets of this item are included. The amount is recorded net of the deduction of:

• current debts arising from their acquisition (whether incurred with suppliers or by loans obtained with specific and proven allocation of funds) that are included in accounts 331131; 331136; 332136; 335131;
  335136; 336131 and 336136;
• adjustments and accrued interest payable on the aforementioned debts, recorded in accounts 331201; 332201; 335201 and 336201, and
• advances received for the sale of assets for use, whose amount is included in the balances of accounts 331127; 335127 and 336127.
  In no case can the aforementioned deductions exceed the current updated residual value - plus the balance of the extra-accounting revaluation, if applicable - for which each asset is considered individually.

Row 3. Other assets.
The total indicated by item 190000 "Other Assets" of the aforementioned Plan and the higher residual value of the authorized extra-accounting revaluation of the real estate assets of this item are recorded, after deducting the amount of assets acquired in defense or payment of credits imputed to this item, net of the relevant amortizations. In addition, the same deductions as those established for the integration of row 2 are admitted.

Row 4. Assets taken in defense or payment of credits.
The amount of these assets and of participations in other companies - the latter, during the 3-year period from their entry into equity - that are included in item 190000 and in accounts 161021 and 165021 is indicated, after deducting the accumulated depreciation and the provision for risk of devaluation attributable to them, respectively. The deduction of advances received for the sale of these assets is admitted, whose amount is recorded in items 331127, 335127 and 336127 up to the occurrence with the residual value of the asset to which they refer. Participations in other companies listed on the stock exchange are included when they are covered by the provisions of point 5.4. of Chapter III.

Row 5. Other fixed assets not covered by provisions.
The total arising from the sum of the balances of the Chart of Accounts items assigned the following Codes is noted: 161012; 171106; 171109; 17111; 171115; 171118; 171121; 171124; 171127; 171131; 171133; 171136; 171139; 172106; 172139; 175118; 175121; 175124; 175139; 176118; 176121; 176124; 176139; 210003 and 210006. Adjustments and accrued interest receivable (imputed to accounts 171201; 172201; 175201 and 176201) of the various computable credits must be included, and provisions for risk of uncollectibility established for them in accounts 171301; 172301; 175301 and 176301 must be deducted. Also in this row, the update of assets taken in defense or payment of credits is computed again, net of the amortization that this value may have accrued, declared in Section C, row 1. Item 171115 is taken net of the remaining tax credit of the Value Added Tax on the purchase of assets given in financial lease, when they are affected by contracts in force at the close of the month under report. From the business key (Codes 210003 and 210006), the balance of current specific obligations - plus their adjustments and accrued interest payable - attributable to it in proportion to the acquisition price of the participations or subsidiaries of financial entities is deducted, up to the occurrence with the computable residual value. Participations acquired by virtue of franchises granted by tax relief regimes are included, as long as legal impediments to the free availability of the securities remain in force. In addition, facilities recorded in the item "Loans" must be included in this row, granted to enable the installment sale of the entity's assets, even if they have the characteristics of a financial operation, the pertinent analyses and evaluations on the financial situation of the acquirer have been carried out, and the limitation in terms of risk fragmentation has been verified, provided that the
25.11.83 2

B.C.R.A.
VII - Procedural Rules and Formulas to be Used (relating to Chapters I to III) (continued). LISOL - 1 conditions agreed for that operation are of a nature different from those that are usually applied in agreements with the general clientele in terms of term, payment method, grace period, required guarantees, adjustment clause, etc. Facilities granted - recorded in "Loans" or in "Various Credits" - for the alienation of assets acquired in defense or payment of credits covered in point 5. of Chapter III are excepted, until three years have elapsed from the date of incorporation into the asset of the asset in question. The deferral of the update of debts incurred with the Central Bank for the purchase of entities offered in auctions is excluded, which, moreover, is not deducted for the purposes of establishing the computable equity responsibility.

