Circular LISOL 1-681, OPRAC 1-834, RUNOR 1-1200: Credit Management, Debtor Classification, Credit Graduation, Guarantees, Reciprocal Guarantee Societies, Public Guarantee Funds, Credit Evaluations, and Adjustments — BCRA — AR

"2016 - Year of the Bicentennial of the Declaration of National Independence" COMMUNICATION "A" 5998 24/06/2016 TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 681
OPRAC 1 - 834
RUNOR 1 - 1200
"Credit Management". "Debtor Classification".
"Credit Graduation".
"Guarantees". "Reciprocal Guarantee Societies (Art. 80 of Law 24.467)".
"Public Guarantee Funds".
"Credit Evaluations". Adjustments
.

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

"1. Incorporate as point 1.11. in the norms on "Credit Management", point 3.7. in the norms on "Debtor Classification", point 2.3. in the norms on "Credit Graduation", point 1.4. in the norms on "Guarantees", point 2.9. in the norms on "Public Guarantee Funds", point 2.6. of the norms on "Reciprocal Guarantee Societies (Art. 80 of Law 24.467)" and point 2.4. of the norms on "Credit Evaluations" the following:

"XX. Reference Amount.
The amount to be considered will be the maximum level of total annual sales value for the "Micro" category corresponding to the "Commerce" sector, according to point 1.1. of the norms on "Determination of micro, small or medium enterprise status"."

Replace point 2.2. of the norms on "Reciprocal Guarantee Societies (art. 80 of Law
24.467)" with the following:

"2.2. Individual Limit.
The total of guarantees granted to a participating member shall not exceed 5% of the risk fund of the granting society, corresponding to the last quarterly balance sheet with an external auditor's report, or the amount equivalent to 3.3 times the reference amount established in point 2.6. -whichever is lower. This latter amount shall not apply when the guarantees operate on debt instrument issuances of companies that are offered to the market through the legal public offering regime. For the purpose of determining the individual limit, sets or economic groups shall be considered as a single client."

Replace point 2.3. and the last paragraph of point 2.7. of the norms on "Public Guarantee Funds" with the following:

"2.3. Individual Limit.
The total of guarantees granted to each MSME shall not exceed 5% of the available Risk Fund at the time of granting, calculated in accordance with what is provided in point 2.1. or the equivalent to 3.3 times the reference amount established in point
2.9. -whichever is lower-. This latter amount will be the equivalent to 2.4 times the amount
established in point 2.9. until the first special external auditor's report or information regime -as provided in point 2.7.- is presented, in which compliance with the established conditions is verified. The aforementioned amounts shall not apply when the guarantees operate on debt instrument issuances of companies that are offered to the market through the legal public offering regime. For the purpose of determining the individual limit, sets or economic groups shall be considered as a single client."

2.7. Information to the Central Bank.
....
"In cases where at the end of the fiscal year the available Risk Fund exceeds the equivalent to 65 times the reference amount established in point 2.9., from the following fiscal year the special external auditor's reports required by this provision must be prepared by one of the auditors registered in the "Register of Auditors" of the Superintendence of Financial and Currency Entities"."

Replace item ii) of subsection b) of point 1.1.3.3. and point 1.4.2. of the norms on "Credit Management" with the following:

"ii) Individual Limit.

For natural persons, the installment/income ratio shall not exceed 30%.
Estimated income shall not exceed the amount equivalent to 10 (ten) times the Minimum, Living and Working Wage established by the National Council of Employment, Productivity and Minimum, Living and Working Wage for monthly salaried workers who work the full legal working day. For the verification of the maximum ratio previously established, the installments of all financings of the financial entity that have periodic amortization must be taken into account, without considering the installments of credits from other entities. Consequently, the margins agreed for overdrafts on current accounts and the purchase limits of credit cards -in both cases, both the used and the available-, as well as pre-arranged personal loans -insofar as they have not yet been formalized or disbursed to the client- shall not form part of the numerator of the installment/estimated income ratio as they do not have periodic amortization. However, those installments that the client has for financed purchases within the framework of the credit card system shall be considered within the concept of "installments". The income and installments to be considered will be those of the borrower and their cohabiting family group.
For financings to MSMEs, the outstanding capital in no case shall exceed
as a whole the equivalent to 4% of the reference amount established in point 1.11."

"1.4.2. Clients included.
Non-financial private sector clients, whose debt at the lending entity (for all concepts) plus the amount of the financing requested, at the time of granting this, exceeds 2.5% of the computable net worth of the entity of the last day of the month prior to the one corresponding or the equivalent to the reference amount established in point 1.11., whichever is lower."

Replace point 3.3.3., the third-to-last paragraph of point 3.4.2., the second paragraph of
point 3.5.2., point 5.1.1.1., the first paragraph of point 5.1.1.2., points 5.1.2.3. and 5.1.2.4., point 6.3.2., the last paragraph of point 6.4., the third paragraph of subsection vii) of point 6.5.2.1., the last paragraph of point 6.5.3.10. and the first paragraph of point 6.5.6.3. of the norms on "Debtor Classification" with the following:

"3.3.3. The exercise of the option to group commercial nature financings of up to the equivalent to 40% of the reference amount established in point 3.7., whether or not with preferred guarantees, together with consumer or housing credits."

3.4.2. Content.
...
"In the case of non-financial private sector clients whose debt at the lending entity (for all concepts) plus the amount of the financing requested, at the time of granting this, exceeds 2.5% of the computable net worth of the entity of the last day of the month prior to the one corresponding or the equivalent to the reference amount established in point 3.7., whichever is lower, the sworn declaration on whether they have or do not have the character of related parties to the respective financial intermediary or if their relationship with it implies the existence of controlling influence must be kept in the file, permanently available to the Superintendence of Financial and Currency Entities."

3.5.2. To the sector in charge of granting credits and guarantees.
...
"This review -which may be carried out by the entity's internal audit- must comprise obligatorily the clients whose total indebtedness in pesos and in foreign currency (for the financings included) exceeds 1% of the computable net worth of the entity of the month prior to the classification or the equivalent to the reference amount established in point 3.7., whichever is lower, and reach at least 20% of the total active portfolio, which will be completed, in case of corresponding, incorporating clients whose total indebtedness -in decreasing order- is lower than those margins."

"5.1.1.1. Consumer or housing credits.
Credits of this class that exceed the equivalent to 40% of the reference amount established in point 3.7. and whose repayment is not linked to fixed or periodic income of the client but to the evolution of their productive or commercial activity will be included within the commercial portfolio."

5.1.1.2. "At the entity's option, commercial nature financings of up to the equivalent to 40% of the reference amount established in point 3.7., whether or not
with preferred guarantees, may be grouped together with consumer or housing credits, in which case they will receive the treatment provided for the latter."

"5.1.2.3. Loans to Microcredit Institutions -up to the equivalent to 20% of the reference amount established in point 3.7. and to micro-entrepreneurs (as provided in point 1.1.3.4. of the norms on "Credit Management")."

"5.1.2.4. Commercial nature financings of up to the equivalent to 40% of the reference amount established in point 3.7., whether or not with preferred guarantees, when the entity has opted for it."

"6.3.2. During each calendar semester, with respect to individually considered clients whose included financings sum at some point between 1% -or the equivalent to the reference amount established in point 3.7., whichever is lower- and less than 5% of the computable net worth or of the financial trust asset of the month prior to the end of said period depending on whether they are entities or financial trusts, respectively. For these purposes, the group or economic set will be treated as a single client. At the close of the first calendar semester, the examination must have reached no less than 50% of the total amount of the included commercial portfolio, computing the clients referred to in point 6.3.1., so that, if necessary to reach that value, it will be completed with the review of clients whose included financings are less than 1% of the said computable net worth or of the financial trust asset, or of the equivalent to the reference amount established in point 3.7., following a decreasing order based on their magnitude."

6.4. Mandatory reconsideration of the classification.
...
"The reassessment must be immediate when it concerns clients whose included financings equal or exceed 1% of the computable net worth of the entity or of the financial trust asset, of the month prior to the presentation of any of the mentioned circumstances or the equivalent to the reference amount established in point 3.7., whichever is lower, and within three months with respect to the other included clients."

6.5.2.1. Under observation.
...

"In the case of agreements exceeding the equivalent to 2.5 times the reference amount established in point 3.7., the initial reclassification of the client to this category may be carried out provided there is no objection from the Superintendence of Financial and Currency Entities, to which each situation must be presented individually beforehand."

6.5.3.10.
....
"In the case of agreements exceeding the equivalent to 2.5 times the reference amount established in point 3.7., the initial reclassification of the client to this category may be carried out provided there is no objection from the Superintendence of Financial and Currency Entities, to which each situation must be presented individually beforehand."

6.5.6.3. "Non-financial private sector clients, whose debt (for all concepts) plus the amount of the financing requested, at the time of granting this, exceeds 2.5% of the computable net worth of the entity of the last day of the
month prior to the one corresponding or the equivalent to the reference amount established in point 3.7., whichever is lower, and who have not presented a sworn declaration on whether they have or do not have the character of related parties to the respective financial intermediary or if their relationship with it implies the existence of controlling influence, or have not updated the previously presented one, with the exception of debtors in bankruptcy or with an extrajudicial preventive agreement requested or under judicial management that, for a period of up to 540 days counted from the opening of the bankruptcy, request for preventive agreement or start of judicial collection proceedings, as applicable, have not presented the documentation that allows it, provided that there is a lawyer's report from the creditor financial entity on the reasonableness of the recovery of the included credits."

Replace the first paragraph of point 2.2.10. and point 2.2.16. of the norms on "Credit Graduation" with the following:

2.2.10. "Loans (net of amortizations produced) to natural or legal persons or
groups or economic sets not related that, together for each client, do not exceed the equivalent to 40% of the reference amount established in point 2.3."

"2.2.16. Financings to legal persons whose corporate object is the provision of microcredits (according to the definition provided in subsection b) of point 1.1.3.4. of the norms on "Credit Management"), insofar as the granting does not exceed:
a) Individual limit: 2.5% of the computable net worth of the granting entity -of the last day of the second month prior to the granting of the financing- or the equivalent to 70% of the reference amount established in point 2.3., whichever is higher. b) Global limit: 10% of the computable net worth of the granting entity

of the last day of the second month prior to the granting of the financing- or the equivalent to 170% of the reference amount established in point
2.3., whichever is higher."

Replace subsection c) of point 1.1.10.1., the first paragraph of point 1.1.14.1, the first paragraph of point 1.1.14.2. and points 3.1.14.1., 3.1.14.2., 3.1.18.1. and 3.1.18.2. of the norms
on "Guarantees" with the following:

1.1.10.1. In the set of operations carried out with each assignor, it must be verified
with respect to any of the subjects legally obligated to pay other than the assignor:
...
"c) That, at most, 20% of the nominal value of the documents corresponds to a single obligated subject to payment. This limitation will not be applicable when it comes to documents of up to the equivalent to 1% of the reference amount established in point 1.4."

1.1.14.1. "Register a level of indebtedness with the system equal to or higher than the equivalent to
170% of the reference amount established in point 1.4., according to the last available information in the "Central Debtors of the Financial System" and being informed by at least two financial entities in which the indebtedness -in each of them- is at least 85% of the said reference amount."

1.1.14.2. "Maintain outstanding negotiable obligations or other debt titles in the
local market for a sum no less than the equivalent to 90% of the reference amount established in point 1.4. and comply with what is provided in point 2.2.1. of the norms on "Credit Evaluations"."

"3.1.14.1. On real estate for own home -unique, family and permanent occupation- and that are subject to the encumbrance, in the case of new financings, only when they imply disbursements of up to the equivalent to 11% of the reference amount established in point 1.4. and it is not a refinancing: 100% of the appraised value of the property."

"3.1.14.2. On real estate for own home -unique, family and permanent occupation- and that are subject to the encumbrance, in the case of new financings, only when they imply disbursements greater than the equivalent to 11% of the reference amount established in point 1.4. and up to the equivalent to 17% of that established in point 1.4. and it is not a refinancing: 90% of the appraised value of the property."

