Circular OPRAC 1-594 and LISOL 1-460: Modifications to Credit Management, Debtor Classification, and Minimum Capital Rules

“2006 - Year of Tribute to Dr. Ramón CARRILLO”

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA

COMMUNICATION “A” 4559 17/08/2006

TO FINANCIAL ENTITIES:

Ref.: Circular
OPRAC 1 - 594
LISOL 1 - 460

Norms on "Credit Management", "Debtor Classification" and "Minimum Capital for Financial Entities". Modifications.

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

“1. Replace subsection b) of point 1.1.3.3. of Section 1. of the norms on “Credit Management” with the following:

“b) Assignment through specific evaluation methods (systems of “screening” and “credit scoring” models) to decide on the granting of the credits referred to in item ii).

Systems of “screening” are understood as the set of steps and decision rules that collect the accumulated experience in the granting of credits, the monitoring of their subsequent behavior and the credit policy of the entity. This method must be applied systematically and updated periodically, in order to draw conclusions regarding the granting of credits and assign financing margins.

On the other hand, “credit scoring” models are mathematical or statistical-econometric methods used to measure the risk and/or probability of default of credit applicants.

Both techniques must be based on the variables that financial entities consider relevant to measure the risk of uncollectability associated with each debtor and class of credit, and may use the same type of information.

The methodology and information used to substitute the demonstration of income through specific documentation must ensure that the evaluation of repayment capacity is incorporated into the result of the “screening” or “credit scoring” employed for the purpose of inferring credit behavior (probability of repayment of obligations in the future).

Additionally, in both cases, the predictions made must be compared with the finally observed credit behavior, in order to adopt, if appropriate, the adjustments deemed pertinent.

The following conditions must be observed:

i) Borrowers covered.
Natural persons not linked to the financial entity.

ii) Individual limit.
The outstanding capital, at no time, may exceed the following limits, by class of credit and by client:

• housing mortgage loans: $ 200,000.
• personal loans: $ 15,000.

iii) Verification of the method used.
Financial entities may submit the methods used -“screening”, “credit scoring”- to verification in accordance with the procedure established by the Superintendence of Financial and Exchange Entities, without prejudice to maintaining their application until there are objections to that effect.

When the total of the balances of the loans referred to in item ii), on the last day of the second preceding month, exceeds the greater amount between the equivalent to 15% of the computable net worth of the entity of the second preceding month to which it corresponds and $ 30,000,000, without exceeding -in case the absolute amount results greater- the equivalent to 50% of that computable net worth, the verification of the methodology in accordance with the cited procedure will be mandatory.

iv) Client classification and information to the Debtors Central of the Financial System.
It will be carried out based on objective guidelines as established in Section 7. of the norms on "Debtor Classification".

In cases where the total amount of provisions calculated according to the provisioning percentages established in the norms on “Minimum Provisions for Uncollectability Risk” based on the classification assigned to the clients that make up said portfolio -without considering the provision corresponding to the normal portfolio- is greater than the amount resulting from applying 5% on the total debt balance of the aforementioned portfolio, the entity will inform the origin of such circumstance to the Superintendence of Financial and Exchange Entities, providing the explanations required of it and, if applicable, the modifications to be introduced to the system aimed at improving the quality of the evaluation method.

v) The client's file must record the evaluation carried out in accordance with this procedure.

Likewise, it may contain other elements that the financial entity, at its discretion, deems necessary for credit evaluation, without this constituting a necessary condition for its application.

Entities must provide a detailed description of the procedure adopted for client evaluation and the assignment of credit margins, discriminated, if applicable, by class of credit.

vi) This procedure must have the prior opinion of:

• Highest-ranking official of the credit or commercial area responsible for deciding on credit matters.
• General Manager or equivalent authority.
• Credit Committee, unless it does not exist in the functional structure of the entity.

Likewise, it will be necessary to have the approval of the aforementioned procedure by the Board of Directors, Board of Administration or equivalent authority of the financial entity.

vii) In cases where the evaluation of payment capacity is carried out directly based on supporting documentation of the borrower's income, even when the methods indicated in this subsection are used complementarily, the provisions on file content established in point 1.1.3.1. must be observed.”

2. Replace item ii) of point 3.1.1.6. of Section 4. Risk Weighting Table, of the norms on “Minimum Capital of Financial Entities” with the following:

“ii) In the first degree, and regardless of its degree of precedence as long as the entity is the creditor in all degrees, on real estate for own home -unique, family and permanent occupation- that are subject to the encumbrance. The condition of unique, family and permanent occupation home must be accredited in the terms stated in the loan contract or in the deed by which the mortgage guarantee was constituted. a) Regarding new financings, only when they imply fund disbursements, up to $ 200,000, which are agreed and made effective from 1.8.06, are not refinancings and do not exceed 100% of the appraisal value of such properties. 50

b) Regarding new financings, only when they imply fund disbursements, greater than $ 200,000 and up to $ 300,000, which are agreed and made effective from 1.8.06, are not refinancings and do not exceed 90% of the appraisal value of such properties. 50 c) On the rest of the financing. 100”

3. Replace point 3.1.14. of Section 3. of the norms on “Guarantees” with the following:

“3.1.14. First-degree mortgage on real estate, and regardless of its degree of precedence as long as the entity is the creditor in all degrees (point 1.2.1.):

3.1.14.1. On real estate for own home -unique, family and permanent occupation- and that are subject to the encumbrance, in case of new financings, only when they imply disbursements up to $ 200,000, which are agreed and made effective from 1.8.06 and are not refinancings: 100% of the appraisal value of the property.

3.1.14.2. On real estate for own home -unique, family and permanent occupation- and that are subject to the encumbrance, in case of new financings, only when they imply disbursements greater than $ 200,000 and up to $ 300,000, which are agreed and made effective from 1.8.06 and are not refinancings: 90% of the appraisal value of the property.

3.1.14.3. On real estate for own home that are subject to the encumbrance in the remaining financings: 75% of the appraisal value of the property.

3.1.14.4. On real estate for uses other than own home: 50% of the appraisal value of the property.”

4. Replace point 5.1. of Section 4. Risk Weighting Table, of the norms on “Minimum Capital of Financial Entities” with the following:

“5.1. Real Estate.

5.1.1. For tenant's housing.

5.1.1.1. On 75% of the value of the properties. 50

5.1.1.2. On the rest of the financing. 100

5.1.2. For tenant's own home -unique, family and permanent occupation-.

The condition of unique, family and permanent occupation home must be accredited in the terms stated in the contract.

5.1.2.1. Regarding new financings up to $ 200,000, which are agreed and made effective from 1.8.06, are not a renegotiation of the contract and do not exceed 100% of the value of the properties. 50

5.1.2.2. Regarding new financings greater than $ 200,000 and up to $ 300,000, which are agreed and made effective from 1.8.06, are not a renegotiation and do not exceed 90% of the value of the properties. 50

5.1.2.3. On the rest of the financing. 100”

5. Replace point 3.1.18. of Section 3. of the norms on “Guarantees” with the following:

“3.1.18. Goods in financial lease (point 1.2.4.):

3.1.18.1. Real estate for tenant's own home -unique, family and permanent occupation-, in case of new financings up to $ 200,000, which are agreed and made effective from 1.8.06 and are not a renegotiation of the contract: 100% of the value of the property.

3.1.18.2. Real estate for tenant's own home -unique, family and permanent occupation-, in case of new financings greater than $ 200,000 and up to $ 300,000, which are agreed and made effective from 1.8.06 and are not a renegotiation of the contract: 90% of the value of the property.

3.1.18.3. Real estate for tenant's housing not included in the preceding point: 75% of the appraisal value of the property.

3.1.18.4. Other real estate: 50% of the appraisal value of the property.

3.1.18.5. Motor vehicles and agricultural machinery: 75% of the appraisal value of the property.

3.1.18.6. Road and industrial machinery: 60% of the appraisal value of the property.”

6. Replace point 3.3.7. of Section 3. of the norms on “Debtor Classification” with the following:

“3.3.7. In cases where specific evaluation methods are adopted for the purpose of granting financial assistance in the terms of point 1.1.3.3. b) of Section 1. of the norms on “Credit Management”, the provisions contained in said point must be observed.”

7. Replace the second paragraph of point 7.1. of Section 7. of the norms on “Debtor Classification” with the following:

“The evaluation of payment capacity based on the borrower's income will not be mandatory, insofar as specific evaluation methods are used or it concerns debtors for small amount loans in the terms of point 1.1.3.3. of Section 1. of the norms on “Credit Management”.”

We send you attached the sheets that, in replacement of those previously provided, correspond to replace in the ordered texts of the norms in reference.

