Communication A 3806: Modification of Foreign Exchange Financing Rules for Export Pre-financing and Import Operations

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMUNICACIÓN “A“ 3806 15/11/2002
TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1 - 543
Active operations linked to foreign trade. Communications “A” 3507 and 3561.
Modification.
____________________________________________________________ We address you to inform you that this Institution adopted the following resolution:

1. Replace point 3. of the resolution made known through Communication “A” 3507 (text according to Communication “A” 3561) with the following:

“3. Order that the balances as of 3.2.02 of foreign currency financings valid as of 5.1.02 for obligations arising from the pre-financing and financing of exports, including those derived from the execution of eventual liabilities, must be cancelled in foreign currency or in pesos according to the market exchange rate by which the collection of exports corresponds, provided that the following conditions have been verified:

3.1. Export Pre-financing.
3.1.1. It will be required that the exporter be registered in the exporters' registry and that the financial assistance granted has a relationship with the FOB value of the exports normally carried out by the client.
For this last effect, the sum of the financings granted to the exporter for this concept with financial entities of the country (computing both the amount of the original disbursements as well as that of their renewals and/or extensions and the eventual liabilities assumed regarding obligations with banks abroad on which foreign law applies) in the period 1.12.00/30.11.01 -according to the sworn declaration that the client formulates to the entity- must not exceed 75% of the amount of the exports of goods -FOB value- corresponding to official shipping permits fulfilled by the exporter in the mentioned period. Such sworn declaration must be intervened by the other financial entities that have eventually granted financings for this concept, certifying the agreed amounts. The mentioned intervention will constitute a requirement to claim the payment of the financings under the conditions referred to in the first paragraph of this point. Together with said sworn declaration, the exporter will deliver to the financial entity an authorization with duly certified signature that enables the entity to request the data related to the shipments carried out in the mentioned period, before the respective dependency of the Customs.

In the event that the total of the financings is higher than 75% of the value of the exports, and even when it has been established that the destination of the assistance was the pre-financing of exports, the part of the debt as of 3.2.02 resulting from applying the proportion that the excess of said amount represents regarding the total of financings will be subject to what is established in the first paragraph of point 1. For this effect and also to determine the amount to be cancelled in foreign currency or in pesos at the corresponding market exchange rate, when there is financing valid granted by more than one entity, each of them will affect each of those items the proportion that its valid financing represents in relation to the debt balance. The extensions of the maturity of the financings agreed upon due to postponements in the shipment of the exported products, provided that the delay does not exceed 60 calendar days counted from the originally declared shipment date, will not be considered for the purposes of the calculation of the preceding relations, the financings being computed by the originally disbursed amount and the subsequent refinancings. In the absence of presentation of the sworn declaration by the exporter of the financings comprised and/or of the pertinent authorization to the financial entity for the verification of the data related to the shipping permits, within 15 calendar days counted from the date on which it was reliably requested (or through written notification in which its receipt is recorded through the signature of the exporter or their legal representative, by themselves or through attorneys), the financial entity will apply with definitive character the procedure established previously on the basis of the information it has available, taking into account that, in case the presentation of the mentioned authorization has been omitted, it may use alternative elements that it considers reasonable at its criterion to establish the amount of the corresponding exports. The financial entities that have eventually granted financings for this concept will have 5 business days to certify, at the formal request of the exporter, the agreed amounts, the entity assuming responsibility before the exporter for the omissions incurred without prejudice to the application, if applicable, of article 41 of the Financial Entities Law. Furthermore, in case of not issuing within the established term, the balances of the financings with this destination maintained in the entity that incurs in said non-compliance will be subject to what is established in the first paragraph of point 1. of the present resolution.