"3.1.18.1. Real estate for the tenant's own home -unique, family and permanent occupation-, in the case of new financings of up to the equivalent to 11% of the reference amount established in point 1.4. and it is not a renegotiation of the contract: 100% of the value of the property."

"3.1.18.2. Real estate for the tenant's own home -unique, family and permanent occupation-, in the case of new financings greater than the equivalent to 11% of the reference amount established in point 1.4. and up to the equivalent to 17% of that established in point 1.4. and it is not a renegotiation of the contract: 90% of the value of the property."

Replace point 2.2.1. of the norms on "Credit Evaluations" with the following:

"2.2.1. Companies that register a level of indebtedness in the total system equal to or higher than the equivalent to 90% of the reference amount established in point 2.4., incurred with two or more entities different from the one analyzing the credit exposure in question and that are classified "in normal situation" -according to the last available information in the "Central Debtors of the Financial System"- by the entirety of those financial entities. Furthermore, they must not register rejected checks for the cause "insufficient funds", in the last 12 months, in the "Central of Rejected Checks"."

Likewise, we send you the sheets that, in replacement of those previously provided, must be incorporated into the reference norms. Finally, it is recalled that on this Institution's website www.bcra.gob.ar, accessing "Legal and Regulatory Framework - Ordered Texts

Normative Orders", the modifications made with texts highlighted in special characters (strikethrough and bold) will be found.
We salute you attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Darío C. Stefanelli Agustín Torcassi
Principal Manager of Issuance and
Regulatory Applications
General Deputy Manager of Norms

ANNEX

Index -
Section 1. Registration in the Central Bank.
Section 2. Requirements.
2.1. Risk Fund.
2.2. Individual Limit.
2.3. Prohibition.
2.4. Information to the Central Bank.
2.5. Non-compliance.
2.6. Reference Amount.
Correlation Table
B.C.R.A.
ORDERED TEXT OF THE NORMS ON
RECIPROCAL GUARANTEE SOCIETIES (ART. 80 OF LAW 24.467) Version: 3rd COMMUNICATION "A" 5998 Validity:
25/06/2016

The societies registered in the said Registry must observe -at all times- the following conditions:
2.1. Risk Fund.
2.1.1. Requirement.
The amount equivalent to 25% of the guarantees granted, as derived from the last quarterly balance sheet that has an external auditor's report registered in the "Register of Auditors" of the Superintendence of Financial and Currency Entities.
2.1.2. Determination of the minimum amount.
The guarantees granted to micro, small and medium-sized enterprises (MSMEs) will be computed, weighted by the application to each of them of the factors established in the "Risk Weighting Table", inserted in Section 4. of the norms on "Minimum Capital of Financial Entities", taking into account the existence or not of counter-guarantees and, if there are any, their nature.
2.1.3. Investment.
It must be invested in accordance with the provisions made known by the Authority of application of Law 24.467 (and its amendments).
2.1.4. Custody.
The investments must be maintained in custody in financial entities authorized to fulfill that function in accordance with the provisions made known by the Authority of application of Law 24.467 (and its amendments).
2.2. Individual Limit.
The total of guarantees granted to a participating member shall not exceed 5% of the risk fund of the granting society, corresponding to the last quarterly balance sheet with an external auditor's report, or the amount equivalent to 3.3 times the reference amount established in point 2.6. -whichever is lower-. This latter amount shall not apply when the guarantees operate on debt instrument issuances of companies that are offered to the market through the legal public offering regime. For the purpose of determining the individual limit, sets or economic groups shall be considered as a single client.
2.3. Prohibition.
Guarantees may not be agreed upon with related members, for which purpose what is provided in point 2.2. of the norms on "Credit Risk Fractionation" will be taken into account.

RECIPROCAL GUARANTEE SOCIETIES (ART. 80 OF LAW 24.467) B.C.R.A.
Section 2. Requirements.
Version: 12th COMMUNICATION "A" 5998
Validity:
25/06/2016

2.4. Information to the Central Bank.
Regularly comply with the information regime established for this purpose, subject to the supervision of the Central Bank of the Argentine Republic. This includes information for the "Debtors Central" on the classification of the participating members whose debts have been cancelled in compliance with the guarantees backing the respective obligations, in accordance with the norms on "Debtor Classification" for the financial entities.
2.5. Non-compliance.
Departure from any of these conditions will imply the immediate removal of the society from the Registry.
2.6. Reference Amount.
The amount to be considered will be the maximum level of total annual sales value for the "Micro" category corresponding to the "Commerce" sector, according to point 1.1. of the norms on "Determination of micro, small or medium enterprise status".

RECIPROCAL GUARANTEE SOCIETIES (ART. 80 OF LAW 24.467) B.C.R.A.
Section 2. Requirements.
Version: 3rd COMMUNICATION "A" 5998
Validity:
25/06/2016

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE NORMS ON "RECIPROCAL GUARANTEE SOCIETIES (ART. 80 OF LAW 24.467)" ORDERED TEXT ORIGIN NORM
Section Point Paragraph Com. Point Paragraph
OBSERVATIONS unique "A" 2411 1.
1.1. "A" 2411 1. Includes formal modifications.
1.
1.2. "A" 2411 1. Includes formal modifications.
"A" 2411 2.
2.1. "A" 2411 2.1.
2.1.1. "A" 2411 2.1. 1st and 2nd According to Com. "A" 2806.
2.1.2. "A" 2411 2.1. 3rd According to Com. "A" 5419.
2.1.3. "A" 2411 2.3. 1st According to Com. "A" 3141, 4009, 5183 and
5419.
2.1.4. "A" 2411 2.3. 2nd According to Com. "A" 5183 and 5419.
2.2. "A" 2411 2.2. 1st According to Com. "A" 4169, 4253, 4531,
5275, 5637 and 5998.
2.3. "A" 2411 2.2. 2nd According to Com. "A" 5520.
2.4. "A" 2411 2.4. 1st According to Com. "A" 3141.
2.5. "A" 2411 2.4. 1st
2.
2.6. "A" 5998 1.

-Index Section 1. Registration in the Central Bank.
Section 2. Requirements.
2.1. Guarantees granted.
2.2. Available Risk Fund.
2.3. Individual Limit.
2.4. Prohibition.
2.5. Encumbrances.
2.6. Compliance with other provisions.
2.7. Information to the Central Bank.
2.8. Non-compliance.
2.9. Reference Amount.
Section 3. Transitional Provisions.
Correlation Table.
B.C.R.A.
ORDERED TEXT OF THE NORMS ON
"PUBLIC GUARANTEE FUNDS"
Version: 2nd COMMUNICATION "A" 5998
Validity:
25/06/2016

For the purposes established above, the balances available in bank accounts, instruments included in the volatility lists published by the Central Bank of the Argentine Republic, shares of common investment funds, and instruments (including amortizations or coupons) whose maturity occurs in the following month must be calculated as of the last business day of each month.

2.2.2. Custody.
Investments must be held in custody at one of the banks authorized to perform that function regarding the investments of the Sustainability Guarantee Fund (FGS) of the Argentine Integrated Pension System or at financial entities that are financial agents of the jurisdictions controlling the public guarantee fund. In the latter case, to the extent that such jurisdiction explicitly guarantees the liabilities of the financial entity.

2.3. Individual limit.
The total guarantees granted to each SME shall not exceed 5% of the available risk fund at the time of granting, calculated in accordance with point 2.1. or equivalent to 3.3 times the reference amount established in point 2.9. (whichever is lesser). This latter amount shall be equivalent to 2.4 times the amount established in point 2.9. until the first special external audit report or information regime (in accordance with point 2.7.) is presented, in which compliance with the established conditions is verified.

The aforementioned amounts shall not apply when guarantees operate on debt instrument issuances by companies that are offered to the market through the legal public offering regime.

For the purposes of determining the individual limit, sets or economic groups shall be considered as a single client.

2.4. Prohibition.
Guarantees may not be agreed upon with contributors or members linked to the public guarantee fund, for which purpose the provisions of point 2.2. of the rules on "Credit Risk Fragmentation" shall be taken into account.

2.5. Liens.
No pledges or real rights may be placed on the assets of the available risk fund.

PUBLIC GUARANTEE FUNDS B.C.R.A.
Section 2. Requirements.
Version: 4th. COMMUNICATION "A" 5998
Validity:
25/06/2016

2.6. Compliance with other provisions.
Public guarantee funds must also observe the following rules:

"Credit Policy".
"Debtor Classification": based on delinquency according to the criteria applicable to the "consumer or housing" portfolio and by application of the provisions established in point 7.3. of the cited regulation (mandatory reclassification).
"Minimum provisions for uncollectible risk".

2.7. Information to the Central Bank.
Public guarantee funds must comply with the information regime established for this purpose, subject to the supervision of the Central Bank of the Argentine Republic. This includes information for the "Debtor Registry" regarding the classification of SMEs whose debts have been cancelled in compliance with the guarantees backing the respective obligations, in accordance with the rules on "Debtor Classification" for financial entities.

While the respective information regime is not yet applicable, said guarantee funds must present to the Superintendence of Financial and Currency Entities, on a quarterly basis, a special external audit report on compliance with the requirements established in accordance with the model to be made known for this purpose.

In cases where, at the close of the fiscal year, the available risk fund exceeds the equivalent of 65 times the reference amount established in point 2.9., from the following fiscal year onwards, the special external audit reports required by this provision must be prepared by one of the auditors registered in the "Register of Auditors" of the Superintendence of Financial and Currency Entities.

2.8. Breaches.
Departure from any of the conditions provided in these provisions shall imply the immediate removal of the guarantee fund from the Registry.

2.9. Reference amount.
The amount to be considered shall be the maximum level of total annual sales value for the "Micro" category corresponding to the "Commerce" sector, according to point 1.1. of the rules on "Determination of micro, small or medium enterprise status".

PUBLIC GUARANTEE FUNDS B.C.R.A.
Section 2. Requirements.
Version: 2nd. COMMUNICATION "A" 5998
Validity:
25/06/2016

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON "PUBLIC GUARANTEE FUNDS" ORDERED TEXT ORIGIN RULE
Section Point Paragraph Comm. Chap. Point Paragraph
OBSERVATIONS
1.1. "A" 5275
1. 1.2. "A" 5275
1.3. "A" 5275
2.1. "A" 5275
2.2. "A" 5275
2.3. "A" 5275 According to Comm. "A" 5637 and 5998.
2.4. "A" 5275 According to Comm. "A" 5520.
2.5. "A" 5275
2.6. "A" 5275
2.7. "A" 5275 According to Comm. "A" 5998.
2.8. "A" 5275
2.
2.9. "A" 5998 1.
3. "A" 5275

-IndexSection 1. Requirements for granting financings.
1.1. Client file.
1.2. Compliance with pension obligations.
1.3. Registration in the National Industrial Registry.
1.4. Sworn declaration on linkage to the financial entity.
1.5. Significant financings.
1.6. Credit cards.
1.7. Realization of credits in deposit accounts.
1.8. Operations on behalf and order of the head office.
1.9. Prohibitions.
1.10. Minimum verifications on non-financial credit providers.
1.11. Reference amount.
Section 2. Temporary current account advances.
2.1. Concept.
2.2. Failure to cancel on time. Consequences.
2.3. Punitive interest.
Section 3. Securities lending.
3.1. Authorized entities.
3.2. Tradable securities.
3.3. Conditions.
Section 4. Interbank loans.
4.1. Conditions.
4.2. Application of Value Added Tax.
Section 5. Loans to staff of financial entities.
5.1. General criterion.
5.2. Exceptions.
5.3. Comparison guidelines.
5.4. Prohibition.
5.5. Scope.
B.C.R.A.
ORDERED TEXT OF THE RULES ON
"CREDIT MANAGEMENT"
Validity:
25/06/2016

-IndexSection 6. Operations of investment banks.
6.1. Medium and long-term loans. Evaluation.
6.2. Short-term loans.
6.3. Guarantees.
Correlation table.
B.C.R.A.
ORDERED TEXT OF THE RULES ON
"CREDIT MANAGEMENT"
Version: 2nd. COMMUNICATION "A" 5998
Validity:
25/06/2016

i) Borrowers covered.

