Circular OPASI 2-228, LISOL 1-285, OPRAC 1-479: Deposit Guarantee Fund Contributions and Loans. Update of Consolidated Texts

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMMUNICATION "A" 3068 28/01/00
TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 228
LISOL 1 - 285
OPRAC 1 - 479
Deposit Guarantee Fund. Contributions and loans. Update of consolidated texts.

We address you to deliver attached the sheets that, in replacement of those previously provided, should be incorporated into the consolidated texts of the regulations on "Application of the Deposit Guarantee Insurance System", "Minimum Provisions for Uncollectible Risk", "Classification of Debtors" and "Minimum Capital of Financial Entities", as well as those corresponding to the indicative tables of the origin of the provisions that are affected.

This update is carried out following the resolution made known by Communication "A" 3064, clarifying to you that the loans that financial entities grant to the Deposit Guarantee Fund are excluded from the limits established in matters of credit risk fragmentation (Communication "A" 2140 and complementary).

We salute you very attentively.

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

a/c Gerencia de Normas Adscripto al Area para Entidades Financieras de Economía y Finanzas

ANNEX: 25 sheets.

B.C.R.A. CONSOLIDATED TEXT OF THE REGULATIONS ON APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

• Index -

1. SEDESA Shareholder Trust.

2. Normal contribution.

3. Additional contribution.

4. Loans.

5. Integration of contributions.

6. Scope of the guarantee.
   6.1. Deposits included.
   6.2. Exclusions.
   6.3. Coverage. Amount and formalities.

7. Instrumentation.

8. Determination of the additional contribution.
   8.1. Entities with "CAMEL" rating.
   8.2. Entities without "CAMEL" rating.

9. Applicable legislation.
   9.1. Law 24.485
   9.2. Decree 540/95 and its amendments
   Version: 2nd Communication "A" 3068 Validity:
   21.01.00

10. SEDESA Shareholder Trust.
    The participation in the trust that acts as shareholder of the society Seguro de Depósitos S.A. (SEDESA) arises from providing the contribution effectively made by each entity regarding the contributions collected from the entire system, corresponding to each calendar year. The non-exercise of the option to participate by an entity will determine the proportional increase in the participation of the other entities.

11. Normal contribution.
    The entities included in the Financial Entities Law must monthly allocate to the Deposit Guarantee Fund (FGD) a normal contribution equivalent to 0.015% of their monthly average of daily balances of the items listed in point 5.1., registered in the second month immediately preceding. For these purposes, the Bank of the Argentine Nation will adhere to what is provided in the second paragraph of article 6 of Decree 540/95 (text according to Decree 1292/96 - article 3).

This percentage will be applied to the extent that financial entities enter into loan contracts with SEDESA destined to the FGD under the basic economic conditions referred to in point 4.

Until the loans are agreed upon, the normal contribution percentage will be 0.03%.

The Central Bank of the Republic Argentina may require the integration, as an advance, of the equivalent of up to twenty-four (24) minimum normal contributions, with a notice of not less than thirty (30) calendar days, to cover resource needs of the Fund.

3. Additional contribution.
   In addition to the normal contribution referred to in point 2, entities must make a differentiated additional contribution depending on the result obtained from the weighting of the following factors, based on the methodology contained in point 8.

3.1. The rating assigned to the entity according to the evaluation carried out by the Superintendence of Financial Entities and Exchanges.

3.2. The ratio of excess integration of computable equity responsibility regarding the minimum capital requirement. For this effect, the computable equity responsibility will be added with provisions for uncollectible risk constituted in excess of the minimums established in the pertinent norms.

3.3. The quality of the active portfolio measured by:
3.3.1. Minimum provisions required for uncollectible risk regarding financings.
3.3.2. Computable assets to determine the required minimum capital, weighted as established in the norms on "Minimum Capital of Financial Entities", regarding total assets.

The additional contribution resulting from the application of the aforementioned factors cannot exceed once the normal contribution.

4. Loans.
   The loans that are entered into with SEDESA destined to the FGD for the purpose of making a normal contribution of 0.015% of the computable concepts, in addition to the contractual terms required by SEDESA, will observe the following basic economic conditions:

4.1. Monthly granting.
4.2. Amount: equivalent to the total monthly contribution -normal and, if applicable, additional-.
4.3. Term: 36 months for each monthly loan. It will mature on the 12th day of the corresponding month.
4.4. Interest: the balances owed by the FGD will accrue interest calculated at the rate equivalent to the yield produced by the placement of FGD resources made in instruments similar to those chosen for the investment of the foreign exchange reserves of the Central Bank of the Republic Argentina. The resulting amount will be credited no later than the 12th day of each month to the current account of the pertinent entity opened at that Institution.

5. Integration of contributions and loans.
   The normal, additional, advance, and monthly loans will be debited from the current accounts of the entities opened at the Central Bank of the Republic Argentina no later than the 12th day of the month to which they correspond.

In the case that updated information is not available to establish the pertinent calculation base, the amount will be determined based on the last available data, increasing by 10% the base obtained.

When the contracting of loan contracts is carried out on a date subsequent to the entry of the contributions of a certain month, the entities will make the pertinent accounting registrations with value to the date of the debit in order to reflect –in equal parts- the loan to the FGD and the consequent decrease in concept of contributions, from that month.