5.2.3. Section C. Deductible Concepts.
Row 1. Assets taken in defense or payment of credits.
Those acquired in accordance with the provisions of the regime established in Chapter III, point 5. and which are recorded in items 190000, 161021 and 165021 of the Chart of Accounts after deducting the accumulated depreciation and the provision for risk of devaluation attributable to them, respectively, are registered. They are declared in this section as long as more than 3 years have not elapsed from the date of entry into equity. Shares or participations in the capital of companies, without quotation on stock exchanges or securities markets, whose holding determines the classification in article 28, item a) of Law No. 21.526, are included in row 1.1., while those listed are recorded in row 1.2. When such a legal situation does not arise, they are noted in row 1.3. The other assets taken are recorded in row 1.4.

Row 2. Investments for the acquisition of subsidiaries.
This row is integrated only by national financial entities (official or private) that have acquired subsidiaries of entities in liquidation, bid by the Central Bank (Chapter III, point 4). 100% or 50% is recorded, depending on whether it is the first or second year, respectively, of the investments made for this purpose - including the business key - net of the relevant depreciation for original values and the balance of debts for capital, arising from their acquisition. This franchise is subject to adjustment to what is established in point 4.2. of Chapter III.

5.3. Table II. Detail of Relationships.
It is integrated to determine the status of the relationships established in the rules on immobilization of assets. The results obtained are recorded with one decimal place.
In row 2 of section A, the amount resulting from applying the maximum percentage established in the rules (Chapter III, point 1.2.) for participations in other non-listed companies is noted.
25.11.83 3

VII - Procedural Rules and Formulas to be Used (relating to Chapters I to III) (continued). LISOL - 1 In row 2 of section B, the amount resulting from calculating the percentage fixed as a general rule in Chapter III, point 1.1. or the one corresponding according to the provisions of point 1.3. of the cited Chapter is recorded. However, entities covered by the latter situation compute in full the balances for accounting and extra-accounting revaluations that correspond to the assets that are considered as fixed assets.

5.4. Table III. Determination of Computable Excess and Settlement of Charge
This table is integrated when excesses in the established relationships are presented, subject to the payment of a charge.
25.11.83 4

B.C.R.A.
VII - Procedural Rules and Formulas to be Used (relating to Chapters I to III) (continued). LISOL - 1

6. Formulas to be Used.
   25.11.83 1

CENTRAL BANK OF THE ARGENTINE REPUBLIC
Financial Entity Control Management
STATEMENT OF THE RELATIONSHIP FOR DEPOSITS
AND OTHER OBLIGATIONS IN NATIONAL CURRENCY
CODE
ENTITY: Month Year
I – COMPUTABLE LIABILITIES Amounts in thousands of Argentine pesos

1. Deposits
2. Other obligations for financial intermediation.
3. Contingent obligations.
4. Total computable liabilities (sum of rows 1
   to 3)
   II - COMPUTABLE EQUITY RESPONSIBILITY
   III – DETERMINATION OF THE RELATIONSHIP
5. Maximum amount of liabilities admitted by this relationship.
6. Computable liabilities (row 4).
7. capacity margin or excess to this relationship (row 5 – row 6) (+ 6 -).
   Row 4
8. relationship: Section II
   IV – CHARGE FOR EXCESS TO THIS RELATIONSHIP
9. % (1) of the result of row 7 x 1,000, amount
   in Argentine pesos, with cents, that is credited in favor of the Central Bank of the Argentine Republic, for which purpose formula 3030 is attached.
   Observation:
   Place and date:
   Accounting Area (2) General Manager
   Signature and clarification Signature and clarification (1) - Charge that corresponds according to point 3.2., Chapter V, of Circular LISOL - 1 and that will be communicated by the B.C.R.A. for the month under report or that results from application in the regularization plan. (2) - To be signed by the highest-ranking responsible person. The provision of this form must be requested through Formula 337.

