Circular LISOL 1 - 92. Treatment of certain assets for the purpose of computable equity responsibility

BANCO CENTRAL DE LA REPUBLICA ARGENTINA __________________________________________________________________ COMUNICACION " A " 2263 31/10/94 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 92.
Treatment of certain assets for the purpose of computable equity responsibility

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

"1. Incorporate, with effect for the determination of the equity responsibility required from 30.11.94, among the items referred to in point 3.2 of Chapter VI of Circular LISOL - 1 that must be deducted for that purpose ("Cd") according to the expression contained in point 3.1 of that
chapter (text according to Communication "A" 2223), the following
item:

• securities, certificates of time deposits, and
  other credit titles, etc. that are not physically in the possession of the entity, unless the registration agents of these assets, if any, or custodians of them are any of the following entities:
  a) Local financial entities that meet the requirements established to perform the custodian function referred to in Communication "A" 2237. b) Foreign banks included in the "investment grade" category according to the rating granted by at least two of the rating agencies included in the list in point 6 of Communication "A" 2229 (text according to Communication "A" 2248). c) Securities houses authorized to operate in the country. d) The following international securities houses: Cedel, Euroclear, Depositary Trust Company (DTC), Midwest Securities Trust Company (MSTC), Philadelphia Trust Company (PSDTC).

2. Provide that, in the event that deductible assets are maintained
   in accordance with the provisions of the preceding point, the entity must record in a note to the quarterly and annual financial statements the existence of such items, quantifying the amount that is not admitted to be considered by the Central Bank for the purpose of determining computable equity responsibility."

We salute you very respectfully.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA Alfredo A. Besio Miguel A. Kiguel Manager of Standards for General Manager Financial Entities Area of Economics and Finance