6. Scope of the guarantee.
   6.1. Deposits included.
   Deposits in pesos and in foreign currency constituted in the participating entities under the form of:
   6.1.1. Current account.
   6.1.2. Savings account.
   6.1.3. Fixed term.
   6.1.4. Payment of remunerations and special.
   6.1.5. Term investments.
   6.1.6. Immobilized balances coming from the preceding concepts.

6.2. Exclusions.
6.2.1. Transferable fixed-term deposits whose ownership has been acquired by way of endorsement, even if the last endorsee is the original depositor.
6.2.2. Deposits captured through systems that offer additional incentives or stimuli to the agreed interest rate, whatever the denomination or form they adopt (insurance, lotteries, tourism, provision of services, etc.).
6.2.3. Deposits in which interest rates higher than the reference rates are agreed, which are periodically disseminated by the Central Bank of the Republic Argentina for fixed-term deposits and current account balances (current account and savings account) through Communications "B", determined by adding two percentage points annually to the moving average of the last five banking days of the passive rates arising from the survey carried out by the Central Bank of the Republic Argentina.
6.2.4. Deposits of financial entities in other intermediaries, including fixed-term certificates acquired by secondary negotiation.
6.2.5. Deposits made by persons linked, directly or indirectly, to the entity according to the guidelines defined in point 4.2. of Chapter I of Circular OPRAC-1 and in point 1.1. of Annex I to Communication "A" 2140.
6.2.6. Fixed-term deposits of securities, acceptances or guarantees.
6.2.7. Immobilized balances coming from excluded deposits and other operations.

6.3. Coverage. Amount and formalities.
6.3.1. The guarantee will cover the return of the deposited capital and its interests, accrued until the date of revocation of the authorization to operate or until the date of suspension of the entity by application of article 49 of the Organic Charter of the Central Bank of the Republic Argentina, if this measure had been adopted prior to that, not exceeding -for both concepts- $ 30,000.
6.3.2. In accounts and deposits constituted in the name of two or more persons, the guarantee limit will be $ 30,000, regardless of the number of titular holders, distributing proportionally the amount of the guarantee that corresponds among the holders.
6.3.3. The total guaranteed to a specific person, by accumulation of accounts and deposits covered by the coverage, as provided previously, cannot exceed the limit of $ 30,000 established in article 13 of Decree 540/95 (text according to Decree 1127/98).
6.3.4. SEDESA will reject or postpone until its judicial recognition the request for coverage by application of this guarantee regime when the deposits do not meet the requirements established in the applicable norms or when the depositors do not exhibit titles materially and formally valid.
6.3.5. SEDESA may require, prior to the settlement of the guarantee, that depositors justify the origin and availability of the deposited funds through records that demonstrate the verisimilitude of them and/or that the effective entry of the funds to the entity has been verified regarding each operation covered by the regime.
In addition, the said society must file the pertinent complaint when it detects irregularities or a criminal offense aimed at obtaining the undue payment of the guarantee.

7. Instrumentation.
   In all documents representing passive operations (certificates, deposit slips, account summaries, etc.), the following legend must appear, visibly and printed on the front or back of them:
   "Deposits in pesos and in foreign currency have the guarantee of $ 30,000. In operations in the name of two or more persons, the guarantee will be prorated among their holders. In no case, the total guarantee per person may exceed $ 30,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree 540/95 and Com. "A" 2337 and its amendments and complements. Excluded are those captured at rates higher than the reference rate and those that have had additional incentives or special stimuli to the interest rate".

In case any of the situations cited last occurs, it will be necessary to place visibly on the front of the documents the following legend:
"Deposit without guarantee"

Entities must keep available to their clientele the complete texts of Law 24.485, Decree 540/95 (updated text) and these norms.

In addition, in the advertising carried out by financial entities, related to the deposits they capture, the existence of a limited guarantee for their return must be stated.

On boards where rates offered to the clientele are informed, the scope of the guarantee (type of deposits included, percentage and amount guaranteed, exceptions, etc.) must be transcribed visibly.

While documents containing the legends in printed form are not available, the requirement may be fulfilled by placing stamps with the following expressions: "Deposits have a limited guarantee for their return. Law 24.485, Decree 540/95 and norms on "Application of the deposit guarantee insurance system" issued by the Central Bank of the Republic Argentina" or "Deposit without guarantee", as appropriate.

8. Determination of the additional contribution.
   The normal contribution will be corrected according to the result obtained for each entity by an index, constructed based on the factors indicated in point 3, which will fluctuate between 1 and 2.

8.1. Entities with "CAMEL" rating.
It will arise from the following expression:
Ic = {(Ipr/f + Iar/a + 2 * Icamel)/4} - Irpc/Kmin

where:
Ipr/f: indicator referred to in point 3.3.1. which will take the value arising from the following expression:
Ipr/f = (Vi/0.04) 1.20

where
Vi: ratio between the minimum provisions required according to point 2.1. of Section 2. of the norms on "Minimum Provisions for Uncollectible Risk" and the total financings included (Section 2. of the norms on "Classification of Debtors"). This concept includes the balances of guarantees granted for obligations assumed on behalf of third parties, registered on the last day of the month in question, according to the classification reported in the debtor status statement. The value of the index will be bounded between 1 and 2.5. That is, in cases where the result of the expression is, respectively, lower or higher than those lower and upper limits, 1 or 2.5 will be taken, as appropriate.

