2018 - YEAR OF THE CENTENARY OF THE UNIVERSITY REFORM

COMMUNICATION “A” 6435
19/01/2018

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
OPASI 2 - 539
RUNOR 1 - 1373
OPRAC 1 - 930

Decrees No. 27/18 and No. 30/18. Rules on “Application of the deposit guarantee insurance system”, “Savings deposits, salary and special accounts”, “Time deposits and investments”, “Regulation of the bank current account”, “Registration of Clients in the National Industrial Registry to carry out certain operations” and “Credit management”. Adjustments .

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We address you to inform you that this Institution adopted the resolution, which in its pertinent part, is transcribed below:

“1. Leave without effect point 5.2.2. and the mention to subsection d) of article 12 of Decree No. 540/95 and amendments included in point 8.2. of the rules on “Application of the deposit guarantee insurance system”.

2. Replace point 5.2.3. of the rules on “Application of the deposit guarantee insurance system” with the following:

“5.2.3. Demand deposits in which interest rates higher than the reference rates are agreed and time deposits and investments that exceed 1.3 times that rate. The reference rates are periodically disseminated by the Central Bank of the Argentine Republic through Communications “B”, determined according to the moving average of the last five banking business days of the passive rates that, for time deposits of up to $ 100,000 (or its equivalent in other currencies), arise from the survey carried out by the Central Bank of the Argentine Republic.

They will also be excluded when those interest rate limits are distorted by additional incentives or remunerations.”

3. Replace the legend included in the first paragraphs of points 4.4.1. of the rules on “Savings deposits, salary and special accounts”, 3.5.1. of the rules on “Time deposits and investments”, 12.2.1. of the rules on “Regulation of the bank current account” and 6. of the rules on “Application of the deposit guarantee insurance system” with the following:

CENTRAL BANK OF THE ARGENTINE REPUBLIC

“Deposits in pesos and in foreign currency have the guarantee of up to $ 450,000. In operations in the name of two or more persons, the guarantee will be prorated among its holders. In no case, the total guarantee per person and per deposit may exceed $ 450,000, whatever the number of accounts and/or deposits. Law 24.485, Decree No. 540/95 and amendments and Com. “A” 2337 and its amendments and complementary ones. Excluded are those captured at rates higher than the reference rate in accordance with the limits established by the Central Bank, those acquired by endorsement and those made by persons linked to the financial institution.”

4. Establish that the provisions set forth in points 1. to 3. will be in force from the day following the dissemination of this communication:

• For time deposits and investments made from that date.

• For all demand deposits.

  5. Leave without effect the rules on “Registration of clients in the National Industrial Registry to carry out certain operations” and point 1.3. of the rules on “Credit Management”.”

In this regard, we send you in annex the sheets that, in replacement of those opportunely provided, should be incorporated in the rules on “Application of the deposit guarantee insurance system” and “Credit Management”. Likewise, we inform you that we will subsequently send you the sheets that should be incorporated in the rules on “Savings deposits, salary and special accounts”, “Time deposits and investments” and “Regulation of the bank current account”.

Finally, it is recalled that on the page of this Institution www.bcra.gob.ar, accessing “Financial System – LEGAL AND REGULATORY FRAMEWORK - Orderings and summaries – Ordered texts of general regulations”, you will find the modifications made with texts highlighted in special characters (strikethrough and bold).

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications

Agustín Torcassi
General Deputy Manager of Rules

ANNEX

3.3.2. Computable assets to determine the minimum required capital, weighted according to the provisions of the rules on “Minimum capital of financial institutions”, with respect to total assets.

The additional contribution that arises from the application of the aforementioned factors may not exceed once the normal contribution.

4. Integration of contributions.

Normal, additional and anticipated contributions will be debited from the current accounts of the entities opened in the Central Bank of the Argentine Republic (BCRA) no later than the fifth business day of the month to which they correspond.

In the event that updated information is not available to establish the pertinent calculation base, the amount will be determined based on the last available data, increasing the base obtained by 10 %.

5. Scope of the guarantee.

5.1. Deposits covered.

Deposits in pesos and in foreign currency constituted in the participating entities under the form of:

5.1.1. Current account.

5.1.2. Demand account opened in the Cooperative Credit Banks.

5.1.3. Savings bank.

5.1.4. Time deposit.

5.1.5. Salary/social security and special account.

5.1.6. Time investments.

5.1.7. Immobilized balances from the preceding concepts.

5.2. Exclusions.

5.2.1. Transferable time deposits whose ownership has been acquired by endorsement, even when the last endorsee is the original depositor.