Likewise, it is recalled on the website of this Institution www.bcra.gov.ar, accessing “regulations” (“ordered texts”), the modifications made with texts highlighted in special characters (strikethrough and bold) can be found.

We salute you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA

Darío C. Stefanelli José I. Rutman

Manager of Emission of Norms a/c

General Manager of Norms

ANEXO

The evaluations that must be carried out as a result of the application of the norms on "Debtor Classification" and "Credit Graduation" will be recorded, and also must contain data that allow verifying compliance with the regulations established in credit matters.

Additionally, the requirements referred to in points 1.2. to 1.5. must be recorded, when applicable.

1.1.3.2. Specific aspects.

i) In matters of the evaluations provided for by the norms on "Debtor Classification", according to which it is appropriate to record the reviews carried out and the classification assigned, it is admitted that the classification may be kept in separate sheets, provided that the procedure adopted -which must be described in the "Classification and Provisioning Procedures Manual"- allows the precise identification of the classification assigned to each client from the sheet to the file and vice versa.

ii) The file must contain information about the total credit margin assigned to the client and any responsibilities assumed regarding it, regardless of the concept or credit line.

On the other hand, the updated balance of all financings granted -which will include the facilities assigned by all subsidiaries and operational units of the entity- must be available, discriminated by concept, according to the accounting information system used by the entity, at the place of filing of the client's file or the head office, if applicable, to keep a copy there, in accordance with the relevant norms.

iii) In the case of foreign correspondents, the file must contain the information and other elements of judgment that allow knowing their identification, qualification, credit margins and any other data linked to that relationship.

iv) In the case of loans to natural persons with first-degree mortgage guarantee on a home or with first-degree pledge guarantee on 0 km automobiles or light utility vehicles for personal, commercial or rental use, the credit folders, legal and administrative will be attached to the debtor's file when the guidelines provided in the respective origination and administration manuals are observed.

1.1.3.3. Special operations.

It will only be required that the file contain the data that allow the identification of the client, in accordance with the norms on "Identification Documents in force", in the following cases:

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings
Version: 4 a. COMMUNICATION “A” 4559
Validity:
17/08/2006

b) Assignment through specific evaluation methods (systems of “screening” and “credit scoring” models) to decide on the granting of the credits referred to in item ii).

Systems of “screening” are understood as the set of steps and decision rules that collect the accumulated experience in the granting of credits, the monitoring of their subsequent behavior and the credit policy of the entity. This method must be applied systematically and updated periodically, in order to draw conclusions regarding the granting of credits and assign financing margins.

On the other hand, “credit scoring” models are mathematical or statistical-econometric methods used to measure the risk and/or probability of default of credit applicants.

Both techniques must be based on the variables that financial entities consider relevant to measure the risk of uncollectability associated with each debtor and class of credit, and may use the same type of information.

The methodology and information used to substitute the demonstration of income through specific documentation must ensure that the evaluation of repayment capacity is incorporated into the result of the “screening” or “credit scoring” employed for the purpose of inferring credit behavior (probability of repayment of obligations in the future).

Additionally, in both cases, the predictions made must be compared with the finally observed credit behavior, in order to adopt, if appropriate, the adjustments deemed pertinent.

The following conditions must be observed:

i) Borrowers covered.
Natural persons not linked to the financial entity.

ii) Individual limit.
The outstanding capital, at no time, may exceed the following limits, by class of credit and by client:

• housing mortgage loans: $ 200,000.
• personal loans: $ 15,000.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings
Version: 5a. COMMUNICATION “A” 4559
Validity:
17/08/2006

iii) Verification of the method used.
Financial entities may submit the methods used -“screening, “credit scoring”- to verification in accordance with the procedure established by the Superintendence of Financial and Exchange Entities, without prejudice to maintaining their application until there are objections to that effect.

When the total of the balances of the loans referred to in item ii), on the last day of the second preceding month, exceeds the greater amount between the equivalent to 15 % of the computable net worth of the entity of the second preceding month to which it corresponds and $ 30,000,000, without exceeding -in case the absolute amount results greater- the equivalent to 50% of that computable net worth, the verification of the methodology in accordance with the cited procedure will be mandatory.

iv) Client classification and information to the Debtors Central of the Financial System.
It will be carried out based on objective guidelines as established in Section 7. of the norms on "Debtor Classification".

In cases where the total amount of provisions calculated according to the provisioning percentages established in the norms on “Minimum Provisions for Uncollectability Risk” based on the classification assigned to the clients that make up said portfolio -without considering the provision corresponding to the normal portfolio- is greater than the amount resulting from applying 5% on the total debt balance of the aforementioned portfolio, the entity will inform the origin of such circumstance to the Superintendence of Financial and Exchange Entities, providing the explanations required of it and, if applicable, the modifications to be introduced to the system aimed at improving the quality of the evaluation method.

v) The client's file must record the evaluation carried out in accordance with this procedure.

Likewise, it may contain other elements that the financial entity, at its discretion, deems necessary for credit evaluation, without this constituting a necessary condition for its application.

Entities must provide a detailed description of the procedure adopted for client evaluation and the assignment of credit margins, discriminated, if applicable, by class of credit.

vi) This procedure must have the prior opinion of:

• Highest-ranking official of the credit or commercial area responsible for deciding on credit matters.
• General Manager or equivalent authority.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings
Version: 4a. COMMUNICATION “A” 4559
Validity:
17/08/2006

• Credit Committee, unless it does not exist in the functional structure of the entity.

Likewise, it will be necessary to have the approval of the aforementioned procedure by the Board of Directors, Board of Administration or equivalent authority of the financial entity.

vii) In cases where the evaluation of payment capacity is carried out directly based on supporting documentation of the borrower's income, even when the methods indicated in this subsection are used complementarily, the provisions on file content established in point 1.1.3.1. must be observed.

1.1.4. Filing.

The debtor's file must be kept at the place of filing of the account.

It is admitted that the client's file may be kept in a place different from the filing of the account (for example: head office or branch that is the seat of regional management), when this has been determined for operational reasons -linked to the evaluation, granting and monitoring of credits- and this circumstance is included in the "Classification and Provisioning Procedures Manual".

In addition, it will be necessary to keep a copy of the file of each of the clients whose indebtedness (financings included) is equivalent to or greater than 1% of the computable net worth at the head office of the entity.

These provisions are also applicable to the annexes to the client's file.

1.1.5. Formal aspects.

The file and annexes may be kept on magnetic media.

1.2. Compliance with provisioning obligations.

1.2.1. Records.

The file must include demonstrative records of the degree of compliance with the client's provisioning obligations in accordance with the current legal provisions in this matter.

1.2.1.1. Law 14.499, article 12.

"...the banking credit institutions..., will require employers, prior to granting credit..., proof that they do not owe any amount to the national pension funds in which they are registered, in the concept of contributions and/or contributions, or that having availed themselves of a moratorium, they are up to date in complying with the same, unless the loan is requested to pay contributions and/or contributions owed."

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings
Version:4a. COMMUNICATION “A” 4559
Validity:
17/08/2006

"National pension funds shall issue the necessary certificate within 15 days of being requested, unless they have an impediment to do so, in which case they shall issue a record of the fact, with which the banking institution... shall proceed with the management. This record shall be valid for a term of 6 months."

"The record referred to in the preceding paragraph... may be replaced by a sworn declaration by employers regarding the non-existence of such debts, certified by the respective Pension Fund as proof that it has received the corresponding copy for the purposes of subsequent verifications that may arise. Documented proof of the falsity of such sworn declarations shall be sufficient cause for the respective National Pension Fund to request the corresponding banking institution to cancel the agreed credit, which is obliged to proceed accordingly. This sworn declaration shall also be valid for 6 months."

1.2.1.2. Law 18.214, Article 1.
"The obligation established in Art. 12 of Law 14.499, also applies to financial entities included in the regime of Law 18.061" (currently Financial Entities Law).

1.2.2. Covered Operations.
The preceding provisions apply to all credit operations, including those carried out between financial entities and with the public sector, and non-compliance may result in the application of sanctions provided for in Article 41 of the Financial Entities Law.

1.2.3. Exclusion.
The concept "financial entities" does not include the Central Bank of the Republic Argentina since the norms contained in Laws 14.499 and 18.214 are intended for financial entities regulated by the Financial Entities Law, that is, those that carry out habitual intermediation between the supply and demand of money. This situation is different from the operations carried out by the Central Bank of the Republic Argentina pursuant to the provisions of its Organic Charter.

