2021 - YEAR OF TRIBUTE TO THE NOBEL PRIZE IN MEDICINE DR. CÉSAR MILSTEIN

COMMUNICATION “A” 7421
16/12/2021

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
CONAU 1-1505:

Distribution of results. Adjustments.

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We address you to inform you that this Institution adopted the resolution that, in its pertinent part, establishes:

“1. To provide that, with effect from 1.1.22 and until 31.12.22, financial institutions may distribute results for up to 20 % of the amount that would have corresponded from applying the rules on “Distribution of results”.

2. To establish, with effect from 1.1.22, that financial institutions that have the authorization of this Central Bank to distribute their results –in accordance with the provisions of Section 6. of the rules on “Distribution of results”– must carry out that distribution in 12 equal, monthly and consecutive installments.”

On the other hand, we send you the pages that, in replacement of those previously provided, should be incorporated into the reference rules. In this regard, it is recalled that on the page of this Institution www.bcra.gob.ar, by accessing “Sistema Financiero - MARCO LEGAL Y NORMATIVO - Ordenamientos y resúmenes - Textos ordenados de normativa general”, 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
Senior Issuance Manager and
Aplicaciones Normativas
María D. Bossio
Subgerenta General de Regulación Financiera

ANNEX

B.C.R.A. DISTRIBUTION OF RESULTS
Section 7. Transitional provisions.

7.1. The countercyclical capital buffer that financial institutions must apply to their exposures in Argentina, in accordance with the provisions of point 4.2., is established, as from 1.4.16, at 0 %.

7.2. For the purposes of determining the distributable result, the increase in computable equity responsibility (RPC) resulting from the application of point 11.4. of the rules on “Minimum capital of financial institutions” and the lower provisions and higher RPC resulting from the treatments established in point 2. of Communication “A” 6946 (and amendments) –for financing to MSMEs destined for the payment of salaries– and in point 3. of Communication “A” 7181 –which postponed until 1.1.22, for financial institutions of groups B and C, the application of point 5.5. of IFRS 9– must be deducted from the computations provided in Sections 2. and 3.

7.3. The distribution of results of financial institutions is suspended until 31.12.21.

7.4. With effect from 1.1.22 and until 31.12.22, financial institutions may distribute results for up to 20 % of the amount that would have corresponded from applying these rules.

7.5. With effect from 1.1.22, financial institutions that have the authorization of the BCRA to distribute their results –in accordance with the provisions of Section 6.– must carry out that distribution in 12 equal, monthly and consecutive installments.

Version: 10a. COMMUNICATION “A” 7421 Effective:
01/01/2022 Page 1

B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “DISTRIBUTION OF RESULTS”

ORDERED TEXT			SOURCE RULE					OBSERVATIONS
Sect.	Point	Para.	Com.	Annex	Chap.	Sect.	Point	Para.
1.			“A” 4589				1.	According to Com. “A” 5827 and 6464.
2.		1st and 2nd	“A” 4589				2.	According to Com. “A” 4591 (point 6.), 5273, 5827, 6327 and 6464.
	2.1.		“A” 6327				12.
	2.2.		“A” 6396				4.
	2.3.		“A” 6327				12.
	2.4.		“A” 4589				2.3.
	2.5.		“A” 4589				2.4.
		último	“A” 6327				26.
3.		1°	“A” 4589				3.	According to Com. “A” 4591 (point 8.), 5072, 5273, 5827, 5985, 6464 and “B” 9104.
	3.1.		“A” 4589				3.1.	According to Com. “A” 4591 (point 8.) and 6428.
	3.2.		“A” 4589				3.3.	iv) According to Com. “A” 4591 (point 8.) and “B” 9104.
	3.3.		“A” 4589				3.3.	According to Com. “A” 4591 (point 8.), 6428 and 6464.
	3.4.		“A” 5737				4.
		último	“A” 4589				1.1. to 1.4.	According to “A” 4591, 5072 and 6464.
4.			“A” 5827
5.			“A” 4591				1.	According to Com. “A” 5282 and 5827.
	5.1.		“A” 4591				1.	Incorporates the interpretative criterion of Com. “C” 46841. According to Com. “A” 5393.
	5.2.		“A” 4591				1.	According to Com. “A” 4686, 4702, 5072, 5180, 5282, 5369, 5580, 5827, 6013, 6464 and “B” 9104.
6.			“A” 6768
7.	7.1.		“A” 5938
	7.2.		“A” 6946				3.	According to Com. “A” 7007, 7108, 7143 and 7181.
	7.3.		"A" 6939					According to Com. "A" 7007, 7035, 7181 and 7312.
	7.4.		"A" 7421				1.
	7.5.		"A" 7421				2.