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5.2.2. Demand deposits in which interest rates higher than the reference rates are agreed and time deposits and investments that exceed 1.3 times that rate. The reference rates are periodically disseminated by the Central Bank of the Argentine Republic by means of “B” Communications, determined according to the moving average of the last five banking business days of the passive rates that, for fixed-term deposits of up to $ 100,000 (or its equivalent in other currencies), arise from the survey conducted by the Central Bank of the Argentine Republic.

They will also be excluded when those interest rate limits are distorted by additional incentives or remunerations.

5.2.3. Deposits of financial entities in other intermediaries, including fixed-term certificates acquired through secondary negotiation.

5.2.4. Deposits made by persons linked, directly or indirectly, to the entity according to the guidelines defined in point 2.2. of the rules on “Credit risk apportionment”.

5.2.5. Fixed-term deposits of securities, acceptances or guarantees.

5.2.6. Frozen balances arising from deposits and other excluded operations.

5.3. Coverage. Amount and formalities.

5.3.1. The guarantee shall cover the return of the deposited capital, interest, adjustments –by the Reference Stabilization Coefficient (“CER”) in deposits of Purchasing Value Units - Law 25.827 (“UVA”) and by the construction cost index for Greater Buenos Aires (“ICC”) in deposits of Housing Units - Law 27.271 (“UVI”)–, and exchange rate differences, as applicable, accrued up to the date of revocation of the authorization to operate or up to the date of suspension of the entity by application of article 49 of the BCRA Charter, if this measure had been adopted prior to that one, without exceeding –for those concepts– $ 450,000.

That date shall be considered for the determination of the CER and the ICC for deposits in Purchasing Value Units “UVA” and in Housing Units “UVI”, respectively, as well as for the determination of the “Reference exchange rate” for the conversion to pesos of deposits in foreign currency, for the purposes of establishing the amount covered by the guarantee.

5.3.2. In accounts and deposits constituted in the name of two or more persons, the guarantee limit shall be $ 450,000, whatever the number of holders, with the corresponding guarantee amount being distributed proportionally among the holders.

5.3.3. The total guaranteed to a given person, by accumulation of accounts and deposits covered by the guarantee, as provided above, may not exceed the limit of $ 450,000.

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5.3.4. SEDESA will reject or postpone until its judicial recognition the request for coverage under the application of this guarantee regime when the deposits do not meet the requirements established in the applicable regulations or when the depositors do not present materially and formally valid titles.

5.3.5. SEDESA may require, prior to the settlement of the guarantee, that the depositors justify the origin and availability of the deposited funds through records that demonstrate their plausibility and/or that the effective entry of the funds into the institution has been verified for each operation covered by the regime.

Furthermore, the aforementioned company shall file the pertinent complaint when it detects irregularities or a criminal offense aimed at obtaining the undue collection of the guarantee.

6. Implementation.

In all documents representing passive operations (certificates, deposit slips, receipts issued by automated teller machines, account statements, etc.), the following legend must appear, visibly and printed on the front or back of them:

“Deposits in pesos and foreign currency are covered by a guarantee of up to $ 450.000. In operations in the name of two or more persons, the guarantee will be prorated among their holders. In no case may the total guarantee per person and per deposit exceed $ 450.000, regardless of the number of accounts and/or deposits. Law 24.485, Decree No. 540/95 and amendments and Com. “A” 2337 and its amendments and supplements. Excluded are those captured at rates higher than the reference rate according to the limits established by the Central Bank, those acquired by endorsement, and those made by persons linked to the financial institution.”

In the event that any of the situations mentioned last occurs, the following legend must be placed visibly on the front of the documents:

“Deposit without guarantee”

This latter requirement shall not apply when operations are carried out through automated teller machines belonging to networks that enable the operational interconnection of financial institutions.

Institutions shall keep the full texts of Law 24.485, Decree No. 540/95 (updated text) and these regulations available to their clientele.

Furthermore, in the advertising carried out by financial institutions related to the deposits they capture, the existence of a limited guarantee for their return must be stated.

On the boards where the rates offered to clients are reported, the scope of the guarantee must be transcribed visibly (type of deposits covered, guaranteed percentage and amount, exceptions, etc.).

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As long as documents containing the legends in printed form are not available, the requirement may be met by placing stamps with the following expressions: “Deposits are covered by a limited guarantee for their return. Law 24.485, Decree No. 540/95 and the regulations on “Application of the deposit guarantee insurance system” issued by the Central Bank of the Argentine Republic” or “Deposit without guarantee”, as applicable.

7. Determination of the additional contribution.

The normal contribution will be corrected according to the result yielded for each institution by an index which, constructed based on the factors indicated in point 3., will fluctuate between 1 and 2.

