Distribution of results. Financing to the non-financial public sector. Update.

"2013 - YEAR OF THE BICENTENNIAL OF THE GENERAL CONSTITUENT ASSEMBLY OF 1813" COMMUNICATION “A” 5393 04/02/2013 TO THE FINANCIAL ENTITIES:
Ref.: Circular
CONAU 1 - 1004
OPRAC 1 - 687
Distribution of results. Financing to the non-financial public sector. Update.

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We address you to inform you that in light of the enactment of Law 26,831 (Capital Markets Law), points 3.1.1. of Section 3. of the rules on “Distribution of results” and 3.2.4.1. of Section 3. of the rules on “Financing to the non-financial public sector” are updated. We send you the sheets that, in replacement of those previously provided, should be incorporated into the referenced rules. Likewise, it is recalled that on the page of this Institution www.bcra.gov.ar, by accessing “regulations” (“ordered texts”), 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 Matías A. Gutiérrez Girault Alfredo A. Besio Manager of Issuance of Rules Deputy General Manager of Rules
ANNEX

3.1. Conditions for its application. Determination of the distributable result and verification of liquidity and solvency.
For the purposes of the payment of financial services corresponding to issues of debt instruments, to which point 8.2.2. of Section 8. of the rules on “Minimum capital of financial entities” refers, the specific procedure detailed below shall be used:
3.1.1. The issuance of such debt instruments must have the prior approval of the shareholders' meeting or equivalent corporate body, which must decide on the issuance and its conditions. In said issuance conditions and in the offers that are made, the requirements that condition, according to this regime, the payment of financial services must be explicit, referring to the applicable Central Bank provisions in this matter.
When dealing with negotiable obligations, the aforementioned requirement shall also be considered fulfilled in the case that the Ordinary General Meeting or equivalent corporate body authorizes a program for the issuance of debt instruments in a generic form, delegating to its Board of Directors the determination of the specific terms and conditions, observing the provisions of article 9 of Law 23,576. This is without prejudice to the analyses that, on that aspect and others pertaining to each issuance and placement, correspond to the National Securities Commission in matters of legality control, in accordance with the public offering regime of securities, in its capacity as enforcement authority of Law 26,831.
3.1.2. To determine the existence of sufficient balance to proceed with the payment, the general procedure provided in points 2.1. and 2.2. regarding the determination of the capacity to distribute results shall be used, with the following exceptions:
3.1.2.1. the amounts corresponding to the concepts provided in points 2.1.1. and 2.1.2. shall not be deducted from undistributed results, nor considered for the recalculation of minimum capital positions -point 2.2.-.
3.1.2.2. the amount corresponding to the concept contemplated in point 2.1.5 shall not be deducted from undistributed results -point 2.1.-, nor considered as a deduction in the computable net worth (term “Cd” of the expression contained in point 8.1. of Section 8. of the rules on “Minimum capital of financial entities”) for the recalculation of minimum capital positions -point 2.2.-.
The Superintendency of Financial and Exchange Entities, without prejudice to the authorization previously granted to the issuance, shall annually verify, based on the corresponding distribution proposal formulated, the correct application of the procedure for the calculation of undistributed results adjusted according to these provisions and the solvency and liquidity levels required for this case and the constitution of the corresponding reserve for the attention of financial services. Consequently, issuances of debt instruments that do not satisfy the applicable requirements in the matter or, at the option of the entity, shall be subject to the general procedure provided in Section 2. Version: 8th. COMMUNICATION “A” 5393 Effective:
04/02/2013
DISTRIBUTION OF RESULTS
B.C.R.A.
Section 3. Specific procedure.

ORDERED TEXT ORIGINATING RULE OBSERVATIONS
Sect. Point Para. Comm. Annex Chap. Sect. Point Para.
1.1. “A” 4589 1.
1.1.1. “A” 4589 1.1.
1.1.2. “A” 4589 1.2. According to Comm. “A” 4591
(point 6.) and 5072.
1.1.3. “A” 4589 1.3.
1.
1.1.4. “A” 4589 1.4. According to Comm. “A” 5072.
2.1. “A” 4589 2. According to Comm. “A” 4591
(point 6.) and 5273.
2.1.1. “A” 4589 2.1.
2.1.2. 1st “A” 4589 2.2. 1st According to Comm. “A” 4698,
4898, 4976, 5072 and “B”
9186.
2nd “A” 4589 2.2. 2nd According to Comm. “A” 4591 (point 7.), 4664, 4898 and 4976.
3rd “A” 4898 According to Comm. “A” 4976,
5072 and 5180.
4th “A” 4589 2.2. 3rd
2.1.3. “A” 4589 2.3.
2.1.4. “A” 4589 2.4.
2.1.5. “A” 4686 3.
2.1.6. “A” 4702 4. According to Comm. “A” 5180.
2.2. “A” 4589 3. According to Comm. “A” 4591
(point 8.), 5072, 5273 and
“B” 9104.
2.2.1. “A” 4589 3.1. According to Comm. “A” 4591
(point 8.).
2.2.2. “A” 4589 3.3. iv) According to Comm. “A” 4591
(point 8.) and “B” 9104.
2.2.3. “A” 4589 3.3. According to Comm. “A” 4591
(point 8.).
2.
2.3. “A” 4589 4.
3.1. “A” 4591 1. According to Comm. “A” 5282.
3.1.1. “A” 4591 1. Incorporates the interpretive criterion of Comm. “C”
46841. According to Comm. “A”
5393
3.
3.1.2. “A” 4591 1. According to Comm. “A” 4686,
4702, 5072, 5180, 5282 and
“B” 9104.
4. “A” 5272 9. According to Comm. “A” 5282 and
5346.
B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON “DISTRIBUTION OF RESULTS”

