Circular OPRAC 1-620, LISOL 1-495, RUNOR 1-870: Loans for Micro-entrepreneurs and Financing for Microcredit Institutions. Regulation.

"2008 - Year of Science Education"
COMMUNICATION "A" 4891 26/12/2008
TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1 - 620
LISOL 1 - 495
RUNOR 1 - 870
Loans for micro-entrepreneurs and financing for Microcredit Institutions. Regulation.

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

Replace point 1.1.3.3. of Section 1. of the norms on "Credit Management" with the following:

"1.1.3.3. Special Operations.
It will only be required that the file contain the data allowing the identification of the client, in accordance with the norms on "Valid Identification Documents", in the following cases:
a) Of reduced amount. i) Borrowers.
Natural persons not affiliated with the financial entity, provided that they have not received financing under the terms provided in point 1.1.3.4., item a). ii) Individual limit. The outstanding capital, at no time, may exceed $ 6,000 per client, under the French or German system modality. iii) Global portfolio limit. 10% of the computable net worth of the entity from the month prior to the one in question. This limit will be computable for the purpose of calculating the global limit provided in point 1.1.3.4., item a), subsection iii), in the event that the entity has also granted financing under that modality (loans for micro-entrepreneurs).

iv) Maximum installment frequency.
The installment payment frequency may not exceed a period of one month. v) Client classification and information to the Central Debtors Registry of the Financial System. It will be carried out based on objective guidelines as established in Section 7. of the norms on "Debtor Classification". Likewise, the data that the financial entity, at its discretion, deems necessary for its credit evaluation will be incorporated. The granting of this type of assistance does not preclude that, in the event that other credit facilities are granted to the same borrower, the provisions regarding the content of the credit file established in point 1.1.3.1. must be observed. b) Assignment through specific evaluation methods ("screening" systems and "credit scoring" models) to decide on the granting of the credits referred to in subsection ii). "Screening" systems are understood as the set of steps and decision rules that collect 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 risk and/or the probability of default by credit applicants. Both techniques must be based on the variables that financial entities consider relevant to measure the risk of uncollectibility associated with each debtor and type of credit, and may use the same type of information. The methodology and information used to replace 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 future repayment of obligations). Additionally, in both cases, the predictions made must be compared with the finally observed credit behavior, in order to adopt, if necessary, the adjustments deemed pertinent. The following conditions must be observed:

i) Borrowers covered.
Natural persons not affiliated with the financial entity. ii) Individual limit.
The outstanding capital, at no time, may not exceed the following limits, by type of credit and per client:

mortgage loans for housing: $ 200,000.
pawn loans for motor vehicles: $ 75,000.
personal loans and financing through credit cards: $ 15,000.
iii) Client classification and information to the Central Debtors Registry of the Financial System.
It will be carried out based on objective guidelines as established in Section 7. of the norms on "Debtor Classification". iv) The client's file must record the evaluation carried out according to 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 the evaluation of the client and the assignment of credit margins, discriminated, if applicable, by the type of credit. v) This procedure must have the prior opinion of:
The 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. vi) In cases where the evaluation of repayment capacity is carried out directly based on supporting documentation of the borrower's income, even if the methods indicated in this section are used complementarily, the provisions regarding the content of the file established in point 1.1.3.1. must be observed."

Incorporate into Section 1. of the norms on "Credit Management" the following point:

"1.1.3.4. Loans for micro-entrepreneurs and financing to Microcredit Institutions.

a) Loans for micro-entrepreneurs.
These are understood as loans destined for low-income natural persons to attend needs linked to productive, commercial, and service activities, training for micro-entrepreneurs, and financing destined to the improvement of the only home and family housing, in which specific methodologies are used for prior evaluation, granting, and monitoring of financial assistance in accordance with what is contemplated in subsection v) of this point. Complementarily and to the extent that they have available financing margin within this type of credit, credits for the acquisition of goods or services for consumption may be granted to the micro-entrepreneur. i) Borrowers. Natural persons or associative groups of natural persons who carry out activities on their own account, not affiliated with the financial entity. Borrowers who have received financial assistance under this modality cannot access the reduced amount financing referred to in point 1.1.3.3., item a). ii) Individual limit. The outstanding capital at no time may exceed $ 15,000 per client. In the event that the client already has a credit granted as provided in point 1.1.3.3., item a), the residual outstanding capital for both types of financing may not exceed the aforementioned limit. iii) Global limit for financing. 30% of the computable net worth of the entity from the month prior to the one in question. 5% of the computable net worth of the entity from the month prior to the one in question, with respect to the total of financings in which the periodicity of some of the installments is greater than 90 days or has grace periods greater than that term. The total of financings granted under the modalities established in points 1.1.3.3., item a), -without exceeding the specific limit of 10%- and 1.1.3.4., item a), may not exceed the cited limit of 30%. iv) Installment frequency. Based on the economic cycles corresponding to the activity developed by the client. v) Origin of credits and evaluation and monitoring criteria. The granting of financing may be carried out directly to the credit applicant or through the management of legal persons that meet the characteristics provided in subsection b) of this point. For the prior evaluation, granting, and monitoring of financial assistance under this modality, credit methodologies must be used that foresee, among other techniques, the following:

observation of quantitative and qualitative aspects to determine the repayment capacity of clients,
credit evaluation, monitoring, and/or collection carried out "in-situ",
granting of group credits,
granting of sequential credits (agreement of a first small-amount, short-term credit, which once cancelled, may be granted for larger amounts and terms and/or lower interest rates, based on compliance with assumed obligations).
vi) Client classification and information to the Central Debtors Registry of the Financial System.
The classification of the debtor must be carried out in accordance with the periodicity and other conditions established for the consumer or housing portfolio, as established in Section 7. of the norms on "Debtor Classification". vii) In cases where the evaluation of repayment capacity is carried out directly based on supporting documentation of the borrower's income, even if the methods indicated in this point are used complementarily, the provisions regarding the content of the file established in point 1.1.3.1. must be observed. b) Financing to Microcredit Institutions. i) Borrowers. Legal persons, not affiliated with the financial entity (except those societies in which the financial entity maintains participation in their capital under the terms provided in point 2.2.21. of the norms on "Complementary services of the financial activity and permitted activities"), whose corporate object and main activity is the carrying out of microcredit activities, according to the definition of subsection a) of this point, destined for the natural persons referred to in said subsection in subsection i). Its provision may also include the provision of technical assistance, monitoring, and training services to credit takers for the development of their business capacity, which meet the following requirements:
Possess authorization to operate from the competent authority according to their type and, if applicable, be registered in the relevant public registry.
Have accounting statements in accordance with applicable professional accounting standards.
ii) Regarding file content, what is provided in point 1.1.3.1. must be observed."

Incorporate into Section 2. of the norms on "Complementary services of the financial activity and permitted activities" the following point:

"2.2.21. Provision of financial services to natural persons or associative groups of natural persons, of low income, who carry out activities on their own account, not affiliated with the financial entity. The activity consists of the granting of loans for micro-entrepreneurs destined for natural persons to attend needs linked to productive, commercial, and service activities, and financing destined to the improvement of the only home and family housing, in which specific methodologies are used for the prior evaluation, granting, and monitoring of financial assistance in accordance with what is contemplated in point 1.1.3.4., item a), subsection v) of the norms on "Credit Management". Likewise, they may provide beneficiaries with: training, technical assistance, and monitoring that are necessary to carry out their activities. Complementarily and to the extent that they have available financing margin, observing for this purpose the limit assigned in the aforementioned point 1.1.3.4., item a), subsection ii), credits for the acquisition of goods or services for consumption may be granted to the micro-entrepreneur. For the granting of financing, the society may act with its own funds, with funds obtained from credits and/or donations and/or other types of contributions and/or act as a loan originator agent on behalf of the participating financial entity or other/s in the financial system."

Replace point 2.3.1. of Section 2. of the norms on "Complementary services of the financial activity and permitted activities" with the following:

"2.3.1. Scope.
The acquisition or incorporation by financial entities of shareholdings, direct or indirect, in companies whose object is the development of the activities enumerated in points 2.2.1., 2.2.6, 2.2.8., 2.2.20. and 2.2.21., that exceed 12.5% of the share capital or of the total votes or lower percentages if that is sufficient to form the social will in shareholders' meetings or board meetings of said companies and without prejudice to the specific normative treatment that applies in each case, will be subject to the authorization of the Superintendence of Financial and Currency Entities, for which it will be a condition the compliance with the following requirements:

2.3.1.1. Meet the conditions established for the transformation of financial entities.
2.3.1.2. Have rating 1, 2 or 3 assigned by the Superintendence of Financial and Currency Entities."

Incorporate into Section 2. of the norms on "Credit Graduation" the following point:

"2.2.16. Financing to legal persons whose corporate object is the provision of microcredits (according to the definition provided by subsection b) of point 1.1.3.4. of the norms on "Credit Management"), to the extent that the granting does not exceed:
a) Individual limit: 2.5% of the computable net worth of the granting entity -on the last day of the second month prior to the granting of the financing- or $ 1,500,000, whichever is greater. b) Global limit: 10% of the computable net worth of the granting entity -on the last day of the second month prior to the granting of the financing- or $ 4,000,000, whichever is greater."