7.1. Institutions with a “CAMELS” rating.

It will result from the following expression:

Ic = {(Ipr/f + Iar/a + 2 x Icamels)/4} - Irpc/Kmin

where:

Ipr/f: the indicator referred to in point 3.3.1., which will take the value resulting from the following expression:

Ipr/f = (Vi/0,04) 1,20

where

Vi: the ratio between the minimum provisions required under point 2.1. of the regulations on “Minimum provisions for non-payment risk” and the total of financing included (Section 2. of the regulations on “Classification of debtors”). This concept includes the balances of guarantees granted for obligations assumed on behalf of third parties, recorded on the last day of the month in question, according to the classification reported in the statement of financial position of debtors.

The value of the index will be bounded between 1 and 2,5. That is to say, in cases where the result of the expression is, respectively, less than or greater than those lower and upper limits, 1 or 2,5 will be taken, as applicable.

Iar/a: the indicator referred to in point 3.3.2., which will take the value resulting from the following expression:

Iar/a = (Vi/0,70) 1,30

where

Vi: the ratio between the credit risk-weighted assets –APRc– of the institution and the sum of concepts A and PFB –the latter multiplied by the corresponding CCF–, as established in point 2.1. of the regulations on “Minimum capital of financial institutions”.

Exposures to the non-financial public sector will be excluded from the calculation.

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ns that may be made at the time the decision must be taken, its adoption implies a direct cost to the FGD lower than that which would be borne by the FGD in the event that the authorization to operate is revoked from the affected institution and the payment to the depositors provided for in the preceding subsection a) must be complied with, for which the financial situation of the affected institution and the probable recovery of SEDESA's disbursements by subrogation must be taken into account.

Exceptionally and where it is considered that the revocation of the operating authorization of the affected entity could endanger the stability of other financial entities or of the financial system as a whole, the application of any of the alternatives provided for in preceding subparagraphs b), c) and d) may be admitted, even if this implied for the FGD a direct cost higher than that resulting from the alternative provided for in subparagraph a), without in any case the same exceeding the total amount of guaranteed deposits held at the affected financial entity.

All matters relating to the Steering Committee shall be provided for in the trust contract entered into by the CENTRAL BANK OF THE ARGENTINE REPUBLIC AND SEGURO DE DEPOSITOS SOCIEDAD ANONIMA.

Article 11: Deposits in PESOS and in foreign currency held at participating entities in the form of current accounts, savings accounts, fixed-term deposits or other modalities determined by the CENTRAL BANK OF THE ARGENTINE REPUBLIC, which meet the requirements established in this decree and any others established by the Implementing Authority, shall be covered by the coverage offered by the system.

Article 12: The following are not covered by the guarantee system:

a) deposits of financial entities at other intermediaries, including fixed-term certificates acquired through secondary trading.

b) deposits made by related parties, directly or indirectly, to the entity according to the guidelines established or to be established in the future by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.

c) fixed-term deposits of securities, acceptances or guarantees.

d) (*)

e) any other deposits that the Implementing Authority excludes for the future.

[*] Repealed by Decree No.30/18.

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B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON "APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM"

CONSOLIDATED TEXT		SOURCE RULE				REMARKS
Point	Paragraph	Comm.	Annex	Point	Paragraph
1.		"A" 2337	I	1.	1°y 2°
2.	1°	"A" 2337	I	2.	1°	S/Dec. N°1292/96, Comm. "A" 2807, 3358, 4206, 4271, 5641 and 5943.
	2°	"A" 2337	I	2.	2°	S/Dec. N°1292/96.
3.	1°	"A" 2337	I	3.	1°
3.1.		"A" 2337	I	3.1.
3.2.		"A" 2337	I	3.2.
3.3.		"A" 2337	I	3.3.
3.3.1.		“A” 2337	I	3.3.1.
3.3.2.		“A” 2337	I	3.3.2.
3.	2°	“A” 2337	I	3.	2°
4.	1°	“A” 2337	I	4.	2° and 3°	S/Com. “B” 5806 (8th paragraph), “A” 3068, 5710 and 5720.
	2°	“A” 2337	I	4.	4°
5.		“A” 2337	I	6.
5.1.	1°	“A” 2337	I	6.1.	1°
5.1.1.		“A” 2337	I	6.1.	i)
5.1.2.		“A” 5108
5.1.3.		“A” 2337	I	6.1.	ii)
5.1.4.		“A” 2337	I	6.1.	iii)
5.1.5.		“A” 2337	I	6.1.	iv)	S/Com. “A” 5091, 5108, 5164, 5234 and 6435.
5.1.6.		“A” 2482		1.	2°
5.1.7.		“B” 5806			3°	S/Com. “A” 2807.
5.2.		“A” 2337	I	6.4.		S/Com. “A” 2399.
5.2.1.		“A” 2337	I	6.4.1.		S/Com. “A” 2399.
5.2.2.		“A” 2337	I	6.3.		S/Com. “A” 2777, 3358, 5108, 5234, 5640, 5654, 5891 and 6435. Includes interpretive clarification.
5.2.3.		“A” 2337	IV			S/Dec. N° 540/95, art. 12, inc. c).
5.2.4.		“A” 2337	I	6.2.		S/ Com. “A” 5520.
5.2.5.		“A” 2337	IV			S/Dec. N° 540/95, art. 12, inc. c).
5.2.6.		“A” 2807		5.2.7.
5.3.		“A” 2337	I	6.		S/Dec. N°540/95.
5.3.1.		“A” 2337	I	6.5.		S/Com. “A” 4681, 5170, 5641, 5943 and 6125.
5.3.2.		“A” 2337	I	6.7.	1°	S/Dec. N°540/95 and Com. “A” 5170, 5641 and 5943.
5.3.3.		“A” 2337	I	6.7.	2°	S/Dec. N°540/95 and Com. “A” 5170, 5641 and 5943.
5.3.4.		“A” 2337	I	6.8.		S/Dec. N°540/95.
5.3.5.		“A” 2337	I	6.9.

APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

CONSOLIDATED TEXT	SOURCE NORM	OBSERVATIONS
Point	Paragraph	Com.	Annex	Point	Paragraph
6.		“A” 2337	I	7.		S/Com. “A” 2399, 3270, 4874, 5170, 5641, 5659, 5891, 5943 and 6435. Includes interpretive clarification. Dec. N°1292/96.
7.	1°	“A” 2337	II	1.		S/Com. “A” 2561.
7.1.		“A” 2337	II	1.		S/Com. “A” 2561, 4040, 5369 and 5417.
7.2.		“A” 2337	II	2.		S/Com. “A” 2561.
8.		“A” 2807	II and III
8.1.		“A” 2807	II			S/Ley 25.089.
8.2.		“A” 2807	III			S/Dec. N° 1292/99 and N° 1653/15. S/Com. “A” 4206, 5816 and 6435.
9.		“A” 5710		2.

B.C.R.A.
CONSOLIDATED TEXT OF THE RULES ON
“GESTIÓN CREDITICIA”

-Índice-

Section 1. Requirements for the granting of financings.

1.1. Customer file.

1.2. Compliance with social security obligations.

1.3. Sworn statement on links to the financial institution.

1.4. Significant financings.

1.5. Credit cards.

1.6. Making credits effective in deposit accounts.

1.7. Operations for the account and order of the head office.

1.8. Prohibitions.

1.9. Minimum verifications on non-financial credit providers.

1.10. Reference amount.

Section 2. Temporary advances on current account.

2.1. Concept.

2.2. Failure to cancel on time. Consequences.

2.3. Penalty interest.

Section 3. Loans of securities.

3.1. Authorized entities.

3.2. Tradable securities.

3.3. Conditions.

Section 4. Interfinancial loans.

4.1. Conditions.

4.2. Application of the Value Added Tax.

Section 5. Loans to the personnel of financial institutions.

5.1. General criterion.

5.2. Exceptions.

5.3. Comparison guidelines.

5.4. Prohibition.

5.5. Scope.

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1.2.2. Operations covered.

The preceding provisions apply to any credit operation, including those carried out between financial institutions and with the public sector, and their non-compliance may give rise to the application of the sanctions provided for in the rules on “Régimen disciplinario a cargo del Banco Central de la República Argentina, Leyes 21.526 y 25.065 y sus modificatorias”.

1.2.3. Exclusion.

The concept “financial institutions” does not include the Banco Central de la República Argentina (BCRA) since the rules contained in Leyes 14.499 and 18.214 are intended for financial institutions governed by the Ley de Entidades Financieras, that is, those that habitually carry out intermediation between the supply of and demand for money. That situation is different from the operations carried out by the BCRA under the provisions of its Charter.

1.2.4. Debtors of the pension system.

In order to become aware of who have the status of debtors, the users designated by the entities must log in with their Tax Key, through the website of the Federal Administration of Public Revenue (AFIP) www.afip.gob.ar to the option “Consulta para Entidades Financieras de Deudores Previsionales”.

To do so, the entities must previously observe the procedure for delegating access to the “Consulta para Entidades Financieras de Deudores Previsionales” service to the users responsible for carrying out the query, following the guidelines of AFIP General Resolution No. 2.239 (Registration, authentication and authorization procedure for users called Tax Key) and its amendments.

1.2.5. Lifting of the inhibition.

If situations arise in which a taxpayer is affected by a credit restriction due to their status as a pension debtor, they must go to the AFIP office where they are registered, so that through it such status may be resolved.

