Circular OPRAC 1 - 490. Limitations on Financing to the Non-Financial Public Sector. Requirements for Processing Exceptions.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA

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COMMUNICATION "A" 3144 I 07/08/00

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TO FINANCIAL ENTITIES:
Ref.: OPRAC 1 - 490
Limitations on financing to the non-financial public sector.
Requirements for processing exceptions.
We address you to inform you that this Institution adopted, on the subject referenced, the following resolution:

"- Replace point 4.4 of Section 4 of the norms on 'Financing to the non-financial public sector' with the following:

"4.4. Concurrent verification shall be made of compliance with the informational regimes regarding:
4.4.1. Debtors in an irregular situation according to the criterion established in point 6.5.6.1. of the norms on 'Classification of debtors' by the administrators of the credit portfolios of public financial entities privatized or in the process of privatization or dissolution of the respective jurisdiction.
4.4.2. Loans to the non-financial public sector according to the 'Centralized System for Informational Requirements of the Subgerencia de Estadísticas Monetarias y Financieras' according to the task identified as SISCEN-0011, by the financial entities granting the assistance, including the entities that may eventually become assignees as a result of secondary negotiations."

Attached is the sheet that, in replacement of the one provided at the appropriate time, corresponds to incorporate into the ordered text of the norms on 'Financing to the non-financial public sector'.

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

ANNEX: 1 sheet

FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR B.C.R.A. Section 4. Exceptions.
The Central Bank will consider requests for exception to the limitation on granting financial assistance whenever the following requirements are met:
4.1. There is express authorization to incur indebtedness and affect resources of the jurisdiction and/or royalties from the exploitation of natural resources as collateral, with the following scope:
4.1.1. The non-financial provincial public sector shall affect through assignment the resources coming from the federal coparticipation of national taxes, royalty funds and/or others of similar characteristics and/or from the collection of its own taxes.
4.1.2. The non-financial municipal public sector shall affect funds coming from the federal coparticipation of national and/or provincial taxes or from taxes, fees or contributions corresponding to the jurisdiction. In the first two cases, it will be appropriate to instrument the assignment of rights with the respective province.
4.2. The loan agreements signed shall contain a clause authorizing the financial agents designated or collecting entities to make the direct transfer to the accounts of the creditor intermediaries of the amount affected as collateral.
4.3. There is approval of the financing by the Ministry of Economy of the Nation.
4.4. Concurrent verification shall be made of compliance with the informational regimes regarding:
4.4.1. Debtors in an irregular situation according to the criterion established in point 6.5.6.1. of the norms on 'Classification of debtors' by the administrators of the credit portfolios of public financial entities privatized or in the process of privatization or dissolution of the respective jurisdiction.
4.4.2. Loans to the non-financial public sector according to the 'Centralized System for Informational Requirements of the Subgerencia de Estadísticas Monetarias y Financieras' according to the task identified as SISCEN-0011, by the financial entities granting the assistance, including the entities that may eventually become assignees as a result of secondary negotiations.
Version: 3rd Communication "A" 3144 Validity:
07.08.00