3.1.2. If any of the conditions established in the first paragraph of point 3.1.1. are not verified, the financings will equally be maintained in foreign currency, provided that:
a) there is an irrevocable letter of credit from abroad opened in favor of the borrower of the pre-financing, or b) a sales contract has been signed with the importer of the destination country, or c) there is a firm purchase order, opened in favor of the borrower of the pre-financing, that specifies the condition of the operation, background and references of the buying firm and certification -in each case- of the signatures that sign the contract or purchase order, or d) a production plan of the goods to be exported has been presented, an export program to be fulfilled within the validity period of the financing and an estimated cash flow for its execution that justifies the credit line granted. The compliance with the requirements established in items a) to d) must have been verified prior to 5.1.02, which must be presented in the granting entities as supporting element of the credits granted. Financings granted to producers of the country for this concept associated with the existence, with a date prior to 5.1.02, of sales contracts of the merchandise to be produced to an exporter will also be maintained in foreign currency, provided that the settlement of the operation is carried out at the price of the product according to the quotation in the country's market or abroad that has been agreed or with a fixed price in foreign currency for whose settlement the exporter manifests their commitment to apply the exchange rate that arises from the single and free exchange market. Such contracts must comply, when this is feasible according to the nature of the product or by legal requirements, with one of the following conditions:
I. having been registered prior to 5.1.02 in a stock exchange of the country in which the product in question is traded, or
II. having been instrumented in the form of a futures operation carried out, prior to 5.1.02, through a term market subject to the control of the National Securities Commission, or
III. having entered, prior to 5.1.02, the respective stamp tax in the jurisdictions that tax with that tribute the instrumental acts.
The financial assistance granted must maintain a relationship with the amounts involved according to the different cases, taking into account that the debt must not exceed 75% of the estimated FOB value of the export, the provision established in point 3.1.1. being applicable.

3.2. Export Financing.
The existence of the shipping documentation of the exported goods prior to the disbursement of the funds will be a requirement.
When, according to the cases previously provided, the conditions indicated are not verified, the balances of the financings comprised will be subject to what is established in the first paragraph of point 1. of the present resolution.”

2. Establish that the provisions referred to in the preceding point 1. will be applicable regarding the operations that are cancelled from the date of the present Communication.
   Likewise, the term contained in the penultimate paragraph of point 3.1.1. of those provisions will be computed -in the case of notifications eventually already carried out- from the mentioned date.

3. Replace the table established in point 2. of the resolution made known through Communication “A” 3507, with the following:

“Interest Rates

• in % nominal annual Individuals Legal Persons
  With preferred guarantees "A", mortgage on real estate, goods in financial lease that would have been agreed in accordance with the provisions of Law
  25.248 on real estate and on
  automobiles and agricultural, road and industrial machines (in the extent that they are registered in the pertinent national registry of the automotor property and have a market that allows obtaining a reference value), or fixed pledge with first degree registration. 3,5 6 Others, including the financings that have the admitted preferred guarantees but whose value does not reach to cover, at minimum, 75% of the financing granted at origin (capital). 5 8”

4. Replace the first paragraph of point 1. of the resolution disseminated by Communication “A” 3507 (text according to Communication “A” 3697), with the following:

“Convert to pesos, in view of what is established in article 3° of Decree 214/02 and complements, at the rate of one peso for each United States dollar or its equivalent in other foreign currencies, the balances as of 3.2.02 of the financings (capital and interests) in foreign currency valid as of 5.1.02, whatever their amount or nature, including those derived from the execution of eventual liabilities, that the debtors corresponding to the non-financial private sector maintain with the financial entities and financial trusts whose asset is constituted by credits transmitted by financial entities.”

5. Replace the first paragraph of point 4. of the resolution disseminated by Communication “A” 3507 (text according to Communication “A” 3561), with the following:

“Order that the balances as of 3.2.02. of the financings, including those derived from the execution of eventual liabilities, in foreign currency valid as of 5.1.02 linked to import operations, must be cancelled in foreign currency or in pesos according to the applicable exchange rate, at the time of cancellation, for transactions of the single and free exchange market.”

By sending you attached the updated text of Communication “A” 3507 and its complements, we greet you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio José Rutman
Emission Manager Main Manager of
Norms Norms and Authorizations

ANEXO

B.C.R.A.
LAW 25.561. DECREES 214/02, 410/02 AND 905/02. REGULATION OF ITS SCOPE FOR ACTIVE OPERATIONS AND INTERFINANCIAL LOANS.
(Updated text according to communications “A” 3507, 3561, 3697, 3739, 3762 and “B” 7572)
Annex to the
Com. “A”
3806

1. Convert to pesos, in view of what is established in article 3º of Decree 214/02 and complements,
   at the rate of one peso for each United States dollar or its equivalent in other foreign currencies, the balances as of 3.2.02 of the financings (capital and interests) in foreign currency valid as of 5.1.02, whatever their amount or nature, including those derived from the execution of eventual liabilities, that the debtors corresponding to the non-financial private sector maintain with the financial entities and financial trusts whose asset is constituted by credits transmitted by financial entities. Balances are excluded from this treatment for:

• Settlement of financings instrumented through credit cards whose maturity has operated as of 3.2.02, insofar as they correspond to consumptions carried out abroad.
• Financings, including eventual liabilities, linked to foreign trade, in the cases provided for in points 3. and 4.
• Contracts for whose compliance foreign law applies.”