Natural persons not linked to the financial entity.
Micro, small and medium enterprises (SMEs), in accordance with the definition provided in the rules on "Determination of micro, small or medium enterprise status".
ii) Individual limit.
For natural persons, the installment/estimated income ratio shall not exceed 30%.
Estimated income shall not exceed the amount equivalent to 10 (ten) times the Minimum, Vital and Mobile Salary established by the National Council for Employment, Productivity and Minimum, Vital and Mobile Salary for monthly workers who fulfill the full legal working day. For the purposes of verifying the maximum ratio established above, the installments of all financings of the financial entity that have periodic amortization must be taken into account, without considering the installments of credits from other entities. Consequently, the margins agreed for current account overdrafts and credit card purchase limits -in both cases, both the used and the available- as well as pre-arranged personal loans -to the extent that they have not yet been formalized or disbursed to the client- shall not form part of the numerator of the installment/estimated income ratio as they do not have periodic amortization. However, those installments that the client has for financed purchases within the framework of the credit card system must be considered within the concept "installments". The income and installments to be considered shall be those of the borrower and their cohabiting family group.
For financings to SMEs, the outstanding capital in no case may exceed in total the equivalent of 4% of the reference amount established in point 1.11.
iii) Global limit for financings to SMEs.
10% of the entity's computable equity responsibility of the month prior to the one in question. iv) Client classification and information to the Debtor Registry of the Financial System. It will be carried out based on objective guidelines as established in Section 7. of the rules on "Debtor Classification".

CREDIT MANAGEMENT
B.C.R.A.
Section 1. Requirements for granting financings.
Version: 12th. COMMUNICATION "A" 5998
Validity:
25/06/2016

Financial entities are obliged to supply applicants with the necessary information in a timely manner for the correct integration of the data contained in said declaration.

1.4.2. Clients included.
Non-financial private sector clients, whose debt at the lending entity (for all concepts) plus the amount of the financing requested, at the time of granting this, exceeds 2.5% of the entity's computable equity responsibility of the last day of the month prior to the one in question or the equivalent to the reference amount established in point 1.11., whichever is lesser.

1.4.3. Scope.
For these purposes, the financings included with the scope established in the rules on "Credit Risk Fragmentation" shall be considered. In matters of linkage, the definitions contained in the rules on "Credit Risk Fragmentation" apply.

1.4.4. Conditioning of assistance.
The granting of assistance shall be subject to the applicant presenting the sworn declaration.

1.4.5. Update.
The sworn declaration must be updated within five calendar days following the date on which the facts determining the modification of the declared situation occur or, otherwise, annually on 11.30. Annual update is only appropriate in cases where the last sworn declaration presented by the client is twelve months or older. Debtors in bankruptcy or with an out-of-court preventive agreement requested or under judicial management for a period of up to 540 days counted from the opening of the bankruptcy, request for preventive agreement, or start of judicial collection proceedings, as applicable, are exempt from this update, provided that there is a report from the financial entity's creditor lawyer on the reasonableness of the recovery of the credits included. This is without prejudice to debts that meet all the conditions provided in point 2.2.3.2. of the rules on "Minimum provisions for uncollectible risk".

1.4.6. Assignment of rights or credit titles.
In cases of assignment in favor of financial entities of rights or credit titles, without liability for the assignor, the obligation to present the sworn declaration on whether they have the character of linked to the entity shall fall on both the signatory or drawer of the documents and the direct beneficiary of the assistance.

CREDIT MANAGEMENT
B.C.R.A.
Section 1. Requirements for granting financings.
Validity:
25/06/2016

1.8.3. In the case of financings, these must be attended to by local subsidiaries or affiliates only with funds coming from lines assigned to them by said intermediaries abroad.
If assistance is granted in a currency different from that of the foreign resources, the local entity may not assume the exchange risk between pesos or US dollars and currencies other than them or between the latter when they are not equal.

1.8.4. In the case of guarantees granted locally, there must be counter-guarantees extended by the head office or its branches in other countries or by an external controlling entity, whose realization operates in an unrestricted manner upon simple request of the local subsidiary or affiliate and immediately upon its eventual execution by the beneficiary.
In addition, the aforementioned operations are not covered by the rules on "Minimum capital of financial entities", "Debtor Classification" and "Credit Risk Fragmentation".

1.9. Prohibitions.
1.9.1. Financial entities that make use of rediscounts or advances from the Central Bank of the Argentine Republic for temporary illiquidity situations may not grant credit assistance in which time deposit certificates -in pesos, in foreign currency or public bonds- or debentures issued by them are received as guarantee for the fulfillment of loans, even if the minimum period of 30 days has elapsed from the date of issuance, last negotiation or transfer, while they maintain these facilities in force.

1.9.2. Financial entities issuing subordinated debt titles, admitted to determine computable equity responsibility, or convertible into shares of the entity, may not receive such titles as guarantee for financings or as counter-guarantee for guarantees granted in favor of third parties or for eventual responsibilities assumed on behalf of third parties.

1.10. Minimum verifications on non-financial credit providers.
In cases of financing requests from clients in the commercial portfolio or commercial portfolio assimilable to consumption that are subjects included in point 1.1. of the rules on "Credit assistance to non-financial credit providers", it must be verified -prior to granting- that -if applicable- they are registered in the respective registries, whose list appears on the website of the Central Bank of the Argentine Republic (www.bcra.gob.ar).

1.11. Reference amount.
The amount to be considered shall be the maximum level of total annual sales value for the "Micro" category corresponding to the "Commerce" sector, according to point 1.1. of the rules on "Determination of micro, small or medium enterprise status".

CREDIT MANAGEMENT
B.C.R.A.
Section 1. Requirements for granting financings.
Version: 3rd. COMMUNICATION "A" 5998
Validity:
25/06/2016

ORDERED TEXT ORIGIN RULE
Sec. Point Para. Comm. Annex Chap. Sec. Point Para.
OBSERVATIONS
1.1.1. "A" 3051
1.1.2. "A" 2729 3. 3.4.1. S/Comm. "A" 2950, 4972
(point 2.), 5093 and 5520.
1° "A" 49 I. 3.1. S/Comm. "A" 5387.
2° "A" 5482
3° "A" 5387 S/Comm. "A" 5728.
4° "A" 2729 3. 3.4.2. 2° S/Comm. "A" 2950.
5° "A" 2729 3. 3.4.2. 8° S/Comm. "A" 2950 and 3051.
6° "A" 4972 2.
1.1.3.1.
7° "A" 3051 i) "A" 2729 3. 3.4.2. 3° S/Comm. "A" 2950 and 3051. ii) "A" 2729 3. 3.4.2. 4° and 5° S/Comm. "A" 2950 and 5093. iii) "A" 2729 3. 3.4.2. 7° S/Comm. "A" 2950. iv) "A" 2729 3. 3.4.3. S/Comm. "A" 2950. 1.1.3.2. v) "A" 5482 a) "A" 3142 1. S/Comm. "A" 3182, 4325 (point 3.), 4556, 4559, 4891, 4972, 5557 and 5995. 1.1.3.3. b) "A" 4325 3. S/Comm. "A" 4559, 4572, 4637, 4891, 4972, 5557, 5637 and 5998. a) "A" 4891 2. S/Comm. "A" 5226, 5533 and 5884. 1.1.3.4. b) "A" 4891 2 S/Comm. "A" 5700.
1.1.4. "A" 2729 3. 3.4.4. S/Comm. "A" 2950.
1.1.5. "A" 2729 3. 3.4.5. S/Comm. "A" 2950.
1.2.1. "A" 3051
1.2.1.1. "B" 5464
1.2.1.2. "B" 5464
1.2.2. "B" 5464 Last.
1.2.3. "B" 5664 S/Comm. "A" 3051.
1.2.4. "C" 18820 S/Comm. "B" 8833 and 9063.
1.2.5. "C" 18820 S/Comm. "B" 9063.
1.3. "A" 2860 1. 1.1.1. S/Comm. "A" 3051.
1° "A" 2573 1. 1° S/Comm. "A" 3051.
2° "A" 2573 1. 5°
1.4.1.
3° "A" 2573 1. 6°
1.4.2. "A" 2573 1. 2° S/Comm. "A" 3051, 4522,
5557 and 5998.
1.4.3. 1° "A" 2573 1. 3° S/Comm. "A" 3051.
2° "A" 2573 1. 4°
1.4.4. "A" 2573 1. 7°
1° "A" 2573 1. 8°
2° "A" 3051
3° "A" 4972 2.
1.
1.4.5.
4° "A" 4972 2.
B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN
THE RULES ON "CREDIT MANAGEMENT"

CREDIT MANAGEMENT
ORDERED TEXT ORIGIN RULE
Sec. Point Para. Comm. Annex Chap. Sec. Point Para.
OBSERVATIONS
1.4.6. "A" 3051
1.4.7. "A" 3051
1.4.8.1. "A" 2573 I S/Comm. "A" 5520.
1.4.8.2. "A" 2573 II S/Comm. "A" 5520.
i) "A" 2573 1. 9° ii) "A" 2573 1. 10°
1.4.9.
Last. "A" 2573 1. 11°
1.4.10. "A" 2573 1. 12°
1.5.1. 1° "A" 2373 3. 1°
2° "B" 5902 9.
1.5.2. "A" 2373
"B" 5902
3.
2.
1° and 2°
1° "A" 2373 3. 3° S/Comm. "A" 3051.
2° "A" 3051
3° "B" 5902 6.
1.5.3.
4° "A" 3051
1° "B" 5902 1. 1° and 2°
2° "B" 5902 1. 2°
1.5.4.
3° "B" 5902 1. 3°
1.5.5. "B" 5902 1. 4°
1.5.6.1. "A" 2989 5. 5.1.
1.5.6.2. "A" 2989 5. 5.2.1.5.
1.5.7. "A" 2373 3. 4°, 5° and
6°
1.6. 1° "A" 2102 1.
2° "A" 2102 2.
1.7. "A" 2814 3. 3.1. S/Comm. "A" 3051 and 5223.
1.8. "A" 2412 S/Comm. "A" 5671 and 5740.
1.9.1. "A" 2308 S/Comm. "A" 3918 and 4559.
1.9.2. "A" 2177 3.
1.10. "A" 5593 6.
1.
1.11. "A" 5998 1.
2.1. "A" 49 I 3.2.1. 1°
2.2. 1° "A" 49 I 3.2.1. 2°
2° "A" 2729 7. 7.2.1. 2° S/Comm. "B" 9074.
2.
2.3. "A" 476 4.
3.1. "A" 1465 I 2.
3.2.1. "A" 1465 I 2. S/Comm. "A" 2275 (point
2.3.).
3.2.2. "A" 2275 2.3.
3.2.3. "A" 2275 2.1.
3.
3.3. "A" 1465 I 2.2. S/Comm. "A" 2275.
4.1. "A" 431 S/Comm. "A" 4817, 4876,
4972 (point 2.) and 5520.
4.
4.2. "A" 2322

-IndexSection 1. Debtors included.
1.1. General criterion.
1.2. Special attribution criteria.
Section 2. Financings included.
2.1. Concepts included.
2.2. Exclusions.
Section 3. Classification task.
3.1. Portfolio analysis procedures.
3.2. Classification periodicity.
3.3. Classification and provision procedure manual.
3.4. Client file.
3.5. Responsibility for the classification task.
3.6. Approval of classification.
3.7. Reference amount.
Section 4. Classification criteria.
4.1. Classification levels.
4.2. Basic classification criterion.
4.3. Assessment of payment capacity.
4.4. Financings covered with preferred guarantees "A".
4.5. Debtors that should not be subject to classification.
4.6. Financings -without liability for the assignor- backed by export credit insurance for commercial risk and with credit risk insurance "with public buyer scope".
Section 5. Portfolio categories.
5.1. Categories.
Section 6. Classification of commercial portfolio debtors.
6.1. Basic information.
6.2. Classification criterion.
6.3. Minimum classification periodicity.
6.4. Mandatory reconsideration of classification.
6.5. Classification levels.
6.6. Mandatory recategorization.
B.C.R.A.
ORDERED TEXT OF THE RULES ON
"DEBTOR CLASSIFICATION"
Version: 5th. COMMUNICATION "A" 5998
Validity:
25/06/2016

3.1. Portfolio analysis procedures.
The entity must develop portfolio analysis procedures that ensure: a) an adequate analysis of the debtor's economic and financial situation and b) a periodic review of its situation regarding the objective and subjective conditions of all risks assumed.

