Extension of Reporting Requirements for Immobilized Assets, Liquid Own Funds, and Judicial Measures on Foreign Currency Deposits

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMMUNICATION “A” 4020 24/09/2003
TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 404
Report for immobilized assets and other concepts. Liquid own funds. Accounting exposure of the effects generated by judicial measures regarding deposits and other obligations from financial intermediation, originally agreed in foreign currency. Extension. ______ We address you to inform you that this Institution has adopted the following resolution:
“- Extend until 30.4.04 the validity of what is provided in point 1. of the resolution disseminated by Communication “A” 3954.” We send you attached the sheets that, in replacement of those previously provided, must be incorporated into the ordered text of the regulations on “Report for immobilized assets and other concepts” to which the provisions disseminated by Communications “A” 3161 and 3171 have been included. We salute you very attentively. BANCO CENTRAL DE LA REPUBLICA ARGENTINA Alfredo A. Besio José Rutman Manager of Emission Principal Manager of Norms of Norms ANEXO

B.C.R.A.
ORDERED TEXT OF THE REGULATIONS ON
REPORT FOR IMMOBILIZED ASSETS
AND OTHER CONCEPTS
Version: 4th. COMMUNICATION “A” 4020
Validity:
24/09/2003
-Index
Section 1. Immobilized assets.
1.1. Concepts included.
1.2. Exclusions.
Section 2. Other concepts.
2.1. Concepts included.
Section 3. Calculation of concepts.
3.1. Immobilized assets.
3.2. Other concepts.
3.3. Exclusions.
Section 4. Report.
4.1. Maximum limit.
Section 5. Non-compliances.
5.1. Non-compliances reported by entities.
5.2. Non-compliances detected by the Superintendence of Financial and Exchange Entities.
5.3. Other consequences.
5.4. Accounting exposure.
Section 6. Bases for observance of regulations.
6.1. Individual basis.
6.2. Consolidated basis.
Section 7. Transitional provisions.
7.1. Shares or participations received in payment of credits.
7.2. Differences resulting from compliance with judicial measures.
Correlation table

REPORT FOR IMMOBILIZED ASSETS
B.C.R.A. AND OTHER CONCEPTS
Section 5. Non-compliances.
Version: 2nd. COMMUNICATION “A” 4020
Validity:
24/09/2003
5.1. Non-compliances reported by entities.
5.1.1. Information entered in due time.
They will originate an increase in the minimum capital requirement for credit risk by an amount equivalent to 100% of the excess of the report, starting from the month in which the non-compliances are registered and while they persist.
5.1.2. Information entered out of due time.
They will originate an increase in the minimum capital requirement for credit risk by an amount equivalent to 100% of the excess of the report, starting from the month in which the information is entered, while the non-compliance subsists, and additionally, once regularized, for a number of months equal to the number of periods during which the excess not reported in due time by the entity was verified. The calculation of the deviation will be carried out considering the highest amount of excess registered in the periods covered by the information entered out of due time and in the following ones, as long as the non-compliance remains, even if the information for the following periods is entered in time and form.
5.1.3. Repeated non-compliances.
5.1.3.1. Definition.
This refers to the non-observance of the report in successive periods or with an interval of less than 3 months, derived from voluntary acts (for example: distribution of profits that decrease the computable equity responsibility).
5.1.3.2. Consequences.
It will determine that the increase in the minimum capital requirement for credit risk is equivalent to 130% of the excess registered in the report.
5.2. Non-compliances detected by the Superintendence of Financial and Exchange Entities.
5.2.1. Defense.
The entity will have 30 calendar days counted from the notification of the determination made by the Superintendence of Financial and Exchange Entities to formulate its defense, on which it must rule within the 30 calendar days following the presentation.
5.2.2. Final determination.
5.2.2.1. When the entity does not present its defense within the period indicated in point 5.2.1., the determination will be considered final on the day the deadline for formulating the defense expires.

REPORT FOR IMMOBILIZED ASSETS
B.C.R.A. AND OTHER CONCEPTS
Section 5. Non-compliances.
Version: 2nd. COMMUNICATION “A” 4020
Validity:
24/09/2003
5.2.2.2. If the defense formulated is dismissed (totally or partially) by the Superintendence of Financial and Exchange Entities, the non-compliance will be considered final on the date of notification of the adopted decision.
5.2.3. Treatment of the determined non-compliance.
It will originate an increase in the minimum capital requirement for credit risk by an amount equivalent to 150% of the excess of the report starting from the month in which it becomes final, while the non-compliance subsists, and additionally, once regularized, for a number of months equal to the number of periods during which the non-compliance detected by the Superintendence was verified. The calculation of the deviation will be carried out considering the highest amount of excess registered in the mentioned periods and in the following ones, as long as the non-compliance remains, even if the information for the following periods is entered in time and form.
5.3. Other consequences.
5.3.1. Impediment for:
5.3.1.1. Transformation of financial entities.
5.3.1.2. Installation of subsidiaries in the country and abroad.
5.3.1.3. Installation of representation offices abroad.
5.3.1.4. Participation in foreign financial entities.
5.3.2. Limitations on the growth of deposits.
The provisions established in point 2.3. of Section 2. of the regulations on “Non-compliances of minimum capitals and technical ratios. Applicable criteria” apply.
5.4. Accounting exposure.
Non-compliances must be reported in notes to the financial statements according to the criteria established by the Superintendence of Financial and Exchange Entities.