Replace point 5.1.2. of Section 5. of the norms on "Debtor Classification" with the following:

"5.1.2. Consumer or housing portfolio.
Comprises:
5.1.2.1. Consumer credits (personal and family, for professionals, for the acquisition of consumer goods, credit card financing).
5.1.2.2. Own home credits (purchase, construction, or renovation).
5.1.2.3. Loans to Microcredit Institutions -up to the equivalent of $ 500,000- and to micro-entrepreneurs (as provided by point 1.1.3.4. of the norms on "Credit Management").
5.1.2.4. Commercial nature financings up to the equivalent of $ 500,000 with or without preferred guarantees, in the event that the entity has opted for it."

Incorporate into Section 7. of the norms on "Debtor Classification" the following point:

"7.4. Information to the Superintendence of Financial and Currency Entities on increases in the irregular portfolio.
In cases where the expression established below is greater than 5% on the last day of a calendar quarter or 10% in a year, the financial entity must inform the origin of such circumstance to the Superintendence of Financial and Currency Entities, providing the explanations that are required of them and, if applicable, the modifications to be made in their credit policy aimed at improving the quality of its credit portfolio. FICCT - FICCT-1 - Max (FICCST - FICCST-1 ; 0) Where:
FICC: quotient, expressed as a percentage, between the total amount of financings of the consumer or housing portfolio of the financial entity, classified in situation 3 to 5 according to the norms on "Debtor Classification" and the total amount of its financings of the consumer or housing portfolio. FICS: quotient, expressed as a percentage, between the total amount of financings of the consumer or housing portfolio of the total financial system, classified in situation 3 to 5 according to the norms on "Debtor Classification" and the total amount of its financings of the consumer or housing portfolio, according to the information released by the Central Bank of the Argentine Republic. T: the last day of a calendar quarter to which the calculation of the quotient corresponds. T-1: the last day of the immediately preceding calendar quarter and the last day of the same quarter corresponding to the previous year, as applicable."

Incorporate into Section 5. of the norms on "Consolidated Supervision" the following point:

"5.2.1......Maximum global limits, according to the norms on "Credit Management" for:
a) Reduced amount loans. b) Loans for micro-entrepreneurs."

Replace subsections i) and iii) of point 4.3.2.1., of Section 4. of the norms on "Cooperative Credit Unions (Law 26.173)" with the following:

" i) Borrowers.
Natural persons not affiliated with the financial entity, provided that they have not received financing under the terms provided in point 4.3.2.3.
... iii) Global portfolio limit.
The set of these credits may not exceed once the computable net worth of the entity from the month prior to the one in question. This limit will be computable for the purpose of calculating the global limit provided in point 4.3.2.3., item c), in the event that the cooperative credit union has also granted financing under that modality (loans for micro-entrepreneurs)."

Eliminate subsection iii) of point 4.3.2.2., of Section 4. of the norms on "Cooperative Credit Unions (Law 26.173)".
Replace subsection iv) of point 4.3.2.2., of Section 4. of the norms on "Cooperative Credit Unions (Law 26.173)" with the following:

"iii) Client classification and information to the Central Debtors Registry of the Financial System.
It will be carried out based on objective guidelines as established in Section 8."

Incorporate into Section 4. of the norms on "Cooperative Credit Unions (Law 26.173)" the following point:

"4.3.2.3. Loans for micro-entrepreneurs.
These are understood as loans destined for low-income natural persons to attend needs linked to productive, commercial, and service activities, training for micro-entrepreneurs, and financing destined to the improvement of the only home and family housing, in which specific methodologies are used for the prior evaluation, granting, and monitoring of financial assistance in accordance with what is contemplated in subsection f) of this point. Complementarily and to the extent that they have available financing margin within the present credit line, credits for the acquisition of goods or services for consumption may be granted to the micro-entrepreneur. a) Borrowers. Natural persons or associative groups of natural persons who carry out activities on their own account, not affiliated with the financial entity. Borrowers who have received financial assistance under this modality cannot access the reduced amount financing referred to in point 4.3.2.1. b) Individual limit. The outstanding capital at no time may exceed $ 10,000 per client. In the event that the client already has a credit granted as provided in point 4.3.2.1., the residual outstanding capital for both types of financing may not exceed the aforementioned limit. c) Global limit. May not exceed one and a half times the computable net worth of the entity from the month prior to the one in question.

The total of financings granted under the modalities established in points 4.3.2.1. -without exceeding the specific limit of once the CNW- and 4.3.2.3., may not exceed the cited limit of one and a half times. d) Installment frequency. Based on the economic cycles corresponding to the activity developed by the client. e) Origin of credits. The granting of financing may be carried out directly to the credit applicant or through the management of legal persons whose corporate object is the carrying out of microcredit activities, according to the definition of the first paragraph of this point, destined for the natural persons referred to in subsection a). Its provision may also include the provision of technical assistance, monitoring, and training services to credit takers for the development of their business capacity, which meet the following requirements:

Possess authorization to operate from the competent authority according to their type and, if applicable, be registered in the relevant public registry.
Have accounting statements in accordance with applicable professional accounting standards.
f) Evaluation criteria.
For the prior evaluation, granting, and monitoring of financial assistance under this modality, credit methodologies must be used that foresee, among other techniques, the following:
i) observation of quantitative and qualitative aspects to determine the repayment capacity of clients, ii) credit evaluation, monitoring, and/or collection carried out "in-situ", iii) granting of group credits, iv) granting of sequential credits (agreement of a first small-amount, short-term credit, which once cancelled, may be granted for larger amounts and terms and/or lower interest rates, based on compliance with assumed obligations). g) Client classification and information to the Central Debtors Registry of the Financial System. The classification of the debtor must be carried out in accordance with the periodicity and other conditions established in Section 8."

Finally, we send you the sheets that, in replacement of those previously provided, must be incorporated into the pertinent ordered texts. Likewise, it is recalled that on the website of this Institution www.bcra.gov.ar by accessing "regulations" ("ordered texts"), the modifications made with texts highlighted in special characters (strikethrough and bold) will be found. We salute you very respectfully. CENTRAL BANK OF THE ARGENTINE REPUBLIC Darío C. Stefanelli José I. Rutman Manager of Issuance of Norms Deputy General Manager of Norms
ANNEX

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

1.1.3.3. Special Operations.

It shall only be required that the file contain the data allowing for the identification of the client, in accordance with the regulations on "Valid Identification Documents," in the following cases:

a) Of reduced amount.

i) Borrowers.

Individuals not affiliated with the financial entity, insofar as they have not received financing under the terms set forth in point 1.1.3.4., item a).

ii) Individual limit.

The outstanding capital, at no time, may exceed $6,000 per client, under the French or German system modality.

iii) Global portfolio limit.

10% of the entity's computable net worth of the month prior to the one in question. This limit shall be computable for the purpose of calculating the global limit set forth in point 1.1.3.4., item a), subsection iii), in the event that the entity has also granted financings under that modality (loans for microentrepreneurs).

iv) Maximum installment periodicity.

The frequency of installment payments may not exceed a period of one month.

v) Client classification and information to the Central Registry of Debtors of the Financial System.

This shall be carried out based on objective guidelines as established in Section 7 of the regulations on "Debtor Classification."

Likewise, the data that the financial entity, at its discretion, deems necessary for its credit evaluation shall be incorporated.

The granting of this type of assistance does not preclude that, in the event that other credit facilities are granted to the same borrower, the provisions regarding the content of the credit file established in point 1.1.3.1. must be observed.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 7th
COMMUNICATION "A" 4891
Validity:
26/12/2008

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

"Screening" systems 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 uncollectibility associated with each debtor and type of credit, and may employ 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 future repayment of obligations).

Additionally, in both cases, the predictions made must be compared with the finally observed credit behavior, for the purpose of adopting, if appropriate, the adjustments deemed pertinent.

The following conditions must be observed:

i) Borrowers covered.

Individuals not affiliated with the financial entity.

ii) Individual limit.

The outstanding capital, at no time, may exceed the following limits, by type of credit and per client:

mortgage loans for housing: $200,000.
pledge loans for motor vehicles: $75,000.
personal loans and financings through credit cards: $15,000.

iii) Client classification and information to the Central Registry of Debtors of the Financial System.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 8th
COMMUNICATION "A" 4891
Validity:
26/12/2008

This shall be carried out based on objective guidelines as established in Section 7 of the regulations on "Debtor Classification."

iv) The client's file must record the evaluation carried out according to 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 the evaluation of the client and the assignment of credit margins, discriminated, if applicable, by the type of credit.

v) This procedure must have the prior opinion of:

The 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.

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.

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

1.1.3.4. Loans for Microentrepreneurs and Financings to Microcredit Institutions.

a) Loans for Microentrepreneurs.

These are understood as loans destined for low-income individuals to attend to needs linked to productive, commercial, and service activities, training for microentrepreneurs, and financings destined for the improvement of the sole and family residence, in which specific methodologies are used for prior evaluation, granting, and monitoring of financial assistance in accordance with what is contemplated in subsection v) of this point.

Complementarily, and to the extent that they have available financing margin within this type of credit, credits for the acquisition of goods or services for consumption may be granted to the microentrepreneur.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 7th
COMMUNICATION "A" 4891
Validity:
26/12/2008

i) Borrowers.

Individuals or associative groups of individuals who carry out activities on their own account, not affiliated with the financial entity.

Borrowers who have received financial assistance under this modality may not access the reduced-amount financings referred to in point 1.1.3.3., item a).

ii) Individual limit.

The outstanding capital may at no time exceed $15,000 per client. In the event that the client already has a credit granted as provided in point 1.1.3.3., item a), the residual outstanding capital for both types of financings may not exceed the aforementioned limit.

iii) Global limit for financings.

30% of the entity's computable net worth of the month prior to the one in question.

5% of the entity's computable net worth of the month prior to the one in question, with respect to the total of financings in which the periodicity of one or more installments is greater than 90 days or has grace periods greater than that term.

The total of financings granted under the modalities established in points 1.1.3.3., item a), (without exceeding the specific limit of 10%) and 1.1.3.4., item a), may not exceed the cited limit of 30%.

iv) Installment periodicity.

Based on the economic cycles corresponding to the activity developed by the client.

v) Origination of credits and evaluation and monitoring criteria.

The granting of financings may be carried out directly to the credit applicant or through the management of legal entities that meet the characteristics set forth in subsection b) of this point.

For the prior evaluation, granting, and monitoring of financial assistance under this modality, credit methodologies must be used that provide, among other techniques, the following:

observation of quantitative and qualitative aspects to determine the repayment capacity of clients,
credit evaluation, monitoring, and/or collection carried out "in-situ",

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 6th
COMMUNICATION "A" 4891
Validity:
26/12/2008

granting of group credits,
granting of sequential credits (agreement of a first small-amount, short-term credit, which, once cancelled, may be granted for larger amounts and terms and/or lower interest rates, based on the fulfillment of assumed obligations).

vi) Client classification and information to the Central Registry of Debtors of the Financial System.

The classification of the debtor must be carried out in accordance with the periodicity and other conditions established for the consumer or housing portfolio, as established in Section 7 of the regulations on "Debtor Classification."

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

b) Financings to Microcredit Institutions.

i) Borrowers.

Legal entities, not affiliated with the financial entity (except those companies in which the financial entity maintains participation in their capital under the terms set forth in point 2.2.21. of the regulations on "Complementary services of the financial activity and permitted activities"), whose corporate object and main activity is the carrying out of microcredit activities, according to the definition of subsection a) of this point, destined for the individuals referred to in said subsection in item i).

Its provision may additionally include the provision of technical assistance, monitoring, and training services to credit takers for the development of their business capacity, which meet the following requirements:

Possess authorization to operate from the competent authority according to their type and, if applicable, are registered in the relevant public registry.
Have accounting statements in accordance with applicable professional accounting standards.

ii) Regarding file content, what is provided in point 1.1.3.1. must be observed.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 7th
COMMUNICATION "A" 4891
Validity:
26/12/2008

1.1.4. Filing.

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

It will be admitted that the client's file is located in a place different from that of the filing of the account (for example: headquarters 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."

Furthermore, it will be necessary to maintain a copy of the file of each of the clients whose indebtedness (including financings) is equivalent to or greater than 1% of the computable net worth at the entity's headquarters.

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 social security obligations.

1.2.1. Certificates.

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

1.2.1.1. Law 14.499, article 12.

"...banking credit institutions... shall require employers, prior to the granting of credit..., a certificate that they do not owe any amount to the national pension funds in which they are registered, in the concept of contributions and/or taxes, or that having availed themselves of a moratorium, they are up to date in its fulfillment, unless the loan is requested to pay outstanding contributions and/or taxes."

"The national pension funds shall grant the necessary certificate, within 15 days of having been 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."

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 6th
COMMUNICATION "A" 4891
Validity:
26/12/2008

"The record referred to in the preceding paragraph,..., may be substituted by a sworn declaration by the employers on the non-existence of such debts, intervened by the respective Fund as proof that it has received the corresponding copy for the purposes of subsequent verifications that may be necessary. The 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. Operations covered.

The preceding provisions apply to all credit operations, even those carried out between financial entities and with the public sector, and their non-compliance may give rise to the application of the 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 of Argentina since the norms contained in laws 14.499 and 18.214 are destined for financial entities governed 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 of Argentina by virtue of the provisions set forth in its Organic Charter.

1.2.4. Debtors of the social security system.

For the purpose of knowing who holds the condition of debtors, the users designated by the entities must log in with their Fiscal Key, through the website of the Federal Administration of Public Revenues www.afip.gov.ar to the option "Query for Financial Entities of Social Security Debtors".

For this, the entities must previously observe the procedure for delegating access to the "Query for Financial Entities of Social Security Debtors" service to the users responsible for carrying out the query, following the guidelines of General Resolution No. 2,239 of the Federal Administration of Public Revenues (Procedure for registration, authentication, and authorization of users called Fiscal Key) and its modifications.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 5th
COMMUNICATION "A" 4891
Validity:
26/12/2008

1.2.5. Lifting of the injunction.

If situations arise in which a taxpayer is affected by a credit restriction due to their condition as a social security debtor, they must contact the dependency of the Federal Administration of Public Revenues in which they are registered, for the purpose of resolving such condition through it.

1.3. Inscription in the National Industrial Registry.

In the case of clients who carry out any type of industrial activity, the file must contain the verification of compliance with the requirement set forth in article 6 of Law 19.971 in accordance with what is provided in the regulations on "Inscription of clients in the National Industrial Registry to carry out certain operations".

1.4. Sworn declaration on affiliation with the financial entity.

1.4.1. Requirement.

An updated sworn declaration must be maintained in the files of the included clients, permanently available to the Superintendence of Financial and Exchange Entities, regarding whether they do or do not hold the character of affiliated with the respective financial intermediary or if their relationship with it implies the existence of controlling influence.

The sworn declaration must be formulated in the terms of the models contained in point 1.4.8., as applicable. This declaration shall be integrated in duplicate, the copy of which shall be delivered to the presenter with the receipt confirmation by the entity.

Financial entities are obliged to supply applicants for assistance with the necessary information in a timely manner for the correct integration of the data contained in said declaration.

1.4.2. Clients covered.

Non-financial private sector clients, whose debt (for all concepts) plus the amount of the financing requested, at the time of its granting, exceeds 2.5% of the entity's computable net worth of the last day of the month prior to the one in question or the equivalent to $2,000,000, whichever is lower.

1.4.3. Scope.

For these purposes, the financings included with the scope established in the regulations on "Credit Risk Fractionation" shall be considered.

Regarding affiliation, the definitions contained in the regulations on "Credit Risk Fractionation" apply.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 4th
COMMUNICATION "A" 4891
Validity:
26/12/2008

1.4.4. Conditioning of assistance.

The granting of assistance is subject to the applicant presenting the sworn declaration.

1.4.5. Update.

The sworn declaration 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 declaration 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 declaration on whether they do or do not hold the character of affiliated with the entity shall fall on both the signatory or issuer of the documents and the direct beneficiary of the assistance.

1.4.7. Exceptions.

Those obliged by facilities derived from occasional mismatches in repo, forward, cash-to-be-settled, and repo and stock exchange collateral 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 declaration.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 4th
COMMUNICATION "A" 4891
Validity:
26/12/2008

1.4.8. Sworn Declaration Models.

1.4.8.1. Linked Client

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
SUPERINTENDENCIA DE ENTIDADES FINANCIERAS Y CAMBIARIAS

SWORN DECLARATION ON THE DEBTOR'S STATUS REGARDING THE LINKAGE RULES ESTABLISHED BY THE B.C.R.A.

LINKED CLIENT

ENTITY:

The undersigned (1), (2), declares under oath that the data contained herein are correct, complete, and a faithful expression of the truth, and that he/she/the firm he/she represents is (1) covered (1) by the linkage guidelines set forth 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 referred to in point 1.2.4. of the aforementioned Annex I to Communication “A” 2140.

Furthermore, he/she assumes the commitment to inform of any modification that occurs in this regard within five calendar days of its occurrence, by submitting a new sworn declaration which shall also integrate, even if no facts implying a modification of the status are verified, reporting the situation on November 30 of each year, with the same deadline as previously provided.

Date: Signature:

Document: Type (3) No. Country and Issuing Authority (4):

Status invoked (5):

Name of the legal entity (6):

CUIT/CUIL (1) No.:

We certify that the preceding signature matches the one registered in our books/was placed in our presence (1).

(Seal of the entity and signatures of two authorized officials)

Observations:
(1) Cross out what does not apply.
(2) Include the first and last name of the client, in the case of natural persons, even if an attorney-in-fact signs on their behalf.
(3) Indicate D.N.I., L.E. or L.C., as appropriate, for native Argentines. For foreigners: Foreign D.N.I., International Card, Passport, Provisional Certificate, Identity Document of the respective country. (4) Include only in the case of foreigners who do not have residence in the country. (5) Indicate holder, legal representative, attorney-in-fact. When it concerns an attorney-in-fact, the power of attorney granted must be broad and general and be in effect on the date this declaration is signed. (6) Include only in cases where the signatory does so as an attorney-in-fact or legal representative of a legal entity.