1.3. Sworn statement on linkage to the financial entity.

1.3.1. Requirement.

An updated sworn statement on whether or not they have the status of linked to the respective financial intermediary or whether their relationship with it implies the existence of controlling influence must be kept in the file of the covered clients, at the permanent disposal of the Superintendency of Financial and Exchange Entities (SEFyC).

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CENTRAL BANK
OF THE ARGENTINE REPUBLIC

The sworn statement must be made in the terms of the models contained in point 1.3.8., as applicable. Said statement shall be made in duplicate, one of which shall be delivered to the presenter with the receipt acknowledgment by the entity.

Financial entities are obliged to provide applicants for assistance with the necessary information and in a timely manner for the correct completion of the data contained in said statement.

1.3.2. Covered clients.

Clients of the non-financial private sector, whose debt with the lending entity (on all accounts) plus the amount of the financing requested, at the time of granting thereof, exceeds 2.5 % of the computable equity responsibility of the entity on the last day of the month prior to the corresponding one or the equivalent of the reference amount established in point 1.10., whichever is lower.

1.3.3. Scope.

For these purposes, the financing covered with the scope established in the rules on “Credit risk splitting” shall be considered.

Regarding linkage, the definitions contained in the rules on “Credit risk splitting” shall apply.

1.3.4. Conditioning of assistance.

The granting of assistance shall be subject to the applicant presenting the sworn statement.

1.3.5. Updating.

The sworn statement must be updated within five calendar days following the date on which the events determining the modification of the declared situation occur.

Debtors in insolvency proceedings or with an out-of-court preventive agreement requested or in judicial management are excepted from this updating for a period of up to 540 days counted from the opening of the insolvency proceeding, request for the preventive agreement or initiation of judicial collection proceedings, as applicable, provided that there is a report from the lawyer of the creditor financial entity on the reasonableness of the recovery of the credits covered.

This, without prejudice to the fact that these are debts that meet all the conditions provided by point 2.2.3.2. of the rules on “Minimum provisions for bad debt risk”.

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1.3.6. Assignment of rights or credit instruments.

In cases of assignment in favor of financial entities of rights or credit instruments, without liability for the assignor, the obligation to present the sworn statement on whether or not they have the status of linked to the entity shall fall both on the signer or drawer of the documents and on the direct beneficiary of the assistance.

1.3.7. Exceptions.

Those obligated by facilities arising from occasional mismatches in repo, forward, cash to be settled and repo and stock market collateral transactions in which the financial entity has already made the payment (or delivered the agreed counterparty) and the delivery of the agreed counterparty is pending (or the agreed cash payment has not been received) are excepted from presenting the sworn statement.

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1.3.8. Models of sworn statements.

1.3.8.1. Linked client.

CENTRAL BANK OF THE ARGENTINE REPUBLIC	SWORN STATEMENT ON THE STATUS OF THE DEBTOR WITH RESPECT TO THE LINKAGE RULES ESTABLISHED BY THE B.C.R.A. LINKED CLIENT
ENTITY:
The undersigned(1), (2), declares under oath that the data provided 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 provided in points 2.2.1., 2.2.2. and 2.2.3. of the rules on “Credit risk splitting”.
Furthermore, he/she assumes the commitment to inform any modification that occurs in this regard, within five calendar days of its occurrence, by presenting a new sworn statement.
Date:	Signature:
Document:	Type (3) No. Country and Issuing Authority (4):
Capacity invoked (5):
Name of the legal entity (6):
CUIT/CUIL (1) No.:
We certify that the preceding signature agrees with the one registered in our books/was placed in our presence (1).
(Seal of the entity and signatures of two authorized officers)
Observations:
(1) Strike out what does not apply.
(2) Complete with the client's first and last name, in the case of natural persons, even when a proxy signs on their behalf.
(3) Indicate type of identity document, in accordance with the rules on “Identity documents in force”.
(4) Complete only in the case of foreigners who do not have residence in the country.
(5) Indicate holder, legal representative, proxy. When it is a proxy, the power of attorney granted must be broad and general and be in force on the date on which this declaration is signed.
(6) Complete only in cases where the signer does so as proxy or legal representative of a legal entity.
This declaration must be completed in duplicate, and the copy intervened by the financial entity will serve the borrower as proof of receipt of this declaration. On the back, transcribe points 2.2.1., 2.2.2. and 2.2.3. of the rules on “Credit risk splitting” and article 41 of the Law on Financial Entities.

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1.3.8.2. Non-related client.