REPORT FOR IMMOBILIZED ASSETS
B.C.R.A. AND OTHER CONCEPTS
Section 7. Transitional provisions.
Version: 3rd. COMMUNICATION “A” 4020
Validity:
24/09/2003
7.1. Shares or participations received in payment of credits.
The total of shares or participations in the capital of companies received in payment of credits up to the limit of 20% of the social capital, without exceeding 20% of the votes, regarding companies that do not provide complementary services, according to the conditions established in Section 9. of the regulations on “Credit Graduation”, must not exceed 40% of the computable equity responsibility of the financial entity for the month in question, during the maximum periods established for the liquidation of holdings, in points 9.1.1. and 9.1.2. of the cited Section 9. This without prejudice to their calculation as established in point 1.1. of Section 1. for the purpose of determining compliance with the maximum limit referred to in point 4.1. of Section 4. If excesses beyond the maximum limit of 40% referred to in the preceding paragraph are verified, the financial entity will be subject to the provisions established in Section 5. In case of excesses beyond the limit established in point 4.1. of Section 4. as a consequence of the incorporation of such assets received in payment of credits, they will not be considered as such as long as the immobilized assets and other concepts, calculated according to what is provided in Section 3. and in this section, do not exceed 100% of the computable equity responsibility. Once the periods for the liquidation of holdings have elapsed, the excesses over the percentage of holding admitted to which point 3.2. of Section 3. of the regulations on “Credit Graduation” refers, must be deducted from the computable equity responsibility.
7.2. Differences resulting from compliance with judicial measures.
Until 30.4.04, the activated amount of the differences resulting from compliance with judicial measures originating in cases where the current regulatory framework applicable to deposits and other obligations from financial intermediation in the financial system, originally agreed in foreign currency within the framework of what is provided by Law 25.561, Decree 214/02, and complementary provisions, is questioned, will not be calculated for the purpose of determining compliance with the maximum limit contemplated in Section 4.

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE REGULATIONS ON “REPORT FOR IMMOBILIZED ASSETS AND OTHER CONCEPTS” ORDERED TEXT SOURCE REGULATION Observations
Section Point Paragraph Com. Cap./ Point Paragraph
1.1.1. “A” 2736 unique 1.6.
1.1.2. “A” 2736 unique 1.5. According to Com. “A” 3131.
1.1.3. a
1.1.6.
“A” 2736 unique 1.1. a
1.4.
According to Com. “A” 2753.
1.2.1.1. “A” 2736 unique 1.5.3. According to Com. “A” 2753, “A”
3216 and “A” 3558.
1.
1.2.1.2. “A” 2753 1. Includes interpretative clarification and modification by Com.
“A” 2832 and “A” 3558.
2. 2.1. “A” 2736 1. 1º
3.1.1. “A” 2736 unique 1. last According to Com. “A” 2966.
3.1.2.1. “A” 2736 unique 3.
and
3.1.2.2.
“A” 414
LISOL-1
VII 5.2.2.
3.1.2.3. “A” 2736 unique 3.
3.2. “A” 2736 1. 3º According to Com. “A” 2966. Includes interpretative clarification.
3.
3.3. “A” 2736 1. 2º
4. 4.1. “A” 2736 1. 1º
5.1.1. “A” 3161 2.1.1.
5.1.2. “A” 3161 2.1.2. According to Com. “A” 3171 (point
2.).
5.2. “A” 3161 2.2.
5.2.1. “A” 3161 2.2.1.
5.2.2. “A” 3161 2.2.2.
5.2.2.1. “A” 3161 2.2.2.1.
5.2.2.2. “A” 3161 2.2.2.2.
5.2.3. “A” 3161 2.2.3. According to Com. “A” 3171 (point
3.).
5.3.1.1. “A” 2241
CREFI-2
I 3.2.3.
5.3.1.2. “A” 2241
CREFI-2
II 1.2.
5.3.1.3. “A” 2241
CREFI-2
III 1.1.
5.3.1.4. “A” 2241
CREFI-2
IV 1.3.
5.3.2. “A” 3161 2.3. According to Com. “A” 3171 (point
4.).
5.
5.4. “A” 3161 2.4.
6.1. “A” 2227 unique 5.2.1. last According to Com. “A” 2649.
6. 6.2. “A” 2227 unique 5.1.8. According to Com. “A” 2736.
“A” 2227 unique 5.2.2.
7. 7.1. “A” 3918 6.
7.2. “A” 3954 1. According to Com. “A” 4020.