This declaration must be integrated in duplicate, the one 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 the granting of financings.
Version: 4th COMMUNICATION “A” 4891
Validity:
26/12/2008

1.4.8.2. Unlinked Client.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
SUPERINTENDENCIA DE ENTIDADES FINANCIERAS Y CAMBIARIAS

SWORN DECLARATION ON THE DEBTOR'S STATUS REGARDING THE LINKAGE RULES ESTABLISHED BY THE B.C.R.A.

UNLINKED CLIENT

ENTITY:

The undersigned (1), (2), declares under oath that the data contained herein are correct, complete, and a faithful expression of the truth, and that he/she/the firm he/she represents is not (1) covered (1) by the linkage guidelines set forth 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 referred to in point 1.2.4. of the aforementioned 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.

Date: Signature:

Document: Type (3) No. Country and Issuing Authority (4):

Status invoked (5):

Name of the legal entity (6):

CUIT/CUIL (1) No.:

We certify that the preceding signature matches the one registered in our books/was placed in our presence (1).

(Seal of the entity and signatures of two authorized officials)

This declaration must be integrated in duplicate, the one 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 the granting of financings
Version: 4th COMMUNICATION “A” 4891
Validity:
26/12/2008

1.4.9. Non-compliance.

Non-compliance with the submission of the first declaration or subsequent updates will determine the following treatment:

i) The debtor will be considered as linked to 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 rules on "Fragmentation of credit risk".

ii) The entirety of the debt registered by the borrower must be classified as "unrecoverable by technical provision" in relation to the provisions on "Classification of debtors".

The application of the established treatment must be carried out from the date of granting of the assistance, when it concerns the first declaration or, in the case of subsequent updates, from December 1. When it concerns sworn declarations presented out of term, these provisions must be observed until the day or the month prior to the date on which the client makes the pertinent presentation, depending on whether it concerns credit assistance limits or the classification of the debtor in the "unrecoverable by technical provision" category, respectively.

1.4.10. Falsity of the declaration.

When the Superintendence of Financial and Foreign Exchange Entities determines falsity in the sworn declaration presented, which leads to the entity not informing that the debtor is a linked 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 computable equity responsibility of the financial entity registered on the last day of the second month prior to that in which the granting of credit assistance is decided.

Sets or economic groups of the non-financial private sector -defined in the rules on "Fragmentation of credit risk"- must be considered as a single client.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings.
Version: 7th COMMUNICATION “A” 4891
Validity:
26/12/2008

1.5.2. Procedure for Granting.

It must have the prior opinion of:

Branch Manager, except if the application is processed through the head office.
Regional or Zonal Manager -if applicable and when the assistance has not been managed through 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 functional structure of the entity.

Such interventions must be complied with in all included cases, except for the established exceptions, to the extent that such positions are provided for in the organizational-functional structure of the entity, 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 this provision does not imply the modification of said structure nor 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 assistance to linked firms, in which case the consent 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 highest local authority has to leave the country, the material task of approving the assistance may be delegated to a highest-level official, without this implying the release of 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 comprising said bodies.

The decisions of the mentioned authorities must be recorded in the corresponding minute books.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings
Version: 3rd COMMUNICATION “A” 4891
Validity:
26/12/2008

1.5.4. Credit Agreements with Partial Disbursements.

In cases where, for operational reasons, credit margins whose validity is not greater than one year are assigned, through agreements communicated or not to the clients, with partial disbursements referred to the respective framework agreement based on the debtors' needs, their approval by the mentioned authorities fulfills the requirement fixed 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.

Without prejudice to this, the agreement must be subject to periodic review -with the consent of the mentioned authorities- whenever the borrower must be reclassified into a lower quality category according to the pertinent rules.

The obligated officials must intervene prior to each disbursement in order 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 specific quick-processing operations, it is admitted that the approval of the Board of Directors, Board of Trustees, or highest-ranking local official is carried out within 30 days following the granting of the credit.

1.5.6. Bases for Observance of the Provisions.

1.5.6.1. Individual Base.

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

1.5.6.2. Monthly Consolidated Base.

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

1.5.7. Non-compliance.

Non-compliance with the established requirements will give rise to the application of the following sanctions:

i) Fine of 1 to 2 times the amount of the funds effectively disbursed.

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings
Version: 2nd COMMUNICATION “A” 4891
Validity:
26/12/2008

ii) Fine of 1 to 3 times the amount of the funds effectively disbursed when non-compliance with the obligation regarding control over the interventions that correspond is verified.

iii) Disqualification of 5 to 20 years to work in the financial activity.

Such sanctions will fall on the natural persons to whom the transgression is attributable and on the financial entity, which will be jointly and severally responsible for the payment of the fines applied to them in the case that they are declared insolvent by a competent authority.

The application of the sanctions will be adjusted to the provisions contained in article 41 of the Financial Entities Law and its regulation on the graduation of fines.

1.6. Credit Cards.

Financial entities must abstain from issuing and renewing credit cards to holders who are delinquent debtors of an entity in liquidation, whether judicial or extrajudicial.

This circumstance must be communicated to the holders of credit cards.

1.7. Cashization of Credits in Deposit Accounts.

Disbursements for financings exceeding $ 50,000 must be effected through their crediting into 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 Head Office.

Clients who only receive financings and guarantees, sureties, and other responsibilities granted by local branches and subsidiaries of foreign financial entities, on behalf and order of their head office or their branches in other countries or of the controlling entity, are excluded from the scope of the provisions of this Section, provided that the following requirements are observed:

1.8.1. The rules of the country where the head office or controlling entity is located, the latter defined according to the provisions in force in that jurisdiction, must cover supervision on a consolidated basis of the local 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".

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings
Version: 2nd COMMUNICATION “A” 4891
Validity:
26/12/2008

1.8.3. In the case of financings, these must be attended to by the local subsidiaries only with funds coming from lines assigned to them by the aforementioned intermediaries abroad.

If the 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 head office or its branches in other countries or by the foreign controlling entity, the effectiveness of which operates in an unrestricted manner upon simple request of the local subsidiary and in an immediate manner to its eventual execution by the beneficiary.

In addition, the aforementioned operations are not covered by the rules on "Minimum Capital of Financial Entities", "Classification of Debtors" and "Fragmentation 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, in foreign currency, or public bonds- or debentures issued by them are received as collateral for the fulfillment of loans, even if the minimum term of 30 days has elapsed from the date of issuance, last negotiation, or transfer, while they maintain these facilities in force.

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

CREDIT MANAGEMENT B.C.R.A.
Section 1. Requirements for the granting of financings
Version: 1st COMMUNICATION “A” 4891
Validity:
26/12/2008

ORDERED TEXT ORIGIN OF THE PROVISIONS OBSERVATIONS Sec. Point Para. Com. Annex Chap. Sec. Point Para.
1.1.1. “A” 3051
1.1.2. “A” 2729 3. 3.4.1. According to Com. “A” 2950.
“A” 49 I. 3.1.
“A” 2729 3. 3.4.2. 2nd According to Com. “A” 2950.
“A” 2729 3. 3.4.2. 8th According to Com. “A” 2950 and “A” 3051 1.1.3.1.
“A” 3051 i) “A” 2729 3. 3.4.2. 3rd According to Com. “A” 2950 and “A” 3051. ii) “A” 2729 3. 3.4.2. 4th and 5th According to Com. “A” 2950 and 4738, pt. 5. iii) “A” 2729 3. 3.4.2. 7th According to Com. “A” 2950 1.1.3.2. iv) “A” 2729 3. 3.4.3. According to Com. “A” 2950 1st a) “A” 3142 1. According to Com. “A” 3182, “A” 4325 (point 3.), “A” 4556, “A” 4559 and “A” 4891 (point 1.). 1.1.3.3. b) “A” 4325 3. According to Com. “A” 4559 (point 1.), “A” 4572, “A” 4637 and “A” 4891 (point 1.).
1.1.3.4. “A” 4891 2.
1.1.4. “A” 2729 3. 3.4.4. According to Com. “A” 2950.
1.1.5. “A” 2729 3. 3.4.5. According to Com. “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 Com. “A” 3051.
1.2.4. “C” 18820 According to Com. “B” 8833 and
“B” 9063.
1.2.5. “C” 18820 According to Com. “B” 9063.
1.3. “A” 2860 1. 1.1.1. According to Com. “A” 3051.
1st “A” 2573 1. 1st According to Com. “A” 3051.
2nd “A” 2573 1. 5th
1.4.1.
3rd “A” 2573 1. 6th
1.4.2. “A” 2573 1. 2nd According to Com. “A” 3051 and
“A” 4522.
1.4.3. 1st “A” 2573 1. 3rd According to Com. “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.
1.4.9.
Last. “A” 2573 1. 11th
B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE
ORDERED TEXT OF THE CREDIT MANAGEMENT RULES

CREDIT MANAGEMENT
ORDERED TEXT ORIGIN OF THE PROVISIONS
Sec. Point Para. Com. Annex Chap. Sec. Point Para. OBSERVATIONS
1.4.10. “A” 2573 1. 12th
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 Com. “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 Com. “A” 3051
1.8. “A” 2412
1.9.1. “A” 2308 According to Com. “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 According to Com. “B” 9074.
2.
2.3. “A” 476 4.
3.1. "A" 1465 I 2.
3.2.1. "A" 1465 I 2. According to Com. "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 Com. "A" 2275
4.1. “A” 431 According to Com. "A" 4817 and
“A”4876
4.
4.2. “A” 2322
5.1. “A” 49 I 5.1. According to Com. “A” 1124
5.2. “A” 3051
5.3. “A” 49 I 5.2. According to Com. “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 Com. “A” 3051
6.2.2. “A” 49 I 7.2.1.
6.2.3. “A” 49 I 7.2.2. According to Com. “A” 3051
6.
6.3. “A” 49 I 7.3.1.

