Circular OPRAC 1-956: Credit Policy Adjustments

"2018 - YEAR OF THE CENTENNIAL OF THE UNIVERSITY REFORM" COMMUNICATION "A" 6572 14/09/2018 TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1 - 956
Credit Policy. Adjustments.
____________________________________________________________ We address you to inform you that this Institution adopted the resolution that, in its pertinent part, provides:

"1. Replace the third paragraph of point 5.1 of the norms on "Credit Policy" with the following:
"Credits to residents abroad corresponding to settlement lags of operations with securities or foreign currencies with quotation and the operations provided for in the following points are also admitted."

2. Incorporate into the norms on "Credit Policy" the following:
   "5.5. Guarantees to residents abroad.
   Financial entities may grant guarantees to residents abroad for the fulfillment of obligations related to their commercial operations of goods and/or services abroad, to the extent that the applicant counter-guarantees them locally in their entirety and in the same currency through some of the preferred guarantees provided for in points 1.1.1. and/or 1.1.3. of the norms on "Guarantees"."

On the other hand, we send you attached the sheets that, in replacement of those previously provided, must be incorporated into the referenced norms. Likewise, it is recalled that on this Institution's website www.bcra.gob.ar, by accessing "Financial System - LEGAL AND REGULATORY FRAMEWORK - Orders and summaries - Organized texts of general regulation", the modifications made with texts highlighted in special characters (strikethrough and bold) will be found.

We salute you attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Darío C. Stefanelli Agustín Torcassi
Principal Manager of Issuance and
Regulatory Applications
General Manager of Regulations

ANNEX

-Index
Section 1. General credit policy.
1.1. General criterion.
1.2. Included financings.
1.3. Credit management.
1.4. Foreign currency financings.
Section 2. Application of the lending capacity of foreign currency deposits.
2.1. Destinations.
2.2. Conditions.
2.3. Imputation of incorporated financings.
2.4. Financings to debtors classified in the "unrecoverable" category that are not registered in the assets.
2.5. Lending capacity.
2.6. Application defects.
Section 3. Application of own liquid resources.
3.1. Own liquid resources.
3.2. Application.
Section 4. Financing to the non-financial public sector of the country.
4.1. Applicable norms.
Section 5. Financing to residents abroad.
5.1. General criterion.
5.2. Placements in banks abroad.
5.3. Holding of securities abroad.
5.4. Guarantees for credit lines and derivative products abroad.
5.5. Guarantees to residents abroad.
Section 6. Loans of Acquisitive Value Units and Housing Units.
6.1. Loans of Acquisitive Value Units adjustable by "CER" - Law 25.827 ("UVA").
6.2. Loans of Housing Units adjustable by the "ICC" - Law 27.271 ("UVI").
6.3. Publication of Acquisitive Value Units and Housing Units.
B.C.R.A.
ORGANIZED TEXT OF THE NORMS ON
"CREDIT POLICY"
Version: 15th COMMUNICATION "A" 6572
Validity:
15/9/2018

5.1. General criterion.
The granting of financial assistance to residents abroad will only proceed as long as it complies with the general criterion on credit policy indicated in Section 1. Accordingly, credit lines may be granted to banks abroad, correspondent or non-correspondent, and to other residents abroad to facilitate local exports. Credits to residents abroad corresponding to settlement lags of operations with securities or foreign currencies with quotation and the operations provided for in the following points are also admitted.

5.2. Placements in banks abroad.
Financial entities may maintain correspondent accounts and demand accounts in banks abroad necessary for their operations, in accordance with what is established in the norms on "Correspondent Accounts" and time deposit certificates in entities that have an international rating not lower than "AA".

5.3. Holding of securities abroad.
Holdings of public and private securities abroad, including debt titles or participations corresponding to asset portfolios among which there are securities abroad, as well as Argentine depositary certificates (CEDEAR), may not be registered, except that they are investments in external public securities issued by countries members of the OECD whose sovereign debt has an international rating not lower than "AA". In addition, the holding of debt titles or participations corresponding to asset portfolios constituted abroad is admitted, provided they are integrated exclusively by national public and/or private securities of the country, as well as "depository receipts" corresponding to said securities.

5.4. Guarantees for credit lines and derivative products abroad.
Financial entities may maintain in guarantee accounts in banks and institutionalized markets abroad, cash deposits and deposits of public securities issued by other sovereign states that comply with what is provided for in point 3.3. of the norms on "Credit Evaluations", as long as they are necessary to carry out the operations provided for in points 2.1. and 2.2. of the norms on "Allocation of assets in guarantee".

CREDIT POLICY B.C.R.A.
Section 5. Financing to residents abroad.
Version: 5th COMMUNICATION "A" 6572
Validity:
15/9/2018

5.5. Guarantees to residents abroad.
Financial entities may grant guarantees to residents abroad for the fulfillment of obligations related to their commercial operations of goods and/or services abroad, to the extent that the applicant counter-guarantees them locally in their entirety and in the same currency through some of the preferred guarantees provided for in points 1.1.1. and/or 1.1.3. of the norms on "Guarantees".

CREDIT POLICY B.C.R.A.
Section 5. Financing to residents abroad.
Version: 1st COMMUNICATION "A" 6572
Validity:
15/9/2018

CREDIT POLICY
ORGANIZED TEXT SOURCE NORM
Sec. Point Para. Com. Annex Chapt. Sec. Point Para.
OBSERVATIONS
1° "A" 3528 1. 2° According to Com. "A" 4015 and 4147.
2.5.
2°y last
"A" 4159 3.1. 5°y last
Section 3. of the informative regime on minimum cash and application
of resources. Includes interpretative clarification.
2.
2.6. "A" 3528 1. 3° According to Com. "A" 4015,
4140, 4549, 4716, 5299 and 6241.
3. 3.1. "A" 4140 II 1. 2°
3.2. "A" 4311 Includes concept according
to points 6. and 7.5. of the
Com. "A" 2736.
4. 4.1. "A" 4311
5.1. "A" 4311 According to Com. "A" 6572.
5.2. "A" 4311 According to Com. "A" 5093 and
6244.
1° "A" 2736 6. According to Com. "A" 6244.
Includes interpretative clarification.
5.3. last "A" 4311
5.4. "A" 6231
5.
5.5. "A" 6572 2.
6.1. "A" 3987 1. According to Com. "A" 5560,
5945 and 6069.
6.2. "A" 6069 6.
6.
6.3. "A" 5945 5. According to Com. "A" 6069.
7.1. "A" 4311 According to Com. "A" 5493 and
5892.
7.
7.2. "A" 4311 According to Com. "A" 5493 and
5892.