Circular OPASI 2-133 and OPRAC 1-394: Prohibition of Granting Guarantees Between Financial Entities for Resource Collection Operations

BANCO CENTRAL DE LA REPUBLICA ARGENTINA __________________________________________________________________ COMUNICACION " A " 2383 13/10/95 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 133.
OPRAC 1 - 394.
Prohibition of granting guarantees between financial entities for resource collection operations

We address you to inform you that, following verifications carried out by the Superintendence of Financial and Exchange Entities, in which cross operations between local financial entities were detected that, in practice, imply the granting of guarantees between them regarding fixed-term deposits of foreign residents, this Institution adopted the following resolution:

"- To prohibit financial entities from carrying out resource collection operations from residents or non-residents of the country that, under any modality of arrangement and through associated agreements -whether formalized or not-, imply that the return of the deposited funds is guaranteed by another financial entity, except in cases specifically admitted by the Central Bank."

We salute you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA Juan Carlos Isi Alfredo A. Besio Submanager of Standards for Financial Entities Manager of Standards for Financial Entities