2.2.10. Data processing and/or transmission services linked to financial activity.
2.2.11. Credit information services for commercial and financial use (databases of financial backgrounds).
2.2.12. Financial and investment advice, and for mergers and/or acquisitions of companies, provided it does not imply business administration or management. It may not grant loans.
2.2.13. Reciprocal guarantee companies, with the status of protective partner.
2.2.14. Advice on fund management and/or trust administration regarding activities compatible with the type of entity.
2.2.15. Trustee of financial trusts.
2.2.16. Transport and/or custody of funds and securities, which includes the service of transporting correspondence and financial documentation of the entities and/or their clients. Associated security service for financial entity premises. In both cases, insofar as it is a complement to the provision of the service to the owner entity/entities.
2.2.17. Service of securities and mortgage letter registry agent.
2.2.18. Service for the settlement of securities transactions.
2.2.19. Funds clearing houses.
2.2.20. Temporary acquisition of participations in companies to facilitate their development, with the aim of subsequently selling the holdings. Granting to these companies of financing and advice in planning and direction.
2.2.21. Provision of financial services to individuals or associative groups of individuals, of low resources, who carry out activities on their own account, not linked to the financial entity.
The activity consists of the granting of loans to microentrepreneurs destined to individuals to attend needs linked with productive, commercial, and service activities, and financing destined to the improvement of the unique and family dwelling, in which specific methodologies are used for prior evaluation, granting, and follow-up of financial assistance in order to what is contemplated in point 1.1.3.4., item a), subsection v) of the rules on "Credit Management". Likewise, they may provide to the beneficiaries: training, technical assistance, and the follow-up that proves necessary to carry out their activities. Complementarily and insofar as they have available financing margin, observing for this purpose the limit assigned in the aforementioned point 1.1.3.4., item a), subsection ii), credit may be granted to the microentrepreneur for the acquisition of goods or services for consumption.

COMPLEMENTARY SERVICES OF THE FINANCIAL ACTIVITY AND PERMITTED ACTIVITIES B.C.R.A.
Section 2. Complementary services.
Version: 2nd. COMMUNICATION "A" 4891
Validity:
26/12/2008

For the granting of financing, the company may act with its own funds, with funds obtained from credits and/or donations and/or other types of contributions and/or act as originator agent of loans on behalf of the participating financial entity or of other/s in the financial system.

2.3. Authorization.
2.3.1. Scope.
The acquisition or incorporation by financial entities of corporate participations, direct or indirect, in companies whose object is the development of the activities enumerated in points 2.2.1., 2.2.6, 2.2.8., 2.2.20. and 2.2.21., that exceed 12.5% of the social capital or of the total votes or lower percentages if this is sufficient to form the social will in shareholders' meetings or board meetings of said companies and without prejudice to the specific normative treatment that applies in each case, will be subject to the authorization of the Superintendence of Financial and Currency Entities, for which it will be a condition the fulfillment of the following requirements:
2.3.1.1. Fulfill the conditions established for the transformation of financial entities.
2.3.1.2. Have rating 1, 2 or 3 assigned by the Superintendence of Financial and Currency Entities.
2.3.2. Application.
With the pertinent authorization requests, the following information must be attached, according to the procedure established for this purpose:
2.3.2.1. Name, corporate object, and description of the company's activities and specification regarding its degree of linkage to the financial activity and the intention to exercise or not social control.
2.3.2.2. Corporate statutes, which must expressly provide:
i) That modifications of the corporate object must be authorized by the Superintendence of Financial and Currency Entities. ii) That the verification of the company's operations with the scope provided in the Financial Entities Law is admitted.
2.3.2.3. Amount of the investment and disbursement schedule.
2.3.2.4. Participation in the social capital, its total percentage distribution, and list of shareholders holding 5% or more of the social capital and/or votes.
2.3.2.5. Use of the entity's infrastructure for the offer of services provided by the company.
2.3.2.6. Any other information that, in the judgment of the financial entity, proves useful for the Central Bank of the Republic Argentina to evaluate the effect of the investment on its solvency, managerial capacity, and management.

COMPLEMENTARY SERVICES OF THE FINANCIAL ACTIVITY AND PERMITTED ACTIVITIES B.C.R.A.
Section 2. Complementary services.
Version: 2nd. COMMUNICATION "A" 4891
Validity:
26/12/2008

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON "COMPLEMENTARY SERVICES OF THE FINANCIAL ACTIVITY AND PERMITTED ACTIVITIES" ORDERED TEXT ORIGIN NORM Sec. Point Para. Com. Annex Ch. Sec. Point Para. OBSERVATIONS
1.1. 1st "A" 2384 2.
2nd "A" 2384 2. Incorporates Interpretative clarification.
1st and
2nd
"A" 3086
1.
1.2.
3rd "A" 2384 S/ Com. "A" 3086.
2.1. 1st "A" 2619 S/ Com. "A" 2988 and 3086.
2nd "A" 3086
2.2.1. "A" 2056 2. 1st
2.2.2. a
2.2.3.
"A" 3086
2.2.4. "A" 2155
2.2.5. "A" 2197
2.2.6. a
2.2.18.
"A" 3086
2.2.19. "A" 2557 Unique 2. 1st
2.2.20. "A" 3086
2.2.21. "A" 4891 3.
2.3.1. "A" 2619 1st S/ Com. "A" 2988, 3086 and
4891 (point 4.).
2.3.1.1. "A" 2619 1st S/ Com. "A" 3086.
2.3.1.2. "A" 2619 1st S/ Com. "A" 3086.
2.3.2. "A" 2619 2nd
2.3.2.1. "A" 2619 2nd
2.3.2.2. "A" 2619 2nd S/ Com. "A" 3086.
2.3.2.2.i) "A" 2619 4th a)
2.3.2.2.ii) "A" 2619 4th b)
2.3.2.3. "A" 2619 2nd
2.3.2.4. "A" 2619 2nd S/ Com. "A" 3086.
2.3.2.5. a
2.3.2.6.
"A" 2619 2nd
2.3.3. "A" 2619 3rd S/ Com. "A" 3086.
2.3.4. "A" 2619 5th S/ Com. "A" 3086
2.4. "A" 3086
2.
2.5. "A" 2619 Last. S/ Com. "A" 2988 and 3086.
3.1. 1st "A" 3086
3.1.1. "A" 2056 1.
3.1.2. "A" 2384 1. 1st and
2nd
2nd "A" 2056
"A" 2384
1.

3rd
3.1.
3rd "A" 3086
3.2. 1st "A" 2206 1. and
2.
S/ Com. "A" 3086.
3.
3.2. 2nd "A" 3086

2.2.16. Financing to legal persons whose corporate object is the provision of microcredits
(according to the definition provided by item b) of point 1.1.3.4. of the rules on "Credit Management"), insofar as the granting does not exceed:
a) Individual limit: 2.5% of the computable net worth of the granting entity -of the last day of the second month prior to the month of granting of the financing- or $ 1,500,000, whichever is greater. b) Global limit: 10% of the computable net worth of the granting entity -of the last day of the second month prior to the month of granting of the financing- or $ 4,000,000, whichever is greater.

CREDIT GRADUATION B.C.R.A.
Section 2. Financings included.
Version: 1st. COMMUNICATION "A" 4891
Validity:
26/12/2008