CENTRAL BANK OF THE ARGENTINE REPUBLIC	SWORN DECLARATION ON THE DEBTOR'S STATUS WITH RESPECT TO THE RELATEDNESS RULES ESTABLISHED BY THE B.C.R.A. NON-RELATED CLIENT
ENTITY: The undersigned(1), (2), declares under oath that the data provided herein are correct, complete and a true expression of the truth and that he/she is not/the firm he/she represents is not (1) covered (1) by the relatedness guidelines provided in points 2.2.1., 2.2.2. and 2.2.3. of the rules on “Credit risk splitting”. Likewise, he/she declares that he/she knows that, in the event of falsity of the content of this submission, the applicable sanction will be the one corresponding in accordance with the rules on “Disciplinary regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments”, without prejudice to the sanctions provided in article 296 of the Criminal Code. In addition, he/she undertakes to inform any modification that occurs in this regard, within five calendar days of its occurrence, by submitting a new sworn declaration. Date: Signature: Document: Type (3) No. Country and Issuing Authority (4): Capacity invoked (5): Name of the legal entity (6): CUIT/CUIL (1) No.: We certify that the preceding signature agrees with the one registered in our books/was placed in our presence (1). (Seal of the entity and signatures of two authorized officers) Observations:
(1) Strike out what does not apply.
(2) Complete with the client's first and last name, in the case of natural persons, even when a proxy signs on their behalf.
(3) Indicate type of identity document, in accordance with the rules on “Identity documents in force”.
(4) Complete only in the case of foreigners who do not have residence in the country.
(5) Indicate holder, legal representative, proxy. When it is a proxy, the power of attorney granted must be broad and general and be in force on the date on which this declaration is signed.
(6) Complete only in cases where the signer does so as proxy or legal representative of a legal entity.
This declaration must be completed in duplicate, and the copy intervened by the financial entity will serve the borrower as proof of receipt of this declaration. On the back, transcribe points 2.2.1., 2.2.2. and 2.2.3. of the rules on “Credit risk splitting” and article 41 of the Law on Financial Entities.

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1.3.9. Non-compliances.

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

i) The debtor will be considered as related to the entity and, therefore, the entire assistance granted will be subject to the limits applicable to clients of such character according to the rules on “Credit risk splitting”.

ii) The entire debt recorded by the borrower must be classified as “unrecoverable by technical disposition” in relation to the provisions on “Debtor classification”.

The application of the established treatment must be made from the date of granting of the assistance, when it is the first declaration or, in the case of subsequent updates, from 1.12. When it is sworn declarations submitted late, those provisions must be observed until the day or month prior to the date on which the client makes the pertinent submission, depending on whether it is the credit assistance limits or the classification of the debtor in the “unrecoverable by technical disposition” category, respectively.

1.3.10. Falsity of the declaration.

When the SEFyC determines falsity in the sworn declaration submitted, which gives rise to the entity not reporting the debtor as a related client, without prejudice to the application of the treatment established in point 1.3.9., the debtor and the entity –jointly and severally– will be subject to the fine in accordance with the provisions of the rules on “Disciplinary regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments”.

1.4. Significant financings.

1.4.1. Covered financings.

Financings, whatever their modality –except interfinancial operations– that exceed 2.5% of the computable equity responsibility of the financial entity registered as of the last day of the second month prior to that in which the granting of the credit support is decided.

Private non-financial sector groups or economic groups –defined in the rules on “Credit risk splitting”– must be considered as a single client.

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Effective date:
20/1/2018
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1.4.2. Procedure for granting.

The prior opinion of the following must be obtained:

− Branch manager, except when the application is processed by the head office.

− Regional or zonal manager -where applicable and when assistance has not been arranged by the head office-.

− Highest-ranking officer 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.

Such interventions must be carried out in all cases covered, except for the established exceptions, to the extent that such positions are provided for in the entity's organic-functional structure, even when this is not required under the regime of resolutory powers for the allocation of credits in force at the lending financial institution, and therefore the provision does not imply the modification of said structure or the creation of specific positions for its compliance.

For this purpose, the immediately higher functional unit must control the effective intervention of previous levels.

1.4.3. Approval.

Without prejudice to the procedure established in point 1.4.2., the granting of credit assistance must have the approval of the Board of Directors or Board of Administration -by simple majority of its members, except in the case of credit support to related firms, in which case the consent of at least two thirds of the directors or board members will be required-, or equivalent authority of the lending entity.

In the latter case, if the highest local authority must leave the country, the material task of approving the assistance may be delegated to a highest-level officer, without this implying releasing the absent authority from responsibility for the credit allocations made in accordance with this procedure.

The required majorities of the Board of Directors or Board of Administration must be computed based on the total number of members comprising said bodies.

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

Version: 4th. COMMUNICATION “A” 6435
Effective date:
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CENTRAL BANK
OF THE ARGENTINE REPUBLIC

1.4.4. Credit agreements with partial disbursements.

In cases where, for operational reasons, credit lines are assigned whose validity does not exceed one year, through agreements that may or may not be communicated to clients, with partial disbursements referred to the respective framework agreement based on the debtors' needs, their approval by the mentioned authorities complies with the requirement set in point 1.4.3., to the extent that the opinion of the officers provided for in point 1.4.2. is obtained, in both cases beforehand.

