Circular OPASI 2 - 106. Portfolio Assignments

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 2156 29/10/93 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 106.
Portfolio Assignments

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

"1. Authorize financial entities to assign to third parties, without the obligation to provide their guarantee or collateral, loans and other credits for financial intermediation from their portfolio in national currency, foreign currency, or securities, whose maturity operates as a minimum from 30 days from the date on which the transfers are effected.

2. Admit that banks and financial companies carry out the assignments referred to in the previous point by agreeing on the repurchase of the transferred credits in terms not less than 30 days, provided that the debtors at the time of the assignment were not classified by any financial entity in a situation other than normal.

These operations will be subject to the rules on the requirement and integration of minimum cash in national or foreign currency for time deposits, depending on whether they involve the capture of resources in one or the other of these species, respectively.

3. Establish that banks and financial companies may constitute themselves as settlors of the transferred portfolios in accordance with points 1. and 2. above, or allocate credits to integrate the common credit funds referred to in Resolution No. 237/93 of the National Securities Commission.

4. Provide that assigning entities must inform the last classification assigned in the "Risk Central" to the debtors who make up the transferred portfolio or, if not incorporated into it, the last reported according to the "Debtor Situation Report", which must be expressly stated in the instruments by which the assignments referred to in points 1. to 3. of this resolution are formalized.

5. Establish that during the period of placement of quota-shares of a common credit fund to which the entity assigns its credits in accordance with what is provided in point 3. of this resolution, the holding by the assigning entity of unplaced quota-shares will not be counted for the purposes of the limit established in point 3.4. of Annex II to Communication "A" 2140.

For the purposes of the rules on credit assistance and credit grading, the relationships fixed in the respective rules regarding the assigned credits will continue to be observed, in the proportion that the holding of quota-shares represents in relation to the total issued.

6. Leave without effect the provisions of point 3.3. of Chapter II of Circular OPASI - 2 (text according to Communication "A" 1199)."

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Juan Carlos Isi Alfredo A. Besio
Submanager of Rules for Submanager of Rules for Financial Entities Financial Entities