1.2.4. Debtors of the pension system.
For the purpose of knowing who holds the status of debtors, entities must consult the special "Internet" page of the Federal Administration of Public Incomes at the address "http://www.afip.gov.ar/bcraprev/deudores.htm". The username and login key of the entity will be requested, which will be required by the said Administration - Department of Auxiliary Entities - (Tel. 4347-2655/4041) located at Hipólito Yrigoyen 370, first floor, Office 1029, Buenos Aires. To withdraw said key, the person authorized by the person responsible for the generation and compliance with the informational regimes of the entity must appear with a note, in which the surname, name, and identity document are stated, indicating the email address that allows communicating any modifications that might occur.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for granting financings
Version: 4th. COMMUNICATION “A” 4559
Validity:
17/08/2006

1.2.5. Lifting of the inhibition.
If situations arise in which a taxpayer is affected by a credit restriction due to their status as a pension debtor and is unaware of that attribution, they must address themselves to the dependency of the Federal Administration of Public Incomes in which they are registered, for the purpose that through it they are released from that condition, granting for this purpose a record that certifies the lifting of the inhibition, with a validity of 10 business days, addressed to the entity and branch that corresponds, according to the model referred to in point 1.2.6.

1.2.6. Model of record of lifting of inhibition.
"AFIP FEDERAL ADMINISTRATION OF PUBLIC INCOMES - GENERAL TAX DIRECTORATE Gentlemen Entity Branch Account No.
Of my highest consideration:
I address myself to you in order to inform you that the company CUIT:
COMPANY with domicile at:
has regularized the situation with the Unified Social Security System.
I bring this situation to your knowledge for the purposes of what is provided in Article 12 of Law 14.499 and Article 1 of Law 18.214 and provisions of the Central Bank of the Republic Argentina. For any communication that must be sent regarding this, I request that you address yourselves to:
AGENCY - COLLECTION SECTION with domicile at:
THIS RECORD SHALL BE VALID UNTIL THE DAY: ."

1.3. Registration in the National Industrial Registry.
In the case of clients who carry out any type of industrial activity, the file must contain verification of compliance with the requirement established in Article 6 of Law 19.971 according to what is provided in the norms on "Registration of clients in the National Industrial Registry to carry out certain operations".

1.4. Sworn statement on affiliation with the financial entity.

1.4.1. Requirement.
CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for granting financings
Version: 4th. COMMUNICATION “A” 4559
Validity:
17/08/2006

An updated sworn statement must be kept in the files of the included clients, permanently available to the Superintendence of Financial and Exchange Entities, regarding whether they hold or do not hold the status of affiliated with the respective financial intermediary or if their relationship with it implies the existence of controlling influence. The sworn statement must be formulated in the terms of the models contained in point 1.4.8., as applicable. This declaration shall be integrated in duplicate, one copy of which will be delivered to the presenter with the receipt confirmation by the entity. Financial entities are obliged to supply the applicants with the necessary information in a timely manner for the correct integration of the data contained in this declaration.

1.4.2. Clients included.
Private non-financial sector clients, whose debt (for all concepts) plus the amount of the requested financing, at the time of granting this, exceeds 2.5% of the entity's computable patrimonial responsibility of the last day of the month prior to the one corresponding, or the equivalent to $ 2,000,000, whichever is lower of the two.

1.4.3. Scope.
For these purposes, financings included with the scope established in the norms on "Credit Risk Fragmentation" will be considered.
In matters of affiliation, the definitions contained in the norms on "Credit Risk Fragmentation" apply.

1.4.4. Conditioning of assistance.
The granting of assistance is subject to the applicant presenting the sworn statement.

1.4.5. Update.
The sworn statement must be updated within five calendar days following the date on which the facts determining the modification of the declared situation occur or, otherwise, annually on 11.30. Annual update is only appropriate in cases where the last sworn statement presented by the client has an age equal to or greater than twelve months.

1.4.6. Assignment of rights or credit titles.
In cases of assignment in favor of financial entities of rights or credit titles, without responsibility for the assignor, the obligation to present the sworn statement regarding whether they hold or do not hold the status of affiliated with the entity will fall on both the signatory or issuer of the documents and the direct beneficiary of the assistance.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for granting financings
Version: 3rd. COMMUNICATION “A” 4559
Validity:
17/08/2006

1.4.7. Exceptions.
Those obligated by facilities derived from occasional delays in forward, spot-to-settle, and forward and stock exchange pledge operations, in which the financial entity has already effected payment (or delivered the agreed counterparty) and the delivery of the agreed counterparty (or receipt of the agreed cash payment) is pending, are exempt from presenting the sworn statement.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for granting financings
Version: 3rd. COMMUNICATION “A” 4559
Validity:
17/08/2006

1.4.8. Sworn statement models.

1.4.8.1. Affiliated Client
CENTRAL BANK OF THE
REPUBLIC OF ARGENTINA
SUPERINTENDENCE OF
FINANCIAL AND EXCHANGE ENTITIES
SWORN STATEMENT ON THE STATUS
OF THE DEBTOR REGARDING THE AFFILIATION NORMS ESTABLISHED BY THE B.C.R.A.
AFFILIATED CLIENT
ENTITY:
The undersigned (1), (2), declares under oath that the data stated in this document are correct, complete, and a faithful expression of the truth, and that the firm he/she represents is (1) covered (1) by the affiliation guidelines provided in points 1.1.1. to 1.1.3 and 1.2.1. to 1.2.3 of Annex I to Communication “A” 2140, in point 4.2. of Chapter I of Circular OPRAC – 1, in point 4. of the resolution disseminated by Communication “A” 615, Resolution No. 590/85 – in the case of public entities – and/or those of controlling influence mentioned in point 1.2.4. of the cited Annex I to Communication “A” 2140. Furthermore, he/she assumes the commitment to inform any modification that occurs in this regard, within five calendar days of occurrence, by presenting a new sworn statement that will also integrate, even if no facts implying modification of the status are verified, informing the situation on 11.30 of each year, with the same term as previously provided. Date: Signature:
Document: Type (3) No. Country and Issuing Authority (4):
Invoked Character (5):
Name of the legal entity (6):
CUIT/CUIL (1) No.:
We certify that the preceding signature matches that registered in our books/was placed in our presence (1).
(Seal of the entity and signatures of two authorized officials) Observations:
(1) Strike out what does not apply.
(2) Integrate with the name and surname of the client, in the case of natural persons, even if an attorney signs on their behalf.
(3) Indicate D.N.I., L.E. or L.C., as applicable, for native Argentines. For foreigners: Foreign D.N.I., International Card, Passport, Provisional Certificate, Identity Document of the respective country. (4) Integrate only in the case of foreigners who do not have residence in the country. (5) Indicate holder, legal representative, attorney. When it is an attorney, the power granted must be broad and general and be valid on the date this declaration is signed. (6) Integrate only in cases where the signatory does so as an attorney or legal representative of a legal entity. This declaration shall be integrated in duplicate, one copy of which, intervened by the financial entity, will serve for the borrower as proof of receipt of this declaration. On the back, transcribe points 1.1.1. to 1.1.3 and 1.2.1. to 1.2.4 of Annex I to Communication “A” 2140, point 4.2. of Chapter I of Circular OPRAC – 1, point 4. of the resolution disseminated by Communication “A” 615, Resolution No. 590/85 – in the case of public entities – and Article 41 of the Financial Entities Law. .