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 in accordance with the pertinent rules.

The obligated officers must intervene prior to each disbursement in order to verify compliance with the conditions that enable this special treatment.

1.4.5. Overdrafts on current accounts.

In cases of overdrafts on current accounts or one-off fast-processing operations, it is allowed that the approval of the Board of Directors, Board of Administration or highest-ranking local officer be made within 30 days following the granting of the credit.

1.4.6. Bases for compliance with the provisions.

1.4.6.1. Individual basis.

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

1.4.6.2. Monthly consolidated basis.

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

1.4.7. Non-compliances.

The provisions of the rules on “Disciplinary regime in charge of the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments” shall apply.

1.5. Credit cards.

Financial institutions must refrain 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 credit card holders.

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Effective date:
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1.6. Realization of credits in deposit accounts.

Disbursements for financings exceeding $ 50,000 must be made effective by crediting them to deposit accounts, in accordance with the provisions of Section 3. of the rules on “Prevention of money laundering, terrorist financing and other illicit activities”.

1.7. Operations for account and order of the head office.

Excluded from the scope of the provisions of this section are clients that only receive financings and guarantees, sureties and other liabilities granted by local branches and subsidiaries of foreign financial institutions, for account and order of their head office or their branches in other countries or of the controlling entity, provided that the following requirements are observed:

1.7.1. 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 branches or subsidiaries.

1.7.2. The entity must comply with the provisions of point 3.1. of the rules on "Credit assessments", requiring for that purpose an international risk rating included in the "investment grade" category.

1.7.3. In the case of financings, these must be serviced by the local subsidiaries or branches only with funds from lines assigned to them by the aforementioned foreign intermediaries.

If the assistance is granted in a currency other than that of the foreign resources, the local entity may not assume the exchange risk between pesos or US dollars and currencies other than those or between the latter when they are not the same.

1.7.4. In the case of guarantees granted locally, there must be counter-guarantees extended in respect thereof by the parent company or its branches in other countries or by a foreign controlling entity, whose enforcement operates without restriction upon simple request of the local subsidiary or branch and immediately upon its eventual execution by the beneficiary.

Furthermore, the aforementioned transactions are not covered by the rules on "Minimum capital of financial entities", "Debtor classification" and "Splitting of credit risk".

1.8. Prohibitions.

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Effective date:
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1.8.1. Financial entities that make use of rediscounts or advances from the BCRA for temporary situations of illiquidity may not grant credit assistance in which certificates of time deposit –in pesos, in foreign currency or of public securities– or negotiable obligations issued by them are received as collateral for the performance of loans, even if the minimum term of 30 days has elapsed from the date of issuance, last negotiation or transfer, while those facilities remain in force.

1.8.2. Financial entities issuing subordinated debt securities, admitted to determine computable net worth, or convertible into shares of the entity may not receive such securities as collateral for financings or as counter-guarantee of guarantees granted in favor of third parties or of contingent liabilities assumed on behalf of third parties.

1.9. Minimum verifications on non-financial credit providers.

In the cases of financing requests from clients of the commercial portfolio or commercial portfolio assimilable to consumer that are subjects included in point 1.1. of the rules on "Credit assistance to non-financial credit providers", it must be verified –prior to granting– that –if applicable– they are registered in the respective registries, whose list appears on the BCRA website (www.bcra.gob.ar).

1.10. Reference amount.

The amount to be considered shall be the maximum level of total annual sales value for the "Micro" category corresponding to the "Commerce" sector, according to point 1.1. of the rules on "Determination of the condition of micro, small or medium enterprise".

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Effective date:
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B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN
THE RULES ON "CREDIT MANAGEMENT"

