Circular OPRAC 1-1274: Credit Policy. Adjustments.

"Year of the Reconstruction of the Argentine Nation" COMMUNICATION "A" 8202 20/02/2025 TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1-1274:
Credit Policy. Adjustments.
___________________________________________________________________________ We address you to inform you that this Institution has adopted the resolution that, in its pertinent part, establishes:

"- To leave without effect the provisions provided for in point 1.4 of the consolidated text on Credit Policy, referring to foreign currency financing."

Regarding this matter, we send you the sheets that, in replacement of those previously provided, must be incorporated into the consolidated text of the reference. In this sense, we remind you that on this Institution's website www.bcra.gob.ar, by accessing "Financial System - LEGAL AND REGULATORY FRAMEWORK - Orders and summaries - Consolidated texts of general regulations", the modifications made with texts highlighted in special characters (strikethrough and bold) will be found.

We greet you attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Enrique C. Martin Darío C. Stefanelli
Manager of Issuance of Norms
Principal Manager of Issuance and
Regulatory Applications

ANNEX

-Index
Section 1. General credit policy.
1.1. General criterion.
1.2. Included financings.
1.3. Credit management.
1.4. Prohibitions.
1.5. Treatment of certain financings.
Section 2. Application of the lending capacity of foreign currency deposits.
2.1. Destinations.
2.2. Conditions.
2.3. Allocation of incorporated financings.
2.4. Financings to debtors classified in the "unrecoverable" category that are not registered in the assets.
2.5. Lending capacity.
2.6. Application defects.
Section 3. Application of own liquid resources.
3.1. Own liquid resources.
3.2. Application.
Section 4. Financing of the non-financial public sector of the country.
4.1. Applicable rules.
Section 5. Financing to residents abroad.
5.1. General criterion.
5.2. Placements in banks abroad.
5.3. Holding of securities abroad.
5.4. Guarantees for credit lines and derivative products abroad.
5.5. Guarantees to residents abroad.
Section 6. Loans of Value Acquisition Units and Housing Units.
6.1. Loans of Value Acquisition Units adjustable by "CER" - Law 25.827 ("UVA").
6.2. Loans of Housing Units adjustable by the "ICC" - Law 27.271 ("UVI").
6.3. Publication of Value Acquisition Units and Housing Units.

B.C.R.A. CONSOLIDATED TEXT OF THE RULES ON
"CREDIT POLICY"
Version: 21st COMMUNICATION "A" 8202 Validity:
21/02/2025 Page 1

1.1. General criterion.
The credit assistance granted by financial entities must be oriented to finance investment, production, marketing, consumption of goods and services required by both domestic demand and the country's exports or direct investments abroad made by resident companies.

1.2. Included financings.
The totality of financings that are registered, regardless of the modalities used, whether granted directly, instrumented in the form of financial leasing (leasing), negotiable bonds, or incorporated by purchase or assignment, including those comprising asset portfolios for which there are debt titles or participations (financial trusts, common investment funds, etc.), and regardless of the sources of funds to which they are susceptible to be imputed, must be adequate to the criteria applicable in matters of credit policy, without prejudice to the observance of special rules to which they are subject for their application.

1.3. Credit management.
Financial entities may freely define the conditions and instrumentality of their credit operations, in adjustment to the Consolidated Texts on Credit Management and on Interest Rates in Credit Operations.

1.4. Prohibitions.
1.4.1. Instruments of loss absorption capacity (TLAC).
Financial entities may not register holdings of TLAC instruments, issued in accordance with the rules of the Basel Committee on Banking Supervision by branches or subsidiaries in the country of banks from abroad qualified as systemically important (G-SIB) –or their branches or subsidiaries in the country or abroad–, other than those computable as computable equity liability –in accordance with what is established in Section 8. of the Consolidated Text on Minimum Capital of Financial Entities–, regardless of the sources of funds to which they are susceptible to be imputed.

1.4.2. Financings to holding company.
From 06/28/19, financial entities that belong to group A, according to the classification provided in point 4.1. of the Consolidated Text on Authorities of Financial Entities, may not grant –directly or indirectly– any type of financial assistance to their controlling entity when it is a holding company and not a financial entity, considering for this purpose what is established in point 1.2.

