Circular Monetary Regulations - REMON 1 - 12

BANCO CENTRAL DE THE REPUBLIC OF ARGENTINA
COMMUNICATION "A" 70 24/11/81
TO FINANCIAL ENTITIES:
Ref.: Circular Monetary Regulations - REMON 1 - 12

We have the pleasure to address you with reference to the loan regime intended to extend terms of credit operations for private sector companies.

Regarding this matter, we bring to your knowledge that it has been ordered:

1. Maintain, at the utilization level recorded as of the date of communication of this resolution, the loans allocated to financial entities with adjustment to the regime intended for the extension of terms of credit operations for private sector companies, disclosed by Communication “A” 22 and complementary.

2. Nullify the requirement to reinvest the resources allocated under the indicated operation, according to the regulatory conditions established for the administration of this line of financial assistance.

3. Financial entities may incorporate into their ordinary liquidity the funds allocated by the Central Bank with adjustment to the regime referred to in point 1. and under the general conditions established therein, when the cancellation of the refinancings granted occurs or when those obligations are converted to the operation of Law No. 22,510 and Decree No. 1938/81.

We send you with this present copy of Decree No. 1938/81 by which Article 36 of the cited law is regulated.

We salute you very attentively.

BANCO CENTRAL DE THE REPUBLIC OF ARGENTINA
Germán R. Pampillo
Submanager of Standards for
Financial Entities
Daniel E. de Pablo
General Submanager

ANNEX

B.C.R.A. TEXT OF DECREE No. 1938/81 Annex to Communication “A” 70

THE NATIONAL EXECUTIVE POWER
BUENOS AIRES, November 9, 1981

HAVING VIEWED the provisions of Law No. 22,510 by which a special loan operation is instituted by the CENTRAL BANK OF THE REPUBLIC OF ARGENTINA, with the object of facilitating to financial entities the refinancing of a part of the debts in pesos of which they are creditors, corresponding to private sector companies and, in parallel, moderating the cost of such operations, and

CONSIDERING:

That in Article 36 of the cited legal instrument it is provided to limit the accumulation of refinancing corresponding to this regime with that which debtors have obtained by virtue of other systems of financial assistance of special characteristics, without affecting the option that borrowers will maintain to join the operation established in the aforementioned law and within the quantitative provisions it determines.

That in order not to place in a disadvantaged situation the companies that have adhered to the loan line established by the CENTRAL BANK OF THE REPUBLIC OF ARGENTINA to enable the extension of terms of credits based on debt contracted as of April 30, 1981, it is necessary to allow debtors the transfer of such obligations to this new refinancing regime, insofar as the activity of these firms is included in the prescriptions of Law No. 22,510.

That it is also convenient to specify that debts originating from loan lines intended for the pre-financing of promoted exports established by the CENTRAL BANK OF THE REPUBLIC OF ARGENTINA will not be computed for the purpose of limiting the accumulation of refinanciable amounts by special regimes and are excluded from the possibility of conversion to the refinancing regime of the aforementioned law.

Therefore,

THE PRESIDENT OF THE ARGENTINE NATION
DECREES:

ARTICLE 1º - Financial entities that participate in the operation established by Law No. 22,510, at the request of interested parties, must extend the assistance it determines to debts contracted within the loan system of the CENTRAL BANK OF THE REPUBLIC OF ARGENTINA intended for the extension of terms of credit operations (Communication “A” 22 and complementary), provided that the recurring companies develop the activities included in Chapter III of the cited law and the established requirements are observed.

The joint debt that may be maintained refinanced for each borrower by entity, through these two credit regimes, may not exceed the amount resulting from the application of the provisions contained in the aforementioned Chapter III.

• // -

• 2 -

ARTICLE 2º - Debts arising from the loan lines established by the CENTRAL BANK OF THE REPUBLIC OF ARGENTINA for the pre-financing of promoted exports will not be computed for the purpose of limiting the accumulation of refinanciable amounts as provided in Article 36 of Law No. 22,510, nor may an option be chosen regarding such debts, for incorporation into the refinancing regime of said law.

ARTICLE 3º - Communicate, publish, send to the National Directorate of the Official Register and Archive.

DECREE No. 1938
VIOLA
Signed: Dr. Lorenzo Sigaut
Minister of Economy, Treasury and Finance

IT IS A COPY