3.2. Classification periodicity.
The classification of debtors must be carried out with a periodicity that takes into account their importance -considering all financings included-, and in all cases the analysis carried out must be documented.

3.3. Classification and provision procedure manual.
The following will be entered in a "Classification and provision procedure manual":
3.3.1. The implemented procedures, so that the process followed in the matter can be appreciated.
3.3.2. The levels involved in the analysis and decision in the granting of facilities, the classification of debtors and the provisioning of receivables, according to the attributions assigned to each of them and in accordance with the requirements established for the approval of classification and provisioning.
3.3.3. The exercise of the option to group commercial nature financings up to the equivalent of 40% of the reference amount established in point 3.7., with or without preferred guarantees, together with consumer or housing credits.
3.3.4. The circumstance that the client file is located in a place different from the account's location (for example: head office or branch that is the seat of regional management), when this has been determined for operational reasons -linked to the evaluation, granting and monitoring of credits-.

DEBTOR CLASSIFICATION
B.C.R.A.
Section 3. Classification task.
Validity:
25/06/2016

c) together with the receipt of payment of the installment, or

d) in the absence of the above, at the entity's option, by including this information in any general postal correspondence sent to the client or specific correspondence directed to that end.

Additionally and within the same deadline, financial entities that provide information services to their clients via the Internet ("home banking") must make known to each client -by the means indicated- the information referred to in this communication.

On the other hand, the updated balance of all financings granted -which will include the facilities assigned by all subsidiaries and operational units of the entity- must be available, disaggregated by concept, according to the accounting information system used by the entity, at the location of the client's file or the head office, if a copy is to be kept there, in accordance with the relevant rules.

In the case of non-financial private sector clients whose debt with the lending entity (for all concepts) plus the amount of the requested financing, at the time of granting, exceeds 2.5% of the computable equity of the entity on the last day of the previous month or the equivalent to the reference amount established in point 3.7., whichever is less, a sworn declaration regarding whether they are or are not related parties to the respective financial intermediary or whether their relationship with it implies the existence of controlling influence must be kept in the file, permanently available to the Superintendence of Financial and Exchange Entities.

In the case of correspondents, the file must contain the information and other elements of judgment that allow knowing their identification, qualification, credit margins, and any other data related to that relationship, in accordance with what is established in the rules on "Correspondence Accounts".

Furthermore, the analyses carried out as a result of the application of the rules on credit graduation must be recorded in the files.

3.4.3. Annexes.

In the case of loans to natural persons with first-degree mortgage guarantee on a home or with first-degree pledge guarantee on 0 km automobiles or light utility vehicles for personal, commercial, or rental use, the credit, legal, and administration folders will be attached to the debtor's file when the guidelines provided in the respective origination and administration manuals are observed.

3.4.4. Location.

The debtor's file must be kept at the location of the account.

It will be admitted that the client's file is located in a place different from the account's location (for example: headquarters or branch that is the seat of regional management), when this has been determined for operational reasons -related to the evaluation, granting, and monitoring of credits- and this circumstance is included in the "Classification and Provisioning Procedures Manual".

BORROWER CLASSIFICATION

B.C.R.A.

Section 3. Classification Task.

Validity:
25/06/2016

Additionally, a copy of the file of each of the clients whose indebtedness (including financings) is equivalent to or greater than 1% of the computable equity must be kept at the entity's head office.

These provisions are also applicable to the annexes to the client's file.

3.4.5. Formal aspects.

The file and annexes may be kept on magnetic media.

3.5. Responsibility for the classification task.

The classification task may be assigned to:

3.5.1. An area independent of the sector in charge of granting credits and guarantees.

3.5.2. The sector in charge of granting credits and guarantees.

If opting for this possibility, the financial entity must have an independent office whose function will be to review the classifications assigned to clients by the credit sector.

This review -which may be carried out by the entity's internal audit- must obligatorily include clients whose total indebtedness in pesos and foreign currency (for the included financings) exceeds 1% of the computable equity of the entity of the month prior to the classification or the equivalent to the reference amount established in point 3.7., whichever is less, and reach at least 20% of the total active portfolio, which will be completed, if applicable, by incorporating clients whose total indebtedness -in descending order- is lower than those margins.

The review must be completed before presenting to the Superintendence of Financial and Exchange Entities the "Statement of Borrowers' Situation" whose information includes the classification of the aforementioned clients.

3.5.3. External professionals.

The intervention of third parties, which must be provided for in the "Classification and Provisioning Procedures Manual", does not relieve the entity of its responsibility for the classification finally assigned nor of the obligation to conserve the files with all the required information.

BORROWER CLASSIFICATION

B.C.R.A.

Section 3. Classification Task.

Version: 5th. COMMUNICATION "A" 5998

Validity:
25/06/2016

3.6. Approval of the classification.

The classification of borrowers and the constitution of provisions for uncollectible risk for financings that exceed 2.5% of the computable equity of the financial entity of the month prior to the one in question, must have the prior approval of the members of the Board of Directors or Board of Administration -by simple majority or, when dealing with related clients, by two-thirds of the total members- or equivalent authority of the lending financial entity.

This conformity will refer -with an opinion founded in all cases- both to the classification assigned to each of the borrowers included and to the level of provisions constituted.

The knowledge without formulation of observations by the Board of Directors or Board of Administration, with the majorities established previously, or equivalent authority, of the founded opinions on the classification of borrowers and the constitution of provisions for uncollectible risk emitted by the functional units in charge of the classification, fulfills the aforementioned requirement, provided that it is prior to the transmission to the Superintendence of Financial and Exchange Entities of the accounting information and its complements.

3.7. Reference amount.

The amount to be considered will be the maximum level of total annual sales value for the "Micro" category corresponding to the "Commerce" sector, according to point 1.1. of the rules on "Determination of micro, small, or medium enterprise status".

BORROWER CLASSIFICATION

B.C.R.A.

Section 3. Classification Task.

Version: 3rd. COMMUNICATION "A" 5998

Validity:
25/06/2016

5.1. Categories.

The portfolio will be grouped into two basic categories:

5.1.1. Commercial portfolio.

It covers all included financings, with the exception of the following:

5.1.1.1. Credits for consumption or housing.

Credits of this class that exceed the equivalent to 40% of the reference amount established in point 3.7. and whose repayment is not linked to fixed or periodic income of the client but to the evolution of their productive or commercial activity will be included within the commercial portfolio.

5.1.1.2. At the entity's option, financings of a commercial nature up to the equivalent to 40% of the reference amount established in point 3.7., with or without preferred guarantees, may be grouped together with credits for consumption or housing, in which case they will receive the treatment provided for the latter.

When the client maintains financings for both concepts, credits for consumption or housing will be added to those of the commercial portfolio to determine their grouping into one or the other portfolio based on the indicated amount, for which purpose credits with preferred guarantees will be weighted at 50%.

If exercised, this option must be applied generally to the entire portfolio and must be provided for in the "Classification and Provisioning Procedures Manual" and can only be changed with 6 months' notice to the Superintendence of Financial and Exchange Entities.

5.1.2. Portfolio for consumption or housing.

It includes:

5.1.2.1. Credits for consumption (personal and family, for professionals, for the acquisition of consumer goods, credit card financing).

5.1.2.2. Credits for own housing (purchase, construction, or renovation).

5.1.2.3. Loans to Microcredit Institutions -up to the equivalent to 20% of the reference amount established in point 3.7. and to micro-entrepreneurs (as provided in point 1.1.3.4. of the rules on "Credit Management").

5.1.2.4. Financings of a commercial nature up to the equivalent to 40% of the reference amount established in point 3.7., with or without preferred guarantees, when the entity has opted for it.

BORROWER CLASSIFICATION

B.C.R.A.

Section 5. Portfolio Categories.

Validity:
25/06/2016

6.3.2. During each calendar semester, with respect to clients considered individually whose included financings sum at some point between 1% -or the equivalent to the reference amount established in point 3.7., whichever is less- and less than 5% of the computable equity or the asset of the financial trust of the month prior to the end of said period, depending on whether they are entities or financial trusts, respectively. For these purposes, the group or economic unit will be treated as a single client.

At the close of the first calendar semester, the examination must have reached no less than 50% of the total amount of the included commercial portfolio, computing the clients referred to in point 6.3.1., so that, if necessary to reach that value, it will be completed with the review of clients whose included financings are less than 1% of the aforementioned computable equity or the asset of the financial trust, or the equivalent to the reference amount established in point 3.7., following a descending order based on their magnitude.

6.3.3. During the economic year, in other cases, so that by its end the review must have reached the entire included commercial portfolio.

6.4. Mandatory reconsideration of the classification.

In addition to the minimum periodicity exposed previously, the classification must be analyzed -leaving a reasoned record of the decision adopted in the client's file- and, if necessary, modified whenever any of the following circumstances occur:

6.4.1. Modification of any of the objective classification criteria arising from these rules (term of delinquency, legal situation of the client or their debts, compliance with refinancing and requests for refinancing of obligations).

6.4.2. Negative modification of the client's classification in the "Central Debtors of the Financial System", lowering it to a grade lower than that of the entity, by at least one other financial entity or financial trust whose claims represent at least 10% of the total reported by all creditors.

6.4.3. Notification of the final determination by the Superintendence of Financial and Exchange Entities of the adjustment of provisions, as provided in the matter as a result of inspection tasks.

6.4.4. When there is a discrepancy of more than one level between the classification given by the financial entity and those granted by at least two other entities or financial trusts in categories lower than that assigned by it, whose claims together represent at least 20% and are less than 40% of the total reported by all creditors, according to the last information available in the "Central Debtors of the Financial System".

BORROWER CLASSIFICATION

B.C.R.A.

Section 6. Classification of commercial portfolio borrowers.

Validity:
25/06/2016

The reevaluation must be immediate when dealing with clients whose included financings equal or exceed 1% of the computable equity of the entity or the asset of the financial trust, of the month prior to the presentation of any of the aforementioned circumstances or the equivalent to the reference amount established in point 3.7., whichever is less, and within three months for the other included clients.

6.5. Classification levels.

Each client, and all their included financings, will be included in one of the following six categories, which are defined taking into account the conditions detailed in each case.

Clients who do not register credit assistance from the entity and who subsequently receive financings from it that do not exceed the amount resulting from applying to the debt balance registered in the financial system, according to the last information available in the "Central Debtors" at the date of its granting, the percentage established in point 2.2.5. of the rules on "Minimum provisions for uncollectible risk" corresponding to the worst classification assigned, may be classified by the entity taking into account only the analysis of the projected cash flow. The assistance thus granted will not be considered for the purposes of point 6.6.

In order to verify the compliance with obligations without resorting to new direct or indirect financing or to refinancings, additional facilities granted with respect to the current agreed margins will not be considered refinancings, provided that the new credit support implies new disbursements of funds and does not exceed 10% of the quota assigned at the time of the last credit evaluation of the client, insofar as these are consistent with the normal course of business and there is capacity to meet the rest of the financial obligations, nor the new financings and the refinancings associated with greater investment derived from the expansion of activities, and always that it can be demonstrated that the projected cash flow will allow meeting all their obligations.

Nor will refinancings granted to agricultural producers when this results from the application of provisions related to the Agricultural Emergency Law be considered within that concept, without prejudice to which, for classification purposes, the projected cash flow at the moment when the declared emergency expires must be taken into account. The treatment dispensed in that framework cannot imply an improvement in the classification assigned to the client based on their individual, pre-existing situation to the emergency, nor its application extend beyond the validity fixed for it.

6.5.1. In normal situation.

The client's cash flow analysis demonstrates that they are capable of adequately meeting all their financial commitments.