Iar/a: indicator referred to in point 3.3.2. which will take the value arising from the following expression:
Iar/a= (Vi/0.70) 1.30

where
Vi: ratio between the entity's risk assets and total assets. Risk assets are defined as the sum of the concepts "Ais", "Aif", "Vrf" and "Vrani" -in the last two cases computed by their weighted value- in the terms referred to in point 3.1. of Section 3. of the norms on "Minimum Capital of Financial Entities" and total assets as the sum of the concepts "Ais", "Aif", "f" and other non-immobilized assets not included in "f" -included in "Vrani"-. The value of the index will be bounded between 1 and 2. That is, in cases where the result of the expression is, respectively, lower or higher than those lower and upper limits, 1 or 2 will be taken, as appropriate.

Icamel: indicator referred to in point 3.1. The value will be taken from the following table:
Rating Index
1 1.00
2 1.33
3 1.66
4 2.00
5 2.00
The rating that the Superintendence of Financial Entities and Exchanges assigns to the financial entity will be considered for the calculation of contributions to the Deposit Guarantee Fund that are due starting from the third month following that in which the pertinent notification takes place.

Irpc/Kmin: indicator referred to in point 3.2. The value will be taken from the following table:
Ratio RPC/minimum capital requirement
Index up to 0.90 - 0.50 more than 0.90 to 0.95 - 0.25 more than 0.95 to 1.00 - 0.10 more than 1.00 to 1.10 0.00 more than 1.10 to 1.20 + 0.05 more than 1.20 to 1.30 + 0.10 more than 1.30 to 1.50 + 0.20 superior to 1.50 +0.30

The value of the index Ic will be bounded between 1 and 2. That is, in cases where the result of the expression is, respectively, lower or higher than those lower and upper limits, 1 or 2 will be taken, as appropriate.

For the calculation of the ratios, the amounts corresponding to the third month prior to the maturity date of the contributions will be considered.

8.2. Entities without "CAMEL" rating.
Until the rating of the Superintendence of Financial Entities and Exchanges ("CAMEL") is available, the calculation of the correction index will arise from the following expression:
Ic = {(Ipr/f + Iar/a)/2} - Irpc/Kmin

For its application, the definitions of the terms according to point 8.1. will be taken into account.

9. Applicable legislation.
   9.1. Law 24.485 (*).
   Article 1st: The Deposit Guarantee Insurance System is created, which will be limited, mandatory and onerous, with the object of covering the risks of bank deposits, in a subsidiary and complementary manner to the system of privileges and protection of deposits established by the Financial Entities Law, without compromising the resources of the Central Bank of the Republic Argentina nor the National Treasury. The Central Bank of the Republic Argentina is authorized to organize and put into operation the system created by this article.

9.2. Decree 540/95 ().
Article 1st: The "DEPOSIT GUARANTEE FUND" (FGD) is created with the purpose of covering bank deposits with the scope provided in this Decree.
The society "SEGURO DE DEPOSITOS SOCIEDAD ANONIMA" (SEDESA) is constituted with the exclusive object of exercising the functions of trustee of the trust contract that will be celebrated between SEDESA and the NATIONAL STATE, through the CENTRAL BANK OF THE REPUBLIC ARGENTINA to administer the FGD.

Article 2nd: The MINISTRY OF ECONOMY AND PUBLIC WORKS AND SERVICES is delegated the approval of the Constitutive Act and the Bylaws of "SEGURO DE DEPOSITOS SOCIEDAD ANONIMA" (SEDESA), which will have as partners the CENTRAL BANK OF THE REPUBLIC ARGENTINA, with at least one share, and whoever results as trustee of the trust contract to be constituted by the financial entities authorized to operate in the ARGENTINE REPUBLIC
(*) Published in the Official Bulletin of 18.4.95 () With the modifications of Decrees 1292/96, 1127/98 and 1292/99 Version: 2nd Communication "A" 3068 Validity:
21.01.00

who express their will to participate, in the proportion that for each one is determined by the CENTRAL BANK OF THE REPUBLIC ARGENTINA based on their contributions to the FGD. Until the constitution of SEDESA, contributions to the FGD will enter the account and entity determined by the CENTRAL BANK OF THE REPUBLIC ARGENTINA.

Article 3rd: SEDESA will not receive any compensation for its performance as trustee of the FGD. The operating expenses of the society will be strictly necessary to operate and must be covered with the income of the FGD. The modification of its bylaws or its capital will require at least the favorable vote of the shares owned by the CENTRAL BANK OF THE REPUBLIC ARGENTINA.

Article 4th: The protocolization of the constitutive act and the bylaws of SEDESA, as well as any act that may be necessary to elevate to public deed, is ordered, through the NATIONAL NOTARY OFFICE, without this implying any expenditure.

Article 5th: The GENERAL INSPECTION OF JUSTICE is instructed to grant the respective conformities or authorizations and to take note of the registration of SEDESA in the register under its charge.

Article 6th: Financial entities authorized to operate in the ARGENTINE REPUBLIC must integrate the FGD with a normal monthly contribution that the CENTRAL BANK OF THE REPUBLIC ARGENTINA will determine between a minimum of ZERO POINT ZERO FIFTEEN PERCENT (0.015%) and a maximum of ZERO POINT ZERO SIX PERCENT (0.06%) of the average of the daily balances of deposits in pesos and in foreign currency constituted in the financial entities, and with additional contributions that the CENTRAL BANK OF THE REPUBLIC ARGENTINA establishes for each entity based on the risk indicators it deems appropriate. In no case can the additional contribution exceed the equivalent of a normal contribution.

For the purpose of calculating the average of daily balances of deposits in pesos and in foreign currency, deposits corresponding to national official accounts opened at the BANK OF THE ARGENTINE NATION are excluded.

