Circular Monetary Regulations - REMON 1 - 108. Acquisition and Merger of National Capital Financial Entities

CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION "A" 350 22/07/83
TO FINANCIAL ENTITIES:
Ref.: CIRCULAR MONETARY REGULATIONS - REMON - 1 - 108. Acquisition and merger of national capital financial entities

We have the pleasure of addressing you to inform you of complementary provisions to those provided in Circular R.F. 1246, intended to facilitate the process of consolidation and strengthening of national capital credit intermediaries.

The Central Bank has promoted through various measures the merger of financial entities, as a means aimed at the constitution of units of greater magnitude and operational breadth whose action leads to giving solidity to the system.

Within that line of action, it has been arranged that the assistance provided in said Circular - concretized basically until now at the partial financing of the purchase price at the expense of acquiring entities - may also concur in the allocation of additional resources to operationally resize the new entities with market penetration.

The Central Bank will proceed to study the projects that are submitted in pursuit of obtaining this type of financing with the object of determining the convenience, measure and characteristics of the support to be provided against the particularities of each case, without prejudice to the observation of adequate technical criteria of a general nature and the weighing of the effort that the interested parties are willing to carry out.

We salute you very attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Ernesto V. Feldman
Manager of Financing and
Studies of the Financial System
Daniel E. de Pablo
Deputy General Manager