MODEL
CENTRAL BANK OF THE ARGENTINE REPUBLIC Month Year Financial Entity Control Management CREDIT RISK FRAGMENTATION ENTITY: Code:
TABLE I Excesses in the relationship: assistance/entity equity responsibility TABLE II Determination of excess and settlement of charge
Day Thousands of Argentine pesos Day Thousands of Argentine pesos 1 16 2 17 3 18 4 19 5 20 6 21 7 22 8 23 9 24 10 25 A. GENERAL TOTAL (from Table I) B. Average excess on which the charge will be levied Row A Number of calendar days in the month 11 26 12 27 13 28 14 29 15 30 31
C. % (´) of (B x 1,000), amount in Argentine pesos, with cents, that is credited in favor of the B.C.R.A., for which purpose formula 3030 must be attached
The provision of this form must be requested through Formula 337.

TABLE III Credit assistance versus entity equity responsibility
Tranches Number of beneficiaries Assistance (´´) – In thousands of Argentine pesos Computable Excluded TOTAL More than 25 % More than 20 % and up to 25 % More than 15 % and up to 20 % More than 10 % and up to 15 % Observations:
Place and date
Stamp
Accounting Area (´´´) General Manager
Signed and clarified Signature and clarified
(`) - Charge that corresponds according to point 3.2., Chapter V of Circular LISOL - 1 and that will be communicated by the B.C.R.A. for the month under report or that results from application in the regularization plan. (´´) - Balances as of the last day of the month under report. (```) - To be signed by the highest-ranking responsible person.

CENTRAL BANK OF THE
ARGENTINE REPUBLIC
Financial Entity Control Management
STATEMENT OF FIXED
ASSETS
CODE
ENTITY: Month Year
TABLE I DETAIL OF CONCEPTS AMOUNTS
(in millions of Argentine pesos)
A – COMPUTABLE EQUITY RESPONSIBILITY
B – FIXED ASSETS
1. Participations in other non-listed companies
2. Assets for use
3. Other assets
4. Assets taken in defense or payment of credit
5. Other fixed assets not covered by provisions
C – DEDUCTIBLE CONCEPTS
1. Assets Taken in defense or payment of credits
1.1. Participations in other companies (Art. 28, item a),
Law No. 21.526) non-listed on stock exchange
1.2. Participations in other companies (Art. 28, item a),
Law No. 21.526) listed on stock exchange
1.3. Other participations
1.4. Other assets
2. Investments for acquisition of subsidiaries
D – TOTAL COMPUTABLE (B – C)
TABLE II DETAIL OF RELATIONSHIPS AMOUNT
(in millions of Argentine pesos)
A – PARTICIPATIONS IN OTHER NON-LISTED
COMPANIES ON STOCK EXCHANGE
1. Total (Table I, Section B, row 1)
2. % of computable equity responsibility
(Table I, Section A)
3. Favorable margin or excess (2 – 1) (+ or -)
Row 1 x 100 %
4. Relationship
Table I, Section A
B – TOTAL COMPUTABLE IMMobilizations OF
TABLE I, SECTION D
1. Total
2. % of computable equity responsibility
(Table I, Section A)
3. Favorable margin or excess (2 – 1) (+ or -)
Row 1 x 100
4. Relationship
Table I, Section A
%
The provision of this form must be requested through Form. 337.

TABLE III DETERMINATION OF COMPUTABLE EXCESS AND SETTLEMENT OF CHARGE
AMOUNTS
(in Argentine pesos)
EXCESSES IN:

1. Participations in other non-listed companies.
   (Table II, Section A, row 3 x 1,000)
2. Relationship of Table II, Section B, row 3 x 1,000.
   SETTLEMENT OF CHARGE

• % (1) of the result of row 1 or 2, whichever is greater, amount
  that is credited in favor of the Central Bank of the Argentine Republic, for which purpose Form. 3030 is attached Observations:
  Place and date:
  Accounting Area (2) General Manager
  Signature and clarification Signature and clarification (1) - Charge that corresponds according to point 3.2., Chapter V of Circular LISOL - 1 and that will be communicated by the B.C.R.A. for the month under report or that results from application in the regularization plan. (2) - To be signed by the highest-ranking responsible person.