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE RULES ON "CREDIT GRADUATION" ORDERED TEXT ORIGIN NORM
Section Point Paragraph Com. Annex Point Paragraph Observations
1.1. 1st "A" 467 unique 2.
"A" 467 unique 6.1. last
1.
1.1. 2nd "A" 3002 Incorporates interpretative clarification
2.1. "A" 467 unique 2.
2.2.1. "A" 467 unique 4.1.
2.2.2. 1st "A" 467 unique 3.1.
2.2.2. last "A" 490 unique 2.
2.2.3. "A" 467 unique 3.2.
2.2.4. "A" 467 unique 3.3.
2.2.5. "A" 467 unique 4.2.
2.2.6. 1st "A" 467 unique 4.3.
2.2.6. last "A" 490 unique 4. and 5.
2.2.7. "A" 467 unique 4.4.
2.2.8. except
"A" 467 unique 4.5. According to Com. "A" 2054.
2.2.8.1. viii "A" 467 unique 4.5.8. According to Com. "A" 2074.
2.2.9. "A" 467 unique 4.6. According to Com. "A" 2054.
2.2.10. "A" 467 unique 4.7. According to Com. "A" 2098, "B" 5477
and "A" 4310 (point 3.).
2.2.11. "A" 467 unique 4.8.
"A" 2410 7.
According to Com. "A" 2410, 3307,
4093 (penultimate paragraph) and "A"
4465.
2.2.12. a
2.2.14.
"B" 5902 10. last
2.2.15. "A" 3314
2.
2.2.16. "A" 4891 5.
3.1.1. "A" 467 unique 1. 1st According to Com. "A" 2373.
3.1.2.1. "A" 467 unique 1. 2nd According to Com. "A" 2373.
3.1.2.2. 1st to 6th "A" 467 unique 1. 2nd According to Com. "A" 2373 and "B"
5902. Includes interpretative clarification.
3.1.2.2. 7th "B" 5902 10. 1st
3.1.2.2. last "A" 3002 Incorporates interpretative clarification.
3.2.1. "A" 467 unique 1. 3rd According to Com. "A" 2373, modified by Com. "A" 2960.
Incorporates interpretative criterion.
3.2.2. "A" 2206 2. According to Com. "A" 3183.
3.2.2.1. "A" 2206 2. According to Com. "A" 3086 and 3183.
3.2.2.2. "A" 2056 1. According to Com. "A" 3086 and 4093
(penultimate paragraph).
3.2.2.3. "A" 2384 1. 1st and 2nd According to Com. "A" 3086 and 4093
(penultimate paragraph).
3.2.2. last "A" 3086 1.
3.
3.3. "A" 2156 5.
4. 4.1. "A" 467 unique 5.

-IndexSection 7. Classification of debtors of the portfolio for consumption or housing.
7.1. Classification criterion.
7.2. Classification levels.
7.3. Mandatory recategorization.
7.4. Information to the Superintendence of Financial and Currency Entities on increases in the irregular portfolio.
Section 8. Information to clients.
8.1. Information to be supplied.
Section 9. Bases for observance of the rules.
9.1. Individual base.
9.2. Consolidated base.
Section 10. Other obliged to observance of the rules on debtor classification.
10.1. Non-financial entities issuing credit cards in the "closed system" modality.
10.2. Trustees of financial trusts included in the financial entities law.
10.3. Reciprocal guarantee companies.
Section 11. Transitional Provisions.
Correlation table.
B.C.R.A.
ORDERED TEXT OF THE RULES ON
DEBTOR CLASSIFICATION
Version: 5th. COMMUNICATION "A" 4891
Validity:
26/12/2008

5.1. Categories.
The portfolio will be grouped into two basic categories:
5.1.1. Commercial portfolio.
It covers all financings included, with the exception of the following:
5.1.1.1. Credits for consumption or housing.
Credits of this class that exceed the equivalent to $ 500,000 and whose repayment is not linked to fixed or periodic income of the client but to the evolution of their productive or commercial activity, will be included within the commercial portfolio.
5.1.1.2. At the entity's option, financings of a commercial nature up to the
equivalent to $ 500,000, with or without preferred guarantees, may be grouped together with credits for consumption or housing, in which case they will receive the treatment provided for the latter. When the client maintains financings for both concepts, credits for consumption or housing will be added to those of the commercial portfolio to determine their framing in one or the other portfolio based on the indicated amount, for which purpose credits with preferred guarantees will be weighted at 50%. If exercised, this option must be applied generally to the entire portfolio and be provided for in the "Classification and Provision Manual" and can only be changed with 6 months' notice to the Superintendence of Financial and Currency Entities.
5.1.2. Portfolio for consumption or housing.
It comprises:
5.1.2.1. Credits for consumption (personal and family, for professionals, for the acquisition of consumer goods, financing of credit cards).
5.1.2.2. Credits for own housing (purchase, construction, or renovation).
5.1.2.3. Loans to Microcredit Institutions -up to the equivalent to $500,000- and to
microentrepreneurs (as provided by point 1.1.3.4. of the rules on "Credit Management").
5.1.2.4. Financings of a commercial nature up to the equivalent to $ 500,000 with
or without preferred guarantees, in case the entity has opted for it.

DEBTOR CLASSIFICATION B.C.R.A.
Section 5. Portfolio categories.
Version: 3rd. COMMUNICATION "A" 4891
Validity:
26/12/2008

7.4. Information to the Superintendence of Financial and Currency Entities on increases
in the irregular portfolio.
In cases where the expression established next is greater than 5% on the last day of a calendar quarter or 10% in a year, the financial entity must inform the origin of such circumstance to the Superintendence of Financial and Currency Entities, providing the explanations that are requested and, if applicable, the modifications to be made in its credit policy aimed at improving the quality of its credit portfolio. FICCT - FICCT-1 - Max (FICCST - FICCST-1 ; 0) Being:
FICC: quotient, expressed as a percentage, between the total amount of financings of the consumption or housing portfolio, of the financial entity, classified in situation 3 to 5 according to the rules on "Debtor Classification" and the total amount of its financings of the consumption or housing portfolio. FICC: quotient, expressed as a percentage, between the total amount of financings of the consumption or housing portfolio, of the total financial system, classified in situation 3 to 5 according to the rules on "Debtor Classification" and the total amount of its financings of the consumption or housing portfolio, according to the information released by the Central Bank of the Republic Argentina. T: the last day of a calendar quarter to which the calculation of the quotient corresponds. T-1: the last day of the immediately preceding calendar quarter and the last day of the same quarter corresponding to the previous year, as applicable."

DEBTOR CLASSIFICATION B.C.R.A.
Section 7. Classification of debtors of the portfolio for consumption or housing.
Version: 1st. COMMUNICATION "A" 4891
Validity:
26/12/2008

DEBTOR CLASSIFICATION
ORDERED TEXT ORIGIN NORM Observations
Sec. Point Para. Com. Annex Point Para.
5.1.1.1. "A" 2216 I I. 1st According to Com. "A" 2410 and "A" 4310 (point 1.)
"A" 2216 I I. 2nd Modif. by Com. "A" 2410 and 4310 (point 1.)
"A" 2216 I II. 4th Modif. by Com. "A" 2410 and 4310 (point 1.)
5.1.1.2. 1st "A" 2216 I 6. last According to Com. "A" 2358 and "A" 4310 (point 1.)
5.1.1.2. 2nd "A" 2216 I I. 1st According to Com. "A" 2410.
5.1.1.2. last "A" 2216 I 6. last According to Com. "A" 2358.
5.1.2.1. "A" 2216 I 6. 1st
5.1.2.2. "A" 2216 I 6. 1st
5.1.2.3. "A" 4891 6.
5.
5.1.2.4. "A" 2216 I II. 3rd According to Com. "A" 2358 and 4310 (point 1.).
6.1. "A" 2216 I I. last
6.2. 1st "A" 2216 I I.a. 1st
6.2. 2nd "A" 3918 According to Com. "A" 3987.
6.2. 3rd "A" 4453 According to Com. "A" 4577.
6.2. 4th Incorporates criterion not disclosed with
general character previously.
6.3. "A" 2216 I I.a. 2nd
6.3.1. "A" 2216 I I.a. 2nd, i) Modified by Com. "A" 2223 (point 1.)
and "A" 3339.
6.3.2. "A" 2216 I I.a. 2nd, ii) Modified by Com. "A" 2223 (point 1.)
and "A" 3339.
6.3.3. "A" 2216 I I.a. 2nd, iii)
6.4. 1st "A" 2216 I I.b. 1st Modif. by Com. "A" 3339.
6.4.1. "A" 2216 I I.b. 1st, i) Modif. by Com. "A" 3339.
6.4.2. "A" 2216 I I.b. 1st, ii) Modif. by Com. "A" 3339.
6.4.3. "A" 2216 I I.b. 1st, iii)
6.4.4. "A" 2893 4.
6.4.5. "A" 3339 unique
6.4. last "A" 2216 I I.b. last Modif. by Com. "A" 2223 (point 1.) and
"A" 3339.
6.5. 1st "A" 2216 I I.d. 1st Modif. by Com. "A" 2440.
6.5. 2nd "A" 4060 10.
6.5. 3rd "A" 2216 I I.d. last Modif. by Com. "A" 3339.
6.5. last "A" 2216 I I.d. last Includes interpretative clarification.
6.5.1. "A" 2216 I I.d.1. According to Com. "A" 2932 (point 16.) and "A"
3339.
6.5.1.1. "A" 2216 I I.d.1.a) According to Com. "A" 3955.
6.5.1.2. "A" 2216 I I.d.1.b) Modif. by Com. "A" 3339.
6.5.1.3. "A" 2216 I I.d.1.c)
6.5.1.4. "A" 2216 I I.d.1.d) According to Com. "A" 2932 (point 5.).
6.5.1.5. "A" 2216 I I.d.1.e)
6.5.1.6. "A" 2216 I I.d.1.f) Modif. by Com. "A" 3339.
6.5.1. last "A" 2216 I I.d.1. last Modif. by Com. "A" 3339.
6.5.2. "A" 2216 I I.d.2. Modif. by Com. "A" 3339.
6.5.2.1. "A" 2216 I I.d.2. 1st, 2nd
and 3rd
According to Com. "A" 3339. i) "A" 2216 I I.d.2.a) According to Com. "A" 3339 and 3955. ii) "A" 2216 I.d.2.b) Modif. by Com. "A" 3339.
6. iii) "A" 2216 I I.d.2.c) According to Com. "A" 3339.

