Circular LISOL 1‑401: Minimum Capital of Financial Entities – Modifications and Treatment of Negative Business Key in Share Package Acquisitions and Financial Entity Mergers

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION “A” 3985 24/07/2003
TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 – 401
Minimum capital of financial entities.
Modifications. Treatment of the negative business key for the acquisition of share packages and merger of financial entities.

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

“- Incorporate into Section 10 of the rules on ‘Minimum Capital of Financial Entities’ the following points:
10.3. Acquisitions of financial entities.
For the purpose of determining the computable patrimonial responsibility on a consolidated basis, the consolidating entity may add the amount recorded in the specific item under the ‘Provisions of Liabilities’ heading.
10.4. Merger of financial entities.
For the purpose of determining the computable patrimonial responsibility, the amount corresponding to the ‘negative business key’ recorded in the specific item under the ‘Provisions of Liabilities’ heading may be added.”

We enclose the pages that, in replacement of those previously provided, must be incorporated into the ordered text of the rules on “Minimum Capital of Financial Entities”.

Sincerely,

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA

ANNEX
Ana María Lemmi – José Rutman
Deputy Manager of Issuance – Senior Manager of Rules

B.C.R.A.

MINIMUM CAPITAL OF FINANCIAL ENTITIES

B.C.R.A.
Section 10. Transitional Provisions.
Version: 2a. COMMUNICATION “A” 3985
Effective: 24/07/2003

10.3.

10.4.

10.2.3.1. according to the proposed conditions, insofar as the acceptance period for the offer is up to 60 days from the dissemination date, which may not be later than 30.11.03. Once the offer expires, the allocation will be adjusted to the result obtained. From the date of dissemination of this resolution, only a single offer may be made for each series of issued or arranged obligation.

10.2.3.2. according to the contractual conditions for non‑mature services and in the zero band for mature ones, if the acceptance period for the offer exceeds 60 days or if it is made after 30.11.03. Once the offer expires, the allocation will be adjusted to the result obtained.

Acquisitions of financial entities.
For the purpose of determining the computable patrimonial responsibility on a consolidated basis, the consolidating entity may add the amount recorded in the specific item under the ‘Provisions of Liabilities’ heading.

Merger of financial entities.
For the purpose of determining the computable patrimonial responsibility, the amount corresponding to the ‘negative business key’ recorded in the specific item under the ‘Provisions of Liabilities’ heading may be added.

MINIMUM CAPITAL OF FINANCIAL ENTITIES

ORDERED TEXT OF ORIGINAL REGULATION

Section	Point	Paragraph	Com.	Cap./Anexo	Point Paragraph	Observations
8.2.4.5.	“A”	414	LISOL‑1	VI 3.2.	“A” 1215	Specifications of the participation items in financial entities not deductible for determining the computable patrimonial responsibility.
8.2.4.6.	“A”	414	LISOL‑1	VI 3.2.
8.2.4.7.	“A”	2863	3.
8.2.4.8.	“A”	414	LISOL‑1	VI 3.2.
8.2.4.9.	“A”	2730				Incorporates interpretative clarification.
8.2.4.10.	“A”	2545
8.2.4.11.	“A”	414	LISOL‑1	VI 3.2.	Modified by Comm. “A” 986.
8.2.4.12.	“A”	414	LISOL‑1	VI 3.2.
8.2.4.13.	“A”	2287	4.	“A” 2601	1.
8.2.4.14.	“A”	2893	1.
8.2.4.15.	“A”	3087
8.2.4.16.	“A”	3918
8.
8.3.	“A”	414	LISOL‑1	VI 3.4.	According to Comm. “A” 1858.
9.1.	“A”	2227	unique	5.2.1. last	According to Comm. “A” 2649.
9.2.	1º “A”	2227	unique	5.1.1. and 5.1.7.	According to Comm. “A” 2649.
	“A”	2227	unique	5.2.2.
9.
9.2.	last “A”	2461	unique	V.
10.1.	“A”	3959
10.2.	“A”	3959
10.3.	“A”	3985
10.
10.4.	“A”	3985