Circular LISOL 1-1085, OPRAC 1-1268, OPASI 2-731: Financing to the Non-Financial Public Sector. Time Deposits and Investments. Update.

"AÑO DE LA DEFENSA DE LA VIDA, LA LIBERTAD Y LA PROPIEDAD" COMUNICACIÓN “A” 8163 20/12/2024 TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1-1085,
OPRAC 1-1268,
OPASI 2-731:
Financing to the Non-Financial Public Sector.
Time Deposits and Investments. Update.
___________________________________________________________________________ We address you to deliver to you the sheets that, in replacement of those previously provided, must be incorporated into the consolidated texts referenced herein, pursuant to the provisions of Decrees 70/23 and 553/24 regarding State-owned companies.

In this regard, it is clarified that State-owned companies to which the Central Bank of the Republic Argentina has previously granted the general treatment provided for persons in the non-financial private sector, will retain said regulatory treatment as long as they comply with the requirements considered for granting it, regardless of any change in corporate structure.

Finally, it is recalled that on this Institution's website www.bcra.gob.ar, by accessing “Financial System – LEGAL AND REGULATORY FRAMEWORK – Consolidation and summaries – Consolidated texts of general regulations”, the modifications made with text highlighted in special characters (strikethrough and bold) can be found.

We salute you attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Martín A. Bonelli Enrique C. Martin
Deputy Manager of Regulation of Passive Operations Manager of Issuance of Rules

ANNEX

1.1. Concept.
The non-financial public sector comprises the National Government and the provincial and municipal governments and of the Autonomous City of Buenos Aires, including the central administration, ministries, secretariats and their decentralized and autonomous departments, and other entities controlled by them. It also comprises trusts and fiduciary funds whose ultimate beneficiary or trustee, determined by the respective contracts or provisions governing them, belongs to the non-financial public sector, including other trusts or fiduciary funds in which the works to be financed have said sector as the final recipient.

1.2. Exclusions.
1.2.1. Energy Sector.
The Central Bank of the Republic Argentina (BCRA) may grant the general treatment provided for persons in the non-financial private sector, for all effects of the norms applicable in this matter -except for the provisions established in the consolidated text (TO) on Credit Graduation- to public sector companies that meet the following requirements:
a) Their creation has been mandated by national law or decree of the National Executive Power, or their assets represented by shares have been declared as of public utility and subject to expropriation -totally or partially- by national law, with the National State having assumed the rights inherent to its quality as shareholder. b) Constitute a Joint Stock Company subject to the regime of Chapter II, Sections V or VI of the Commercial Companies Law -Law 19.550 and amendments-. c) Have majority participation of the Non-Financial Public Sector, directly or indirectly, and be the National State the majority shareholder with respect to the other jurisdictions of said sector, according to the provisions contained in that legal device. d) Include in their corporate object the development of activities for the exploitation of hydrocarbon fields and/or their transport, distribution, marketing and industrialization; or the generation and/or marketing of electrical energy. e) Be subject to internal and external controls of the National Public Sector under the terms of the Law of Financial Administration and of the Control Systems of the National Public Sector -Law 24.156 and amendments-, unless expressly provided otherwise by law.

1.2.2. Specific Procedure.
For the purpose of obtaining the general treatment provided for private sector companies according to what is established in point 1.2.1., the companies must:

B.C.R.A. FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR
Section 1. Non-financial public sector.
Version: 6th. COMMUNICATION “A” 8163 Validity:
21/12/2024 Page 1

i) Prior to the first financial assistance they request from financial entities under this regime, they must petition via a note signed by their legal representative and addressed to the BCRA, the general treatment provided for private sector companies. In said note, and as a sworn declaration, they must record compliance with the previously stated conditions and a commitment to provide the information requested for this purpose, as well as to notify the BCRA and the lending financial entity in a reliable manner of any modification of the circumstances considered for their assimilation to private sector companies. ii) In the event that the BCRA grants the general treatment provided for private sector companies, the company, when requesting any type of financing from a financial entity, must present to it an authentic copy of the resolution granting such treatment, along with a sworn declaration signed by its legal representative stating that it continues to comply with the conditions considered for granting said treatment. iii) The sworn declarations referred to in paragraphs i) and ii) above, must be accompanied by a certification from a public accountant with signature legalized by the competent Professional Council of Economic Sciences, in which that professional certifies compliance with the requirements of point 1.2.1. It shall be the responsibility of the lending financial entities to verify, prior to granting each credit assistance, the required intervention of this Institution, and the maintenance at all times of the requirements established for the treatment previously stated. When a company ceases to observe the conditions considered for granting the general treatment provided for private sector companies, the provisions applicable to the non-financial public sector shall apply to the new financings granted to it, from the moment this circumstance is verified. Consequently, companies receiving said treatment shall be exempt -for all their effects- from the application of provisions regarding financial assistance to holders of the non-financial public sector. The BCRA may dispense with the procedure provided herein when compliance with the requirements established in point 1.2.1. arises from the provisions of national law or decree of the National Executive Power.

B.C.R.A. FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR
Section 1. Non-financial public sector.
Version: 6th. COMMUNICATION “A” 8163 Validity:
21/12/2024 Page 2

CONSOLIDATED TEXT ORIGIN OF THE PROVISION OBSERVATIONS
Section Point Paragraph Com. Annex Point Paragraph
1.
1.1. “A” 3054 unique 1.1. According to Com. “A” 4798, 4838 (point 12.) and 4937.
1.2. “A” 4527
According to Com. “A” 4581, 5154,
5243, 5301, 8163, “C” 51182 and
“B” 9745.
2. 2.1. “A” 3054 unique 2.1.
According to Com. “A” 4937, 5062,
5154, 5472, 6635 and “B” 9745.
Includes interpretative clarification.
2.2. “A” 3054 unique 2.2.
3.
3.1. “A” 3054 unique 3.1. According to Com. “A” 5067 and 6635.
3.1.3. “A” 3054 unique 3.1.3. According to Com. “A” 5067, 5520 and
6978.
3.1.7. “A” 3054 unique 3.1.7. and
3.1.8.
According to Com. “A” 5067, 5520 and
6327.
3.1.8. “A” 4725 2. According to Com. “A” 5520, 6327 and
6635.
3.1.9. “A” 3054 unique 3.1.9. According to Com. “A” 5520 and 6635.
3.1.10. “A” 6396 5.
3.1.11. “A” 3054 unique 3.1.10. According to Com. “A” 5520 and 6635.
3.2. “A” 3054 unique 3.2.
According to Com. “A” 4838, 4932,
4937 (points 2. and 3.), 4996 (point
1.), 5015 (annex), 5062, 5069,
5125, 5368, 5393, 5521, 5671,
5740, 5991, 6635 and “B” 9745.
3.2.4.8. “A” 4932 1. According to Com. “A” 4937 (point 3.),
5520, 6635, 7311 and “B” 9745.
3.2.4.10. “A” 4937 unique 6. and 7. According to Com. “A” 4996 (point 1.),
5015, 5520, 6635 and “B” 9745.
3.2.5.1. “A” 5069 1. According to Com. “A” 5125, 5991 and
6035.
3.2.8. “A” 6337 According to Com. “A” 6637.
3.2.9. “A” 6449 1.
3.2.10. “A” 7341 3.
3.2.11. “A” 7341 3.
3.2.12. “A” 7900 According to Com. “A” 7913.
4.
4.1. “A” 3054 According to Com. “A” 6635.
4.1.1. “A” 3054 unique
According to Com. “A” 3548, 3911
(point 9., paragraph c), 6270 and
6816.
4.1.1.1. “A” 3054 unique
According to Com. “A” 3911 (point 9., paragraph b), 4798, 6270 and “B” 9745.
4.1.1.2. “A” 4798 According to Com. “A” 4947.
4.1.1.3. “A” 4798
4.1.2. “A” 3054 unique According to Com. “A” 4718, 6270 and “B”
9745.
4.1.3. “A” 3054 unique According to Com. “A” 3144 and 5062.
4.1.4. “A” 6270 According to Com. “A” 6485 and 7913.
4.2. “A” 6240 According to Com. “A” 6635.

B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE CONSOLIDATED TEXT ON FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR

3.1. Identification.
When carrying out the first operation or at the moment of opening the account or subscription of the contract, as the case may be, the natural persons holding or for whose order an operation is registered, legal representatives of legal entities, etc. will use one of the documents provided in the TO on Identification Documents in Force.

3.2. Fiscal situation.
Legal or natural persons holding or for whose order an account or operation is registered, legal representatives, etc. will inform their situation before the ARCA by providing the corresponding element, as indicated below:
3.2.1. Unique tax identification key (CUIT).
3.2.2. Unique labor identification code (CUIL).
3.2.3. Identification key (CDI). Depositary entities will manage compliance with this requirement through the process generated by the ARCA for such purposes.

3.3. Qualified investors.
3.3.1. The National, provincial and municipal governments and of the Autonomous City of Buenos Aires, central administration, ministries, secretariats, their autonomous and decentralized departments, companies and other entities controlled by them, the trusts or fiduciary funds included in the second paragraph of point 1.1. of the TO on Financing to the Non-Financial Public Sector and the Sustainability Guarantee Fund of the Argentine Integrated Pension System (FGS).
3.3.2. Common investment funds and financial trusts governed by article 19 of Law 24.441.
3.3.3. Pension and Retirement Fund Administrators (AFJP) that have converted their corporate object, according to the provisions of article 6° of Law 26.425, when acting in the role of administrator of those funds.
3.3.4. Joint stock companies and limited liability companies, cooperatives, mutual entities, social security organizations, civil associations, foundations, professional associations of workers with union status and trusts other than those mentioned in points 3.3.1. and 3.3.2., that enter into time deposits in the admitted modalities or in savings accounts or passive repurchase operations or acceptances for amounts not less than $1,000,000 (or its equivalent in other currencies), in the aggregate of these forms of investment.
3.3.5. Natural persons with real domicile in the country, who enter into time deposits in the admitted modalities or in savings accounts or passive repurchase operations or acceptances for amounts not less than $1,000,000 (or its equivalent in other currencies), in the aggregate of these forms of investment.

B.C.R.A. TIME DEPOSITS AND INVESTMENTS
Section 3. General provisions.
Version: 5th. COMMUNICATION “A” 8163 Validity:
21/12/2024 Page 1

TIME DEPOSITS AND INVESTMENTS
CONSOLIDATED TEXT ORIGIN OF THE PROVISION OBSERVATIONS Sec. Point Para. Com. Annex Ch. Sec. Point Para.
3.
3.1. “A” 3043
3.1.1. “A” 2885 1.
3.1.2. “A” 2885 2. 2.2.
3.1.3. “A” 2885 2. 2.3.
3.1.4. “A” 2885 2. 2.4.
3.1.5. “A” 2885 2. 2.5. and
2.6.
3.1.6. “A” 3043
3.2. “A” 1891 S/Com. “A” 1922,
3323, 4875 and 8131.
3.3.1. “A” 2252 1.1. S/Com. “A” 4754,
5117, 5183 and 8163.
3.3.2. “A” 2252 1.2. S/Com. “A” 5117.
3.3.3. “A” 2252 1.3. S/Com. “A” 5117.
3.3.4. “A” 2252 1.4. S/Com. “A” 2482 (pt.
3.), 3043, 5034, 5117 and
5841.
3.3.5. “A” 2252 1.5. S/Com. “A” 2482 (pt.
3.), 3043, 5034 and 5841.
3.3.6. “A” 2252 1.6.
3.4.1. 1° “A” 2530 1°
2° “A” 2530 3° and
4°
3.4.2. “A” 2530 2°
3.5.1. “A” 1199 I 5.3.1.
3.5.2. “A” 1199 I 5.3.2.
3.5.3. “A” 1199 I 5.3.3.
3.5.4. “A” 3043
3.5.5. “A” 1199 I 5.3.4.
3.5.6. “A” 1199 I 5.3.4.1.
3.5.7. “A” 627 5.3.4.3. 1. S/Com. “A” 6419.
3.6. “A” 1199 I 5.1.
3.6.1. “A” 1199 I 5.1.1.
3.6.2. “A” 1199 I 5.1.2.
3.6.3. “A” 1199 I 5.1.3.
3.6.4. “A” 3043
3.6.5. “A” 1199 I 5.3.4.
3.6.6. “A” 1199 I 5.3.4.1.
5.3.4.3.
3.6.7. “A” 627 1.
3.7. “A” 1199 I 5.1.
3.7.1. “A” 1199 I 5.2.1. S/Com. “A” 3043.
3.7.2. “A” 1199 I 5.2.2. S/Com. “A” 3043, 4809
and 5482.
3.8. “B” 6572 S/Com. “A” 5388.
3.9. “A” 5588 S/Com. “A” 7337.
3.9.1. “A” 5588 S/Com. “A” 7337,
7484, 7509 and 8131.
3.9.2. “A” 7337 S/Com. “A” 8131.