DEBTOR CLASSIFICATION
ORDERED TEXT ORIGIN NORM
Section Point Paragraph Com. Annex Point Paragraph Observations
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 clause
"A" 2287 2.3. Modified by Com. "A" 2497 (point 1.). b), last clause "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. 1st "A" 2216 I II. 1st According to Com. "A" 3142, "A" 4325
(point 1.), "A" 4559 (point 7.), "A"
4648, "A" 4660, "A" 4683 and "A"
4738.
7.2.1. "A" 2216 I II.1. According to Com. "A" 4648, "A" 4660,
"A" 4683Y and "A" 4738.
7.2.2. "A" 2216 I II.2. According to Com. "A" 4648, "A" 4660,
"A" 4683 and "A" 4738.
7.2.3. "A" 2216 I II.3. According to Com. "A" 4648, "A" 4660,
"A" 4683 and "A" 4738.
7.2.4. "A" 2216 I II.4. Includes interpretative clarification.
According to Com. "A" 4310 (point 2.),
"A" 4648, "A" 4660 ,"A" 4683 and "A"
4738.
7.2.5. "A" 2216 I II.5. Includes interpretative clarification.
According to Com. "A" 4310 (point 2.),
"A" 4648, "A" 4660, "A" 4683 and "A"
4738.
7.2.6. "A" 2216 I II.6. According to Com. "A" 2440
7.3. "A" 2216 I II. 1st and 2nd Modified by Com. "A" 2932 (point 6.) and "A" 3339.
7.
7.4. "A" 4891 7.
8. 8.1. "A" 2216 I 5. Modified 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" 4683 4.
11.
11.2. "A" 4738

CONSOLIDATED SUPERVISION
B.C.R.A.
Section 5. Observance of rules.
5.2.1.5. Maximum limit that applies to financings, except those destined to other
financial entities, regarding whose granting the intervention of credit area officials and the general manager is not required and the approval of the directors of the lending entity, fixed at 2.5% of the computable net worth of the second month prior to granting.
5.2.1.6. Global maximum limits, according to the rules on "Credit Management" for:
a) Small amount loans. b) Loans for microentrepreneurs.
5.2.1.7. Position and minimum liquidity coefficients.
5.2.1.8. Ratio for immobilized assets and other concepts.
5.2.2. Quarterly consolidated base.
Without prejudice to compliance individually, and additionally and independently of compliance on a monthly consolidated basis, controlling financial entities subject to consolidated supervision will observe on a quarterly consolidated basis the following rules:
5.2.2.1. Minimum capital, except for market risk.
5.2.2.2. Debtor classification and minimum provisions for uncollectible risk.
5.2.2.3. Fragmentation of credit risk.
5.2.2.4. Maximum limit for holding participations in companies that do not provide
complementary services of the financial activity.
5.2.2.5. Ratio for immobilized assets and other concepts.
5.2.3. Observance of the rules on "Prevention of money laundering and other illicit activities
and "Prevention of terrorism financing".
The provisions contained in the aforementioned rules must also be observed in the subsidiaries and affiliates that are included in this regime, insofar as the applicable legal provisions in the matter of the country where they are located allow. The observance of what is indicated does not reach the provisions for the integration of the base referred to in point 1.7. of the first provision, nor the reports of suspicious operations that derive from both regimes. In that framework, financial entities must ensure that subsidiaries and affiliates consider within the internal control scheme related to "Prevention of money laundering and other illicit activities" and "Prevention of terrorism financing", the following:
Version: 3rd. COMMUNICATION "A" 4891
Validity:
26/12/2008

CONSOLIDATED SUPERVISION
ORDERED TEXT ORIGIN NORM
Section Point Paragraph Com. Annex Point Paragraph Observations
5.2.1.6. "A" 4891 8.
5.2.1.7. "A" 2690 unique 6.
5.2.1.8. "A" 2227 unique 5.1.8. According to Com. "A" 2736.
5.2.2. "A" 2227 unique 5.1. According to Com. "A" 2649. Complemented by Com. "A" 2461,
2736 and 2839 and "B" 5902.
5.2.3. "A" 4835 4.
5.3.1. "A" 2227 unique 5.2.1. According to Com. "A" 2649.
5.3.2. "A" 2227 unique 5.2.2.
5.4.1. "B" 6115 3rd
5.4.2. "A" 2793 unique 3. According to Com. "A" 4698.
5.4.3. "B" 6566 1.
5.
5.5. "A" 2227 unique 5.3. Modified by Com. "A" 2649.

4.3. Requirements for the granting of financings.
4.3.1. Borrower file.
4.3.1.1. Opening.
The entity must keep a file for each debtor in its portfolio.
In the cases 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 must be opened, constituted consequently as main and direct payers, to whom the claims have been imputed.
4.3.1.2. Content.
The file must contain all elements that enable correct evaluations regarding the economic and financial situation (present and projected) of the borrower. The classifications due to the application of the pertinent provisions provided for in Section 8. and data that allow verifying compliance with the regulations established in credit matters (Section 7.) must be recorded. Additionally, the requirements referred to in points 4.4. and 4.5. must be recorded, when applicable. It must also contain information about the total credit margin assigned to the borrower and eventual responsibilities assumed regarding him, regardless of the concept or credit line.
4.3.2. Specific credit segment for individuals.
It will only be required that the file contains the data that allow the identification of the customer, according to the rules on "Valid Identification Documents", in the following cases:
4.3.2.1. Small amount.
i) Borrowers.
Individuals not linked to the financial entity insofar as they have not received financing under the terms provided in point 4.3.2.3. ii) Individual limit. They may be contracted under the French or German system modality and amount up to $ 6,000 per client. COOPERATIVE CREDIT BOXES (LAW 26.173) B.C.R.A.
Section 4. Active operations.
Version: 2nd. COMMUNICATION "A" 4891
Validity:
26/12/2008

iii) Global portfolio limit.
The total of these credits shall not exceed one times the entity's computable equity from the month prior to the one in question. This limit shall be taken into account for calculating the global limit provided for in point 4.3.2.3., item c), in the event that the cooperative credit union has also granted financing under that modality (loans for microentrepreneurs).

iv) Installment frequency.
The installment frequency may be weekly, biweekly, or monthly.
The granting of this type of assistance does not preclude that, in the event that other credit facilities are granted to the same borrower, the provisions regarding the content of the credit file established in point 4.3.1. must be observed.

4.3.2.2. Allocation using specific evaluation methods (screening systems and credit scoring models) to decide on the granting of credits.
Screening systems are understood as the set of steps and decision rules that collect accumulated experience in granting credits, the monitoring of their subsequent behavior, and the entity's credit policy. 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 risk and/or the probability of default by credit applicants.

The methodology and information used to substitute the demonstration of income through specific documentation must ensure that the assessment of repayment capacity is incorporated into the result of the screening or credit scoring employed to infer credit behavior (probability of repaying 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 deemed appropriate, the adjustments considered pertinent.

COOPERATIVE CREDIT UNIONS (LAW 26.173) B.C.R.A.
Section 4. Active Operations.
Version: 2nd. COMMUNICATION "A" 4891
Validity:
26/12/2008

The following conditions shall 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 credit class and by client:

mortgage loans for housing: $ 150,000.
pawn loans for motor vehicles: $ 30,000.
personal loans and financing through credit cards:
$ 10,000.

iii) Client classification and information to the Central of Debtors of the Financial System.
It will be carried out based on objective guidelines as established in Section 8.

iv) The client's file must contain a record of the evaluation carried out according to this procedure.
Likewise, it may contain other elements that the cooperative credit union, at its discretion, deems necessary for credit evaluation, without this constituting a necessary condition for its application.

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

v) This procedure must have the prior opinion of:

The highest-ranking official of the credit or commercial area responsible for deciding on credit matters.
General Manager or equivalent authority.
Likewise, it will be necessary to have the approval of the aforementioned procedure by the Board of Directors of the cooperative credit union.

COOPERATIVE CREDIT UNIONS (LAW 26.173) B.C.R.A.
Section 4. Active Operations.
Version: 2nd. COMMUNICATION "A" 4891
Validity:
26/12/2008

vi) In cases where the assessment of repayment capacity is carried out directly based on supporting documentation of the borrower's income, even when the methods indicated in this section are used complementarily, the provisions regarding the content of the file established in point 4.3.1. must be observed.

4.3.2.3. Loans for microentrepreneurs.
These are understood as loans destined for low-income natural persons to attend needs linked to productive, commercial, and service activities, training for microentrepreneurs, and financing destined for the improvement of the single and family residence, in which specific methodologies are used for prior evaluation, granting, and monitoring of financial assistance in accordance with item f) of this point.

Complementarily and to the extent that they have available financing margin within this credit line, credits for the acquisition of goods or services for consumption may be granted to the microentrepreneur.

a) Borrowers.
Natural persons or associative groups of natural persons who carry out self-employed activities, not linked to the financial entity.