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for granting financings
Version: 3rd. COMMUNICATION “A” 4559
Validity:
17/08/2006

1.4.8.2. Non-affiliated Client.
CENTRAL BANK OF THE
REPUBLIC OF ARGENTINA
SUPERINTENDENCE OF
FINANCIAL AND EXCHANGE ENTITIES
SWORN STATEMENT ON THE STATUS
OF THE DEBTOR REGARDING THE AFFILIATION NORMS ESTABLISHED BY THE B.C.R.A.
NON-AFFILIATED CLIENT
ENTITY:
The undersigned (1), (2), declares under oath that the data stated in this document are correct, complete, and a faithful expression of the truth, and that he/she is not/the firm he/she represents is not (1) covered (1) by the affiliation guidelines provided in points 1.1.1. to 1.1.3 and 1.2.1. to 1.2.3 of Annex I to Communication “A” 2140, in point 4.2. of Chapter I of Circular OPRAC – 1, in point 4. of the resolution disseminated by Communication “A” 615, Resolution No. 590/85 – in the case of public entities – and/or those of controlling influence mentioned in point 1.2.4. of the cited Annex I to Communication “A” 2140. Likewise, he/she declares that he/she knows that, in case of falsity of the content of this presentation, the fine referred to in Article 41 of the Financial Entities Law applicable is 1 time the amount of the credit received, without prejudice to the sanctions provided for in Article 296 of the Penal Code. Furthermore, he/she assumes the commitment to inform any modification that occurs in this regard, within five calendar days of occurrence, by presenting a new sworn statement that will also integrate, even if no facts implying modification of the status are verified, informing the situation on 11.30 of each year, with the same term as previously provided. Date: Signature:
Document: Type (3) No. Country and Issuing Authority (4):
Invoked Character (5):
Name of the legal entity (6):
CUIT/CUIL (1) No.:
We certify that the preceding signature matches that registered in our books/was placed in our presence (1).
(Seal of the entity and signatures of two authorized officials) Observations:
(1) Strike out what does not apply.
(2) Integrate with the name and surname of the client, in the case of natural persons, even if an attorney signs on their behalf.
(3) Indicate D.N.I., L.E. or L.C., as applicable, for native Argentines. For foreigners: Foreign D.N.I., International Card, Passport, Provisional Certificate, Identity Document of the respective country. (4) Integrate only in the case of foreigners who do not have residence in the country. (5) Indicate holder, legal representative, attorney. When it is an attorney, the power granted must be broad and general and be valid on the date this declaration is signed. (6) Integrate only in cases where the signatory does so as an attorney or legal representative of a legal entity. This declaration shall be integrated in duplicate, one copy of which, intervened by the financial entity, will serve for the borrower as proof of receipt of this declaration. On the back, transcribe points 1.1.1. to 1.1.3 and 1.2.1. to 1.2.4 of Annex I to Communication “A” 2140, point 4.2. of Chapter I of Circular OPRAC – 1, point 4. of the resolution disseminated by Communication “A” 615, Resolution No. 590/85 – in the case of public entities – and Article 41 of the Financial Entities Law.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for granting financings
Version: 3rd. COMMUNICATION “A” 4559
Validity:
17/08/2006

1.4.9. Non-compliance.
Non-compliance with the presentation of the first declaration or subsequent updates will determine the following treatment:
i) The debtor will be considered as affiliated with the entity, and therefore, the entirety of the assistance granted will be subject to the limits applicable to clients of such character according to the norms on "Credit Risk Fragmentation". ii) The entirety of the debt registered by the borrower must be classified "unrecoverable by technical provision" in relation to the provisions on "Debtor Classification". The application of the established treatment must be carried out from the date of granting the assistance, when it concerns the first declaration, or, in the case of subsequent updates, from 12.01. When it concerns sworn statements presented out of term, these provisions must be observed until the day or month prior to the date on which the client makes the relevant presentation, depending on whether it concerns credit assistance limits or debtor classification in category "unrecoverable by technical provision", respectively.

1.4.10. Falsity of the declaration.
When the Superintendence of Financial and Exchange Entities determines falsity in the presented sworn statement, which leads to the entity not informing the debtor as an affiliated client, without prejudice to the application of the treatment established in point 1.4.9., the debtor and the entity - jointly and severally - will be subject to the fine referred to in Article 41 of the Financial Entities Law for an amount equivalent to 1 and 2 times, respectively, the disbursed credit.

1.5. Significant financings.

1.5.1. Financings included.
Financings, regardless of their modality - except inter-financial operations - that exceed 2.5% of the financial entity's computable patrimonial responsibility registered on the last day of the second month prior to that in which the granting of credit support is decided. Sets or economic groups of the private non-financial sector - defined in the norms on "Credit Risk Fragmentation" - must be considered as a single client.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for granting financings
Version: 3rd. COMMUNICATION “A” 4559
Validity:
17/08/2006

1.5.2. Procedure for granting.
Prior opinion must be obtained from:

• Branch Manager, except if the application is processed through the head office.
• Regional or Zonal Manager - in their case and when the assistance has not been managed by the head office -.
• Highest-ranking official of the credit or commercial area responsible for deciding on credit matters.
• General Manager or equivalent authority.
• Credit Committee, unless it does not exist in the entity's functional structure.
  These interventions must be fulfilled in all included cases, except for the established exceptions, to the extent that these positions are provided for in the entity's organizational-functional structure, even if it is not required according to the regime of resolving powers for credit assignment currently in force in the lending financial entity, as the provision does not imply the modification of said structure or the creation of specific positions for its compliance. To this effect, the immediate superior functional unit must control the effective intervention of previous levels.

1.5.3. Approval.
Without prejudice to the procedure established in point 1.5.2., the granting of credit assistance must have the approval of the Board of Directors or Board of Trustees - by simple majority of its members, except if it concerns credit support to affiliated firms, in which case the agreement of at least two-thirds of the directors or trustees will be required -, or equivalent authority of the lending entity. In the latter case, if the local highest authority must be absent from the country, the material task of approving the assistance may be delegated to a highest-level official, without this implying releasing the absent authority from responsibility for credit assignments made in accordance with this procedure. The majorities of the Board of Directors or Board of Trustees required must be calculated based on the total number of members integrating said bodies. The decisions of the mentioned authorities must be recorded in the corresponding minutes books.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for granting financings
Version: 6th. Communication “A” 4559
Validity:
17/08/2006

1.5.4. Credit agreements with partial disbursements.
In cases where, for operational reasons, credit margins whose validity is not superior to one year are assigned, through agreements communicated or not to clients, with partial disbursements referred to the respective framework agreement based on the debtors' needs, their approval by the mentioned authorities fulfills the requirement established in point 1.5.3., to the extent that the opinion of the officials provided for in point 1.5.2. is obtained, in both cases previously. Notwithstanding this, the agreement must be subject to periodic review - with the agreement of the mentioned authorities - whenever the borrower must be reclassified into a lower quality category according to the relevant norms. Obligated officials must intervene prior to each disbursement to verify compliance with the conditions that enable this special treatment.

1.5.5. Overdrafts on current accounts.
In cases of overdrafts on current accounts or punctual operations of fast processing, it is admitted that the approval of the Board of Directors, Board of Trustees, or local highest-ranking official is carried out within 30 days following the granting of the credit.

1.5.6. Bases for observance of provisions.

1.5.6.1. Individual basis.
Financial entities (including their subsidiaries in the country and abroad) will observe the provisions on significant financings individually.

1.5.6.2. Monthly consolidated basis.
Without prejudice to individual compliance, controlling financial entities subject to consolidated supervision will observe the norms on significant financings on a monthly consolidated basis.

1.5.7. Non-compliance.
Non-compliance with the established requirements will result in the application of the following sanctions:
i) Fine of 1 to 2 times the amount of funds effectively disbursed.
Version: 2nd. Communication “A” 4559
Validity:
17/08/2006
CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for granting financings

ii) A fine of 1 to 3 times the amount of funds actually disbursed when there is a breach of the obligation regarding control over interventions that correspond. iii) Disqualification for 5 to 20 years from engaging in financial activities. Such sanctions will apply to the natural persons to whom the transgression is attributable and to the financial entity, which will be jointly and severally liable for the payment of fines applied to them in the event that they are declared insolvent by the competent authority. The application of sanctions will adhere to the provisions contained in Article 41 of the Financial Entities Law and its regulations regarding the gradation of fines.

1.6. Credit cards.
Financial entities must refrain from issuing and renewing credit cards to holders who are in default with a financial entity in liquidation, whether judicial or extrajudicial. This circumstance must be communicated to the credit card holders.

1.7. Disbursement of credits in deposit accounts.
Disbursements for financings exceeding $50,000 must be effected through their crediting to deposit accounts, as provided in the rules on "Prevention of money laundering and other illicit activities".

1.8. Operations on behalf and order of the parent house.
The provisions of this Section do not apply to clients who only receive 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 its branches in other countries or the controlling entity, provided that the following requirements are observed:

1.8.1. The rules of the country where the parent house or controlling entity is located, the latter defined according to the provisions in force in that jurisdiction, must cover consolidated supervision of local affiliates or subsidiaries.

1.8.2. The entity must have an international risk rating included in the "investment grade" category, granted by one of the rating agencies admitted by the rules on "Evaluation of financial entities".

GESTION CREDITICIA B.C.R.A.
Section 1. Requirements for granting financings
Version: 1st. Communication “A” 4559
Validity:
17/08/2006

1.8.3. In the case of financings, these must be attended to by local affiliates or subsidiaries only with funds coming from lines assigned to them by the aforementioned foreign intermediaries.
If assistance is granted in a currency different from that of the foreign resources, the local entity cannot assume the exchange risk between pesos or US dollars and currencies other than them or between the latter when they are not equal.