THE CENTRAL BANK OF THE REPUBLIC ARGENTINA may dispose that the integration of the contribution, be in cash or through the assumption of the commitment to make the same, instrumented under the conditions and formalities determined by the CENTRAL BANK OF THE REPUBLIC ARGENTINA, the contributing financial entities, in the latter case, complying with the current norms on minimum capital. Such commitments cannot exceed FIFTY PERCENT (50%) of the contribution to be made.

Article 7th: THE CENTRAL BANK OF THE REPUBLIC ARGENTINA will determine the maturity date of the obligation to deposit the contributions. Financial entities must deposit their contributions punctually as a condition to operate regularly. Financial entities that begin their operations in the ARGENTINE REPUBLIC may enter the trust referred to in Article 2 of this Decree and those that cease to operate will lose the condition to integrate it, ceding their rights to the nominal value of the shares of SEDESA. The Application Authority will establish annually the proportion of participation in the trust for each financial entity, and the corresponding transfers to the nominal value of the shares must be carried out immediately.

Article 8th: When the FGD reaches the sum of TWO BILLION PESOS ($ 2,000,000,000) or FIVE PERCENT (5%) of the total deposits of the financial system, if that proportion is greater, the CENTRAL BANK OF THE REPUBLIC ARGENTINA may suspend or reduce the obligation to make contributions to the FGD, restoring totally or partially said obligation when the FGD decreases from that amount or proportion. For the purposes of this Article, only the cash contributions made by financial entities will be computed. THE CENTRAL BANK OF THE REPUBLIC ARGENTINA may adapt the total amount that the FGD must reach, when it considers that the accumulated amount is prudent in relation to the situation of the financial market and to the functions of the FGD.

Article 9th: At any time the CENTRAL BANK OF THE REPUBLIC ARGENTINA
(*) may require financial entities to advance the integration of up to two years of the minimum provided for normal contributions, either totally in cash or including contribution commitments up to the maximum authorized in Article 6 of this Decree. It may also require any of the contributing financial entities to constitute guarantees for the operations referred to in subsection e) of article 10 bis of this decree. THE CENTRAL BANK OF THE REPUBLIC ARGENTINA may, at the request of SEDESA, directly debit the normal or additional contributions owed by financial entities from the funds they have deposited at said Institution. It may proceed in the same way in case of not granting the contribution commitments provided in Article 6 of this decree.

The guarantees to be granted by financial entities in accordance with what is provided in the (*) Decree 1292/99 Version: 2nd Communication "A" 3068 Validity:
21.01.00

The preceding paragraph shall be determined by the amounts individually corresponding to them and shall be payable upon first request and under the conditions and formalities established by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.

Article 10: The resources of the Deposit Guarantee Fund (FGD) shall be invested under conditions similar to those established for the placement of the foreign exchange international reserves of the CENTRAL BANK OF THE ARGENTINE REPUBLIC. Without prejudice to the foregoing, the CENTRAL BANK OF THE ARGENTINE REPUBLIC may authorize that up to FIFTY PERCENT (50%) of the assets comprising the FGD be invested in national public bonds. The returns of the FGD shall form part of the same and shall be reinvested under the same conditions. SEDESA shall inform the public and the SUPERINTENDENCY OF FINANCIAL AND EXCHANGE ENTITIES of the FGD balance monthly.

Article 10 (bis) (*): SEDESA may carry out the following operations with the resources of the FGD:

a) Effect the coverage of the guarantee to depositors, within the limits and conditions established in this decree and its regulatory, complementary, and clarifying norms.

b) Make capital contributions, non-refundable contributions, or loans to:
(I) Financial entities that are subject to a regularization and solvency plan and for the purpose of supporting its compliance; (II) Financial entities that acquire assets and assume responsibility for the payment of deposits of another entity subject to the regime of Article 35 bis and concordant provisions of the Financial Entities Law, when this is convenient to compensate for the insufficiency of said assets with respect to the total of the transferred deposits; or (III) Absorbing or acquiring financial entities within the framework of a regularization and solvency plan.

c) Enter into a put option contract in favor of the acquiring entity with financial entities that acquire assets and assume responsibility for the payment of deposits of another entity subject to the regime of Article 35 bis and concordant provisions of the Financial Entities Law, regarding all or part of the transferred assets.

(*) Decree 1292/99
Version: 2nd. Communication "A" 3068 Validity: 21.01.00

The operation provided for in this subsection may be carried out through the establishment of a trust into which the assets of an entity subject to the regime of article 35 bis of the cited law enter, and in which SEDESA, in its capacity as administrator of the FGD, acquires beneficiary rights over the proceeds from the sale or liquidation of the trust assets.

d) Acquire deposits from suspended banks under Article 49 of the Organic Charter of the CENTRAL BANK OF THE ARGENTINE REPUBLIC (Law 24.144) up to the guarantee amounts provided in Article 13 of this Decree, subrogating into the rights of the depositors.

e) Take or receive loans or enter into any other credit operations charged to the FGD, in its capacity as administrator thereof, for an amount not exceeding the total of the normal monthly and additional contributions of the financial entities referred to in article 6°, both in cash and through the assumption of the commitment to contribute in accordance with article 6°, during a period of TWO (2) years counted from the moment the loan or credit operation is entered into. For the purpose of determining the total contributions during the aforementioned TWO (2) year period, the amount of the monthly contributions of each entity at the time the loan or credit operation is entered into shall be computed.

f) Carry out, maintain, or finance swap programs with foreign banks that aim to contribute to the stability of the Financial System, with the prior consent of the CENTRAL BANK OF THE ARGENTINE REPUBLIC and charged to the FGD.