3.1.10. Financing, in all its modalities, granted by the parent company or foreign bank that exercises control of the local financial entity under the terms provided in the rules on credit risk fragmentation, or by its branches in other countries, when they correspond to financing lines assigned to them by the local financial entity.
3.2. Excluded concepts.
3.2.1. Holding of national public securities.
3.2.2. Opening of import documentary credits.
3.2.3. Guarantees for the payment of local taxes in foreign trade operations, provided that they only mean the assumption of a contingent liability.
3.2.4. Subscription of debt instruments issued by trusts constituted under Law 24,441 or trust funds of infrastructure works of the Wholesale Electricity Market (“MEM”), to the extent that:
3.2.4.1. They have public offering authorized under the regime of Law 26,831.
3.2.4.2. They have been constituted for the financing of infrastructure works of the Wholesale Electricity Market (“MEM”), declared by the competent authority as public interest and/or critical.
3.2.4.3. The cancellation of said debt instruments is guaranteed by the assignment or pledge of the collection rights arising from contracts for the sale of electric energy in the forward supply market in which the administrator of the “MEM” is obliged to pay, provided that:
i) The works whose construction is financed have at least 75% progress. ii) When the condition established in subsection i) is verified and the works whose completion is financed are not enabled by the competent authority for their commercial operation, there must be a guarantee fund for the repayment of the financial services of the trust or trust fund with funds from the proceeds of the placement of the debt instruments issued by the trust or trust fund for the financing of the construction of the works for at least 120% of the amount of the services of the financial assistance and/or of the debt instruments issued by the financial trust of financing or trust fund in charge of the construction of the works, whose maturity occurs until their effective projected commercial enabling.
3.2.4.4. The supply contracts have been signed as buyer by the administrator of the “MEM”.
FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR B.C.R.A.
Section 3. Operations included.
Version: 6th. COMMUNICATION “A” 5393
Effective:
04/02/2013

ORDERED TEXT ORIGINATING RULE Observations
Section Point Paragraph Comm. Annex Point Paragraph
1.1. “A” 3054 sole 1.1. According to Comm. “A” 4798, 4838
(point 12.) and 4937.
1.
1.2. “A” 4527 According to Comm. “A” 4581, “C”
51182, “B” 9745, “A” 5154,
5243 and 5301.
2.1. “A” 3054 sole 2.1. According to Comm. “A” 4937, 5062,
2. “B” 9745 and “A” 5154.
2.2. “A” 3054 sole 2.2.
3.1. “A” 3054 sole 3.1. According to Comm. “A” 5067.
3.
3.2. “A” 3054 sole 3.2. According to Comm. “A” 4838 (point
10.), 4932 (points 1. 3. and 4.),
4937 (points 2 and 3.), 4996
(point 1.), 5015 (annex), 5062,
5069, 5125, 5368, 5393 and “B”
9745.
4.1.1. “A” 3054 sole According to Comm. “A” 3548 and 3911 -
point 9. subsection c)-.
4.1.1.1.
“A” 3054 sole According to Comm. “A” 3911 -point 9., subsection b)-, 4798 and “B” 9745.
4.1.1.2. “A” 4798 According to Comm. “A” 4947.
4.1.1.3. “A” 4798
4.1.2.
“A” 3054 sole According to Comm. “A” 4718 and “B” 9745.
4.
4.1.3. “A” 3054 sole According to Comm. “A” 3144 and 5062.
5.1. “A” 4838 1. According to Comm. “A” 4926, 4937,
5062 and “B” 9745.
5.1.1. “A” 4838 1.1. According to Comm. “A” 4926, 4937
(point 4.) and “B” 9745.
5.1.2. “A” 4838 1.2. According to Comm. “A” 4926, 4937
(point 4.), 5015 and “B” 9745.
5.1.3. “A” 4838 1.3. According to Comm. “A” 4926, 4937
(point 4.).
5.1.4. “A” 4838 1.4. According to Comm. “A” 4926, 4937
(point 4.) and 5036.
5.1.5. “A” 4838 1.6. According to Comm. “A” 4937 (point
4.) and 5062.
5.1.6. “A” 4838 6. and 10. According to Comm. “A” 4926, 4937
(point 4.), 4996 (point 1.),
5015 (annex), 5062 and “B” 9745 and normative interpretation.
5.1.7. “A” 4838 1.5. According to Comm. “A” 4926, 4937
(point 4.), 5062 and “B” 9745.
5.
5.1.8. “A” 4937 4. According to Comm. “B” 9745 and “A”
5062.
B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON “FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR”