Circular LISOL 1-984, OPRAC 1-1156, REMON 1-1063: Minimum Cash, Net Foreign Currency Position, Financing to Non-Financial Public Sector, Minimum Capital of Financial Entities, Credit Policy, and Amendments

"Las Malvinas son argentinas"
COMMUNICATION "A" 7545 12/07/2022
TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1-984,
OPRAC 1-1156,
REMON 1-1063:
Minimum cash. Net global position in foreign currency. Financing to the non-financial public sector. Minimum capital of financial entities. Credit policy. Amendments. ___________________________________________________________________________ We address you to inform you that this Institution has adopted the resolution that, in its pertinent part, establishes:

"1. Order that financial entities apply, for the purposes of their technical relations and monetary regulations, the treatment of currency issued in pesos to national public bonds in pesos with dual-currency yield.
2. Establish a minimum term of 90 calendar days for national public bonds in pesos acquired through primary subscription from the day following the dissemination of this communication, as provided for in points 1.3.7.1. and 1.3.17. of the regulations on 'Minimum Cash'."

Regarding this, we provide you with the sheets that, in replacement of those previously provided, should be incorporated into the referenced regulations. In this sense, we remind you that on this Institution's website www.bcra.gob.ar, by accessing "Financial System - LEGAL AND REGULATORY FRAMEWORK - Orders and summaries - Consolidated texts of general regulations", the modifications made with text highlighted in special characters (strikethrough and bold) will be found.

We salute you attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Darío C. Stefanelli María D. Bossio
Chief Manager of Issuance and
Regulatory Applications
Deputy General Manager of Financial Regulation

ANNEX

On days when no movement is registered, the balance corresponding to the immediately preceding business day must be repeated. The requirement will be observed separately for each of the currencies and/or monetary regulation instruments in which the obligations are denominated.

In the case of fixed-term deposits in national public bonds or BCRA monetary regulation instruments, including their immobilized balances, it must be determined in the same species captured, according to its market value. National public bonds in pesos with dual-currency yield receive the same treatment as currency issued in pesos. The requirement will remain even if, subsequently to the establishment of the deposit, the respective national public bond or monetary regulation instrument ceases to have normal and habitual quotation for significant amounts in domestic markets.

If they are fixed-term deposits in other securities, including their immobilized balances, the requirement must be determined –considering the market value of the captured species– in:
a) pesos or in national public bonds in that currency that have normal and habitual quotation for significant amounts in domestic markets, when the captured species is denominated in that currency; or b) US dollars or in national public bonds in that currency, which have normal and habitual quotation for significant amounts in domestic markets, when the captured species is denominated in foreign currency.

The requirement on demand obligations for transfers from abroad in foreign currencies other than the US dollar must be imputed to this currency, to the extent that they exceed the maximum term provided for in point 1.1.2.7.

When it is necessary to use information from periods prior to the calculation period (e.g., residual maturity structure, minimum daily integration, etc.) and the financial entity lacks this information because it has not operated in those periods (as is the case for new entities authorized to operate), the information from the calculation period must be used.

1.3. Minimum Cash.
The amounts of minimum cash resulting from applying the following rates must be integrated according to whether they are: i) entities included in Group "A" –in accordance with what is provided in Section 4. of the regulations on "Authorities of financial entities", for which the indicator provided for in point 4.1. of those regulations must be computed, for all financial entities, solely on an individual basis– and branches or subsidiaries of foreign banks classified as globally systemically important (G-SIB) not included in that group or ii) the remaining financial entities:

B.C.R.A. MINIMUM CASH
Section 1. Requirement.
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Concept
Rates in %
Group "A" and
G-SIB not included in that group
Remaining entities
1.3.7. Demand and time deposits made by order of the
Justice with funds originating in the cases in which it intervenes, and their immobilized balances.
1.3.7.1. In pesos, according to their residual term, being able to be integrated with LELIQ –those with the shortest issuance term–
and/or NOBAC and/or national public bonds in pesos –including those adjustable by the Reference Stabilization Coefficient (CER) and excluding those linked to the evolution of the US dollar– of residual term (at the time of subscription) a) not less than 180 days nor more than 450 calendar days acquired through primary subscription from 1.6.21, b) not less than 120 days nor more than 450 calendar days acquired through primary subscription from 1.11.21 and c) not less than 90 days nor more than 450 calendar days acquired through primary subscription from
13.7.22 –which will continue to be counted until their
maturity, as long as their integration is maintained– the requirement arising from time placements, except in the maximum proportion admitted for the integration in "National Treasury Bonds in pesos maturity May 23, 2027". i) Up to 29 days. 29 10 ii) From 30 to 59 days. 22 7 iii) From 60 to 89 days. 4 2 iv) From 90 days or more. 0 0
1.3.7.2. In foreign currency. 15 15
1.3.8. Special deposits linked to the inflow of funds from
abroad - Decree 616/05.
100 100
1.3.9. Time investments instrumented in non-transferable
bearer certificates, in pesos, corresponding to holders from the public sector who have the right to exercise the option of early cancellation in a term less than 30 days counted from their establishment. 32 11

