Circular OPRAC 1-522 and LISOL 1-375: Normative Treatment of LECOP and Buenos Aires Province Treasury Letters for Cancellation of Obligations — BCRA — AR

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMUNICACION " A " 3504 I 07/03/02
TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1 - 522
LISOL 1 - 375
Letters of Cancellation of Provincial Obligations (LECOP) and Treasury Letters for Cancellation of Obligations of the Province of Buenos Aires. Normative Treatment

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

"1. Replace point 3 of the resolution made known through Communication "A" 3325 with the following:

"3. Establish that financial entities may receive "patacones" -in the proportions and conditions they determine- in payment of personal loans, mortgages for housing, pledge loans (for the acquisition of automobiles), and financed peso balances or credit card summaries, provided it is verified that the holder of the obligation is an active or passive agent included in Article 9° of Provincial Law 12.727 and is an original holder of those titles, without this reason affecting the credit rating assigned."

Replace points 2. and 3. of the resolution made known through Communication "A" 3354 with the following:

"2. Provide that the sum of holdings of Letters of Cancellation of Provincial Obligations (LECOP) and Treasury Letters for Cancellation of Obligations of the Province of Buenos Aires denominated "patacón" shall not exceed 5% of computable patrimonial responsibility or $ 500 thousand, whichever is greater.
Furthermore, as established in point 2. of the resolution disseminated by Communication "A" 3325, holdings of Patacones will be imputed within the credit assistance margin established for operations with the clientele (point 3.2. of Annex II to Communication "A" 2140) corresponding to the Province of Buenos Aires. Holdings of LECOP will only observe the limit referred to in the first paragraph of this point, with no other effect in credit matters."

"3. Establish that financial entities may receive LECOP -in the proportions and conditions they determine- in payment of personal loans, mortgages for housing, pledge loans (for the acquisition of automobiles), and financed peso balances or credit card summaries, provided it is verified that the holder of the obligation is an active or passive agent of the provincial states participating in the distribution operation of those titles and is an original holder thereof."

We greet you very respectfully.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio José Rutman
Manager of Emission of Standards Manager Principal of Standards and Authorizations