2. Establish for the settlement and payment of the financings converted to pesos, as provided in the preceding point, the application of the following methodology:

2.1. Periodic payment obligations.
The capital and interest services with maturity in the period 4.2/3.8.02 will be paid in pesos on the contractually agreed dates. To this effect, the amount corresponding to the last quota paid prior to 4.2.02 will be converted to pesos at the rate of one peso for each United States dollar or its equivalent in other foreign currencies. Payments made under these conditions will be considered as payment of the services whose maturities have operated or will operate from 4.2.02 regarding the capital owed at this last date, recalculated as indicated below. The capital owed as of 4.2.02 must be recalculated with the application of the Reference Stabilization Coefficient ("CER") published by the Central Bank of the Argentine Republic. To this end, in the first service with maturity from 4.2.02, inclusive, the factor arising from comparing the value of the "CER" of the day prior to said maturity and the value as of 2.2.02 will be taken into account. For subsequent services, the financing balance at the date of each maturity will be recalculated using the values of the "CER" of the day prior to the maturity of the pertinent service and of the day prior to the maturity of the immediate previous service. To the amount of the recalculated balance for each service, according to the described methodology, the corresponding to each payment as provided in the first paragraph

B.C.R.A.
LAW 25.561. DECREES 214/02, 410/02 AND 905/02. REGULATION OF ITS SCOPE FOR ACTIVE OPERATIONS AND INTERFINANCIAL LOANS.
(Updated text according to communications “A” 3507, 3561, 3697, 3739, 3762 and “B” 7572)
Annex to the
Com. “A”
3806 of the present point 2.1. and so on until the last service whose maturity operates until 3.8.02.
The recalculated debt balance will be subject, from 3.2.02, to the interests resulting from applying the rate that is agreed, which may not exceed the percentage that corresponds according to what is established below:

Interest Rates

• in % nominal annual Individuals Legal Persons
  With preferred guarantees "A", mortgage on real estate, goods in financial lease that would have been agreed in accordance with the provisions of Law
  25.248 on real estate and on automobiles and agricultural, road and industrial machines (in the extent
  that they are registered in the pertinent national registry of the automotor property and have a market that allows obtaining a reference value), or fixed pledge with first degree registration 3,5 6 Others, including the financings that have the admitted preferred guarantees but whose value does not reach to cover, at minimum, 75% of the financing granted at origin (capital) 5 8

The resulting balance -as of 3.8.02- will be subject to restructuring, repacting the conditions regarding term and rates -taking into account the established caps-, in order that the amount of the first resulting quota at the moment of the debt restructuring does not exceed the amount of the last quota paid according to the originally agreed conditions. The capital and interest services of the restructured debt will be calculated applying the methodology adopted as provided previously. Unpaid quotas at their maturity may have compensatory and/or punitive interests applied under the conditions freely agreed. In the event that the cancellation -total or partial- of the debt takes place prior to 3.8.02, the recalculation of the paid services between the cancellation date of the financing and 4.2.02 will be adjusted to the procedure established previously with general character, which will be applied with effect to the date on which the cancellation is verified.