B.C.R.A. MINIMUM CASH
Section 1. Requirement.
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Concept
Rates in %
Group "A" and
G-SIB not included in that group
Remaining entities
1.3.10. Time deposits and investments of "UVA" and "UVI"
–including savings accounts and debt securities (including bond issues) in "UVA" and "UVI"–, according to their residual term. i) Up to 29 days. 7 7 ii) From 30 to 59 days. 5 5 iii) From 60 to 89 days. 3 3 iv) From 90 or more. 0 0
1.3.11. Severance Fund for Workers in the
Construction Industry in UVA. 7 7
1.3.12. Time deposits and investments established in the name of minors from funds received
free of charge. 0 0
1.3.13. Demand deposits in pesos that constitute the assets of
money market investment funds ("money market"). 0 0
1.3.14. Deposits in pesos in accounts of payment service providers that offer payment accounts (PSPOCP) in
which the funds of their clients are deposited.
100 100
1.3.15. In the case of operations in pesos, when the locality in which the operating house where they are carried out is located, in accordance with what is established in the regulations on "Categorization of localities for financial entities", belongs to categories II to VI, the rates provided for demand placements will be reduced by 2 percentage points and for time placements by 1 percentage point up to a minimum of zero (including point 1.3.11.). In both cases, it does not include placements in securities. Time placements in pesos arranged remotely (e.g. via "home banking", web fixed-term, etc.) will receive the same treatment as those captured in categories
II to VI.
1.3.16. Financial entities included in Group "A" and branches or subsidiaries
of G-SIB not included in that group may integrate the requirement in pesos –for the period and daily– with "National Treasury Bonds in pesos maturity May 23, 2027" up to:
a) 5 percentage points of the rates provided for in points 1.3.1., 1.3.2.1., 1.3.3. and in subsections i) and ii) of points 1.3.5.1. and 1.3.7.1.

B.C.R.A. MINIMUM CASH
Section 1. Requirement.
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b) 2 percentage points of the rates provided for in subsection iii) of points 1.3.5.1. and 1.3.7.1.
1.3.17. Financial entities may integrate the requirement in pesos –for the period and daily–
with BCRA Liquidity Letters (LELIQ) –those with the shortest issuance term– and/or BCRA Notes (NOBAC) and/or national public bonds in pesos –including those adjustable by the CER and excluding those linked to the evolution of the US dollar– of residual term (at the time of subscription): a) not less than 180 days nor more than 450 calendar days acquired through primary subscription from 1.6.21, b) not less than 120 days nor more than 450 calendar days acquired through primary subscription from 1.11.21 and c) not less than 90 days nor more than 450 calendar days acquired through primary subscription from
13.7.22 –which will continue to be counted until their maturity, as long as their integration is maintained– in accordance with the following:
1.3.17.1. Fixed-term deposits and time investments made by holders from the non-financial private and non-financial public sectors, and those provided for in point
1.3.11.: the entire requirement, except for the maximum proportion admitted for the integration in "National Treasury Bonds in pesos" (point 1.3.16.).
1.3.17.2. Time investments with variable remuneration made by clients with agricultural activity in accordance with point 2.5.2.2. of the regulations on "Deposits and time investments": the entire requirement.
1.3.17.3. Other placements.
i. Entities included in Group "A" and branches or subsidiaries of
G-SIB not included in that group:
a) up to 16 percentage points of the rate provided for in subsection i) of point 1.3.5.1.; b) up to 13 percentage points of the rate provided for in subsection ii) of point 1.3.5.1.; c) up to 3 percentage points of the rates provided for in subsections i) to iii) of point 1.3.10.; and d) up to 2 percentage points of the rate provided for in subsection iii) of point 1.3.5.1.
ii. Entities not included in the preceding subsection:
a) up to 3 percentage points of the rates provided for in subsections i) and ii) of point 1.3.5.1., and in subsections i) to iii) of point 1.3.10.; and b) up to 2 percentage points of the rate provided for in subsection iii) of point 1.3.5.1.

