Circular RUNOR 1-137. Asset Rating for Pension Fund Investments. Modifications.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 2255 30/09/94 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
RUNOR 1 - 137.
Asset Rating for
Investments with Pen- sion and Retirement
Funds. Modifica- tions

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

"1. Replace points 3. and 4. of the resolution disseminated by Communication "A" 2229 (text according to Communication "A" 2248) with the following:

"3. State that rating societies will supply the corresponding rating reports for the assets indicated in points 1.1., 1.2. and 1.3. of this communication to the Superintendence of Pension Fund Administrators, with a copy to the Central Bank, within 5 calendar days of their occurrence. Likewise, together with said copy, the rating society must send to the Central Bank a note signed by its president or legal representative in which it expressly states that said society and the persons performing the various functions indicated in Decree 656/92, comply with the provisions of articles 17, 18 and 19 of that instrument, particularly regarding the rating of deposits and debts of the financial entity, regarding which they submit the report. The Central Bank will analyze the reports produced regarding the assets indicated in point 1.1. in order to verify compliance with the minimum analysis guidelines contained in the Annex to Communication "A" 2229, and will issue its decision on their approval or not within 10 business days of receipt, sending the corresponding communication to the Superintendence of Pension Fund Administrators."

"4. Establish that until 30.11.94, the entities covered by the Financial Entities Law are qualified to receive time deposits and/or checking account deposits from pension and retirement fund administrators, with resources from the funds and their reserves, provided that:

a) those deposits from the group of administrators -measured individually by each receiving entity- do not exceed 5% of the total of deposits in checking accounts, savings accounts and time deposits.
The limit must be observed when receiving each new deposit, with respect to the balance of the total of computable deposits on the last day of the month immediately preceding the one in question. b) the ratings referred to in point 1.1. have been presented to the Central Bank, as long as they do not have their approval. The limit established in section a) will expire prior to the indicated date as soon as the rating reports are approved, as established in the 3rd paragraph of point 3., from which moment the possibility of continuing to receive deposits and its collection limit will depend on the number and level of the ratings, according to what is provided in the common provisions."

2. Clarify that the reports provided by risk assessment societies must include the required rating regarding short-term deposits or debts and the corresponding rating for long-term obligations, as provided in section II "Rating System" of the minimum guidelines contained in the Annex to Communication "A" 2229."

We salute you very respectfully.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio Miguel A. Kiguel
Manager of Standards for General Manager
Financial Entities Area of Economics and Finance