B.C.R.A.
LAW 25.561. DECREES 214/02, 410/02 AND 905/02. REGULATION OF ITS SCOPE FOR ACTIVE OPERATIONS AND INTERFINANCIAL LOANS.
(Updated text according to communications “A” 3507, 3561, 3697, 3739, 3762 and “B” 7572)
Annex to the
Com. “A”
3806

2.2. Other obligations.
For the cancellation of the owed capital, for the service whose maturity operates in the period 4.2/3.8.02, the debtor will enjoy a waiting period of six months counted from the date of maturity of the obligation, this wait not being able to extend -beyond 31.8.02.
The capital amount at the originally agreed maturity date will be recalculated until the date of its cancellation, through the application of the Reference Stabilization Coefficient ("CER") according to the methodology established in the preceding point 2.1.
The payment of the interest services with maturity in that period, calculated on the capital resulting from applying said methodology, without exceeding the maximum nominal annual rates established there, will be effected in the originally agreed terms.
Refinancings will be subject to the conditions that the financial entity and the borrower freely agree, to which the Reference Stabilization Coefficient (“CER”) may be applied, taking into account what is established in article 27 of Decree 905/02.

2.3. Debts less than $ 400,000.
In the cases of debtors whose indebtedness in the entirety of the financial system is less than $ 400,000, according to the information arising from the “Debtors Central” as of 31.12.01, the date established to carry out the recalculation of the financings converted to pesos through the application of the methodology provided in the preceding points 2.1. and 2.2. will be extended until 30.9.02, in accordance with what is established by Law 25.642.

3. Order that the balances as of 3.2.02 of the foreign currency financings valid as of 5.1.02 for obligations arising from the pre-financing and financing of exports, including those derived from the execution of eventual liabilities, must be cancelled in foreign currency or in pesos according to the market exchange rate by which the collection of exports corresponds, provided that the following conditions have been verified:

3.1. Export Pre-financing.
3.1.1. It will be required that the exporter be registered in the exporters' registry and that the financial assistance granted has a relationship with the FOB value of the exports normally carried out by the client.
For this last effect, the sum of the financings granted to the exporter for this concept with financial entities of the country (computing both the amount of the original disbursements as well as that of their renewals and/or extensions and the eventual liabilities assumed regarding obligations with banks abroad on which foreign law applies) in the period 1.12.00/30.11.01 -according to the sworn declaration that the client formulates to the entity- must not exceed 75% of the amount of the exports of goods -FOB value- corresponding to official shipping permits fulfilled by the exporter in the mentioned period. Such sworn declaration must be intervened by the other financial entities that have eventually granted financings for this concept, certifying the agreed amounts. The mentioned intervention will constitute a requirement to claim the payment of the financings under the conditions referred to in the first paragraph of this point. Together with said sworn declaration, the exporter will deliver to the financial entity an authorization with duly certified signature that enables the entity to request the data related to the shipments carried out in the mentioned period, before the respective dependency of the Customs.

In the event that the total of the financings is higher than 75% of the value of the exports, and even when it has been established that the destination of the assistance was the pre-financing of exports, the part of the debt as of 3.2.02 resulting from applying the proportion that the excess of said amount represents regarding the total of financings will be subject to what is established in the first paragraph of point 1. For this effect and also to determine the amount to be cancelled in foreign currency or in pesos at the corresponding market exchange rate, when there is financing valid granted by more than one entity, each of them will affect each of those items the proportion that its valid financing represents in relation to the debt balance. The extensions of the maturity of the financings agreed upon due to postponements in the shipment of the exported products, provided that the delay does not exceed 60 calendar days counted from the originally declared shipment date, will not be considered for the purposes of the calculation of the preceding relations, the financings being computed by the originally disbursed amount and the subsequent refinancings. In the absence of presentation of the sworn declaration by the exporter of the financings comprised and/or of the pertinent authorization to the financial entity for the verification of the data related to the shipping permits, within 15 calendar days counted from the date on which it was reliably requested (or through written notification in which its receipt is recorded through the signature of the exporter or their legal representative, by themselves or through attorneys), the financial entity will apply with definitive character the procedure established previously on the basis of the information it has available, taking into account that, in case the presentation of the mentioned authorization has been omitted, it may use alternative elements that it considers reasonable at its criterion to establish the amount of the corresponding exports. The financial entities that have eventually granted financings for this concept will have 5 business days to certify, at the formal request of the exporter, the agreed amounts, the entity assuming responsibility before the exporter for the omissions incurred without prejudice to the application, if applicable, of article 41 of the Financial Entities Law. Furthermore, in case of not issuing within the established term, the balances of the financings with this destination maintained in the entity that incurs in said non-compliance will be subject to what is established in the first paragraph of point 1.