To be admitted for integration with "National Treasury Bonds in pesos maturity May 23, 2027", national public bonds in pesos –including those adjustable by the CER and excluding those linked to the evolution of the US dollar–, LELIQ and/or NOBAC as provided for in points 1.3.7.1., 1.3.16. and 1.3.17., they must be valued at market prices –regardless of the valuation criterion for their accounting registration– and be deposited in Subaccount 60 minimum cash enabled in the Central Registry and Settlement of Public Debt, Monetary Regulation and Financial Trust Instruments (CRyL).

B.C.R.A. MINIMUM CASH
Section 1. Requirement.
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CONSOLIDATED TEXT ORIGIN OF THE RULE OBSERVATIONS Sec. Point Para. Com. Annex Sec. Point Para. 1.
1.1. "A" 3274 II 1. 1.1.
1.1.1. "A" 3274 II 1. 1.1.1. S/Com. "A" 3498.
1.1.2. "A" 3274 II 1. 1.1.2. S/Com. "A" 3597, 4815, 6634 (includes interpretative clarification),
6706, 6719, 6745, 7318 and "B" 9186.
1.1.3. "A" 3274 II 1. 1.1.3. S/Com. "A" 3498, 3905, 4473, 5945
and 6069.
1.2. "A" 3274 II 1. 1.2. S/Com. "A" 3304, 3498, 3597,
4449, 4716 (includes interpretative clarification), 4815, 5471, 6288, 6327, 6349, 6719, 7046, 7515, 7545 and "B" 9186.
1.3. "A" 3274 II 1. 1.3. S/Com. "A" 5356, 5980, 6209, 6616
and 7019.
1.3.1. "A" 3274 II 1. 1.3.1. S/Com. "A" 3338, 3417, 3498,
3597, 3917, 3967, 4032, 4051,
4147, 4276, 4449, 4473, 4509,
4549, 4602, 4712, 5108, 5356,
5980, 6195, 6526, 6532 and 6616.
1.3.2. "A" 3274 II 1. 1.3.2.,
1.3.3. and
1.3.4.
S/Com. "A" 3338, 3399, 3417,
3498, 3597, 3824, 3917, 3967,
4032, 4051, 4147, 4179, 4276,
4449, 4473, 4509, 4549, 4602,
4754, 4809, 4851, 5007, 5091,
5164, 5234, 5356, 5534, 5555,
5569, 5873, 5893, 5980, 6148,
6195, 6341, 6526, 6532 and 6616.
1.3.3. "A" 3274 II 1. 1.3.5. S/Com. "A" 3338, 3417, 3498,
3597, 3917, 3967, 4032, 4051,
4147, 4276, 4449, 4509, 4549,
5356, 5980, 6195, 6526, 6532 and
6616.
1.3.4. "A" 3274 II 1. 1.3.7. S/Com. "A" 5356, 6616 and 6350.
1.3.5. "A" 3498 single 1. 1.3.8. and
1.3.12.
S/Com. "A" 3506 (pt. 2.), 3549,
3732, 3824, 3905, 3917, 3925,
3967, 4032, 4140, 4179, 4276,
4360 (pt. 3.), 4449, 4549, 4602,
4754, 4851, 5356, 5534, 5555,
5569, 5873, 5893, 5945, 5980,
6195, 6519, 6526, 6532, 6616,
6728 and 6978.
1.3.6. "A" 3498 single 1. 1.3.11. S/Com. "A" 3597, 3732, 4032,
5356, 6595, 6616 and 6776.
1.3.7. "A" 3549 1. S/Com. "A" 4179, 4388, 4549,
4851, 5356, 5534, 5555, 5569,
5873, 5893, 5980, 6195, 6526,
6532, 6616, 6706, 6728, 6740,
6817, 7016, 7290, 7295, 7383,
7432, 7511 and 7545. Includes regulatory clarification.

