Circular Monetary Regulations - REMON 1 - 51. Mortgage Credits for Housing. Debt Reduction

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 200 10/08/82
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS - REMON - 1 - 51. Mortgage credits for housing. Debt reduction We address you for the purpose of communicating to you that this Institution resolved:

1. To replace the provisions of Title III, point 3. of Circular MONETARY REGULATIONS - REMON - 1 - 22 (Communication “A” 144), with the following:

“3. In the case of mortgage credits for housing, the treatment indicated in point 4. shall apply always:
3.1. That those credits have been intended to finance the construction, renovation, acquisition or expansion of the single home, for own use and permanent residence, or to cancel another loan that had been previously contracted with the same destination. The corresponding sworn declaration will be requested.
3.2. That they are operations formalized before 1.1.82.
3.3. That the debtors of these loans expressly waive continuing with the litigations related to these credits.
These operations must be indefectibly imputed to the “Basic” loan.”

2. The debt reduction referred to in Title III, point 4. of Circular MONETARY REGULATION - REMON - 1 - 22 (Communication “A” 144) and the refinancing of such mortgage loans are subject to the following rules:
   2.1. The debt balance as of 30.6.82 will include capital, adjustments and accrued interest as of 30.6.82 and will be considered henceforth as if it were the new original capital.
   2.2. The balance defined according to the indication in the preceding point, will be reduced on July 31, August 31 and September 30, 1982 by an amount equivalent to the attenuation of the interest rate that the Central Bank applies to entities in such a way that, without any payment by the debtor in the period between 1.7.82 and 30.9.82, the debt balance must represent with respect to the debt as of 30.6.82, 95.03% on July 31, 1982, 90.31% on August 31, 1982 and 85.97% on September 30, 1982. These percentages will be calculable on the amount determined according to point 2.1. and will be adjusted by the loan update index (Circular ACTIVE OPERATIONS - OPRAC - 1 - 8 - Communication “A” 185) Base 100 at 1.7.82.

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  2.3. By September 30, 1982 at the latest, debtors must pay 0.97% on the balance as of 30.6.82 adjusted by the loan update index, with which the debt will be reduced to 85% on day 30.9.82.
  2.4. Any payment that debtors may have made effective after 30.6.82 must be discounted using the loan update index of the date of payment and of 1.7.82, respectively. The amount thus obtained will be affected:
  1º) to reduce, prior to the adjustment mentioned in point 2.2., the payment of 0.97% referred to in point 2.3.
  2º) to additionally reduce the balance established in point 2.1.
  2.5. On the balance thus determined, a new payment plan will be established consisting of eighty-five equal monthly amortizations, adjusted by the loan update index. The first maturity will take place in the month of November 1982. If the remaining term arising from the original contract were greater, this latter will be respected observing the grace period established.

3. For the purposes of preparing the cancellation schedule of the “Basic” loan, these operations will not form part of the calculation base to determine the amortization percentages of said “Basic” loan and will be communicated by the terms repactated based on what is established in this Resolution.

We salute you very attentively.
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Néstor J. Taró
Manager of Standards for
Financial Entities
Daniel E. de Pablo
General Sub-manager