Among the indicators that can reflect this situation, it stands out that the client:

BORROWER CLASSIFICATION

B.C.R.A.

Section 6. Classification of commercial portfolio borrowers.

Validity:
25/06/2016

vii) maintains private arrangements with the financial entity that have the opinion of the entity's external auditor on the feasibility of compliance with the refinancing, when at least 15% of the amount involved in the cited agreement has been cancelled, and always that said agreement was reached when the debtor was categorized at the levels "with high risk of insolvency" or "uncollectible".

In order to determine the amount of the cancellation, it will be admitted to compute 50% of the additional guarantees to those originally offered, constituted on goods not linked to the debtor's exploitation -with the exception of mortgages on rural real estate which, therefore, will be computable-, observing the coverage margins established in the rules on "Guarantees". It will be an indispensable requirement, in addition, to have the favorable opinion on the quality of the guarantees, formulated by the external auditor.

In the case of agreements superior to the equivalent to 2.5 times the reference amount established in point 3.7., the initial reclassification of the client to this category may be carried out provided that there is no objection by the Superintendence of Financial and Exchange Entities, to which each situation must be presented individually beforehand.

viii) has refinanced their debt with the granting of capital write-downs and, according to the methodology established in point 2.2.7. of the rules on "Minimum provisions for uncollectible risk", this classification level corresponds, provided that the other conditions provided in the present category are also observed.

When at least the payment has been fulfilled, without incurring delays greater than 31 days of the total accrued interest, they may be reclassified to the higher level ("in normal situation") provided that the other conditions provided in the corresponding category are also observed.

When the situations referred to in paragraphs vi) and vii) are observed, the debtor may be reclassified to normal situation if the other conditions provided for that category are also observed.

6.5.2.2. In negotiation or with refinancing agreements.

It includes those clients who, in the impossibility of meeting the payment of their obligations under the agreed conditions, manifest unequivocally before the 60 days counted from the date on which the delinquency in the payment of the obligations was verified, the intention to refinance their debts, observing the other pertinent indicators of point 6.5.2.1.

Debtors whose obligations have been refinanced by the entity, under this modality, in the last 24 months cannot be included.

BORROWER CLASSIFICATION

B.C.R.A.

Section 6. Classification of commercial portfolio borrowers.

Version: 8th. COMMUNICATION "A" 5998

Validity:
25/06/2016

6.5.3.7. incur recurrent delays, non-compliance of up to 180 days with respect to contractual conditions or null movement in accounts with the entity.

6.5.3.8. belong to a sector of economic activity or business branch whose future trend is not firm, and have a perspective of decrease in income and profits, or there is the possibility that the demand for products will be reduced.

6.5.3.9. be located below the sector average with difficulties in facing competition and with minor problems in terms of technology adaptation.

Present problems in their relationship with suppliers and clients.

6.5.3.10. maintain private arrangements with the financial entity that have the opinion of the entity's external auditor on the feasibility of compliance with the refinancing, when the 15% of the amount involved in the cited agreement has not yet been cancelled, and always that said agreement was reached when the debtor was categorized at the levels "with high risk of insolvency" or "uncollectible".

6.5.3.11. has been sued judicially by the entity for the collection of its claim, when this is linked to the lack of payment and registers delinquency in the payment of obligations not exceeding 180 days. Cases are excluded where the actions refer to the discussion of other contractual aspects.

6.5.3.12. has refinanced their debt with the granting of capital write-downs and, according to the methodology established in point 2.2.7. of the rules on "Minimum provisions for uncollectible risk", this classification level corresponds, provided that the other conditions provided in the present category are also observed.

The debtor may access higher classification levels as established in the second and third paragraphs of point 6.5.3.5.

BORROWER CLASSIFICATION

B.C.R.A.

Section 6. Classification of commercial portfolio borrowers.

Version: 9th. COMMUNICATION "A" 5998

Validity:
25/06/2016

Clearstream, Euroclear, Depositary Trust Company (DTC) and
Deutsche Bank, New York.

Credit assistance granted through the branches or subsidiaries abroad of local financial entities subject to the consolidated basis supervision regime, provided that it has been granted with resources that do not originate from funds provided, directly or indirectly, by the local financial entities.
The previously excluded debtors shall be classified and their debts provided for in accordance with the general provisions.
6.5.6.3. Non-financial private sector clients, whose debt (for all concepts) plus the amount of the requested financing, at the time of granting this, exceeds 2.5% of the computable equity of the entity on the last day of the month prior to the one corresponding, or the equivalent to the reference amount established in point 3.7., whichever is lower, and who have not submitted a sworn declaration regarding whether they have or do not have the character of related parties to the respective financial intermediary or if their relationship with it implies the existence of controlling influence, or have not updated the previously submitted one, with the exception of debtors in bankruptcy or with an out-of-court preventive agreement requested or under judicial management that, for a period of up to 540 days counted from the opening of the bankruptcy, request for preventive agreement or start of judicial collection proceedings, as applicable, had not presented the documentation that allows it, provided that there is a lawyer's report from the creditor financial entity on the reasonableness of the recovery of the credits included.
This, without prejudice to the fact that they are debts that meet all the conditions provided for in point 2.2.3.2. of the rules on "Minimum provisions for uncollectible risk". This treatment will apply from the date of granting the assistance, when it is the first declaration, or from 12/01, in the cases of subsequent updates, and until the month prior to the date on which the client makes the relevant presentation.
6.6. Mandatory recategorization.
The debtor must be recategorized when there is a discrepancy of more than one level between the classification given by the financial entity and those given by at least two other entities or financial trusts in categories lower than that assigned by it, whose claims - together - represent 40% or more of the total reported by all creditors, according to the last available information in the "Central of debtors of the financial system". The recategorization of the debtor will be carried out from the month following the month in which the relevant information from said central is made available, at least in the immediate superior category to that in which it registers the highest level of indebtedness considering, for this purpose, that set of entities and financial trusts that represent 40% or more of the total reported by all creditors, according to the last available information in the "Central of debtors of the financial system". BORROWER CLASSIFICATION B.C.R.A.
Section 6. Classification of debtors in the commercial portfolio.
Version: 8th COMMUNICATION "A" 5998
Validity:
25/06/2016

ORDERED TEXT ORIGIN OF THE RULE
Sec. Point Para. Com. Annex Point Para.
OBSERVATIONS
1.1. "A" 2216 I 1° Includes interpretative clarification.

1.2.1. "A" 2216 I 6. 2°
1.2.2. "A" 2216 I I.d. 2° and 3°
"A" 2216 I 1° According to Com. "A" 5067.
"A" 2216 I I.d. 1°
"A" 2448 Statement of debtors
(point 6.1.).
2.1.1. a
2.1.3. and
2.1.5.
"A" 2587 Correspondence table between the
Statement of debtors and
Balance of balances (modified by Com. "A" 2514).
2.1.4. "A" 2736 3.
2.2.1.1. a
2.2.1.4.
"A" 2448 Statement of debtors
(point 6.1., modified by Com.
"A" 2421).
2.2.1.5. "A" 2448 Statement of debtors
(point 6.1., modified by the
Com. "A" 2421 and 3064).
2.2.1.6. a
2.2.1.7.
"A" 2448 Statement of debtors
(point. 6.1., modified by Com.
"A" 2421).
2.2.2. "A" 2448 Statement of debtors
(point 6.2.).
2.2.3. "A" 2287 5.
2.
2.2.4. "A" 2412 In the 2nd paragraph of point 2.2.4.3.
incorporates criterion not given to known generally with previous antecedent. According to Com. "A" 5671 and 5740.
3.1. "A" 2216 I 2. 1°
3.2. "A" 2216 I 4.
3.3. 1° "A" 2216 I 2. 2°
3.3.1. "A" 2216 I 2. 2°
3.3.2. "A" 2216 I 2. 2° Includes interpretative clarification.
3.3.3. "A" 2216 I 6. last According to Com. "A" 2358 (point 1.),
4310 (point 1.), 4975, 5311, 5637 and
5998.
3.3.4. "A" 2216 I 7. last
3.3.5. "B" 5644 2.
3.3.6. Incorporates criterion not given to
known generally with previous antecedent.
3.3.7. "A" 4325 2. According to Com. "A" 4559 (point 6.).
3.3.8. "A" 4683 2.
3.
3.3.9. "A" 4683 3.
B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON "BORROWER CLASSIFICATION"

BORROWER CLASSIFICATION
ORDERED TEXT ORIGIN OF THE RULE
Sec. Point Para. Com. Annex Point Para.
OBSERVATIONS
3.3. last "A" 2216 I 2. 2°
1° "A" 2216 I 7. 1° According to Com. "A" 5093.
"A" 2287 3. last
2° "A" 2216 I 6. 2°
3° "A" 2216 I I.d. 3°
3.4.1.
4° "A" 4972 1. According to Com. "A" 5520.
3.4.2. "A" 467 3°
"A" 2216 I 7.
According to Com. "B" 5644, "A" 2287,
2573, 2932, 4545, 4738, 4781,
5093, 5311, 5470, 5557 and 5998.
Includes interpretative clarification.
3.4.3. "A" 2563 I II.
"A" 2586 unique II.
According to Com. "A" 2677 and 5998. It explicitates criterion.
1° "A" 2216 I 7. 1°
2° "A" 2216 7. last
3° "A" 2216 I 7. 2° According to Com. "A" 2223 (point 1.). last "A" 2563 I II. According to Com. "A" 2677.
3.4.4.
"A" 2586 unique II. According to Com. "A" 2677.
3.4.5. Incorporates criterion not given to
known generally with previous antecedent.
3.5. "A" 2216 I 3. 1°
3.5.1. "A" 2216 I 3. 1°
1° "A" 2216 I 3. 1°
2° "A" 2216 I 3. 2° According to Com. "A" 4972 (point 1.), 5311 and 5998.
3° "A" 2216 I 3. 3° According to Com. "A" 2223 (point 1.).
3.5.2. last "A" 2216 I 3. last
3.5.3. Incorporates criterion not given to
known generally with previous antecedent.
1° "A" 2373 8. and 3. Includes interpretative clarification.
2° "A" 2373 8.
3.6. last "B" 5902 3. Includes interpretative clarification.
3.
3.7. "A" 5998 1.
4.1. "A" 2216 I 1. 1°
4.2. "A" 2216 I 1. 2°
4.3.1. "A" 2216 I 1. 3° According to Com. "A" 2932 (point 3.).
4.3.2. "A" 2216 I 1. last
4.4. "A" 2932 4.
4.5. "A" 2932 4.
4.
4.6. "A" 3314 8. According to Com. "A" 4529.
5.1. "A" 2216 I 6. 1°
5.
5.1.1. 1° "A" 2216 I I. 1° According to Com. "A" 2410.