B.C.R.A. CREDIT POLICY
Section 1. General credit policy.
Version: 15th COMMUNICATION "A" 8202 Validity:
21/02/2025 Page 1

1.5. Treatment of certain financings.
Financial entities and non-financial credit providers (both non-financial companies issuing credit and/or purchase cards and other non-financial credit providers) must not finance in installments the purchases of their customers –natural and legal persons– of:
a) tickets abroad and tourist services abroad (such as accommodation, car rental, etc.), whether made directly with the service provider or indirectly, through travel and/or tourism agencies, electronic platforms or other intermediaries, b) products abroad that are received by the postal shipping system without commercial purpose according to the Customs Code, nor of international freight services, couriers and customs clearance management, and c) products in duty-free stores according to the regime of Law 22.056.

B.C.R.A. CREDIT POLICY
Section 1. General credit policy.
Version: 10th COMMUNICATION "A" 8202 Validity:
21/02/2025 Page 2

9.1. Individual basis.
Financial entities (comprising exclusively their houses in the country) will observe the Consolidated Text on Credit Policy on an individual basis. These provisions will also apply to branches abroad, insofar as they operate with resources coming from the houses in the country of the entity, in addition to the assigned capital.

9.2. Consolidated basis.
Without prejudice to compliance on an individual basis, controlling financial entities subject to consolidated supervision will observe the Consolidated Text of Credit Policy on a consolidated monthly basis and, additionally and independently, quarterly (excluding their subsidiaries abroad). Subsidiaries abroad will be included, insofar as they operate with resources coming from the houses in the country of the entity, in addition to the capital participation. The prohibition of holding TLAC instruments provided for in point 1.4.1. will operate on branches and subsidiaries abroad regardless of the resources used for their funding.

B.C.R.A. CREDIT POLICY
Section 9. Bases of observance.
Version: 9th COMMUNICATION "A" 8202 Validity:
21/02/2025 Page 1

CONSOLIDATED TEXT ORIGIN OF THE PROVISIONS CONTAINED IN THE CONSOLIDATED TEXT ON CREDIT POLICY OBSERVATIONS Sec. Point Para. Com. Annex Ch. Sec. Point Para. 1.
1.1. "A" 49
OPRAC-1
I 1.1. According to Comm. "A" 6031.
1.2. "A" 4311 According to Comm. "A" 2736
(points 6. and 7.5.), 4851,
5067 and "C" 50798.
1.3. "A" 49
OPRAC-1
I 1.2.
1.4.1. "A" 6662 According to Comm. "A" 7393.
1.4.2. "A" 6723 2. According to Comm. "A" 7393.
1.5. "A" 7407 According to Comm. "A" 7535 and
7540.
2.
2.1. "A" 3528 1. According to Comm. "A" 4147,
Annex.
2.1.1. 1° "A" 3528 1.1. According to Comm. "A" 4015,
4311, 4423, 4851, 5908,
6363 and 6428. Includes interpretative clarification.
2.1.2. "A" 5908 According to Comm. "A" 6428,
includes interpretative clarification.
2.1.3. "A" 4015 1.2. Includes interpretative clarification. According to Comm.
"A" 4851 and 5908.
2.1.4. "A" 4015 1.3. According to Comm. "A" 5908 and
6105.
2.1.5. "A" 6105 2.
2.1.6. "A" 4423 According to Comm. "A" 5908.
2.1.7. "A" 4453 According to Comm. "A" 4577 and
5908.
2.1.8. "A" 4011 1.4. 1° According to Comm. "A" 4015,
4311, 4851, 5908, 6031 and
6305.
2.1.9. "A" 4015 1.4. last According to Comm. "A" 4311,
4851 and 5908.
2.1.10. "A" 3528 1.2. According to Comm. "A" 4140 and
4311.
2.1.11. "A" 5534 2. According to Comm. "A" 5859.
2.1.12. "A" 6031 2.
2.1.13. "A" 6031 2.
2.1.14. "A" 6105 2. According to Comm. "A" 6526.
2.1.15. "A" 6162 1.
2.1.16. "A" 6231 1.
2.1.17. "A" 6245 1. According to Comm. "A" 6328.
2.1. last "A" 4851 4.
B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE CONSOLIDATED TEXT ON CREDIT POLICY

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