B.C.R.A.
LEY 25.561. DECRETOS 214/02, 410/02 Y 905/02. REGLAMENTACIÓN DE SU ALCANCE PARA LAS OPERACIONES ACTIVAS Y PRÉSTAMOS INTERFINANCIEROS.
(Texto actualizado según las comunicaciones “A” 3507, 3561, 3697, 3739, 3762 y “B” 7572) Anexo a la Com. “A” 3806

3.1.2. If none of the conditions established in the first paragraph of point 3.1.1. are verified, the financings shall remain in foreign currency, provided that:
a) there is an irrevocable letter of credit from abroad opened in favor of the borrower of the prefinancing, or b) a sales contract has been signed with the importer from the destination country, or c) there is a firm purchase order, opened in favor of the borrower of the prefinancing, that specifies the condition of the operation, background and references of the purchasing firm and certification -in each case- of the firms signing the contract or purchase order, or d) a production plan for the goods to be exported has been submitted, an export program to be fulfilled within the validity period of the financing and an estimated cash flow for its execution that justifies the credit line granted. The compliance with the requirements established in items a) to d) must have been verified prior to 5.1.02, which must be presented in the granting entities as supporting element of the credits granted. Financings granted to producers in the country under this concept associated with the existence, prior to 5.1.02, of sales contracts of the merchandise to be produced with an exporter shall also remain in foreign currency, provided that the settlement of the operation is carried out at the price of the product according to the quotation in the country's market or abroad that has been agreed upon or with a fixed price in foreign currency for whose settlement the exporter manifests his commitment to apply the exchange rate that arises from the single and free exchange market. Said contracts must comply, when this is feasible according to the nature of the product or by legal requirements, with one of the following conditions:
I. having been registered before 5.1.02 in a stock exchange in the country in which the product in question is traded, or
II. having been instrumented in the form of a futures operation issued, before 5.1.02, through a forward market subject to the control of the National Securities Commission, or
III. having paid, before 5.1.02, the respective stamp tax in the jurisdictions that tax instrumental acts with that levy.
The financial assistance granted must relate to the amounts involved according to the different cases, taking into account that the debt must not exceed 75% of the estimated FOB value of the exportation, with the provisions of point 3.1.1. being applicable.

B.C.R.A.
LEY 25.561. DECRETOS 214/02, 410/02 Y 905/02. REGLAMENTACIÓN DE SU ALCANCE PARA LAS OPERACIONES ACTIVAS Y PRÉSTAMOS INTERFINANCIEROS.
(Texto actualizado según las comunicaciones “A” 3507, 3561, 3697, 3739, 3762 y “B” 7572) Anexo a la Com. “A” 3806

3.2. Export Financing.
The existence of shipping documentation for the exported goods prior to the disbursement of funds shall be a requirement.
When, according to the cases previously provided for, the conditions indicated are not verified, the balances of the financings included shall be subject to what is provided in the first paragraph of point 1.

4. Order that the balances as of 3.2.02 of the financings, including those derived from the execution of eventual responsibilities, in foreign currency valid as of 5.1.02 linked to import operations, must be cancelled in foreign currency or in pesos according to the applicable exchange rate, at the time of cancellation, to transactions of the single and free exchange market.
   Financings matured up to 3.2.02 regarding which one of the following conditions has been verified up to that date are excluded from said treatment, therefore being subject to what is established in the first paragraph of point 1:

• the intervening financial entity had not effected its cancellation by the date of the agreed maturity (considering the effect of implicit extensions due to exchange holidays), with the necessary amounts available in an account opened in the name of the importer in that entity, and also having all the documentation linked to the importation (customs clearance, etc.), or
• they have been subject to a second refinancing -including renewals, implicit or explicit stays- with or without express request for that purpose by the borrower, except what is provided in the previous section. For these purposes, the implicit stay will be considered a second refinancing to the extent that more than 60 days have elapsed counted from the maturity of the first.

5. Convert to pesos, pursuant to what is provided in article 2 of Decree 410/02, at the rate of one peso with forty cents ($ 1.40) for each US dollar or its equivalent in other currencies, the balances as of 3.2.02 of interfinancial obligations -for capital and interest- in foreign currency, admitting the early cancellation of said obligations.
   Interfinancial obligations, including those originated in operations with second-degree financial entities, destined for the granting of assistance to clients for the prefinancing and financing of exports and imports, and for the attention of expenditures linked to such operations, are excepted from said conversion, which will be processed through the single and free exchange market.