1.8.4. In the case of guarantees granted locally, there must be counter-guarantees extended by the parent house or its branches in other countries or by the foreign controlling entity, whose effectiveness operates in an unrestricted manner upon simple request of the local affiliate or subsidiary and immediately upon its eventual execution by the beneficiary.
In addition, the aforementioned operations are not covered by the rules on "Minimum capital of financial entities", "Borrower classification" and "Fractionation of credit risk".

1.9. Prohibitions.

1.9.1. Financial entities that make use of rediscounts or advances from the Central Bank of the Argentine Republic for temporary illiquidity situations cannot grant credit assistance in which time deposit certificates -in pesos, foreign currency, or public bonds- or debentures issued by them are received as guarantee for the fulfillment of loans, even if the minimum period of 30 days has elapsed from the date of issuance, last negotiation, or transfer, while they maintain those facilities in force.

1.9.2. Financial entities issuing subordinated debt titles, admitted to determine the computable net worth, or convertible into shares of the entity, cannot receive such titles as guarantee for financings or as counter-guarantee for sureties granted in favor of third parties or for eventual liabilities assumed on behalf of third parties.

GESTION CREDITICIA B.C.R.A.
Section 1. Requirements for granting financings
Version: 1st. Communication “A” 4559
Validity:
17/08/2006

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE
ORDERED TEXT OF THE RULES ON CREDIT MANAGEMENT ORDERED TEXT ORIGINATING NORM Sec. Point Para. Comm. Annex Cap. Sec. Point Para.
OBSERVATIONS
1.1.1. “A” 3051
1.1.2. “A” 2729 3. 3.4.1. According to Comm. “A” 2950
“A” 49 I. 3.1.
“A” 2729 3. 3.4.2. 2nd According to Comm. “A” 2950 “A” 2729 3. 3.4.2. 8th According to Comm. “A” 2950 and “A” 3051 1.1.3.1.
“A” 3051 i) “A” 2729 3. 3.4.2. 3rd According to Comm. “A” 2950 and “A” 3051 ii) “A” 2729 3. 3.4.2. 4th and 5th According to Comm. “A” 2950 iii) “A” 2729 3. 3.4.2. 7th According to Comm. “A” 2950 1.1.3.2. iv) “A” 2729 3. 3.4.3. According to Comm. “A” 2950 1st a) “A” 3142 1. According to Comm. “A” 3182, ”A” 4325 (point 3.) and “A” 4559 1.1.3.3. b) “A” 4325 3 According to Comm. “A” 4559 (point 1.)
1.1.4. “A” 2729 3. 3.4.4. According to Comm. “A” 2950
1.1.5. “A” 2729 3. 3.4.5. According to Comm. “A” 2950
1.2.1. “A” 3051
1.2.1.1. “B” 5464
1.2.1.2. “B” 5464
1.2.2. “B” 5464 Last.
1.2.3. “B” 5664 According to Comm. “A” 3051
1.2.4. “C” 18820
1.2.5. “C” 18820
1.2.6. “C” 18820
1.3. “A” 2860 1. 1.1.1. According to Comm. “A” 3051
1st “A” 2573 1. 1st According to Comm. “A” 3051 2nd “A” 2573 1. 5th 1.4.1.
3rd “A” 2573 1. 6th
1.4.2. “A” 2573 1. 2nd According to Comm. “A” 3051 and
“A” 4522
1.4.3. 1st “A” 2573 1. 3rd According to Comm. “A” 3051
2nd “A” 2573 1. 4th
1.4.4. “A” 2573 1. 7th
1.4.5. 1st “A” 2573 1. 8th
2nd “A” 3051
1.4.6. “A” 3051
1.4.7. “A” 3051
1.4.8.1. “A” 2573 I
1.4.8.2. “A” 2573 II
i) “A” 2573 1. 9th ii) “A” 2573 1. 10th
1.4.9.
Last. “A” 2573 1. 11th
1.
1.4.10. “A” 2573 1. 12th

GESTION CREDITICIA
ORDERED TEXT ORIGINATING NORM
Sec. Point Para. Comm. Annex Cap Sec. Point Para. OBSERVATIONS
1.5.1. 1st “A” 2373 3. 1st
2nd “B” 5902 9.
1.5.2. “A” 2373
“B” 5902
3.
2.
1st and 2nd
1st “A” 2373 3. 3rd According to Comm. “A” 3051 2nd “A” 3051 3rd “B” 5902 6.
1.5.3.
4th “A” 3051
1st “B” 5902 1. 1st and 2nd
2nd “B” 5902 1. 2nd
1.5.4.
3rd “B” 5902 1. 3rd
1.5.5. “B” 5902 1. 4th
1.5.6.1. “A” 2989 5. 5.1.
1.5.6.2. “A” 2989 5. 5.2.1.5.
1.5.7. “A” 2373 3. 4th, 5th and
6th
1.6. 1st “A” 2102 1.
2nd “A” 2102 2.
1.7. “A” 2814 3. 3.1. According to Comm. “A” 3051
1.8. “A” 2412
1.9.1. “A” 2308 According to Comm. “A” 3918 and
“A” 4559
1.
1.9.2. “A” 2177 3.
2.1. “A” 49 I 3.2.1. 1st
2.2. 1st “A” 49 I 3.2.1. 2nd
2nd “A” 2729 7. 7.2.1. 2nd
2.
2.3. “A” 476 4.
3.1. "A" 1465 I 2.
3.2.1. "A" 1465 I 2. According to Comm. "A" 2275,
point 2.3.
3.2.2. "A" 2275 2.3.
3.2.3. "A" 2275 2.1.
3.
3.3. "A" 1465 I 2.2. According to Comm. "A" 2275
4. 4.1. “A” 431
4.2. “A” 2322
5.1. “A” 49 I 5.1. According to Comm. “A” 1124
5.2. “A” 3051
5.3. “A” 49 I 5.2. According to Comm. “A” 1124 and
“A” 3051
5.4. “A” 3051
5.
5.5. “A” 1165
6.1. “A” 49 I 7.1.
6.2.1. “A” 49 I 7.2. According to Comm. “A” 3051
6.2.2. “A” 49 I 7.2.1.
6.2.3. “A” 49 I 7.2.2. According to Comm. “A” 3051
6.
6.3. “A” 49 I 7.3.1.

3.1.1.4. Provincial guarantee funds, provided that
these have the special allocation of resources coming from the federal tax sharing. 50
3.1.1.5. In national public securities, computed at 75% of their market value. 20
3.1.1.6. Mortgage.
i) In first degree, and regardless of its degree of precedence as long as the entity is the creditor in all degrees, on real estate for own home that are subject to the encumbrance. a) Regarding the credit support that does not exceed 75% of the appraisal value of such properties. 50 b) On the amount that exceeds 75% of the appraisal value of such properties. 100 ii) In first degree, and regardless of its degree of precedence as long as the entity is the creditor in all degrees, on real estate for own home -sole, family and permanent occupation- that are subject to the encumbrance. The condition of sole, family and permanent occupation must be proven in the terms stated in the loan contract or in the deed by which the mortgage guarantee was constituted. a) Regarding new financings, only when they imply disbursements of funds, up to $ 200,000, which are agreed and disbursed from 1.8.06, are not refinancings and do not exceed 100% of the appraisal value of such properties. 50 b) Regarding new financings, only when they imply disbursements of funds, greater than $ 200,000 and up to $ 300,000, which are agreed and disbursed from 1.8.06, are not refinancings and do not exceed 90% of the appraisal value of such properties. 50 c) On the rest of the financing. 100 MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A.
Section 4. Risk weighting table.
Version: 7th. Communication “A” 4559
Validity:
01/08/2006

iii) In first degree, and regardless of its degree of precedence as long as the entity is the creditor in all degrees, on real estate for uses other than own home. a) Regarding the credit support that does not exceed 50% of the appraisal value of such properties. 75 b) On the amount that exceeds 50% of the appraisal value of such properties. 100
3.1.1.7. Fixed pledge with first degree registration or with
displacement to the entity on motor vehicles and agricultural, road and industrial machinery (to the extent that they are registered in the pertinent national vehicle property registry and have a market that allows obtaining a reference value). i) Regarding the credit support that does not exceed 75% of the market value of the motor vehicles and agricultural machinery. 50 ii) Regarding the credit support that does not exceed 60% of the market value of road and industrial machinery. 50 iii) On the amount that exceeds 75% or 60% of the market value of the goods, according to the case. 100
3.1.1.8. “Warrants” on fungible goods that
have normal and habitual quotation in the local or international markets, widely disseminated and easy access to public knowledge:
i) Regarding the credit support that does not exceed 80% of the market value of such goods. 75 ii) On the amount that exceeds 80% of the market value of such goods. 100
3.1.1.9. Constituted by accounts receivable from consumers, issued by public service companies providing electricity, gas, water,
telephone, etc. i) Regarding the assistance that does not exceed the 80% of the nominal value. 75 MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A.
Section 4. Risk weighting table.
Version: 8th. Communication “A” 4559
Validity:
17/08/2006

ii) On the excess. 100
3.1.1.10. Constituted by credit card coupons.
i) Regarding the assistance that does not exceed the 75% of the nominal value. 75 ii) On the excess. 100
3.1.1.11. Granted by reciprocal guarantee societies registered in the registry enabled at the
B.C.R.A. or by national and provincial funds constituted with the same object as those societies, admitted by this Institution. 50
3.1.1.12. Export credit insurance -operations without liability for the assignor- that
cover commercial risk and, if applicable, extraordinary risks (borne by the National State, Law 20.299), including credit risk insurance “with public buyer scope”. The policy covering commercial risk must be issued by:
a) Local insurance companies that have:

• “AA” or higher rating granted by any of the risk assessment companies registered in the registry of the
  National Securities Commission and
• Reinsurance in insurance companies:
  i) local that have “AA” or higher rating assigned by a national risk assessment company, or ii) foreign that have international risk rating “A” or higher. The amount of reinsurance must adhere to the regulations issued by the Superintendence of Insurance of the Nation. 50 b) Local branches of foreign insurance companies that have international risk rating “A” or higher. 50 MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A.
  Section 4. Risk weighting table.
  Version: 6th. Communication “A” 4559
  Validity:
  17/08/2006

4.13.2. Others with international risk rating included in
the “investment grade” category. 20
4.14. With the financial sector.
Official banks of the Nation -whose operations have the guarantee of the National State-, and banks of provinces, municipalities and of the Government of the City of Buenos Aires, regarding financings that carry the guarantee of resources coming from the federal tax sharing or the Federal Housing System (Law 24.464), through the assignment (direct or indirect) of the corresponding rights. 50
4.15. With guarantee of 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 controlling entity is domiciled in countries members of the Organisation for Economic Co-operation and Development (O.E.C.D.) that have international risk rating “AA” or higher or in other countries whose central banks or equivalent supervisory authority have signed with the B.C.R.A. agreements of cooperation in the matter of banking supervision. 0
4.15.2. Other foreign banks with 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.
5.1.1. For tenant housing.
5.1.1.1. On 75% of the value of the properties. 50
5.1.1.2. On the rest of the financing. 100
5.1.2. For own home of the tenant -sole, family and permanent occupation-.
The condition of sole, family and permanent occupation must be proven in the terms stated in the contract.
MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A.
Section 4. Risk weighting table.
Version: 7th. Communication “A” 4559
Validity:
01/08/2006

5.1.2.1. Regarding new financings up to
$ 200,000, which are agreed and disbursed from 1.8.06, are not a renegotiation of the contract and do not exceed 100% of the value of the properties. 50
5.1.2.2. Regarding new financings greater than
$ 200,000 and up to $ 300,000, which are agreed and disbursed from 1.8.06, are not a renegotiation and do not exceed 90% of the value of the properties. 50
5.1.2.3. On the rest of the financing. 100
5.2. Other real estate.
5.2.1. On 50% of the value of the properties. 75
5.2.2. On the rest of the financing. 100
5.3. Motor vehicles and agricultural, road and industrial machinery (to the
extent that they are registered in the pertinent national vehicle property registry and have a market that allows obtaining a reference value), which had been agreed in accordance with the provisions of Law 25.248.
5.3.1. On 75% of the value of motor vehicles and agricultural machinery. 50
5.3.2. On 60% of the value of road and industrial machinery. 50
5.3.3. On the rest of the financing. 100
6. Other non-fixed assets, except those deductible for the determination of
the computable net worth.
6.1. Subject to minimum capital requirement for market risk. 0
6.2. Others.
6.2.1. Shareholdings in the capital of companies in the country and abroad.
6.2.2. Units of common investment funds whose assets
are constituted by:
6.2.2.1. National public securities. 50
6.2.2.2. Bonds of agencies or departments of central governments of countries members of the Organisation
for Economic Co-operation and Development
(O.E.C.D.) that have international risk rating “AA” or higher. 20 MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A.
Section 4. Risk weighting table.
Version: 12th. Communication “A” 4559
Validity:
01/08/2006

6.2.3. Debt titles or Certificates of participation in financial trusts issued in foreign currency and with public offering authorized by the National Securities Commission whose underlying assets are guaranteed by reciprocal guarantee societies registered in the Registry enabled at the
Central Bank of the Argentine Republic or by national and provincial funds constituted with the same object as those societies, admitted by this Institution. 50
6.2.4. Others. 100
7. Sureties, guarantees and other eventual liabilities.
7.1. Documentary credits with deferred payment whose shipping documentation has not yet been delivered to the client. 50
7.2. For fulfillment of contractual obligations and/or maintenance of
offers. 100
7.3. To the non-financial public sector.
7.3.1. National Government companies without their express guarantee. 100
7.3.2. Provincial, municipal and City of Buenos Aires Governments and their companies -whatever the legal nature-,
that do not have the express guarantee of the National Government or of resources coming from the federal tax sharing or the Federal Housing System (Law 24.464) through the assignment (direct or indirect) of the corresponding rights and that have the pertinent intervention of the Ministry of Economy of the Nation. 100
7.4. Differences between market and exercise prices when they result
in favor of the entity, from rights emerging from call and put option contracts.
7.4.1. Covered with guarantee or replacement margins, in institutionalized markets of the country or of countries members of the Organisation for Economic Co-operation and Development (O.E.C.D.)
that have international risk rating “AA” or higher. 0
7.4.2. With official banks of the Nation, whose operations have
the guarantee of the National State. 50
7.5. Others, except those included in the concept “Fspn”. 100
The international risk ratings required above must be granted by any of the rating agencies admitted by the rules on “Evaluation of financial entities”. MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A.
Section 4. Risk weighting table.
Version: 3rd. COMMUNICATION “A” 4559
Validity:
17/08/2006

MINIMUM CAPITAL OF FINANCIAL ENTITIES
ORDERED TEXT ORIGINATING NORM
Section Point Paragraph Comm.
Cap./
Annex
Point Paragraph
Observations
3.5.2.1. “A” 2136 I According to Comm. “A” 2541, annex, criteria, g).
3.5.2.2. “A” 2136 I According to Comm. “A” 2541, annex, criteria, d), 1st paragraph.
3.5.2.3. “A” 2136 I According to Comm. “A” 2541, annex, criteria, b).
1st “A” 2136 I According to Comm. “A” 2541, annex, criteria, c).
3.5.2.4.
2nd Incorporates interpretative clarification.
3.5.2.5. “A” 2136 I According to Comm. “A” 2541, annex, criteria, i).
3.5.2.6. “A” 2249
3.
3.5.2.7. “A” 2136 I According to Comm. “A” 2541, annex, criteria, k).
1.1. “A” 2136 I According to Comm. “A” 2541, annex, “A”
3274 and “A” 3558.
1.2. “A” 2136 I According to Comm. “A” 2541, annex and “A”
4141.
1.3. “A” 2136 I According to Comm. “A” 2541, annex.
1.4. “A” 2136 I According to Comm. “A” 2541, annex.
1.4.1. “A” 2192 penultimate
1.4.2. “A” 2290 1st and 2nd
1.5. “A” 2136 I According to Comm. “A” 2541, annex.
2. “A” 2136 I According to Comm. “A” 2541, annex. Modified by the Com. “A” 2793,
2872, 3039, 3274, 3925, 3959 and
4141. Point 2.2.1. includes interpretative clarification.
3.1.1.1. a
3.1.1.5.
“A” 2136 I According to Comm. “A” 2541, annex, “A” 3925 and “A” 3959.
3.1.1.6. i) “A” 2136 I According to Comm. “A” 2632, “A” 2939,
“A” 3314 and “A” 3959. ii) “A” 4551 1. According to Comm. “A” 4559, point 2. iii) “A” 2136 I According to Comm. “A” 2541, annex, “A” 3314 and “A” 3959.
3.1.1.7. “A” 2136 I According to Comm. “A” 3314 and “A” 3959.
3.1.1.8. a
3.1.1.10.
“A” 2136 I According to Comm. “A” 3959.
3.1.1.11. “A” 2136 I According to Comm. “A” 2541, annex, “A”
3141, “A” 3314, “A” 3959 and “A”
4465.
3.1.1.12. “A” 3314
3.1.1.13. “A” 4491 2. According to Comm. “A” 4501
4.
3.1.2. “A” 2136 I According to Comm. “A” 2541, annex.