The application of the alternatives provided for in the preceding subsections b), c), and d) as well as the operations referred to in the preceding subsection e) shall be decided exclusively by a Management Committee, whose decisions shall be binding on SEDESA. Such Committee shall be composed of a representative of the CENTRAL BANK OF THE ARGENTINE REPUBLIC and a number of board members to be determined in the Trust Agreement between a minimum of FOUR (4) and a maximum of SEVEN (7) representatives of the financial entities contributing to the FGD.

The representative of the CENTRAL BANK OF THE ARGENTINE REPUBLIC shall serve as President, and shall have the right of veto but not of vote.

The board members shall have the right to vote in proportion to the contributions made to the FGD by the entities they represent and in accordance with what is provided in the Trust Agreement.

Version: 2nd. Communication "A" 3068 Validity: 21.01.00

The Management Committee shall decide on the application of any of the alternatives provided for in the preceding subsections b), c), and d) when, according to the estimates that can be made at the time the decision must be taken, its adoption implies a direct cost to the FGD lower than that which would result for the FGD in the event that the authorization to operate for the affected entity were revoked and the payment to depositors provided for in the preceding subsection a) had to be fulfilled, for which the financial situation of the affected entity and the probable recovery of SEDESA's disbursements by subrogation must be taken into account.

Exceptionally, and in the event that the revocation of the authorization to operate of the affected entity is estimated to endanger the stability of other financial entities or the financial system as a whole, the application of any of the alternatives provided for in the preceding subsections b), c), and d) may be admitted even if it implied a direct cost to the FGD greater than that resulting from the alternative provided for in subsection a), provided that in no case may it exceed the total amount of guaranteed deposits imposed on the affected financial entity.

Everything regarding the Management Committee shall be provided for in the trust contract entered into by the CENTRAL BANK OF THE ARGENTINE REPUBLIC AND SEGURO DE DEPOSITOS SOCIEDAD ANONIMA.

Article 11: The coverage offered by the system shall apply to deposits in PESOS and in foreign currency constituted in participating entities in the form of checking accounts, savings accounts, fixed-term deposits, or other modalities determined by the CENTRAL BANK OF THE ARGENTINE REPUBLIC, which meet the requirements established in this decree and those established by the Application Authority.

Article 12: The following are not covered by the guarantee system:

a) Deposits of financial entities in other intermediaries, including fixed-term certificates acquired through secondary negotiation.

b) Deposits made by persons linked, directly or indirectly, to the entity according to the guidelines established or to be established in the future by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.

c) Fixed-term deposits of securities, acceptances, or guarantees.

d) Deposits constituted after July 1, 1995, on which an interest rate higher by two percentage points annually than the passive interest rate for equivalent terms of the NATIONAL BANK OF ARGENTINA corresponding to the day prior to the deposit has been renegotiated. The CENTRAL BANK OF THE ARGENTINE REPUBLIC may modify the reference rate established in this subsection, communicating it FIVE (5) business days in advance.

e) Other deposits that the Application Authority may exclude in the future.

Article 13: The guarantee shall cover the return of demand or fixed-term deposits up to the (*) sum of thirty thousand PESOS ($ 30,000).

The CENTRAL BANK OF THE ARGENTINE REPUBLIC may dispose, at any time and with general effect, of the modification of that coverage amount of the guarantee system, based on the evolution experienced by the financial system consolidation process and other indicators it deems appropriate.

Deposits for amounts higher than the coverage amount are also included in the guarantee regime up to that maximum limit.

Article 14: The receipt by depositors of the sums disbursed by SEDESA with the FGD's liquidity constitutes legal subrogation in favor of SEDESA of the collection rights in the liquidation or bankruptcy of the entity, with the privileges corresponding to the depositors and with priority of collection over them up to the concurrence of the sums paid by SEDESA in accordance with Article 13 of this Decree.

Article 15: The guarantee applies under equal conditions for natural and legal persons. To determine the amount covered and its return to the depositor, the total of the deposits registered by each person in the entity on the date of the revocation of its authorization to operate shall be computed. In accounts and deposits in the name of TWO (2) or more persons, it shall be understood that only one of them enjoys the guarantee, prorating it among the participants.

Article 16: ()

Article 17: The guarantee shall be effective in a subsidiary and complementary manner to the reimbursement of deposits by applying the privileges established by the Financial Entities Law, within THIRTY (30) business days counted from the day following the revocation of the authorization to operate of the entity, to the extent that depositors meet the established requirements and the FGD has liquidity. Upon request by SEDESA, the CENTRAL BANK OF THE ARGENTINE REPUBLIC may authorize the extension of said term when the number of beneficiaries in liquidation proceedings justifies it.

(*) Decree 1127/98. Validity: 28.9.98
() Repealed by Decree 1127/98
Version: 2nd. Communication "A" 3068 Validity: 21.01.00

When the resources of the FGD are insufficient to cover the payment of the guaranteed sums, the reimbursement shall be made pro rata of the available funds. The balance shall be settled within THIRTY (30) days counted from the date the FGD reports the existence of financial liquidity. In these situations and when there is more than one entity whose authorization has been revoked, the precedence for reimbursement shall be governed by the chronological order resulting from the start of the computation of the guarantee payment term. In no case shall the FGD cover or recognize interest for the period between the original maturity of the deposit and the date of payment of the guarantee.