6. Convert to pesos, pursuant to what is provided in article 2 of Decree 992/02, at the rate of one peso with forty cents ($1.40) for each US dollar or its equivalent in other currencies, the obligations to pay sums of money expressed in US dollars or in another foreign currency in all futures contracts and options including forward operations contracted under Argentine legislation existing as of 5.1.02, where at least one of the parties is a financial entity, that are settled from 12.6.02.

B.C.R.A.
LEY 25.561. DECRETOS 214/02, 410/02 Y 905/02. REGLAMENTACIÓN DE SU ALCANCE PARA LAS OPERACIONES ACTIVAS Y PRÉSTAMOS INTERFINANCIEROS.
(Texto actualizado según las comunicaciones “A” 3507, 3561, 3697, 3739, 3762 y “B” 7572) Anexo a la Com. “A” 3806

7. Application of the Salary Variation Coefficient (“CVS”)
   7.1. Except, pursuant to what is provided in Decrees 762/02 and 1242/02, from the application of the methodology established in point 2 -for the settlement and payment of financings converted to pesos by application of Decree 214/02 and its amendments, including those included in article 6 of Law 25.561, as provided in article 1 of Decree 320/02- loans granted to natural persons detailed below:
   a) that have as mortgage guarantee the unique, family housing and permanent occupation, originally agreed in US dollars or another foreign currency, regardless of their amount.
   Loans that have guarantees on real estate that include a commercial premises or spaces applied to another use, in addition to a housing unit with the conditions cited above are also included. b) with or without mortgage guarantee, originally agreed up to the sum of US$ 12,000 or another foreign currency. c) with pledge guarantee originally agreed up to the sum of US$ 30,000 or another foreign currency. Loans granted to natural persons -even when not reported as personal in accounting- are included, regardless of the assignment or destination to which the debtor had applied, totally or partially, the sums received, taking into account the legal instruments and formalities on which said operation had been materialized. In the event that doubts or discrepancies persist between the parties, the elements on which the operation was based (such as origin and nature of the assumed obligation, application or allocation of the funds granted to the debtor) will be considered. In cases where the condition that the guarantee established in item a) must meet does not arise from the legal instruments (loan contract, bill of sale, title of ownership or deed), the debtor must prove such condition through a sworn declaration with certified signature, at the debtor's option, by a public notary, judicial authority, public authority or by a financial entity. The creditor financial entity may verify or attest, at no cost to the debtors, the condition of “unique, family housing and permanent occupation” while the mortgage guarantee subsists. Debtor balances of checking accounts and credit or consumption cards are not covered by the established exception.

7.2. Establish that during the period 4.2/30.9.02 the interest of the loans referred to in the preceding point 7.1. will be calculated at the interest rate valid for each operation as of 2.2.02. The installments -for capital and interest- accrued in said period will be settled in pesos. Payments made under these conditions will have the effect of cancelling such obligations.
In the event that prepayments have been made, the amounts paid by the debtor originated in the application of the Reference Stabilization Coefficient (“CER”), according to the methodology established in point 2., must be imputed to the cancellation of the subsequent immediate services -for capital and interest-. If there are no such obligations, at the debtor's request, the financial entity must credit the corresponding amount for said concept in an account in the name of the debtor. From 1.10.02, said loans will be subject to the Salary Variation Coefficient (“CVS”) that will be prepared by the National Institute of Statistics and Censuses (INDEC). The interest rate to be applied in each of the classes of loans (items a) to c) of point 7.1.), from 1.10.02, will be the nominal annual rate agreed in the original contract, valid as of 2.2.02, or the average of the rates for each class valid in the financial system during the year 2001 published by the Central Bank (Communication “B” 7541), the lower of the two. For the purpose of determining the capital and interest installment that the loan will accrue from 1.10.02 and when the value of the installment calculated according to these provisions is lower than that corresponding to the installment accrued in the previous period, the financial entity may establish that the service amount is equal to this latter installment, applying to the cancellation of the capital -under the terms provided in the contract- the resulting difference between it and the installment that arises from the new conditions.