BORROWER CLASSIFICATION
ORDERED TEXT ORIGIN OF THE RULE
Sec. Point Para. Com. Annex Point Para.
OBSERVATIONS
"A" 2216 I I. 1°
"A" 2216 I I. 2°
5.1.1.1.
"A" 2216 I II. 4°
According to Com. "A" 2410, 4310 (point 1.),
4975, 5311, 5637 and 5998.
1° "A" 2216 I 6. last According to Com. "A" 2358, 4310 (point 1.), 4975, 5311, 5637 and 5998.
2° "A" 2216 I I. 1° According to Com. "A" 2410.
5.1.1.2. last "A" 2216 I 6. last According to Com. "A" 2358.
5.1.2.1. "A" 2216 I 6. 1°
5.1.2.2. "A" 2216 I 6. 1°
5.1.2.3. "A" 4891 6. According to Com. "A" 4975, 5637 and 5998.
5.1.2.4. "A" 2216 I II. 3° According to Com. "A" 2358, 4310 (point 1.),
4975, 5311, 5637 and 5998.
6.1. "A" 2216 I I. last
1° "A" 2216 I I.a. 1°
2° "A" 3918 According to Com. "A" 3987.
3° "A" 4453 According to Com. "A" 4577 and 5398.
4° "A" 5398
6.2.
5° Incorporates criterion not given to known generally with previous antecedent.
6.3. "A" 2216 I I.a. 2°
6.3.1. "A" 2216 I I.a. 2°, i) According to Com. "A" 2223 (point 1.) and 3339.
6.3.2. "A" 2216 I I.a. 2°, ii) According to Com. "A" 2223 (point 1.), 3339,
4972 (point 10.), 5311 and 5998.
6.3.3. "A" 2216 I I.a. 2°, iii)
6.4. 1° "A" 2216 I I.b. 1° According to Com. "A" 3339.
6.4.1. "A" 2216 I I.b. 1°, i) According to Com. "A" 3339.
6.4.2. "A" 2216 I I.b. 1°, ii) According to Com. "A" 3339.
6.4.3. "A" 2893 4.
6.4.4. "A" 3339 unique
6.4. last "A" 2216 I I.b. last According to Com. "A" 2223 (point 1.), 3339,
4972 (point 10.), 5311 and 5998.
1° "A" 2216 I I.d. 1° According to Com. "A" 2440.
2° "A" 4060 10.
3° "A" 2216 I I.d. last According to Com. "A" 3339 and 4972 (point 10.).
6.5. last "A" 2216 I I.d. last Includes interpretative clarification.
6.5.1. "A" 2216 I I.d.1. According to Com. "A" 2932 (point 16.), 3339 and
5671.
6.5.1.1. "A" 2216 I I.d.1.a) According to Com. "A" 3955.
6.5.1.2. "A" 2216 I I.d.1.b) According to Com. "A" 3339.
6.5.1.3. "A" 2216 I I.d.1.c)
6.5.1.4. "A" 2216 I I.d.1.d) According to Com. "A" 2932 (point 5.).
6.5.1.5. "A" 2216 I I.d.1.e)
6.5.1.6. "A" 2216 I I.d.1.f) According to Com. "A" 3339.
6.5.2. "A" 2216 I I.d.2. According to Com. "A" 3339.
"A" 2216 I I.d.2. 1°, 2° and 3°
According to Com. "A" 3339. i) "A" 2216 I I.d.2.a) According to Com. "A" 3339 and 3955. ii) "A" 2216 I.d.2.b) According to Com. "A" 3339. 6. 6.5.2.1. iii) "A" 2216 I I.d.2.c) According to Com. "A" 3339.

BORROWER CLASSIFICATION
ORDERED TEXT ORIGIN OF THE RULE
Sec. Point Para. Com. Annex Point Para.
OBSERVATIONS iv) "A" 2216 I I.d.2.d) According to Com. "A" 2932 (point 5.) and 3339. v) "A" 2216 I I.d.2.e) According to Com. "A" 3339. vi) "A" 2216 I I.d.2.f) According to Com. "A" 2427, 2947 (point 1.), 3339, 4060 (point 7.) and 4972 (point 10.). vii) "A" 2947 2. According to Com. "A" 3339, 4060 (point 7.), 4972 (point 10.), 5311, 5671 and 5998. viii) "A" 4467 According to Com. "A" 4972 (point 10.). 6.5.2.1. last "A" 2947 2. According to Com. "A" 3339.
6.5.2.2. "A" 3339 unique According to Com. "A" 4060 (point 9.) and
4972 (point 10.).
6.5.3. 1° "A" 2216 I I.d.3. 1°
6.5.3.1. "A" 2216 I I.d.3.a) According to Com. "A" 3339 and 3955.
6.5.3.2. "A" 2216 I I.d.3.b) According to Com. "A" 3339.
6.5.3.3. "A" 2216 I I.d.3.c)
6.5.3.4. "A" 2216 I I.d.3.d)
6.5.3.5. "A" 2216 I I.d.3.e) According to Com. "A" 3339, 4060 (point
8.) and 4972 (point 10.).
6.5.3.6. "A" 2216 I I.d.3.f) According to Com. "A" 2427, 2947 (point
1.), 3339, 4060 (point 7.) and 4972
(point 10.).
6.5.3.7. "A" 2216 I I.d.3.g) According to Com. "A" 3339.
6.5.3.8. "A" 2216 I I.d.3.h) According to Com. "A" 3339.
6.5.3.9. "A" 2216 I I.d.3.i)
6.5.3.10. "A" 2947 2. According to Com. "A" 3339, 4060 (point
7.), 4972 (point 10.), 5311, 5671 and
5998.
6.5.3.11. "A" 3339 unique
6.5.3.12. "A" 4467
6.5.4. 1° "A" 2216 I I.d.4. 1°
6.5.4.1. "A" 2216 I I.d.4.a) According to Com. "A" 3955.
6.5.4.2. "A" 2216 I I.d.4.b) According to Com. "A" 3339.
6.5.4.3. "A" 2216 I I.d.4.c) According to Com. "A" 3339.
6.5.4.4. "A" 2216 I I.d.4.d)
6.5.4.5. "A" 2216 I I.d.4.e) According to Com. "A" 3339, 4060 (point
8.), 4467 and 4972 (point 10.).
6.5.4.6. "A" 2216 I I.d.4.f) According to Com. "A" 3339 and 4975.
6.5.4.7. "A" 2216 I I.d.4.g) According to Com. "A" 2414, 4210 (point
2.), 4972 (point 10.) and 4975.
6.5.4.8. "A" 2216 I I.d.4.h)
6.5.4.9. "A" 2216 I I.d.4.i)
6.5.4.10. "A" 2216 I I.d.4.j) According to Com. "A" 3339.
6.5.5. "A" 2216 I I.d.5. According to Com. "A" 2440.
6.5.5.1. "A" 2216 I I.d.5. According to Com. "A" 2440 and 3955.
6.5.5.2. "A" 2216 I I.d.5. According to Com. "A" 2440, 3339, 4060
(point 8.) and 4972 (point 10.).
6.5.5.3. "A" 2216 I I.d.5. According to Com. "A" 2440 and 3339.
6.5.5.4. "A" 2216 I I.d.5. According to Com. "A" 2440.
6.
6.5.5.5. "A" 2216 I I.d.5. According to Com. "A" 2440.

BORROWER CLASSIFICATION
ORDERED TEXT ORIGIN OF THE RULE
Sec. Point Para. Com. Annex Point Para.
OBSERVATIONS
6.5.5.6. "A" 2216 I I.d.5. According to Com. "A" 2440 and 4972 (point
10.).
6.5.5. last "A" 2216 I I.d.5. According to Com. "A" 2826.
"A" 2216 I I.d.6. According to Com. "A" 2440. i) "A" 2216 I I.d.6. i) According to Com. "A" 2440. ii) "A" 2216 I I.d.6. ii) According to Com. "A" 2440. iii) "A" 2216 I I.d.6. iii) According to Com. "A" 2440. iv) "A" 2216 I I.d.6. iv) According to Com. "A" 2580. 6.5.6.1. last "A" 2440 2. last
6.5.6.2. "A" 2287 2. According to Com. "A" 2890 (point 3.),
5183, 5671 and 5740. Includes interpretative clarification. b), 2º inciso "A" 2287 2.3. According to Com. "A" 2497 (point 1.) and 5183. excepto b), last inciso "A" 2287 2.5. According to Com. "A" 2497 (point 1.).
6.5.6.3. "A" 2573 1. According to Com. "A" 4545, 4972 (point
10), 5557 and 5998.
6.
6.6. last
"A" 2216
"A" 4060
I I.c.
10.
According to Com. "A" 2932 (point 6.) and
3339.
7.1. 1° "A" 2216 I II. 1º According to Com. "A" 3142, 4325 (point
1.), 4559 (point 7.), 4648, 4660,
4683, 4738, 4972 (point 10) and
5975.
7.2.1. "A" 2216 I II.1. According to Com. "A" 4648, 4660, 4683 and
4738.
7.2.2. "A" 2216 I II.2. According to Com. "A" 4648, 4660, 4683,
4738 and 4972 (point 10).
7.2.3. "A" 2216 I II.3. According to Com. "A" 4648, 4660, 4683,
4738 and 4972 (point 10).
7.2.4. "A" 2216 I II.4. Includes interpretative clarification.
According to Com. "A" 4310 (point 2),
4648, 4660, 4683, 4738, 4972 (point 10) and 4975.
7.2.5. "A" 2216 I II.5. Includes interpretative clarification.
According to Com. "A" 4310 (point 2),
4648, 4660, 4683, 4738, 4972 (point 10) and 4975.
7.2.6. "A" 2216 I II.6. According to Com. "A" 2440.
7.3. "A" 2216 I II. 1º and 2º According to Com. "A" 2932 (point 6.) and
3339.
7.
7.4. "A" 4891 7.
8. 8.1. "A" 2216 I 5. According to Com. "A" 2562.
9.1. "A" 2227 unique 5.2.1. last According to Com. "A" 2649.
9. 9.2. "A" 2227 unique 5.1.5. and
5.2.2.
According to Com. "A" 2649.

BORROWER CLASSIFICATION
ORDERED TEXT ORIGIN OF THE RULE
Sec. Point Para. Com. Annex Point Para.
OBSERVATIONS
10.1. "A" 2389 According to Com. "A" 5593 (point 4.).
10.2.1. "A" 2703 3. According to Com. "A" 3145 (point 1.).
10.2.2. "A" 2703 4.
10.
10.3. "A" 3141 4. According to Com. "A" 5275.
11.1. "A" 4683 4.
11.2. "A" 4738
11.3. "A" 4975 7.
11.
11.4. "A" 5975 6.

-IndexSection 1. Imputation of financings.
1.1. Applicable criteria.
Section 2. Financings included.
2.1. Concepts included.
2.2. Exclusions.
2.3. Reference amount.
Section 3. Maximum limits.
3.1. General.
3.2. For shareholdings in the capital of companies that do not provide complementary services to the financial activity.
3.3. Credits ceded to common credit funds.
Section 4. Computation of financings.
4.1. Applicable criteria.
Section 5. Computable equity of the client.
5.1. Equity.
5.2. Computable equity.
Section 6. Defaults.
6.1. Computation of excesses of the complementary margin.
6.2. Effects.
6.3. Defaults reported by entities.
6.4. Defaults detected by the Superintendence of Financial and Exchange Entities.
6.5. Other consequences.
6.6. Accounting exposure.
6.7. Admitted excesses.
Section 7. Bases for observance of the rules.
7.1. Individual basis.
7.2. Consolidated basis.
B.C.R.A. ORDERED TEXT OF THE RULES ON "CREDIT GRADUATION" Version: 4th COMMUNICATION "A" 5998 Validity:
25/06/2016

viii) Productive activities through the use of "warrants".
2.2.8.2. Coverage margin.
Preferred guarantees will be computed at 80% of the value of the affected assets.
2.2.9. Credits verified with debtors in bankruptcy process that, from their refinancing through an agreement of the creditors' meeting, exceed the maximum limits established, provided that the following conditions are observed:
2.2.9.1. The granting of assistance must not have configured, at origin, excesses to these caps.
2.2.9.2. No new assistance shall be granted.
2.2.9.3. The debtors must be duly classified.
2.2.10. Loans (net of the amortizations produced) to natural or legal persons or groups or economic sets not related that, together for each client, do not exceed the equivalent to 40% of the reference amount established in point 2.3.
If the assistance exceeds this amount, the entire financing granted to the client is subject to the maximum limits on credit graduation. This franchise is independent of the other exclusions and governs without prejudice to the compliance with the current rules on credit policy and administration, as well as those related to the adoption of guarantee safeguards. CREDIT GRADUATION B.C.R.A.
Section 2. Financings included.
Validity:
25/06/2016

2.2.16. Financings to legal persons whose corporate object is the provision of microcredits (according to the definition provided in item b) of point 1.1.3.4. of the rules on "Credit Management"), to the extent that the granting does not exceed:
a) Individual limit: 2.5% of the computable equity of the granting entity -on the last day of the second month prior to the granting of the financing- or the equivalent to 70% of the reference amount established in point 2.3., whichever is higher. b) Global limit: 10% of the computable equity of the granting entity -on the last day of the second month prior to the granting of the financing- or the equivalent to 170% of the reference amount established in point 2.3., whichever is higher.
2.3. Reference amount.
The amount to be considered will be the maximum level of value of total annual sales for the "Micro" category corresponding to the "Commerce" sector, according to point 1.1. of the rules on "Determination of the condition of micro, small or medium enterprise". CREDIT GRADUATION B.C.R.A.
Section 2. Financings included.
Version: 2nd COMMUNICATION "A" 5998
Validity:
25/06/2016