Borrowers who have received financial assistance under this modality shall not be eligible for the reduced-amount financings referred to in point 4.3.2.1.

b) Individual limit.
The outstanding capital at no time may exceed $ 10,000 per client. In the event that the client already has a credit granted as provided in point 4.3.2.1., the residual outstanding capital for both types of financings may not exceed the aforementioned limit.

c) Global limit.
It may not exceed one and a half times the entity's computable equity from the month prior to the one in question.

The total of financings granted under the modalities established in points 4.3.2.1. (without exceeding the specific limit of one times the RPC) and 4.3.2.3., may not exceed the cited limit of one and a half times.

d) Installment frequency.
Based on the economic cycles corresponding to the activity developed by the client.

COOPERATIVE CREDIT UNIONS (LAW 26.173) B.C.R.A.
Section 4. Active Operations.
Version: 2nd. COMMUNICATION "A" 4891
Validity:
26/12/2008

e) Origination of credits.
The granting of financings may be carried out directly to the credit applicant or through the management of legal entities whose corporate purpose is the carrying out of microcredit activities, according to the definition in the first paragraph of this point, destined for the natural persons referred to in item a).

Its provision may also include the provision of technical assistance, monitoring, and training services to credit takers for the development of their business capacity, which meet the following requirements:

Possess authorization to operate from the competent authority according to their type and, if applicable, be registered in the relevant public registry.
Have financial statements in accordance with applicable professional accounting standards.

f) Evaluation criteria.
For the prior evaluation, granting, and monitoring of financial assistance under this modality, credit methodologies must be used that foresee, among other techniques, the following:
i) observation of quantitative and qualitative aspects to determine the clients' repayment capacity, ii) credit evaluation, monitoring, and/or collection carried out "in-situ", iii) granting of group credits, iv) granting of sequential credits (agreement of a first small-amount, short-term credit, which once cancelled, may be granted in larger amounts and terms and/or lower interest rates, based on the fulfillment of assumed obligations).

g) Client classification and information to the Central of Debtors of the Financial System.
The classification of the debtor must be carried out in accordance with the frequency and other conditions established in Section 8.

4.3.3. Credit installment plan.
Financings granted under the application of points 4.3.1. and 4.3.2. are subject to the limits per client provided for in Section 7.

COOPERATIVE CREDIT UNIONS (LAW 26.173) B.C.R.A.
Section 4. Active Operations.
Version: 2nd. COMMUNICATION "A" 4891
Validity:
26/12/2008

4.3.4. Formal aspects.
The file and annexes may be kept on magnetic media.

4.3.5. Filing of the file.
The debtor's file must be kept at the place where the account is filed.
It is admitted that the client's file may be located in a place different from where the account is filed (for example: headquarters or central office, 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 Provision Manual").

Furthermore, it will be necessary to maintain a copy of the file of each client whose indebtedness (financings included) is equivalent to or greater than 1% of the computable equity at the entity's central office. These provisions are also applicable to the annexes to the client's file.

4.4. Compliance with legal obligations.
If applicable, the safeguards established in points 1.2. and 1.3. of Section 1. of the "Credit Management" norms must be observed.

4.5. Sworn declaration on linkage to the cooperative credit union.
It will be necessary to comply with the requirements provided for in point 1.4. of Section 1. of the "Credit Management" norms regarding borrowers whose debt (for all concepts) plus the amount of the requested financing, at the time of granting, exceeds 2.5% of the entity's computable equity from the last day of the month prior to the one in question or the equivalent to $ 15,000, whichever is greater.

4.6. Significant financings.
Financings, regardless of their modality, that exceed 2.5% of the cooperative credit union's computable equity registered on the last day of the second month prior to that in which the granting of credit support is decided or $ 50,000, whichever is greater, must have the prior opinion of the highest-ranking official of the credit or commercial area responsible for deciding on credit matters or General Manager or equivalent authority and be approved by the Board of Directors -by simple majority of its members, except when it concerns credit support to linked persons, in which case the consent of at least two thirds of the directors will be required-.

The majority of the Board of Directors required must be calculated based on the total number of members comprising said body.
Decisions by the aforementioned authorities must be recorded in the corresponding minute books.

Version: 3rd. COMMUNICATION "A" 4891
Validity:
26/12/2008
B COOPERATIVE CREDIT UNIONS (LAW 26.173)
.B.C.R.A.
Section 4. Active Operations.

4.7. Linked persons.
The definitions in force for the remaining financial entities will be used (Annex I to Communication "A" 2140 and point 4.2. of Chapter I of Circular OPRAC - 1, taking into account what is provided for in the third paragraph of point 2. of the resolution disseminated by said communication).

4.8. Prohibitions.
4.8.1. Granting credit assistance in which certificates of time deposits 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 those facilities remain in force, when cooperative credit unions make use of rediscounts or advances from the Central Bank of the Argentine Republic for temporary illiquidity situations.

4.8.2. Granting assistance under more favorable conditions than those ordinarily agreed upon with their borrowers in general to officials with authority to resolve on credit matters, up to the category of manager or equivalent, inclusive, and other persons who, in the judgment of the entity itself, make relevant decisions in that matter.

4.8.3. Carrying out with other financial entities, credit cooperatives or mutuals and any other natural or legal person whose activity is the granting of financings, sureties, guarantees or other guarantees, regardless of their modality, the following operations:
4.8.3.1. Granting credits and other financings.
4.8.3.2. Granting sureties, bonds and other guarantees.
4.8.3.3. Making temporary investments in easily liquidable placements.

4.8.4. Financing the national, provincial, or municipal public sector, including companies and other related entities.

4.8.5. Acquiring and maintaining assets subject to minimum capital requirements for market risk (Section 6. of the norms on "Minimum capitals of financial entities").

4.8.6. Purchasing credit portfolios from other financial entities.

4.8.7. The following are excluded from these restrictions:
4.8.7.1. Holding monetary regulation instruments of the Central Bank of the Argentine Republic and national public titles in pesos, which have normal and habitual quotation in the markets, with a residual term of up to 180 days.

COOPERATIVE CREDIT UNIONS (LAW 26.173) B.C.R.A.
Section 4. Active Operations.
Version: 1st. COMMUNICATION "A" 4891
Validity:
26/12/2008

4.8.7.2. Repo operations with the Central Bank of the Argentine Republic.

4.8.7.3. Credit balances in correspondent accounts in other financial entities in the country.

4.8.7.4. Participations and placements in higher-level cooperatives, as provided for in article 18, item f) of the Financial Entities Law.

COOPERATIVE CREDIT UNIONS (LAW 26.173) B.C.R.A.
Section 4. Active Operations.
Version: 1st. COMMUNICATION "A" 4891
Validity:
26/12/2008

ORDERED TEXT ORIGIN NORM
Se c.
Point Para. Com. Annex Chap. Sec. Point Para. OBSERVATIONS
1.1. "A" 4712 Single 1. 1.1.
1.2. "A" 4712 Single 1. 1.2.
1.3. "A" 4712 Single 1. 1.3.
1.4. "A" 4712 Single 1. 1.4.
1.5. "A" 4712 Single 1. 1.5.
1.6. "A" 4712 Single 1. 1.6.
1.
1.7. "A" 4712 Single 1. 1.7.
2.1. "A" 4712 Single 2. 2.1.
2.2. "A" 4712 Single 2. 2.2.
2.3. "A" 4712 Single 2. 2.3.
2.4. "A" 4712 Single 2. 2.4.
2.5. "A" 4712 Single 2. 2.5. According to Com. "B" 9186.
2.6. "A" 4712 Single 2. 2.6.
2.7. "A" 4712 Single 2. 2.7.
2.8. "A" 4712 Single 2. 2.8.
2.
2.9. "A" 4712 Single 2. 2.9.
3.1. "A" 4712 Single 3. 3.1.
3.2. "A" 4712 Single 3. 3.2.
3.3. "A" 4712 Single 3. 3.3. According to Com. "A" 4809.
3.4. "A" 4712 Single 3. 3.4.
3.5. "A" 4712 Single 3. 3.5.
3.6. "A" 4712 Single 3. 3.6.
3.
3.7. "A" 4712 Single 3. 3.7.
4.1. "A" 4712 Single 4. 4.1.
4.2. "A" 4712 Single 4. 4.2.
4.3. "A" 4712 Single 4. 4.3. According to Com. "A" 4891
(points 9 to 12).
4.4. "A" 4712 Single 4. 4.4.
4.5. "A" 4712 Single 4. 4.5.
4.6. "A" 4712 Single 4. 4.6.
4.7. "A" 4712 Single 4. 4.7.
4.
4.8. "A" 4712 Single 4. 4.8. According to Com. "B" 9186.
5.1. "A" 4712 Single 5. 5.1.
5.2. "A" 4712 Single 5. 5.2.
5.3. "A" 4712 Single 5. 5.3.
5.4. "A" 4712 Single 5. 5.4.
5.5. "A" 4712 Single 5. 5.5.
5.6. "A" 4712 Single 5. 5.6.
5.
5.7. "A" 4712 Single 5. 5.7.
6.1. "A" 4712 Single 6. 6.1.
6.2. "A" 4712 Single 6. 6.2.
6.
6.3. "A" 4712 Single 6. 6.3.
B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE NORMS ON "COOPERATIVE CREDIT UNIONS (LAW 26.173)"

Lineage: No known changes

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