B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS ON "MINIMUM CASH"

MINIMUM CASH
CONSOLIDATED TEXT ORIGIN OF THE RULE OBSERVATIONS Sec. Point Para. Com. Annex Sec. Point Para. 1.
1.3.8. "A" 4360 2. According to Com. "A" 5356 and 6616.
1.3.9. "A" 4754 6. According to Com. "A" 5356, 5980,
6195, 6526, 6532, 6616 and 6728.
1.3.10. "A" 5945 4. According to Com. "A" 6069, 6204 and
6616.
1.3.11. "A" 6341 According to Com. "A" 6616.
1.3.12. "A" 6069 4. According to Com. "A" 6616.
1.3.13. "A" 6992
1.3.14. "A" 7429
1.3.15. "A" 5356 1. According to Com. "A" 6616 and 6706.
1.3.16. "A" 6526 According to Com. "A" 6532, 6550,
6587, 6616, 6706, 7016, 7290 and
7511.
1.3.17. "A" 6550 According to Com. "A" 6556, 6559,
6575, 6587, 6616, 6706, 6738,
6740, 6817, 7018, 7029, 7047,
7092, 7290, 7295, 7383, 7432,
7511 and 7545. Includes regulatory clarification.
1.3. Last "A" 6526 According to Com. "A" 6532, 6556,
6569, 6575, 6587, 6616, 6628,
6740, 7016, 7290, 7295 and 7511.
Includes regulatory clarification.
1.4. "A" 3905 3. According to Com. "A" 4179, 4449,
4473, 5671, 5740, 6232, 6349,
6719, 6871 and 7046.
1.5. "A" 5356 2. According to Com. "A" 5471.
1.5.1. "A" 5356 2. According to Com. "A" 5471, 5623,
6531, 6703, 6705 and 7432.
1.5.2. "A" 5631 1. According to Com. "A" 5638, 6217,
6531, 6857, 6910, 6937, 7114,
7334 and 7448.
1.5.3. "A" 6740 1. According to Com. "A" 7254.
1.5.4. "A" 6858 1. According to Com. "A" 6901 and 6907.
1.5.5. "A" 6937 2. According to Com. "A" 6943, 7054,
7140 and 7155.
1.5.6. "A" 6993 2. According to Com. "A" 7082 and 7157.
1.5.7. "A" 7006 2.
1.5.8. "A" 7161 5. According to Com. "A" 7432, 7459,
7474 and 7491.
1.5.9. "A" 7254 1. According to Com. "A" 7287. Includes
regulatory clarification.
1.5.10. "A" 7342 2.
1.5. last "A" 6858 2. According to Com. "A" 6965, 6993,
7006, 7140, 7155, 7161, 7254 and
7342. i) "A" 7132 According to Com. "A" 7140. ii) "A" 7140 2. According to Com. "A" 7157.
1.6. "A" 3274 II 1. 1.5. According to Com. "A" 3498.
1.7. "A" 3274 II 1. 1.6.

1.1. Included Concepts.
The net global position in foreign currency (NGPME) will consider all assets, liabilities, commitments and other instruments and operations for financial intermediation in foreign currency or linked to the evolution of the exchange rate, including spot operations, forward operations and other derivative contracts, foreign currency deposits in accounts opened at the Central Bank of the Argentine Republic (BCRA), the position in gold, BCRA monetary regulation instruments in foreign currency, subordinated debt in foreign currency and debt instruments in foreign currency. Forward operations carried out within a framework agreement in the scope of markets authorized by the National Securities Commission (CNV) with the settlement by difference modality, without delivery of the underlying asset traded, will also be computed. Likewise, participation certificates or debt instruments issued by financial trusts and credit rights regarding ordinary trusts will be considered, in the corresponding proportion, when their underlying is constituted by foreign currency assets. The amount of the net position of operations with raw materials or commodities –"commodities"– provided for in points 3.6. and 6.1.3. of the regulations on "Spot operations to be settled and forward, repos, pledges, other derivatives and with common investment funds" will be computed within the NGPME. To this effect, all positions with opposite signs must be netted regardless of whether they refer to different products, maturities or whether there is no legal possibility of contractual offsetting between them. The value of the position in currencies other than the US dollar will be expressed in that currency, applying the respective swap rate published by the BCRA. The decrease in foreign currency assets due to the prepayment of local financings to private sector clients, from 5.9.19, can only be offset in the NGPME up to the original term of their maturity with the net increase in holdings of National Treasury securities in foreign currency. At the original maturity of the local foreign currency financing, it can be offset with the purchase of any foreign currency asset computable in the NGPME.
1.2. Exclusions.
1.2.1. Deductible assets to determine the computable net worth (RPC).
1.2.2. The included concepts registered by the financial entity in its branches abroad.
1.2.3. National public bonds in pesos with dual-currency yield.

B.C.R.A. NET GLOBAL POSITION IN FOREIGN CURRENCY
Section 1. Determination.
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CONSOLIDATED TEXT ORIGIN OF THE RULE OBSERVATIONS Sec. Point Para. Com. Annex Sec. Point Para. 1.
1.1. "A" 3889 1. According to Com. "A" 4135,
4140, 4150, 4577, 6396,
6663 and 6776.
1.2. "A" 4350 2. According to Com. "A" 5834,
5847, 5851 and 7029.
1.2.1. "A" 4350 2.
1.2.2. "A" 5847 1. According to Com. "A" 5851.
1.2.3. "A" 7545 1.
2.
2.1. "A" 3889 1. According to Com. "A" 4577,
4598, 5834, 5851, 6128,
6233 and 6507.
2.2. "A" 3889 1. According to Com. "A" 4350,
4598, 5536, 5611, 5627,
5834, 5851, 5891, 5917,
5935, 5997, 6128, 6233,
6501, 6507, 6526, 6735,
6754, 6759, 6763, 6770,
6774, 6775, 7003, 7022,
7071, 7101, 7405, 7416 and
7417. Includes regulatory
clarification.
3.
3.1. "A" 3889 1. According to Com. "A" 4350,
5356, 5550, 6091, 6638,
6754 and 6759.
3.2. "A" 5550 2.
4.
4.1. "A" 6526 7. According to Com. "A" 6699, 6735
and 7093.
4.2. "A" 6846 4. According to Com. "A" 7029 and
7036.
4.3. "A" 7395

B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS ON "NET GLOBAL POSITION IN FOREIGN CURRENCY"

9.1.3.4. Calculation of the margin.
For the purposes of determining the status of relations on credit risk fragmentation and the consequent observance of admitted excesses, the amount of the declared margin –used or not– together with the dother computable assets will be taken into account.
9.1.3.5. Non-observance of the margin.
The non-observance of the margin will have the treatment provided for in Section 2. of the regulations on "Non-compliance with minimum capital and technical relations. Applicable criteria". To this end, the excess over the 25% limit of the RPC or the lower limit by which the entity has opted will be considered.
9.1.4. Debt instruments issued by financial trusts or fiduciary funds for the
financing of construction, in which the participation of the National State as settlor has exceeded the 50% referred to in point 3.2.4., which for that reason became subject to the maximum limits established in point 6.1.1.1., without prejudice to the calculation referred to in point 6.1.2.3.
9.1.5. Financings to trusts or public fiduciary funds.
For entities that register admitted excesses, the maximum individual limits expanded to which point 6.1.1.2. refers will be equivalent to the positive difference between the 15% of the entity's RPC and the respective admitted excess. This, without prejudice to the application of the admitted amortizations collected in point 9.1.2.
9.2. The "National Treasury Bonds in pesos maturity May 23, 2027" and national public
bonds in pesos –including those adjustable by the Reference Stabilization Coefficient (CER) and excluding those linked to the evolution of the US dollar– with residual term (at the time of subscription): a) not less than 180 days nor more than 450 calendar days acquired through primary subscription from 1.6.21, b) not less than 120 days nor more than 450 calendar days acquired through primary subscription from 1.11.21 and c) not less than 90 days nor more than 450 calendar days acquired through primary subscription from 13.7.22, which are applied to the integration of minimum cash in that currency (in accordance with what is provided in points 1.3.7.1., 1.3.16. and 1.3.17. of the regulations on "Minimum Cash") will be excluded from the limits provided for in these regulations.
9.3. Within the period between 28.10.19 and 31.7.22 inclusive, it will be considered
–additionally– as an excluded concept for the purposes of calculating the basic individual and global limits established in matters of credit risk fragmentation –points 6.1.1. and 6.1.2., respectively– to financial assistance destined for the payment of salaries of personnel who meet the requirements provided for in point 3.2.5., up to the amount equivalent to the basic individual limit provided for in point 6.1.1.1. by which the jurisdiction in question can be financed.

B.C.R.A. FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR
Section 9. Transitional Provisions.
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FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR
CONSOLIDATED TEXT ORIGIN OF THE RULE OBSERVATIONS Section Point Paragraph Com. Chapter Point Paragraph 6.
6.3.3. "A" 6635
6.3.3.1. "A" 4725
According to Com. "A" 5472, 6635, 6978, 7443,
"C" 50385 and 50828. Includes interpretative clarification.
6.3.3.2. "A" 4725 According to Com. "A" 5472, 6091, 6327 and 6635 and
"B" 10185.
6.3.4. "B" 5902 10. According to Com. "A" 5013, 5472 and 6635.
6.3.5. "A" 414
LISOL-1
According to Com. "A" 5472 and 6635. Includes interpretative clarification.
7.
1° "A" 6635
7.1. "A" 2019 According to Com. "A" 2140, 5472 and 6635.
7.2. "A" 6635
7.2.1. "A" 4817 4. According to Com. "A" 4876, 5472 and 6635.
7.2.2. "A" 5472 According to Com. "A" 6635.
7.3. "A" 414
LISOL-1
According to Com. "A" 817, 4093, 5472, 6167 and
6635. Includes interpretative clarifications.
8. 8.1. "A" 6635
8.2. "A" 6635
9.
9.1. "A" 3911
According to Com. "A" 4155, 4230, 4343, 4455,
4546, 4676, 4825, 4898, 4932, 4937, 4996,
5015, 5472, 6091, 6327, 6526, 6635 and "B"
9627.
9.2. "A" 6526 4. According to Com. "A" 6635, 7016, 7290, 7295,
7511 and 7545. Includes regulatory clarification.
9.3. "A" 6816 According to Com. "A" 6852, 6919, 7075, 7207,
7330 and 7444.

To determine the amount of financing included in the exposure to the non-financial public sector, with respect to national public bonds that have normal and habitual quotation for significant amounts in domestic markets applied to passive forward operations in pesos and funded with deposits of those public bonds, the net position criterion for bonds provided for in the rules on "Financing to the non-financial public sector" shall be observed.

Exposures will include debt balances and contingent commitments multiplied by the corresponding credit conversion factor (CCF).

2.5.3. A central counterparty entity ("Central Counterparty", CCP) is understood to be the clearinghouse that intervenes between the parties to a financial contract negotiated in one or more markets, acting as buyer for every seller and as seller for every buyer, thereby guaranteeing the future execution of the contracts in question. The CCP becomes the counterparty in the negotiations of market participants through novation, or through an open offer system or using another scheme with legal force. For the purpose of determining the treatment to be dispensed to the exposure to a CCP, the provisions in point 4.3.3. or 4.3.4., as applicable, shall apply.

2.5.4. For the purposes of recognizing credit risk coverage, the provisions of Section 5 shall be taken into account.

2.5.5. Risk weights are applied per operation. If it is understood that an exposure could be subject to different specific risk weights, the highest of them shall be applied.

2.5.6. The treatment granted to the exposure to the non-financial public sector shall not apply to operations with counterparties to which the BCRA has granted the treatment provided for non-financial private sector entities. In these cases, they shall be considered as exposures to non-financial private sector companies.

2.5.7. In the event that the client enters into default with more than ninety days of delay in at least one of its operations with the entity, the entire exposure of the client in the financial entity shall be subject to the weight corresponding to loans with more than 90 days of delay.

2.5.8. Credits incorporated by portfolio purchases shall have the same treatment as credits originated by the entity itself, provided that the corresponding conditions are met.

2.5.9. Exposures denominated in foreign currency but whose service payments are made in pesos – "dollar linked" – shall be computed as those denominated in national currency. Exposures to the non-financial public sector of national public bonds in pesos with dual currency yield must be considered as securities issued in pesos.

2.5.10. For the purposes of verifying the maximum 30% ratio provided for in point 2.6.7.1., 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.

B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES
Section 2. Minimum capital for credit risk.
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11.1. Acquisitions of financial entities.
For the purposes of determining the computable net worth on a consolidated basis, the consolidating entity may add the amount registered in the specific item in the Provisions of Liabilities heading.

11.2. Merger of financial entities.
For the purposes of determining the PCN, the amount corresponding to the "negative goodwill" registered in the specific item in the Provisions of Liabilities heading may be added.

11.3. For the purposes of determining the PCN, starting from 1.2.13, capital instruments that cease to meet the criteria to be considered additional level one capital (CAn1) or supplementary net worth (PNc) in accordance with what is established in Section 8 shall be excluded.