ORDERED TEXT ORIGIN OF THE RULE
Section Point Paragraph Com. Annex Point Paragraph
OBSERVATIONS
1.1. 1° "A" 467 unique 2. According to Com. "A" 5520.
"A" 467 unique 6.1. last
1.
1.1. 2° "A" 3002 Incorporates interpretative clarification.
2.1. "A" 467 unique 2. According to Com. "A" 5520.
2.2.1. "A" 467 unique 4.1. According to Com. "A" 5520.
2.2.2. 1° "A" 467 unique 3.1.
2.2.2. last "A" 490 unique 2.
2.2.3. "A" 467 unique 3.2.
2.2.4. "A" 467 unique 3.3.
2.2.5. "A" 467 unique 4.2.
2.2.6. 1° "A" 467 unique 4.3.
last "A" 490 unique 4. and 5.
2.2.7. "A" 467 unique 4.4.
2.2.8. "A" 467 unique 4.5. According to Com. "A" 2054 and 5419.
2.2.8.1. viii "A" 467 unique 4.5.8. According to Com. "A" 2074.
2.2.9. "A" 467 unique 4.6. According to Com. "A" 2054.
2.2.10. "A" 467 unique 4.7. According to Com. "A" 2098, "B" 5477,
"A" 4310 (point 3.), 4975, 5311,
5637 and 5998.
2.2.11. "A" 467 unique 4.8.
"A" 2410 7.
According to Com. "A" 2410, 3307,
4093 (penultimate paragraph), 4465 and
5275.
2.2.12. "B" 5902 10. last According to Com. "A" 5013.
2.2.13. "B" 5902 10. last According to Com. "A" 5013, 5154 and
5368.
2.2.14. "B" 5902 10. last According to Com. "A" 5013.
2.2.15. "A" 3314 According to Com. "A" 5671 and 5740.
2.2.16. "A" 4891 5. According to Com. "A" 5998.
2.
2.3. "A" 5998 1.
3.1.1. "A" 467 unique 1. 1° According to Com. "A" 2373.
3.1.2.1. "A" 467 unique 1. 2° According to Com. "A" 2373 and 5949.
1° to 6° "A" 467 unique 1. 2° According to Com. "A" 2373 and "B"
5902. Includes interpretative
clarification.
7° "B" 5902 10. 1°
3.1.2.2. last "A" 3002 Incorporates interpretative clarification.
3.2.1. "A" 467 unique 1. 3° According to Com. "A" 2373,
modified by Com. "A" 2960.
Incorporates interpretative criterion.
3.2.2. "A" 2206 2. According to Com. "A" 3183.
3.2.2.1. "A" 2206 2. According to Com. "A" 3086 and 3183.
3.2.2.2. "A" 2056 1. According to Com. "A" 3086 and 4093
(penultimate paragraph).
3.2.2.3. "A" 2384 1. 1° and 2° According to Com. "A" 3086 and 4093
(penultimate paragraph).
3.2.2. last "A" 3086 1.
3.
3.3. "A" 2156 5.
B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON "CREDIT GRADUATION"

CREDIT GRADUATION
ORDERED TEXT ORIGIN OF THE RULE
Section Point Paragraph Com. Annex Point Paragraph
OBSERVATIONS
4. 4.1. "A" 467 unique 5. According to Com. "A" 5520.
5.1.1. excepto
"A" 467 unique 6.1. 1°
5.1.1.1.i) 2° "B" 1460 2°
5.1.1.2. "A" 490 unique 9.
5.1.2. "A" 467 unique 6.1. 1°
5.2.1.1. "A" 467 unique 6.1. last
"A" 2373 2.
5.2.1.2. "A" 490 unique 8.
5.2.2. "A" 467 unique 6.1. last
5.2.3. "A" 3002 Incorporates interpretative criterion.
5.2.4. "B" 5902 7.
5.
5.2.5. "A" 4725 5.
6.1. "A" 3002 6.1.1. 2°
1° "A" 3161 1. and 2. According to Com. "A" 3171 and 4093 (penultimate paragraph).
6.2.
2° "A" 2019 6. According to Com. "A" 3161, 3171 and 5520.
6.3.1. "A" 3161 1. According to Com. "A" 4093 (penultimate
paragraph).
6.3.2. "A" 3161 1. According to Com. "A" 3171 (pt. 2.) and 4093
(penultimate paragraph).
6.3.3. "A" 3161 1. According to Com. "A" 4093 (penultimate
paragraph).
6.4. "A" 3161 1. According to Com. "A" 4093 (penultimate
paragraph).
6.4.1. "A" 3161 1. According to Com. "A" 4093 (penultimate
paragraph).
6.4.2. "A" 3161 1. According to Com. "A" 4093 (penultimate
paragraph).
6.4.3. "A" 3161 1. According to Com. "A" 3171 (pt. 3.) and 4093
(penultimate paragraph).
6.5. "A" 2019 5. last
6.5.1. "A" 2019 5. last According to Com. "A" 5983.
6.5.2. "A" 3161 1. According to Com. "A" 3171 (pt. 4.) and 4093
(penultimate paragraph).
6.6. "A" 3161 1.
6.
6.7. "A" 3183 1. According to Com. "A" 4093 (pt. 5.). Includes
interpretative criterion.
7.1. "A" 2227 unique 5.1.
and 5.2.1. last
7.2.1. "A" 2227 unique 5.1.4. According to Com. "A" 2649.
"A" 2227 unique 5.2.2.
7.
7.2.2. "B" 5902 5. Includes interpretative clarification.
8.1. "A" 467 unique 1. last According to Com. "A" 2373.
8. 8.2. "A" 467 3°
8.3. "A" 490 unique 17.

B.C.R.A. ORDERED TEXT OF THE RULES ON "GUARANTEES" -IndexSection 1. Classes.
1.1. Preferred "A".
1.2. Preferred "B".
1.3. Remaining guarantees.
1.4. Reference amount.
Section 2. Conditions.
2.1. Consideration of preferred guarantees.
2.2. Backing documentation.
Section 3. Computation.
3.1. Coverage margins.
3.2. Partial coverage with preferred guarantees.
Section 4. Transitional provisions.
Correlation table.
Validity:
25/06/2016

When the foreign bank complies with what is provided for in point 3.1. of the rules on "Credit Evaluations" -requiring for this purpose international risk rating "AA" or higher- the computable term of the credit operation shall not exceed the term of one year.
1.1.7. "Warrants" on fungible goods that have normal and habitual quotation in
local or international markets, of wide dissemination and easy access to public knowledge.
1.1.8. Guarantees constituted by the assignment of collection rights of invoices to consumers
for services already rendered, issued by service provider companies to the public (companies that supply electricity, gas, telephone, water, etc.), provided that it is a set of invoices that represents a quantity not less than 1,000 clients.
1.1.9. Guarantees constituted by the assignment of collection rights regarding credit card coupons.
1.1.10. Credit titles (post-dated payment checks, promissory notes, bills of exchange and credit invoices) discounted with responsibility for the assignor, to the extent that the following conditions are observed:
1.1.10.1. In the set of operations carried out with each assignor, it must be verified with respect to any of the subjects legally obligated to pay other than the assignor:
a) That at least 85%, measured in relation to the nominal value of the documents, are classified in "normal situation" (category 1) according to the last available information in the "Central of debtors of the financial system". b) That, as a maximum, 15%, measured in relation to the nominal value of the documents, are classified in category 2 or are persons not reported in said central. c) That, as a maximum, 20% of the nominal value of the documents corresponds to the same subject obligated to pay. This limitation will not be applicable when it comes to documents up to the equivalent to 1% of the reference amount established in point 1.4. These requirements must be observed considering the nominal value of the documents still pending maturity and the new documents that are discounted, when carrying out each discount operation. GUARANTEES B.C.R.A.
Section 1. Classes.
Version: 8th COMMUNICATION "A" 5998
Validity:
25/06/2016

1.1.14.1. Register a debt level with the system equal to or greater than the equivalent of 170% of the reference amount established in point 1.4., according to the latest information available in the "Central de deudores del sistema financiero" (Financial System Debtors Registry) and be informed by at least two financial entities in which the debt - in each of them - is at least 85% of said reference amount.
It must be classified, in said registry, "in normal situation" by all financial entities and, in the case of maintaining outstanding negotiable obligations or other debt securities, verify what is provided in point 1.1.14.2. The total financing granted to different assignors and assigned by the entity in this modality to the same legally obligated payer shall not exceed 10% of the latter's debts with the financial system, reported in the "Central de deudores del sistema financiero", nor 5% of the entity's computable equity responsibility of the month prior to the one in question, whichever is lower. This latter limit shall not be observed in the event that the entity has a credit file on said obligor, in which case the operations will be computed within the assistance margins provided by the applicable regulations in this matter.

1.1.14.2. Maintain outstanding negotiable obligations or other debt securities in the local market for a sum no less than the equivalent of 90% of the reference amount established in point 1.4. and comply with what is provided in point 2.2.1. of the regulations on "Credit Evaluations".
The total financing granted to different assignors and assigned by the entity in this modality to the same legally obligated payer shall not exceed 5% of the entity's computable equity responsibility of the month prior to the one in question. This limit shall not be observed in the event that the entity has a credit file on said obligor, in which case the operations will be computed within the assistance margins provided by the applicable regulations in this matter.

1.1.15. Guarantees granted by reciprocal guarantee societies or by public guarantee funds registered in the Registries authorized by the Central Bank of the Argentine Republic, regardless of the term of the operation, provided that they effectuate the unpaid credits within 30 calendar days of their maturity.

GUARANTEES B.C.R.A.
Section 1. Classes.
Version: 9th. COMMUNICATION "A" 5998
Validity:
25/06/2016

1.2.7.3. The trustee of the guarantee trust is not the lending financial entity or persons linked to it.
1.2.7.4. The trustee has broad powers to effectively control the tasks provided for in point 1.2.7.1., as well as to remove from their functions the natural or legal persons who have been designated to carry them out and appoint their replacements, in the event of non-compliance or poor performance of their functions.
1.2.7.5. The assigned assets are free of encumbrances.
1.2.7.6. In cases where there are other beneficiaries in addition to the lending financial entity, the respective contracts shall include a clause establishing that in the event of default, by the borrower, of the payment - partial or total - of the financings granted, the lending financial entity/beneficiary shall have priority in collection over the remaining beneficiaries of the proceeds of the trust.
1.2.7.7. The deed of fiduciary transfer of the assigned real estate and the trust contracts shall contain a clause by which the settlor grants in advance the required consent such that in the event that the objective conditions of default contained in the trust contract are verified, the trustee shall be authorized to dispose of the asset and transfer its full ownership, with the corresponding registry effect.
1.2.7.8. In the Bill of Sale of the assets resulting from the enterprise, whose model will be included in an annex forming part of the guarantee trust contract, it shall be indicated through a specific clause that there is fiduciary ownership over the real estate on which the construction is developed, in which the identification data of the trustee of the guarantee trust shall be recorded.

1.3. Remaining guarantees.
Guarantees not explicitly included in the preceding points, such as mortgages in a rank other than first and pledge or caution of shares or commercial documents and encumbrances constituted abroad subject to legislations other than local - except for cases expressly provided for - shall be considered non-preferred.

1.4. Reference amount.
The amount to be considered shall be the maximum level of total annual sales value for the "Micro" category corresponding to the "Commerce" sector, according to point 1.1. of the regulations on "Determination of micro, small or medium enterprise status".