CONSOLIDATED TEXT SOURCE RULE
Sec. Point Par. Comm. Annex Chap. Sec. Point Par.
OBSERVATIONS
1.1.1. "A" 3051
1.1.2. "A" 2729 3. 3.4.1. S/Com. "A" 2950, 4972
(point 2.), 5093 and 5520.
1st "A" 49 I. 3.1. S/Com. "A" 5387.
2nd "A" 5482
3rd "A" 5387 S/Com. "A" 5728.
4th "A" 2729 3. 3.4.2. 2nd S/Com. "A" 2950 and 6327.
5th "A" 2729 3. 3.4.2. 8th S/Com. "A" 2950 and 3051.
6th "A" 4972 2.
1.1.3.1.
7th "A" 3051 i) "A" 2729 3. 3.4.2. 3rd S/Com. "A" 2950 and 3051. ii) "A" 2729 3. 3.4.2. 4th and 5th S/Com. "A" 2950 and 5093. iii) "A" 2729 3. 3.4.2. 7th S/Com. "A" 2950. iv) "A" 2729 3. 3.4.3. S/Com. "A" 2950.
1.1.3.2. v) "A" 5482 S/Com. "A" 6091.
a) "A" 3142 1. S/Com. "A" 3182, 4325
(point 3.), 4556, 4559,
4891, 4972, 5557, 5995 and
6221.
1.1.3.3. b) "A" 4325 3. S/Com. "A" 4559, 4572,
4637, 4891, 4972, 5557,
5637, 5998 and 6221. a) "A" 4891 2. S/Com. "A" 5226, 5533, 5884 and 6221.
1.1.3.4. b) "A" 4891 2. S/Com. "A" 5700 and 6327.
1.1.4. "A" 2729 3. 3.4.4. S/Com. "A" 2950.
1.1.5. "A" 2729 3. 3.4.5. S/Com. "A" 2950 and 6068.
1.2.1. "A" 3051
1.2.1.1. "B" 5464
1.2.1.2. "B" 5464
1.2.2. "B" 5464 Last S/Com. "A" 6167.
1.2.3. "B" 5664 S/Com. "A" 3051.
1.2.4. "C" 18820 S/Com. "B" 8833 and 9063.
1.2.5. "C" 18820 S/Com. "B" 9063.
1st "A" 2573 1. 1st S/Com. "A" 3051.
2nd "A" 2573 1. 5th
1.3.1.
3rd "A" 2573 1. 6th
1.3.2. "A" 2573 1. 2nd S/Com. "A" 3051, 4522,
5557 and 5998.
1.3.3. 1st "A" 2573 1. 3rd S/Com. "A" 3051.
2nd "A" 2573 1. 4th
1.3.4. "A" 2573 1. 7th
1st "A" 2573 1. 8th S/Com. "A" 6329.
2nd "A" 4972 2. S/Com. "A" 6329.
1.
1.3.5.
3rd "A" 4972 2. S/Com. "A" 6329.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

CREDIT MANAGEMENT

CONSOLIDATED TEXT			SOURCE STANDARD					OBSERVATIONS
Sec.	Point	Para.	Com.	Annex	Chap.	Sec.	Point	Para.
1.	1.3.6.		"A" 3051
	1.3.7.		"A" 3051
	1.3.8.1.		"A" 2573	I					S/Com. "A" 5520 and 6334.
	1.3.8.2.		"A" 2573	II					S/Com. "A" 5520, 6167 and 6334.
	1.3.9.	i)	"A" 2573			1.		9th
		ii)	"A" 2573			1.		10th
		Last	"A" 2573			1.		11th
	1.3.10.		"A" 2573			1.		12°	S/Com. "A" 6167.
	1.4.1.	1°	"A" 2373			3.		1°
		2°	"B" 5902			9.
	1.4.2.		"A" 2373			3.		1° and 2°
			"B" 5902			2.
	1.4.3.	1°	"A" 2373			3.		3°	S/Com. "A" 3051.
		2°	"A" 3051
		3°	"B" 5902			6.
		4°	"A" 3051
	1.4.4.	1°	"B" 5902			1.		1° and 2°
		2°	"B" 5902			1.		2°
		3°	"B" 5902			1.		3°
	1.4.5.		"B" 5902			1.		4°
	1.4.6.1.		"A" 2989		5.	5.1.
	1.4.6.2.		"A" 2989		5.	5.2.1.5.
	1.4.7.		"A" 2373			3.		4°, 5° and 6°	S/Com. “A” 6167.
	1.5.	1°	“A” 2102			1.
		2°	“A” 2102			2.
	1.6.		“A” 2814		3.	3.1.			S/Com. “A” 3051 and 5223.
	1.7.		“A” 2412						S/Com. “A” 5671 and 5740.
	1.8.1.		“A” 2308						S/Com. “A” 3918 and 4559.
	1.8.2.		“A” 2177			3.
	1.9.		“A” 5593			6.
	1.10.		“A” 5998			1.
2.	2.1.		"A" 49	I		3.2.1.		1°
	2.2.	1°	"A" 49	I		3.2.1.		2°
		2°	"A" 2729		7.	7.2.1.		2°	S/Com. "B" 9074.
	2.3.		"A" 476			4.
3.	3.1.		"A" 1465	I		2.
	3.2.1.		"A" 1465	I		2.			S/Com. "A" 2275 (point 2.3.).
	3.2.2.		"A" 2275			2.3.
	3.2.3.		"A" 2275			2.1.
	3.3.		"A" 1465	I		2.2.			S/Com. "A" 2275.
4.	4.1.		"A" 431						S/Com. "A" 4817, 4876, 4972 (point 2.) and 5520.
	4.2.		"A" 2322