MINIMUM CAPITAL OF FINANCIAL ENTITIES
ORDERED TEXT ORIGINATING NORM
Sec. Point Paragraph Comm.
Cap./
Annex
Point Paragraph
Observations
3.2. “A” 2136 I According to Comm. “A” 2541, annex, "A"
3133 and “A” 3959.
3.3. "A" 2136 I According to Comm. “A” 2541, annex, "A"
3133, “A” 3238 and “A” 3959. Includes interpretative clarification.
3.4. and
3.5.
"A" 2136 I According to Comm. “A” 2541, annex and “A” 4141.
4.1. and
4.2.
"A" 2136 I According to Comm. “A” 3133.
4.3. to
4.13.
"A" 2136 I According to Comm. “A” 2541, annex, “A” 3133, “A” 3274, “A” 3959 and “A” 4141.
4.14. "A" 2136 According to Comm. “A” 2541, “A” 3133,
“A” 3238 and “A” 3959. Includes interpretative clarification.
4.15. "A" 2136 According to Comm. “A” 2541, “A” 3133 and
“A” 4141.
4.16. “A” 3064 3.
5.1. “A” 2136 I According to Comm. “A” 2632, “A” 3314 and
“A” 3959 and “A” 4559, point 4.
5.2. and
5.3.
“A” 2136 I According to Comm. “A” 2541, annex and “A” 3314.
6. “A” 2136 I According to Comm. “A” 2541, annex, “A”
2793, “A” 2872, “A” 3959, “A”
4141, “A” 4168 and “A” 4465.
7.1. to
7.3.
“A” 2136 I According to Comm. “A” 2541, annex and “A” 3133.
7.4. “A” 2136 According to Comm. “A” 2541, annex, “A”
3133, “A” 3238, “A” 3959 and “A”
4141.
7.5. “A” 2136 According to Comm. “A” 2541, annex and “A”
3133.
4. last “A” 2136 I According to Comm. “A” 2541, annex and “A” 3307.
5.1. “A” 2922 I According to Comm. “A” 3959, “A” 4172 and
“A” 4180.
5.2. “A” 2922 I According to Comm. “A” 3959, “A” 4032 and
“A” 4172.
5.3. “A” 2922 I According to Comm. “A” 4172.
5.4.1.1. a
5.4.1.8.
“A” 2922 I
Modified by the Com. “B” 6523 and “A” 4172. Includes interpretative clarifications.
5.4.1.9. “A” 2922 I Modified by the Com. “B” 6523,
"A" 3064 and “A” 4172.
5.4.2. “A” 2922 According to Comm. “A” 3959 and “A” 4172.
5.
5.5. “A” 2922 I Modified by the Com. “B” 6523,
“A” 2948, “A” 3959, “A” 4172 and “A”
4180.

3.1.11. Direct guarantees from foreign governments (point 1.1.11.): 100%.
3.1.12. Assignment of rights over the collection of tariffs and taxes in public works concessions (point 1.1.12.): 80%.
3.1.13. Private securities (point 1.1.13.): 70% of their quotation value.
3.1.14. First-degree mortgage on real estate, and any degree of priority provided the entity is the creditor in all degrees (point 1.2.1.):
3.1.14.1. On real estate for own home - unique, family, and permanent occupation - and which are subject to the encumbrance, in the case of new financings, only when they imply disbursements up to $ 200,000, which are agreed and made effective from 1.8.06 and are not refinancings: 100% of the appraised value of the property.
3.1.14.2. On real estate for own home - unique, family, and permanent occupation - and which are subject to the encumbrance, in the case of new financings, only when they imply disbursements greater than $ 200,000 and up to $ 300,000, which are agreed and made effective from 1.8.06 and are not refinancings: 90% of the appraised value of the property.
3.1.14.3. On real estate for own home which are subject to the encumbrance in the remaining financings: 75% of the appraised value of the property.
3.1.14.4. On real estate for uses other than own home: 50% of the appraised value of the property.
3.1.15. Fixed pledge with first-degree registration or with displacement to the entity (point 1.2.2.):
3.1.15.1. Motor vehicles and agricultural machinery: 75% of market value.
3.1.15.2. Road and industrial machinery: 60% of market value.
3.1.16. From reciprocal guarantee societies or national and provincial funds constituted with the same object as those societies (points 1.1.15. and 1.2.3.): 100%.
3.1.17. Credit instruments (point 1.1.14.): 100% of the nominal value of the documents.
3.1.18. Goods in financial leasing (point 1.2.4.):
3.1.18.1. Real estate for the lessee's own home - unique, family, and permanent occupation -, in the case of new financings up to $ 200,000, which are agreed and made effective from 1.8.06 and are not a renegotiation of the contract: 100% of the value of the property.

GUARANTEES B.C.R.A.
Section 3. Computation.
Version: 11th. COMMUNICATION “A” 4559
Validity:
01/08/2006

3.1.18.2. Real estate for the lessee's own home - unique, family, and permanent occupation -, in the case of new financings greater than $ 200,000 and up to $ 300,000, which are agreed and made effective from 1.8.06 and are not a renegotiation of the contract: 90% of the value of the property.
3.1.18.3. Real estate for the lessee's home not included in the preceding point: 75% of the appraised value of the property.
3.1.18.4. Other real estate: 50% of the appraised value of the property.
3.1.18.5. Motor vehicles and agricultural machinery: 75% of the appraised value of the property.
3.1.18.6. Road and industrial machinery: 60% of the appraised value of the property.
3.1.19. Export credit insurance (points 1.1.16. and 1.2.5.): 100% of the nominal value of the documents.
3.1.20. Guarantee trusts on real estate transferred to the trust (point 1.2.7.):
3.1.20.1. on real estate for housing: 75% of the appraised value of the real estate (land plus construction progress).
3.1.20.2. on real estate for uses other than housing transferred to the trust: 50% of the appraised value of the real estate (land plus construction progress).
3.2. Partial coverage with preferred guarantees.
When existing preferred guarantees do not cover the total assistance to the client, the part not reached with that coverage will have the treatment established for debts without preferred guarantees. To this end, the market value of those assets that have a quotation must be taken into account permanently, as contemplated in points 1.1.1., 1.1.2., 1.1.5. and 1.1.13. of Section 1.

GUARANTEES B.C.R.A.
Section 3. Computation.
Version: 5th. COMMUNICATION “A” 4559
Validity:
01/08/2006

GUARANTEES
ORDERED TEXT ORIGIN NORM
Section Point Paragraph
Com. Annex Point Paragraph Observations
2.1. 1st “A” 2448 Debtor status report (point 6.1.2.2.2.).
2.1. 2nd “A” 2932 Unique 2.1. 2nd
2.
2.2. “A” 2216 I 1. 4th
3.1. “A” 2932 Unique 3.1.
3.1.1. “A” 2932 Unique 3.1.1. According to Com “A” 3918.
3.1.2. “A” 2932 Unique 3.1.2.
3.1.3. “A” 2932 Unique 3.1.3. According to Com “A” 3918.
3.1.4. “A” 2932 Unique 3.1.4.
3.1.5. “A” 2932 Unique 3.1.5. According to Com “A” 3918 and “A” 4242.
3.1.6. “A” 2932 Unique 3.1.6. According to Com “A” 3918.
3.1.7. “A” 2216 I 1. 3rd, g) According to Com. “A” 2932.
3.1.8. “A” 2216 I 1. 3rd, h) According to Com. “A” 2932.
3.1.9. “A” 2216 I 1. 3rd, i) According to Com. “A” 2932.
3.1.10. “A” 2932 Unique 3.1.11. According to Com. “A” 3104 and “A” 4522.
3.1.11. “A” 2932 Unique 3.1.12. According to Com “A” 3918.
3.1.12. “A” 2932 Unique 3.1.13.
3.1.13. “A” 2932 Unique 3.1.14.
3.1.14. “A” 2419 1. 1st, ii) According to Com. “A” 2932, “A” 3314, “A” 3918, “A” 4551, point 2. and “A” 4559, point 3.
3.1.15. “A” 2932 Unique 3.1.18. According to Com “A” 3918.
3.1.16. “A” 2932 Unique 3.1.19. According to Com. “A” 3141, “A” 3918 , “A” 4242 and “A” 4465.
3.1.17. “A” 3114 2. According to Com. “A” 4242
3.1.18. “A” 3259 2.
3.1.18.1. “A” 4559 5.
3.1.18.2. “A” 4559 5.
3.1.18.3. “A” 3259 2. According to Com. “A” 3314, “A” 3918 and “A” 4559, point 5.
3.1.18.4. “A” 3259 2. According to Com. “A” 3918, point 4.
3.1.18.5. “A” 3259 2. According to Com. “A” 3314, point 3.
3.1.18.6. “A” 3314 6.
3.1.19. “A” 3314
3.1.20. “A” 4491 1. According to Com. “A” 4501.
3.
3.2. “A” 2216 II 5th According to Com “A” 3918.