Article 18: The payment of the guaranteed sums shall be made in pesos or in foreign currency, according to the proportion of each species resulting from the total deposited capital. For this latter purpose and to homogenize the balances of the total deposited, when dealing with deposits in foreign currency, their equivalent in pesos shall be taken according to the selling exchange rate for banknotes of the NATIONAL BANK OF ARGENTINA, corresponding to the day prior to the revocation of the authorization to operate of the included entity.

Article 19: SEDESA may reject or postpone until judicial recognition the request for guarantee coverage when the respective deposits do not meet the formal or substantive requirements established in this regulation or other provisions issued by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.

Article 20: SEDESA may exercise the corresponding judicial actions when, in its judgment, there are real possibilities of recovering the disbursed amounts.

Article 21: The regime established in this Decree shall apply to fixed-term deposits that are constituted or renewed from April 18, 1995, and to demand deposits registered in the balances corresponding to the close of that day, constituted in financial entities that were not suspended by the CENTRAL BANK OF THE ARGENTINE REPUBLIC nor had their authorization to operate revoked.

Article 22: The CENTRAL BANK OF THE ARGENTINE REPUBLIC shall be the Application Authority of the system created by Law 24.485 and regulated by this Decree, being empowered to issue interpretive and application norms that are necessary.

Article 23: The Board of Directors of SEDESA shall communicate to the SUPERINTENDENCY OF FINANCIAL AND EXCHANGE ENTITIES dependent on the CENTRAL BANK OF THE ARGENTINE REPUBLIC its opinion regarding financial entities that, in its judgment, have credit or commercial policies estimated to be of risk higher than normal. Likewise, its opinion may be requested regarding authorization to operate or transformation requests under consideration by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.

Version: 2nd. Communication "A" 3068 Validity: 21.01.00

Article 24: This Decree shall enter into force from the same day of its publication (*) in the Official Gazette.

Article 25: Formalities.

(*) Applicable to Decrees 540/95, 1292/96, and 1127/98, on their respective dates Version: 2nd. Communication "A" 3068 Validity: 21.01.00

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE CONSOLIDATED TEXT OF THE NORMS ON THE APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

NEW CONSOLIDATED TEXT. ORIGIN NORM
Point Par. Communication Annex Point Par. Observations

1. "A" 2337 I 1. 1° and 2°
   1° "A" 2337 I 2. 1° S/Dec. 1292/96 and "A" 2807 2° "A" 3064 3° "A" 3064 2.
   4° "A" 2337 I 2. 2° S/Dec. 1292/96
2. 1° "A" 2337 I 3. 1°
   3.1. "A" 2337 I 3.1.
   3.2. "A" 2337 I 3.2.
   3.3. "A" 2337 I 3.3.
   3.3.1. "A" 2337 I 3.3.1.
   3.3.2. "A" 2337 I 3.3.2.
3. 2° "A" 2337 I 3. 2°
4. "A" 3064
   1º "A" 2337 I 4. 3 and 2 S/Com. "B" 5806, 8th par. and "A" 3064 2° "A" 2337 I 4. 4° 5.
   3° "A" 3064
5. "A" 2337 I 6.
   6.1. 1° "A" 2337 I 6.1. 1°
   6.1.1. "A" 2337 I 6.1. i)
   6.1.2. "A" 2337 I 6.1. ii)
   6.1.3. "A" 2337 I 6.1. iii)
   6.1.4. "A" 2337 I 6.1. iv)
   6.1.5. "A" 2482 1. 2°
   6.1.6. "B" 5806 3° S/Com. "A" 2807
   6.2. "A" 2337 I 6.4. S/Com. "A" 2399
   6.2.1. "A" 2337 I 6.4.1. S/Com. "A" 2399
   6.2.2. "A" 2337 I 6.4.2. S/Com. "A" 2399
   6.2.3. "A" 2337 I 6.3. S/Com. "A" 2777
   6.2.4. "A" 2337 IV S/Dec. 540/95, art. 12, inc. c)
   6.2.5. "A" 2337 I 6.2.
   6.2.6. "A" 2337 IV S/Dec. 540/95, art. 12, inc. c)
   6.2.7. "A" 2807 5.2.7.
   6.3. "A" 2337 I 6. S/Dec. 540/95
   6.3.1. "A" 2337 I 6.5.
   6.3.2. "A" 2337 I 6.7. 1° S/Dec. 540/95
   6.3.3. "A" 2337 I 6.7. 2° S/Dec. 540/95
   6.3.4. "A" 2337 I 6.8. S/Dec. 540/95
   6.3.5. "A" 2337 I 6.9.
6. "A" 2337 I 7. S/Com. "A" 2399 and Decree 1292/96
7. 1° "A" 2337 II 1. S/Com. "A" 2561
   8.1. "A" 2337 II 1. S/Com. "A" 2561
   8.2. "A" 2337 II 2. S/Com. "A" 2561
8. "A" 2807 II and III
   9.1. "A" 2807 II
   9.2. "A" 2807 III S/Dec. 1292/99