GUARANTEES
B.C.R.A.
Section 1. Classes.
Version: 3rd. COMMUNICATION "A" 5998
Validity:
25/06/2016

3.1.11. Direct guarantees from foreign governments (point 1.1.11.): 100%.
3.1.12. Assignment of rights over the collection of tariffs and taxes in public works concessions (point 1.1.12.): 80%.
3.1.13. Private securities (point 1.1.13.): 70% of their quotation value.
3.1.14. First-degree mortgage on real estate, and regardless of its degree of precedence provided that the entity is the creditor in all degrees (point 1.2.1.):
3.1.14.1. On real estate for own home - unique, family and permanent occupation - and which are subject to the encumbrance, in the case of new financings, only when they imply disbursements up to the equivalent of 11% of the reference amount established in point 1.4. and it is not a refinancing: 100% of the appraised value of the asset.
3.1.14.2. On real estate for own home - unique, family and permanent occupation - and which are subject to the encumbrance, in the case of new financings, only when they imply disbursements greater than the equivalent of 11% of the reference amount established in point 1.4. and up to the equivalent of 17% of that established in point 1.4. and it is not a refinancing: 90% of the appraised value of the asset.
3.1.14.3. On real estate for own home which are subject to the encumbrance in the remaining financings: 75% of the appraised value of the asset.
3.1.14.4. On real estate for uses other than own home: 50% of the appraised value of the asset.
3.1.15. Fixed pledge with first-degree registration or with displacement to the entity (point 1.2.2.):
3.1.15.1. Motor vehicles and agricultural machinery: 75% of market value.
3.1.15.2. Road and industrial machinery: 60% of market value.
3.1.16. From reciprocal guarantee societies or public guarantee funds (points 1.1.15. and 1.2.3.): 100%.
3.1.17. Credit instruments (point 1.1.14.): 100% of the nominal value of the documents.
3.1.18. Financial leasing credits (point 1.2.4.):
3.1.18.1. Real estate for the lessee's own home - unique, family and permanent occupation -, in the case of new financings up to the equivalent of 11% of the reference amount established in point 1.4. and it is not a renegotiation of the contract: 100% of the value of the asset.

GUARANTEES
B.C.R.A.
Section 3. Computation.
Version: 14th. COMMUNICATION "A" 5998
Validity:
25/06/2016

3.1.18.2. Real estate for the lessee's own home - unique, family and permanent occupation -, in the case of new financings greater than the equivalent of 11% of the reference amount established in point 1.4. and up to the equivalent of 17% of that established in point 1.4. and it is not a renegotiation of the contract: 90% of the value of the asset.
3.1.18.3. Real estate for the lessee's home not included in the preceding point: 75% of the appraised value of the asset.
3.1.18.4. Other real estate: 50% of the appraised value of the asset.
3.1.18.5. Motor vehicles and agricultural machinery: 75% of the appraised value of the asset.
3.1.18.6. Road and industrial machinery: 60% of the appraised value of the asset.
3.1.19. Export credit insurance (points 1.1.16. and 1.2.5.): 100% of the nominal value of the documents.
3.1.20. Guarantee trusts on real estate assigned to the trust (point 1.2.7.):
3.1.20.1. On real estate for housing: 75% of the appraised value of the real estate (land plus construction progress).
3.1.20.2. On real estate for uses other than housing assigned to the trust: 50% of the appraised value of the real estate (land plus construction progress).

3.2. Partial coverage with preferred guarantees.
When existing preferred guarantees do not cover the entirety of the assistance to the client, the part not reached with that coverage shall have the treatment established for debts without preferred guarantees. To this end, the market value of those assets that have a quotation shall be taken into account permanently, as contemplated in points 1.1.1., 1.1.2., 1.1.5. and 1.1.13.

GUARANTEES B.C.R.A.
Section 3. Computation.
Validity:
25/06/2016

ORDERED TEXT ORIGIN NORM
Section Point Paragraph Com. Annex Point Paragraph
OBSERVATIONS
1.1. "A" 2932 unique 1.1. According to Com. "A" 4242.
1.1.1. "A" 2216 I 1. 3°, a) According to Com. "A" 2443, 2932,
3918 and 4242.
1.1.2. "A" 2216 I
1.
3°, a) According to Com. "A" 2443, 2932 and
3918.
1.1.3. "A" 2216 I 1. 3°, b) According to Com. "A" 2932, 3918 and
4242.
1.1.4. "A" 2216 I 1. 3°, c) According to Com. "A" 2932 and 4242.
1.1.5. "A" 2216 I 1. 3°, d) According to Com. "A" 2932 and 4741.
1.1.6. "A" 2216 I 1. 3°, e) According to Com. "A" 2932, 3918,
4242, 5671 and 5740.
1.1.7. "A" 2216 I 1. 3°, g) According to Com. "A" 2932.
1.1.8. "A" 2216 I 1. 3°, h) According to Com. "A" 2932.
1.1.9. "A" 2216 I 1. 3°, i) According to Com. "A" 2932.
1.1.10. "A" 2932 unique 1.1.11. According to Com. "A" 3104, 4242,
4522, 4957 and 5998.
1.1.11. "A" 2932 unique 1.1.12. According to Com. "A" 4141, 5671 and
5740.
1.1.12. "A" 2932 unique 1.1.13. According to Com. "A" 4242.
1.1.13. "A" 2932 unique 1.1.14. According to Com. "A" 3918, 5671 and
5740. Includes interpretative clarification.
1.1.14. "A" 3114 1.
1.1.14.1. 1° "A" 3114 According to Com. "A" 3918, 4055,
5671, 5740 and 5998. Includes interpretative clarification.
1.1.14.2. "A" 3114 1. According to Com. "A" 3918, 4055,
5671, 5740 and 5998.
1.1.15. "A" 3141 According to Com. "A" 3307, 3918,
4465 and 5275.
1.1.16. "A" 3314 According to Com. "A" 4529, 5671 and
5740.
1.2. "A" 2932 unique 1.2. According to Com. "A" 3104.
1.2.1. "A" 2419 1. 1° According to Com. "A" 2563 (points

and 2.), 2932 and 3314.
1.2.2. "A" 2448 Debtor status report (point 6.1.2.2.2.). According
Com. "A" 2932 and 3918.
"A" 2448 Debtor status report (point 6.1.2.2.2.). According Com. "A" 2932, 3918 and 5275.
1.2.3.
"A" 2410 7. According to Com. "A" 3141.
1.2.4. "A" 3259 1. According to Com. "A" 3314 and 5067.
1.2.5. "A" 3314 According to Com. "A" 4529.
1.2.6. "A" 2932 unique 1.2.4. According to Com. "A" 4242.
1.
1.2.7. "A" 4491 1. According to Com. "A" 4501 and 5998.
B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS ON "GUARANTEES"

GUARANTEES
ORDERED TEXT ORIGIN NORM
Section Point Paragraph Com. Annex Point Paragraph
OBSERVATIONS
1.3. "A" 7 Specifications of the items of "other guarantees received", modified by Com. "A"
2932.
1.
1.4. "A" 5998 1.
2.1. 1° "A" 2448 Debtor status report (point 6.1.2.2.2.).
2.1. 2° "A" 2932 unique 2.1. 2°
2.
2.2. "A" 2216 I 1. 4°
3.1. "A" 2932 unique 3.1.
3.1.1. "A" 2932 unique 3.1.1. According to Com. "A" 3918.
3.1.2. "A" 2932 unique 3.1.2.
3.1.3. "A" 2932 unique 3.1.3. According to Com. "A" 3918.
3.1.4. "A" 2932 unique 3.1.4.
3.1.5. "A" 2932 unique 3.1.5. According to Com. "A" 3918, 4242 and
4741.
3.1.6. "A" 2932 unique 3.1.6. According to Com. "A" 3918.
3.1.7. "A" 2216 I 1. 3°, g) According to Com. "A" 2932.
3.1.8. "A" 2216 I 1. 3°, h) According to Com. "A" 2932.
3.1.9. "A" 2216 I 1. 3°, i) According to Com. "A" 2932.
3.1.10. "A" 2932 unique 3.1.11. According to Com. "A" 3104 and 4522.
3.1.11. "A" 2932 unique 3.1.12. According to Com. "A" 3918.
3.1.12. "A" 2932 unique 3.1.13.
3.1.13. "A" 2932 unique 3.1.14.
3.1.14. "A" 2419 1. 1º, ii) According to Com. "A" 2932, 3314,
3918, 4551 (point 2.), 4559
(point 3) and 5998.
3.1.15. "A" 2932 unique 3.1.18. According to Com. "A" 3918.
3.1.16. "A" 2932 unique 3.1.19. According to Com. "A" 3141, 3918,
4242, 4465 and 5275.
3.1.17. "A" 3114 2. According to Com. "A" 4242.
3.1.18. "A" 3259 2. According to Com. "A" 5067.
3.1.18.1. "A" 4559 5. According to Com. "A" 5998.
3.1.18.2. "A" 4559 5. According to Com. "A" 5998.
3.1.18.3. "A" 3259 2. According to Com. "A" 3314, 3918 and
4559 (point 5.).
3.1.18.4. "A" 3259 2. According to Com. "A" 3918 (point
4.).
3.1.18.5. "A" 3259 2. According to Com. "A" 3314 (point
3.).
3.1.18.6. "A" 3314 6.
3.1.19. "A" 3314
3.1.20. "A" 4491 1. According to Com. "A" 4501.
3.
3.2. "A" 2216 II 5° According to Com. "A" 3918.
4. 4.1. "A" 5975 7.

Index -
Section 1. General provisions.
Section 2. Credit evaluations for residents.
2.1. Financial sector.
2.2. Non-financial private sector.
2.3. Non-financial public sector.
2.4. Reference amount.
Section 3. Credit evaluations for non-residents.
3.1. Financial sector.
3.2. Non-financial private sector.
3.3. Non-financial public sector.
Correlation table.
B.C.R.A.
ORDERED TEXT OF THE REGULATIONS ON
"CREDIT EVALUATIONS"
Version: 2nd. COMMUNICATION "A" 5998
Validity:
25/06/2016

They must comply with the following requirements:
2.1. Financial sector.
2.1.1. Have rating 1 or 2 granted by the Superintendence of Financial and Currency Entities.
2.1.2. Have rating 1, 2 or 3 granted by the Superintendence of Financial and Currency Entities.
The last rating reported shall be considered.
In the case of new financial entities, until the Superintendence of Financial and Currency Entities communicates their rating, to carry out the operation in question, prior authorization from this Central Bank will be required.
2.2. Non-financial private sector.
2.2.1. Companies that register a debt level in the total system equal to or greater than the equivalent of 90% of the reference amount established in point 2.4., contracted with two or more entities different from the one analyzing the credit exposure in question and that are classified "in normal situation" - according to the latest information available in the "Central de deudores del sistema financiero" - by all those financial entities. In addition, they must not have registered rejected checks due to the cause "insufficient funds", in the last 12 months, in the "Central de cheques rechazados".
2.2.2. Insurance companies authorized to operate by the Superintendence of Insurance of the Nation: financial entities must carry out the credit analysis taking into account the information published by said Superintendence (namely: general indicators - premiums and surcharges per entity and in the total market -, equity indicators and management indicators).
2.2.3. Markets authorized by the National Securities Commission: no additional requirement is established to the credit evaluation that the financial entity must carry out.
2.3. Non-financial public sector.
No additional requirement is established to the credit evaluation that the financial entity must carry out.
2.4. Reference amount.
The amount to be considered shall be the maximum level of total annual sales value for the "Micro" category corresponding to the "Commerce" sector, according to point 1.1. of the regulations on "Determination of micro, small or medium enterprise status".

CREDIT EVALUATIONS
B.C.R.A.
Section 2. Credit evaluations for residents.
Version: 2nd. COMMUNICATION "A" 5998
Validity:
25/06/2016

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE
REGULATIONS ON "CREDIT EVALUATIONS"
ORDERED TEXT ORIGIN NORM
Sec. Point Para. Com. Annex Ch. Sec. Point Para.
OBSERVATIONS

"A" 5671 I
2.1. "A" 5671 I
2.2. "A" 5671 I According to Com. "A"
5998.
2.3. "A" 5671 I
2.
2.4. "A" 5998 1.
3.1. "A" 5671 I
3.2. "A" 5671 I
3.
3.3. "A" 5671 I

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