For these purposes, while they maintain the conditions under which their inclusion in the PCN was admitted, the amount resulting from applying the methodology in force at that date to the accounting values of the instruments at the end of each month shall be computed. Their recognition as PCN shall be limited to 90% of the value thus obtained from that date, with said limit decreasing by 10 percentage points every twelve months. This limit shall be applied separately to each instrument – whether it is computed in CAn1 or in PNc –.

11.4. For the purposes of determining the PCN, "Group A" financial entities may compute as ordinary level one capital (COn1) the positive difference between the new accounting provision computed according to point 5.5. of IFRS 9 and the "regulatory" provision calculated according to the rules on "Minimum provisions for uncollectible risk" or the accounting provision corresponding to the balance sheet of 30.11.19 – whichever is higher.

11.5. For the purposes of determining the minimum capital requirement for credit risk of any financing agreed from 18.5.2020 to clients with agricultural activity that are not MiPyME and maintain a stock of their production with a value greater than 5% of their annual harvest capacity, the amount resulting from applying what is provided in Section 2 shall be multiplied by a factor equal to 4.

11.6. National public bonds in pesos with dual currency yield receive the same treatment as securities issued in pesos.

B.C.R.A. MINIMUM CAPITAL OF FINANCIAL ENTITIES
Section 11. Other provisions.
Version: 12th. COMMUNICATION "A" 7545 Effective: 13/07/2022 Page 1

MINIMUM CAPITAL OF FINANCIAL ENTITIES
ORDERED TEXT ORIGIN STANDARD OBSERVATIONS Section Point Paragraph Com. Cap./
Annex Point Paragraph
2.
2.5.5. "A" 2136 I According to Com. "A" 2541, annex, criteria, g), 5369 (Annex I) and 5580.
2.5.6. "A" 5369 I
2.5.7. "A" 5580
2.5.8. "A" 5580
2.5.9. "A" 5580 According to Com. "A" 7545.
2.5.10. "A" 5580
2.5.11. "A" 6004 4. According to Com. "A" 6344.
2.6. "A" 5369 I According to Com. "A" 6260.
2.6.1. "A" 5369 I
2.6.1.1. "A" 5369 I
2.6.1.2. "A" 5369 I
2.6.1.3. "A" 5369 I According to Com. "A" 6690.
2.6.1.4. "A" 5369 I
2.6.2. "A" 5369 I
2.6.2.1. "A" 5369 I According to Com. "A" 5580.
2.6.2.2. "A" 5369 I According to Com. "A" 5580 and 5831.
2.6.2.3. "A" 5369 I According to Com. "A" 6024 and 6221.
2.6.2.4. "A" 5369 I According to Com. "A" 6004.
2.6.2.5. "A" 5369 I According to Com. "A" 6004.
2.6.2.6. "A" 6004 4.
2.6.2.7. "A" 5369 I According to Com. "A" 6004.
2.6.2.8. "A" 6270
2.6.3. "A" 5369 I
2.6.3.1. "A" 5369 I According to Com. "A" 5831.
2.6.3.2. "A" 5369 I According to Com. "A" 6344.
2.6.4. "A" 5369 I
2.6.4.1. "A" 5369 I
2.6.4.2. "A" 5369 I According to Com. "A" 6004 and 6006.
2.6.5. "A" 5369 I According to Com. "A" 6004.
2.6.6. "A" 5369 I According to Com. "A" 5580.
2.6.7. "A" 5369 I
2.6.7.1. "A" 5369 I According to Com. "A" 5580 and 6221.
2.6.7.2. "A" 5369 I
2.6.8. "A" 5369 I
2.6.9. "A" 5369 I According to Com. "A" 6004.
2.6.9.1. "A" 5369 I
2.6.9.2. "A" 5369 I
2.6.10. "A" 5369 I
2.6.10.1. "A" 5369 I
2.6.10.2. "A" 5369 I
2.6.11. "A" 5369 I
2.6.11.1. "A" 5369 I

MINIMUM CAPITAL OF FINANCIAL ENTITIES
ORDERED TEXT ORIGIN STANDARD OBSERVATIONS Section Point Paragraph Com. Cap./
Annex Point Paragraph
11.
11.1. "A" 3985 According to Com. "A" 4172.
11.2. "A" 3985 According to Com. "A" 4172.
11.3. "A" 5369 8. According to Com. "A" 5580.
11.4. "A" 6938 12. According to Com. "A" 7007.
11.5. "A" 7018 5.
11.6. "A" 7545 1.
12. 1° "A" 7470 2. According to Com. "A" 7524.
2° "A" 7470 3. According to Com. "A" 7524.