MINIMUM CAPITALS OF FINANCIAL ENTITIES B.C.R.A. Section 4. Risk weighting table.
4.15. With guarantees from foreign banks.
4.15.1. Parent house or controlling bank of the local financial entity or its branches in other countries and their subsidiaries, always that they are subject to a consolidated supervision regime and that the parent house or controller is located in countries members of the Organization for Economic Cooperation and Development (O.E.C.D.) that have an international risk rating of "A" or higher or in other countries whose central banks or equivalent supervisory authority have signed with the B.C.R.A. cooperation agreements in matters of banking supervision. 0
4.15.2. Other foreign banks with an international risk rating included in the "investment grade" category. 20
4.16. Advances and loans to the Deposit Guarantee Fund, linked to the reduction of contributions established by the Central Bank of the Argentine Republic. 0
5. Financial lease assets.
5.1. Real estate for the tenant's housing.
5.1.1. Financings granted from January 1, 1998, according to the result of the comparison between the values of the "Evolution of the price of the square meter in sales operations (average country)" index, which is elaborated monthly by Banco Hipotecario S.A. and whose series is published by the B.C.R.A., corresponding to the third month prior to that in which the financing is granted and to the base month -October 1997= 100-, according to the following scale:
5.1.1.1. Up to 1.50:
i) On 75% of the value of the assets. 50
Version: 3rd. Communication "A" 3068 Validity: 21.01.00

MINIMUM CAPITALS OF FINANCIAL ENTITIES B.C.R.A. Section 6. Minimum capital for interest rate risk.
6.4.1.5. Active and passive swaps, including forward positions, of securities, credit portfolio documents, and other items not subject to minimum capital requirement for market risk.
6.4.1.6. Credits and obligations for forward positions linked to active and passive swaps, respectively.
6.4.1.7. Forward purchases and sales not linked to swaps and their counterparts, of securities not covered by the minimum capital requirement for market risk.
6.4.1.8. Various credits linked to the sale of immobilized assets, including those taken in defense or payment of credits.
6.4.1.9. Advances and loans to the Deposit Guarantee Fund, linked to the reduction of contributions established by the Central Bank of the Argentine Republic.
6.4.2. Exclusions.
6.4.2.1. Assets and derivatives thereon subject to minimum capital requirement for market risk.
6.4.2.2. Foreign currency holdings not subject to minimum capital requirement for market risk, except US dollars.
6.4.2.3. Spot transactions for settlement of securities and foreign currency.
6.4.2.4. Acceptances.
6.4.2.5. Assets exposed to interest rate risk, to the extent that they are covered by derivative contracts entered into with foreign banks that have an international risk rating of "A" or higher granted by any of the rating agencies admitted by the norms on the evaluation of financial entities.

The entering into of such contracts must be reported to the Superintendency of Financial and Exchange Entities.
Version: 3rd. Communication "A" 3068 Validity: 21.01.00

CONSOLIDATED TEXT ORIGIN NORM
Sec. Point Par. Com. Cap./Annex. Point Par. Observations
3.1.1.8. a
4.15.
“A” 2136 I According to Com. “A” 2541, annex. Point 4.13.3. includes interpretative criterion.
4.
4.16. “A” 2136 I According to Com. “A” 2541, annex and “A” 3064.
4. 5.1. “A” 2136 I S/Com. “A” 2632.
4. 5.2. a
5.3.2.
“A” 2136 I According to Com. “A” 2541, annex.
4. 6. “A” 2136 I According to Com. “A” 2541, annex, 2793 and 2872.
4. 7.1. a 7.5. “A” 2136 I According to Com. “A” 2541, annex.
4. Last. “A” 2136 I According to Com. “A” 2541, annex.
5. 5.1. “A” 2419
“A” 3040
2.
1.
5. 5.2. “A” 2136
“A” 2419
II
2.
According to Com. “A” 3040
6. 6.1. “A” 2922 I
6. 6.2. “A” 2922 I
6. 6.3. “A” 2922 I
6.4.1.1.a
6.4.1.8. “A” 2922 I
Modified by Com. “B” 6523. Includes interpretative clarifications.
6.
6.4.1.9. “A” 2922 I Modified by Coms. “B” 6523 and "A" 3064.
6. 6.5. “A” 2922 I Modified by Coms. “A” 2948 and “B” 6523.
6. 6.6. “A” 2922 I Modified by Com. “B” 6523.
6. 6.7. “A” 2922 I
7. 7.1. a 7.4. “A” 2461 unique I. and II.
7. 7.5. “A” 2461 unique I. and II. Modified by Coms. “A” 2736, 2768 and 2948.
Point 7.5.2. includes interpretative clarification.
7. 7.6. “A” 2461 unique III.
7. 7.7. “A” 2461 unique VI.
7. 7.8. “A” 2461 unique VII.
8. 8.1. “A” 414
LISOL-1
VI 3.1. 1º According to Com. “A” 2279, (modified by Coms. “A” 2453, 2793 and 2914).

B.C.R.A. CLASSIFICATION OF DEBTORS
Section 2. Financings included.
2.2.1.2. Forward purchases for passive swaps, forward purchases not linked to passive swaps and spot for settlement and their corresponding premiums to accrue.
2.2.1.3. Premiums for purchased call and put options.
2.2.1.4. Advances for payment of pensions and retirement benefits.
2.2.1.5. Advances and loans to the Deposit Guarantee Fund.
2.2.1.6. Negotiable obligations purchased (own issuances).
2.2.1.7. Credits against the Central Bank of the Argentine Republic.
2.2.1.8. Deposit certificates coming from swaps with the Central Bank of the Argentine Republic, computable for the integration of minimum liquidity requirements.
2.2.2. The following guarantees granted:
2.2.2.1. For direct obligations.
2.2.2.2. In favor of the Central Bank of the Argentine Republic.
2.2.3. Assets that must be deducted for the purpose of calculating the computable net worth liability.
2.2.4. Financings and guarantees, sureties, and other liabilities granted by local branches and subsidiaries of foreign financial entities, on behalf and order of their parent house or their branches in other countries or the controlling entity, always that the following requirements are observed:
Version: 4th. Communication "A" 3068 Validity: 21.01.00