7.3. Order that financial entities must notify -at least by certified letter with return receipt- to the debtor regarding:
a) The acceptance by their part of the destination of “unique, family housing and permanent occupation”.
In case such condition is not proven, the entity must notify effectively that the loan will be subject to the provisions established in point 2. b) The interest rate that will be applicable to the loan from 1.10.02, according to what is established in point 7.2. c) The resulting modifications in the loan balance and in the payment obligations charged to the debtor. The client's file must record the new conditions to which the loans will be subject by application of the respective Decrees, the manner in which the relevant information was processed and, if applicable, the notification made. It will be at the discretion of the financial entities to adopt the instrumental safeguards they deem necessary to protect their rights.

B.C.R.A.
LEY 25.561. DECRETOS 214/02, 410/02 Y 905/02. REGLAMENTACIÓN DE SU ALCANCE PARA LAS OPERACIONES ACTIVAS Y PRÉSTAMOS INTERFINANCIEROS.
(Texto actualizado según las comunicaciones “A” 3507, 3561, 3697, 3739, 3762 y “B” 7572) Anexo a la Com. “A” 3806

The scope of the concept “unique, family housing and permanent occupation” referred to in point 7.1.a) will include those cases in which the three conditions are met concurrently.
Consequently, the Salary Variation Coefficient (CVS) will only be applied to loans that are guaranteed with the only property that the debtor has and that also meets the requirement that it is the family housing of permanent occupation, understanding by this last concept the place of residence for most of the year.

B.C.R.A.
LEY 25.561. DECRETOS 214/02, 410/02 Y 905/02. REGLAMENTACIÓN DE SU ALCANCE PARA LAS OPERACIONES ACTIVAS Y PRÉSTAMOS INTERFINANCIEROS.
(Texto actualizado según las comunicaciones “A” 3507, 3561, 3697, 3739, 3762 y “B” 7572) Anexo a la Com. “A” 3806

Export Prefinancing
Application Examples (Modification Communication "A" 3507-point 3.1.1.-) Case 1: total credits granted under the concept of export prefinancing in the period exceeds 75% of the FOB value of exports in the same period a) Total credits period 1.12.00 to 30.11.01 2,000 b) Total exports in that period 1,000 c) 75% of total exports (b x 75%) 750 d) Excess [Max (a-c, 0)] 1,250 (credit not linked to exports) e) Excess / total credits (d/a) 62.5%(proportion of debt to be pesified) f) Complement (100% - e) 37.5%(proportion of non-pesified debt) g) Outstanding debt balance as of 3.2.02 800 Banks Credits Granted Outstanding Debt Distribution of Balance Debt to be Pesified Non-Pesified Debt
1.12.00 - 30.11.01 as of 3.2.02 Debt as of 3.2.02 62.5% 37.5%
"A" 600 320 40% 200 120
"B" 1000 480 60% 300 180
"C" 400% 0 0
TOTAL 2000 800 100% 500 300

B.C.R.A.
LEY 25.561. DECRETOS 214/02, 410/02 Y 905/02. REGLAMENTACIÓN DE SU ALCANCE PARA LAS OPERACIONES ACTIVAS Y PRÉSTAMOS INTERFINANCIEROS.
(Texto actualizado según las comunicaciones “A” 3507, 3561, 3697, 3739, 3762 y “B” 7572) Anexo a la Com. “A” 3806

Case 2: total credits granted under the concept of export prefinancing in the period DOES NOT exceed 75% of the FOB value of exports in the same period a) Total credits period 1.12.00 to 30.11.01 2,000 b) Total exports in that period 3,000 c) 75% of total exports (b x 75%) 2250 d) Excess [Max (a-c, 0)] 0 (credit not linked to exports) e) Excess / total credits (d/a) 0%(proportion of debt to be pesified) f) Complement (100% - e) 100%(proportion of non-pesified debt) g) Outstanding debt balance as of 3.2.02 800 Banks Credits Granted Outstanding Debt Distribution of Balance Debt to be Pesified Non-Pesified Debt
1.12.00 - 30.11.01 as of 3.2.02 Debt as of 3.2.02 0% 100%
"A" 600 320 40% 0 320
"B" 1000 480 60% 0 480
"C" 400% 0 0
TOTAL 2000 800 100% 0 800