1.1. General criterion.
Credit assistance granted by financial entities shall be oriented towards financing investment, production, marketing, consumption of goods and services required by both domestic demand and the country's exports or direct investments abroad made by resident companies.

1.2. Included financings.
All financings registered, regardless of the modalities used, whether granted directly, instrumented in the form of financial leasing ("leasing"), negotiable obligations, or incorporated by purchase or assignment, including those comprising asset portfolios for which debt titles or participations are held (financial trusts, common investment funds, etc.), and regardless of the sources of funds to which they may be imputable, shall be subject to the criteria applicable in credit policy matters, without prejudice to the observance of special norms to which they are subject for their application.

1.3. Credit management.
Financial entities may freely define the conditions and instrumentation of their credit operations, in compliance with the norms on "Credit Management" and "Interest Rates in Credit Operations".

1.4. Foreign currency financings.
When financial entities apply resources in foreign currency obtained from their liabilities for financial intermediation – excluding deposits, interfinancial loans referred to in point 2.1.10. and commercial external credit lines – in granting financings in that currency, they shall do so only for the destinations and under the conditions provided for in points 2.1. to 2.4.

The same limitation shall apply when the aforementioned liabilities and assets are denominated in pesos adjustable by the evolution of the value of the foreign currency, except for national public bonds in pesos with dual currency yield which receive the same treatment as securities issued in pesos.

The computation of affected assets and liabilities shall be based on the monthly average of daily balances (capital and interest) recorded in each calendar month. Financings shall be considered net of provisions for uncollectible risk and devaluation attributable to them and, where applicable, of the "difference by portfolio acquisition".

1.5. Prohibitions.
1.5.1. Loss-absorbing capacity instruments (TLAC).

B.C.R.A. CREDIT POLICY
Section 1. General credit policy.
Version: 11th. COMMUNICATION "A" 7545 Effective: 13/07/2022 Page 1

ORDERED TEXT ORIGIN STANDARD OBSERVATIONS Sec. Point Para. Com. Annex Cap. Sec. Point Para.
1.
1.1. "A" 49
OPRAC-1
I 1.1. According to Com. "A" 6031.
1.2. "A" 4311 According to Com. "A" 2736
(points 6. and 7.5.), 4851,
5067 and "C" 50798.
1.3. "A" 49
OPRAC-1
I 1.2.
1.4. "A" 5909 unique According to Com. "A" 5916,
6231 and 7545.
1.5.1. "A" 6662 According to Com. "A" 7393.
1.5.2. "A" 6723 2. According to Com. "A" 7393.
1.6.1. "A" 7018 4.
1.6.2. "A" 7407
2.
2.1. "A" 3528 1. According to Com. "A" 4147,
Annex.
2.1.1. 1° "A" 3528 1.1. According to Com. "A" 4015,
4311, 4423, 4851, 5908,
6363 and 6428 –includes interpretative clarification–.
2.1.2. "A" 5908 According to Com. "A" 6428,
includes interpretative clarification.
2.1.3. "A" 4015 1.2. Includes interpretative clarification. According to Com.
"A" 4851 and 5908.
2.1.4. "A" 4015 1.3. According to Com. "A" 5908 and
6105.
2.1.5. "A" 6105 2.
2.1.6. "A" 4423 According to Com. "A" 5908.
2.1.7. "A" 4453 According to Com. "A" 4577 and
5908.
2.1.8. "A" 4011 1.4. 1° According to Com. "A" 4015,
4311, 4851, 5908, 6031 and
6305.
2.1.9. "A" 4015 1.4. last According to Com. "A" 4311,
4851 and 5908.
2.1.10. "A" 3528 1.2. According to Com. "A" 4140 and
4311.
2.1.11. "A" 5534 2. According to Com. "A" 5859.
2.1.12. "A" 6031 2.
2.1.13. "A" 6031 2.
2.1.14. "A" 6105 2. According to Com. "A" 6526.
2.1.15. "A" 6162 1.
2.1.16. "A" 6231 1.
2.1.17. "A" 6245 1. According to Com. "A" 6328.
2.1. last "A" 4851 4.
B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE NORMS ON "CREDIT POLICY"