Circular LISOL 1-442: Extension of Transitional Provisions for Fixed Assets and Other Concepts

"2005 - Year of Homage to Antonio Berni"
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 4402 12/08/2005
TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 442
Report on fixed assets and other concepts. Extension of transitional provisions ______ We address you to inform you that this Institution has adopted the following resolution:

"- Extend until 12/31/08 the validity of what is provided in point 1 of the resolution disseminated by Communication "A" 3954."

We send you attached the sheets that, in replacement of those previously provided, must be incorporated into the ordered text of the regulations on "Report on fixed assets and other concepts."

We greet you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio José I. Rutman
Manager of Issuance of Standards
Principal Manager of Research and Regulatory Issuance

ANNEX

B.C.R.A.
ORDERED TEXT OF THE REGULATIONS ON
REPORT ON FIXED ASSETS AND OTHER CONCEPTS
Version: 6a. COMMUNICATION "A" 4402
Validity:
12/08/2005
-Index
Section 1. Fixed assets.
1.1. Included concepts.
1.2. Exclusions.
Section 2. Other concepts.
2.1. Included concepts.
2.2. Exclusions.
Section 3. Calculation of concepts.
3.1. Fixed assets.
3.2. Other concepts.
3.3. Exclusions.
Section 4. Report.
4.1. Maximum limit.
Section 5. Non-compliance.
5.1. Non-compliance reported by entities.
5.2. Non-compliance detected by the Superintendence of Financial and Exchange Entities.
5.3. Other consequences.
5.4. Accounting exposure.
5.5. Regularization and sanitation plans.
Section 6. Bases for observance of regulations.
6.1. Individual basis.
6.2. Consolidated basis.
Section 7. Transitional provisions.
7.1. Shares or participations received in payment of credits.
7.2. Differences resulting from compliance with judicial measures.
7.3. Non-compliance.

REPORT ON FIXED ASSETS
B.C.R.A. AND OTHER CONCEPTS
Section 7. Transitional provisions.
Version: 7a. COMMUNICATION "A" 4402
Validity:
12/08/2005
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, with respect to companies that do not provide complementary services, according to the conditions established in Section 9 of the regulations on "Credit Graduation," must not exceed 40% of the computable net worth of the financial entity for the month in question, during the maximum periods established for the liquidation of holdings, in points 9.1.1. and 9.1.2. of the aforementioned Section 9. This without prejudice to their calculation as established in point 1.1. of Section 1 for the purpose of determining compliance with the maximum limit referred to in point 4.1. of Section 4. If excesses over the maximum limit of 40% referred to in the preceding paragraph are verified, the financial entity will be subject to the provisions established in Section 5. Once the periods for the liquidation of holdings have elapsed, the excesses over the percentage of holding admitted to which point 3.2. of Section 3 of the regulations on "Credit Graduation" refers, must be deducted from the computable net worth.
7.2. Differences resulting from compliance with judicial measures.
Until 12/31/08, the activated amount of the differences resulting from compliance with judicial measures originating in cases where the applicable current regulations regarding deposits and other obligations for 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 (subsequently ratified by Law 25.967, art. 64) and complementary provisions, will not be computed for the purpose of determining compliance with the maximum limit contemplated in Section 4.
7.3. Non-compliance.
No amount will be computed, until 12/31/05, to calculate the limitations established in point 2.3. of Section 2 of the regulations on "Non-compliance with minimum capital and technical ratios. Applicable criteria," the amount of the excess recorded by this ratio, without exceeding that verified on 12/31/03, after deducting assets taken in defense or in payment of credits incorporated into the entity's assets until 3/31/03.

REPORT ON FIXED ASSETS
AND OTHER CONCEPTS
ORDERED TEXT SOURCE REGULATION
Section Point Paragraph Com. Cap. Point Paragraph Observations
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.
7.1. "A" 3918 6. According to Com."A" 4093 (point. 2.).
7.2. "A" 3954 1. According to Com. "A" 4020, "A"
4124, "A" 4254 and "A" 4402.
7.
7.3. "A" 4093 8. According to Com. "A" 4254.