BANCO CENTRAL DE LA REPÚBLICA ARGENTINA

COMUNICACIÓN “A” 3954 23/05/2003

TO FINANCIAL ENTITIES:

Ref.: Circular
LISOL 1 - 397
CONAU 1 - 584
Relationship for immobilized assets and other concepts. Liquid own funds. Modifications. Accounting exposure of effects generated by judicial measures regarding obligations originally agreed in foreign currency, other than deposits. ______

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

“1. Establish, with validity until 30.9.03, that the amount capitalized from the differences resulting from compliance with judicial measures originated in cases where the current applicable regulation to deposits and other obligations by financial intermediation in the financial system, originally agreed in foreign currency within the framework of what is provided by Law 25.561, Decree 214/02 and complementary provisions, shall not be computed for the purposes of determining liquid own funds and compliance with the maximum limit contemplated in Section 4 of the rules on “Relationship for immobilized assets and other concepts”.

2. Admit that financial entities grant the treatment provided for in the resolution disseminated by Communication “A” 3916 to the differences resulting from compliance with judicial measures originated in cases where the current applicable regulation regarding other obligations by financial intermediation -distinct from the deposits included in that provision- originally agreed in foreign currency, within the framework of what is provided by Law 25.561, Decree 214/02 and complementary provisions.”

We clarify that, due to its nature, the capitalized amounts referred to in point 1 of the present resolution are included within the term “Aif” to determine the minimum capital requirement for credit risk (point 3.1 of Section 3 of the rules on “Minimum capitals of financial entities”).

We send you attached the sheets that, in replacement of those previously provided, correspond to incorporate into the ordered text of the rules on “Relationship for immobilized assets and other concepts”.

We salute you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA Alfredo A. Besio José Rutman Manager of Emission Principal Manager of Norms of Norms

ANEXO

B.C.R.A.
ORDERED TEXT OF THE RULES ON
RELATION FOR IMMOBILIZED ASSETS AND OTHER CONCEPTS Version: 3rd COMMUNICATION “A” 3954 Validity:
21/05/2003
-IndexSection 1. Immobilized assets.
1.1. Concepts included.
1.2. Exclusions.
Section 2. Other concepts.
2.1. Concepts included.
Section 3. Computation of concepts.
3.1. Immobilized assets.
3.2. Other concepts.
3.3. Exclusions.
Section 4. Relation.
4.1. Maximum limit.
Section 5. Non-compliance.
5.1. Charge.
5.2. Other consequences.
5.3. Regularization and sanitation plans.
Section 6. Bases of observance of the rules.
6.1. Individual base.
6.2. Consolidated base.
Section 7. Transitional provisions.
7.1. Shares or participations received in payment of credits.
7.2. Differences resulting from compliance with judicial measures.

RELATION FOR IMMOBILIZED ASSETS
B.C.R.A. AND OTHER CONCEPTS
Section 7. Transitional provisions.
Version: 2nd COMMUNICATION “A” 3954 Validity:
21/05/2003
7.1. Shares or participations received in payment of credits.
The total of shares or participations in the capital of companies received in payment of credits up to the limit of 20% of the social capital, without exceeding 20% of the votes, regarding companies that do not provide complementary services, according to the conditions established in Section 9 of the rules on “Graduation of credit”, shall not exceed 40% of the computable equity responsibility of the financial entity of the month that corresponds, during the maximum periods established for the settlement of holdings, in points 9.1.1. and 9.1.2. of said Section 9. This without prejudice to its computation as established in point 1.1 of Section 1 for the purposes of determining compliance with the maximum limit referred to in point 4.1 of Section 4. In case of verifying excesses over the maximum limit of 40% referred to in the preceding paragraph, the financial entity will be subject to the provisions established in Section 2 of the rules on “Non-compliance with minimum capitals and technical relations. Applicable criteria”. In case of producing excesses over the limit established in point 4.1 of Section 4 as a consequence of the incorporation of said assets received in payment of credits, they shall not be considered as such while the immobilized assets and other concepts, computed according to what is provided in Section 3 and in this section, do not exceed 100% of the computable equity responsibility. Once the periods for the settlement of holdings have elapsed, the excesses over the percentage of holding admitted to which point 3.2 of Section 3 of the rules on “Credit Graduation” refers, shall be deducted from the computable equity responsibility.
7.2. Differences resulting from compliance with judicial measures.
Until 30.9.03 the amount capitalized from the differences resulting from compliance with judicial measures originated in cases where the current applicable regulation to deposits and other obligations by financial intermediation in the financial system, originally agreed in foreign currency within the framework of what is provided by Law 25.561, Decree 214/02 and complementary provisions, shall not be computed for the purposes of determining compliance with the maximum limit contemplated in Section 4.

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON “RELATION FOR IMMOBILIZED ASSETS AND OTHER CONCEPTS” ORDERED TEXT ORIGIN NORM Observation
Section Point Paragraph Com. Cap./ Point Paragraph
1.1.1. “A” 2736 unique 1.6.
1.1.2. “A” 2736 unique 1.5. According to Com. “A” 3131.
1.1.3. a
1.1.6.
“A” 2736 unique 1.1. a
1.4.
According to Com. “A” 2753.
1.2.1.1. “A” 2736 unique 1.5.3. According to Com. “A” 2753, “A”
3216 and “A” 3558.
1.
1.2.1.2. “A” 2753 1. Includes interpretative clarification and modification by Com.
“A” 2832 and “A” 3558.
2. 2.1. “A” 2736 1. 1º
3.1.1. “A” 2736 unique 1. last According to Com. “A” 2966.
3.1.2.1. “A” 2736 unique 3.
and
3.1.2.2.
“A” 414
LISOL-1
VII 5.2.2.
3.1.2.3. “A” 2736 unique 3.
3.2. “A” 2736 1. 3º According to Com. “A” 2966. Includes interpretative clarification.
3.
3.3. “A” 2736 1. 2º
4. 4.1. “A” 2736 1. 1º
5.1.1. “A” 2736 1. last
5.1.2. a
5.1.4.
“A” 414
LISOL-1
V 3.2.2. a
3.2.4.
According to Com. “A” 2019.
5.1.5. “B” 5159
5.2.1. “A” 2241
CREFI-2
I 3.2.3.
5.2.2. “A” 2241
CREFI-2
II 1.2.
5.2.3. “A” 2241
CREFI-2
III 1.1.
5.2.4. “A” 2241
CREFI-2
IV 1.3.
5.
5.3. “A” 414
LISOL-1
V 4. Modified by Com. “A”
817.
6.1. “A” 2227 unique 5.2.1. last According to Com. “A” 2649.
6. 6.2. “A” 2227 unique 5.1.8. According to Com. “A” 2736.
“A” 2227 unique 5.2.2.
7. 7.1. “A” 3918 6.
7.2. “A” 3954 1.