3.3.5. The description of the procedure adopted, when for the purposes of updating the client's file the assigned classification is maintained in separate spreadsheets, which allows precise identification of the classification assigned to each client from the spreadsheet to the file and vice versa.
3.3.6. The exercise of the option to entrust external professionals with the classification task.
3.3.7. In cases where specific evaluation methods are adopted for the purposes of granting financial assistance under the terms of point 1.1.3.3. b) of Section 1. of the rules on “Credit Management”, the provisions contained in said point must be observed.
The manual must be permanently available to the Superintendence of Financial and Currency Entities.
3.4. Client file.
3.4.1. Opening.
The entity must keep a file for each debtor in its portfolio, as well as for each of its foreign correspondents.
In the case of credits assigned in favor of the entity without responsibility for the assignor - economic unit receiving the funds -, the file of the signer, drawer, debtor, co-debtor or acceptor of the respective instruments, constituted consequently as main and direct payers, to whom the credits have been imputed, must be opened. The opening of the file will not be mandatory in the case of debtors for public services or credit cards considered for classification purposes because the respective credits have been assigned by debtors in preventive bankruptcy.
3.4.2. Content.
All elements of judgment that are taken into account to carry out evaluations and classifications will be gathered in the file, and the reviews carried out and the assigned classification will be recorded. When it is not necessary to evaluate the debtor's repayment capacity because the debt is covered with guarantees

DEBTOR CLASSIFICATION B.C.R.A.
Section 3. Classification Task.
Version: 4th. COMMUNICATION “A” 4559
Validity:
17/08/2006

7.1. Classification criterion.
Without prejudice to the fact that previous analyses before granting financings must also take into account the debtors' payment capacity, evaluating the impact of their periodic income on the total credit commitments assumed, the classification of these clients will be carried out considering - at the end of each month - exclusively objective criteria linked to the degree of compliance in terms of their obligations or their legal situation and the information that arises from the “Central of debtors of the financial system” when they reflect quality levels lower than those assigned by the entity. The evaluation of payment capacity based on the borrower's income will not be mandatory, provided that specific evaluation methods are used or it concerns debtors for small amount loans under the terms of point 1.1.3.3. of Section 1. of the rules on “Credit Management”. The granting of this type of assistance does not prevent that, in the event that other credit facilities are granted to the same borrower, the provisions in the first paragraph of this point regarding the evaluation of the debtor's payment capacity must be observed.
7.2. Classification levels.
7.2.1. Normal compliance.
Includes clients who attend punctually to the payment of their obligations or with delays not exceeding 31 days.
Temporary advances in current accounts will be considered normal compliance up to 61 days counted from their granting.
7.2.2. Inadequate compliance.
Includes clients who register occasional non-compliance in the attention of their obligations, with delays of more than 31 up to 90 days.
7.2.3. Deficient compliance.
Includes clients who show some inability to cancel their obligations, with delays of more than 90 up to 180 days.

DEBTOR CLASSIFICATION B.C.R.A.
Section 7. Classification of debtors in the consumer or housing portfolio.
Version: 4th. COMMUNICATION “A” 4559
Validity:
17/08/2006

ORDERED TEXT ORIGIN NORM Observations
Sec. Point Par. Com. Annex Point Par.
1.1. “A” 2216 I 1st Includes interpretative clarification

1. 1.2.1. “A” 2216 I 6. 2nd
   1.2.2. “A” 2216 I I.d. 2nd and 3rd
   2.1.1. a “A” 2216 I 1st
   2.1.3. and “A” 2216 I I.d. 1st
   2.1.5. “A” 2448 Debtor status report (point 6.1.)
   “A” 2587 Correspondence table between the Debtor Status Report and the Balance of Balances (modified by Com. “A” 2514)
   2.1.4. “A” 2736 3.
   2.2.1.1. a
   2.2.1.4.
   “A” 2448 Debtor status report (pt. 6.1., modified by Com. “A” 2421)
   2.2.1.5. “A” 2448 Debtor status report (point 6.1., modified by Com. “A” 2421 and 3064)
   2.2.1.6 a
   2.2.1.7
   “A” 2448 Debtor status report (pt. 6.1., modified by Com. “A” 2421)
   2.2.2. “A” 2448 Debtor status report (point 6.2.)
   2.2.3. “A” 2287 5.
   2.
   2.2.4. “A” 2412 In the 2nd paragraph of point 2.2.4.3. incorporates a criterion not previously disclosed in general terms
   3.1. “A” 2216 I 2. 1st
   3.2. “A” 2216 I 4.
   3.3. 1st “A” 2216 I 2. 2nd
   3.3.1. “A” 2216 I 2. 2nd
   3.3.2. “A” 2216 I 2. 2nd Includes interpretative clarification
   3.3.3. “A” 2216 I 6. last According to Com. “A” 2358 (point 1.) and “A” 4310 (point 1.)
   3.3.4. “A” 2216 I 7. last
   3.3.5. “B” 5644 2.
   3.3.6. Incorporates a criterion not previously disclosed in general terms
   3.
   3.3.7. “A” 4325 2. According to Com. “A” 4559 (point 6.)
   B.C.R.A.
   ORIGIN OF THE PROVISIONS INCLUDED IN THE
   ORDERED TEXT OF THE RULES ON
   DEBTOR CLASSIFICATION

DEBTOR CLASSIFICATION
ORDERED TEXT ORIGIN NORM Observations
Sec. Point Par. Com. Annex Point Par.
6.5.6.1. ii) “A” 2216 I I.d.6. ii) According to Com. “A” 2440
6.5.6.1. iii) “A” 2216 I I.d.6. iii) According to Com. “A” 2440
6.5.6.1. iv) “A” 2216 I I.d.6. iv) According to Com. “A” 2580
6.5.6.1. last “A” 2440 2. last
6.5.6.2. “A” 2287 2. Modified by Com. “A” 2890 (point 3.)
except b), 2nd inciso
“A” 2287 2.3. Modified by Com. “A” 2497 (point 1.) b), last inciso “A” 2287 2.5. Modified by Com. “A” 2497 (point 1.)
6.5.6.3. “A” 2573 1. According to Com. 4545.
6.
6.6. last
“A” 2216
“A” 4060
I I.c.
10.
Modified. by Com. "A" 2932 (point 6.) and “A” 3339
7.1. 1° “A” 2216 I II. 1st
7.1 2° “A” 3142
7.1. last “A” 3142
According to Com. ”A” 4325 (point 1.) and Com. “A” 4559 (point 7.)
7.2.1. 1st “A” 2216 I II.1.
7.2.1. last Incorporates a criterion not previously disclosed in general terms
7.2.2. “A” 2216 I II.2.
7.2.3. “A” 2216 I II.3.
7.2.4. “A” 2216 I II.4. Includes interpretative clarification. According to Com. “A” 4310 (point 2.)
7.2.5. “A” 2216 I II.5. Includes interpretative clarification. According to Com. “A” 4310 (point 2.)
7.2.6. “A” 2216 I II.6. According to Com. “A” 2440
7.
7.3. “A” 2216 I II. 1st and 2nd Modified by Com. "A" 2932 (point 6.) and “A” 3339
8. 8.1. “A” 2216 I 5. Modif. by Com. “A” 2562
9.1. “A” 2227 unique 5.2.1. last According to Com. “A” 2649
9. 9.2. “A” 2227 unique 5.1.5. According to Com. “A” 2649
“A” 2227 unique 5.2.2.
10.1. “A” 2389 2.
10.2.1. “A” 2703 3. According to Com. “A” 3145 (point 1.)
10.2.2. “A” 2703 4.
10.
10.3. “A” 3141 4.
11.1. “A” 3918
11.2. “A” 3918
11.3. “A” 3918 According to Com. “A” 3955, “A” 4121 and “B”
11.4. “A” 3918 According to Com. “A” 3955
11.5. “A” 3918
11.5.2.2 “A” 3918 According to Com.”A” 4060 (point 3.)
11.5.3. penultimate and
last
“A” 3918 According to Com. “A” 3955
11.5.6.2 2nd “A” 3918 According to Com. “B” 8493
11.6. “A” 3918
11.
11.7. “A” 3918