B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE CONSOLIDATED TEXT OF THE NORMS ON THE CLASSIFICATION OF DEBTORS

CONSOLIDATED TEXT ORIGIN NORM
Section Point Paragraph Com. Annex Point Paragraph Observations

1. 1.1. “A” 2216 I 1º Includes interpretative clarification
2. 1.2.1. “A” 2216 I 6. 2º
3. 1.2.2. “A” 2216 I I.d. 2º and 3º
4. 2.1.1. a “A” 2216 I 1º
   2.1.3. and “A” 2216 I I.d. 1º
   2.1.5. “A” 2448 Statement of position of debtors (point 6.1.)
   “A” 2587 Table of correspondence between the Statement of position of debtors and the Balance of balances (modified by Com. “A” 2514)
5. 2.1.4. “A” 2736 3.
6. 2.2.1.1.
   a
   2.2.1.4.
   “A” 2448 Statement of position of debtors (point 6.1., modified by Com. “A” 2421)
7. 2.2.1.5. “A” 2448 Statement of position of debtors (point 6.1., modified by Com. “A” 2421 and 3064)
8. 2.2.1.6.
   a
   2.2.1.7.
   “A” 2448 Statement of position of debtors (point 6.1., modified by Com. “A” 2421)
9. 2.2.1.8. “B” 6388
10. 2.2.2. “A” 2448 Statement of position of debtors (point 6.2.)
11. 2.2.3. “A” 2287 5.
12. 2.2.4. “A” 2412 In the second paragraph of point 2.2.4.3. incorporates criterion not given previously with general character
13. 3.1. “A” 2216 I 2. 1º
14. 3.2. “A” 2216 I 4.
15. 3.3. 1º “A” 2216 I 2. 2º
16. 3.3.1. “A” 2216 I 2. 2º
17. 3.3.2. “A” 2216 I 2. 2º Includes interpretative clarification
18. 3.3.3. “A” 2216 I 6. last According to Com. “A” 2358
19. 3.3.4. “A” 2216 I 7. last
20. 3.3.5. “B” 5644 2.
21. 3.3.6. Incorporates criterion not given previously with general character

MINIMUM PROVISIONS FOR UNCOLLECTIBILITY RISK. B.C.R.A. Section 1. Included Financings.

1.1. Included Concepts.
The minimum provisioning guidelines for uncollectibility risk shall apply to financings covered by the rules on debtor classification.

1.2. Exclusions.
1.2.1. Financings to holders of the non-financial public sector of the country.
1.2.2. Financings to public financial entities with majority state participation, provided that all of their operations are guaranteed by the government of the respective jurisdiction.
1.2.3. Non-matured financings with a term of up to 30 days to other financial entities.
1.2.4. Guarantees, sureties, and other contingent commitments in favor of third parties on behalf of clients - including those linked to foreign trade operations - when they concern clients classified in normal compliance status.
1.2.5. Current account advances (unused balances).
1.2.6. Advances and loans to the Deposit Guarantee Fund.
Version: 3rd. Communication "A" 3068 Validity: 21.01.00

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE
ORDERED TEXT OF THE RULES ON
MINIMUM PROVISIONS FOR UNCOLLECTIBILITY RISK

ORDERED TEXT	ORIGIN OF THE RULE
Section	Point	Para.	Comm.	Annex	Point	Para.	Observations
1.	1.1.		"A"	2216	2.	1º
1.	1.2.1.		"A"	2216	2.	1º
1.	1.2.2.		"A"	2216	II	2º	Includes interpretative clarification
1.	1.2.3.		"A"	2216	II	2º
1.	1.2.4.		"A"	2216	II	3º	According to Comm. "A" 3040 (point 3.)
1.	1.2.5.		"A"	3040
1.2.6.			"A"	3064
2.	2.1.	1º and table	"A"	2216	II	1º	Row 6. of the table according to Comm. "A" 2440
2.	2.1.	2º	"B"	6331	6.
2.	2.1.	3º	"A"	2826	2.		According to Comm. "A" 2932 (point 15.)
2.	2.1.	4º, 5º and 6°	"A"	2932	7.		Includes interpretative clarification
2.	2.2.1.		"A"	2216	II	6º	According to Comm. "A" 2932 (point 15.)
2.	2.2.2.		"A"	2216	II	9º and last	According to Comm. "A" 3040 (point 5.) Includes interpretative clarification
2.	2.2.3.		"A"	2216	II	8º	According to Comm. "A" 2442
2.	2.2.4.		"A"	2440	2.	1º	Modified by Comm. "A" 2890 (point 2.)
2.	2.3.		"A"	2216	II	7º
2.	2.4.		"A"	2216	II	4º
2.	2.5.	1º	"A"	2357	1.
2.	2.5.	last					Incorporates criterion not previously disclosed in general
2.	2.6.		"A"	2287	4.		Modified by Comm. "A" 2893 (point 2.)
2.	2.6.1.		"A"	2287	4.		Same as above
2.	2.6.2.		"A"	2287	4.		Same as above
			"A"	2607	1.
2.	2.7.		"A"	2893	3.
2.8.			"A"	2893	3.