Financing Line for Production and Financial Inclusion. Minimum Cash. Adjustments

"2017 - YEAR OF RENEWABLE ENERGIES
COMMUNICATION "A" 6217 04/06/2017
TO FINANCIAL INSTITUTIONS:
Ref.: Circular
OPRAC 1 - 882
REMON 1 - 925
Financing line for production and financial inclusion. Minimum cash.
Adjustments.

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We address you to inform you that this Institution adopted the resolution that, in its pertinent part, provides:
"1. To replace, with effect for financings granted as from 4.7.17, the first paragraph of point 3.1. and point 4.11. of the rules on "Financing line for production and financial inclusion" with the following:
3.1. General provisions.
"At least 75% of the quota defined in Section 2. must be agreed with MiPyMEs in accordance with the definition in force in the rules on "Determination of the condition of micro, small or medium-sized enterprise" and/or with users of financial services." "4.11. Financings with credit cards within the framework of the "AHORA 12" Programme.
4.11.1. Financings to non-financial companies issuing credit cards at an interest rate of up to 17% nominal annual.
The financial institution must require and have documentation that proves that the borrowing company has allocated the funds to grant financings under the conditions of the aforementioned programme.
4.11.2. Financings granted through credit cards under the modalities of
3 and 6 interest-free instalments.
The non-financial companies issuing credit cards of point 4.11.1. and the financial institutions of point 4.11.2. must have adhered to the "AHORA 12" Programme to which Joint Resolution No. 671/14 and 267/14 of the former Ministry of Economy and Public Finance and of the former Ministry of Industry and its amending and supplementary rules refer. The total of these financings may reach up to 25% of the corresponding Quota defined in Section 2."

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2. To incorporate, with effect for financings granted as from 4.7.17, as the last
paragraph of point 3.2. of the rules on "Financing line for production and financial inclusion" the following:
"The amount to be imputed of the financings granted in accordance with the provisions of point 4.11.2. shall result from applying to their balance a coefficient equal to 3 (three)."
3. To replace, with effect for financings granted as from 4.7.17, point 1.5.5.2.
of the rules on "Minimum cash" with the following:
"1.5.5.2. To non-financial companies issuing credit cards at an interest rate of up to 17% nominal annual, to the extent that those companies have adhered to the "AHORA 12" Programme. For this purpose, the financings of the period prior to the computation of the requirement shall be considered, measured as a monthly average of daily balances. The financial institution must require and have documentation that proves that the borrowing company has allocated the funds to grant financings under the conditions of the aforementioned Programme." On the other hand, we send you in annex the sheets that, replacing those previously provided, must be incorporated into the ordered texts of the reference. Likewise, it is recalled that on the page of this Institution www.bcra.gob.ar, accessing "Financial and Payment Systems - LEGAL AND REGULATORY FRAMEWORK - Compilations and summaries - Ordered texts of general regulations", the amendments made will be found with texts highlighted in special characters (strikethrough and bold). We greet you attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC Matías A. Gutiérrez Girault Agustín Torcassi Manager of Issuance of Rules Deputy General Manager of Rules
ANNEX

• Index -
  Section 1. Entities covered.
  Section 2. Quota.
  2.1. Quota 2016.
  2.2. Quota 2017.
  Section 3. Applications.
  3.1. General provisions.
  3.2. Special application.
  3.3. Special treatment.
  Section 4. Eligible financings.
  4.1. Financing of investment projects.
  4.2. Discount of deferred payment cheques and other documents to MiPyMEs.
  4.3. Incorporation of consumer credit portfolio.
  4.4. Microcredits.
  4.5. Loans granted to natural persons for the acquisition of housing,
  instrumented through assignment in guarantee of rights over trusts.
  4.6. Mortgage loans for individuals destined for the purchase, construction or
  enlargement of housing.
  4.7. Assistance agreed in emergency zones affected by catastrophes caused by factors of nature.
  4.8. Financings to entities not covered.
  4.9. Financings to financial institutions destined to grant the assistance
  agreed under the terms of point 4.7.
  4.10. Assistance for working capital to MiPyMEs with coverage.
  4.11. Financings with credit cards within the framework of the "AHORA 12" Programme.
  Section 5. Terms and conditions of the financings.
  5.1. Maximum interest rate.
  5.2. Currency and terms.
  Section 6. Main obligations of financial institutions in the operation.
  Section 7. Other provisions.
  7.1. Syndicated loans.
  7.2. Early cancellations.
  Version: 6a. COMMUNICATION "A" 6217
  Effective:
  04/07/2017
  B.C.R.A.
  ORDERED TEXT OF THE RULES ON
  "FINANCING LINE FOR PRODUCTION
  AND FINANCIAL INCLUSION"

3.1. General provisions.
At least 75% of the quota defined in Section 2. must be agreed with MiPyMEs in accordance with the definition in force in the rules on "Determination of the condition of micro, small or medium-sized enterprise" and/or with users of financial services. The amount of financings to MiPyMEs to be imputed shall result from the product between the balance of the financing and the following valuation coefficients that correspond according to the economic size of the borrower and its geographic location, as indicated in the following tables:
Coefficients applicable according to economic size Categories (according to the rules on "Determination of the condition of micro, small or medium-sized enterprise") Coefficient Micro 1.20 Small 1.10 Medium Tranche 1 1.05 Medium Tranche 2 1.00 Coefficients applicable according to geographic location Categories Coefficient I 1.00 II 1.10 III 1.25 IV to VI 1.50 To determine the corresponding category, those provided in the rules on "Categorization of localities for financial institutions" shall be taken into account, to which the locality belongs:
a) where the investment project of the borrowing MiPyME is developed, in the case that the financing of a project is applied in more than one category, it shall be appropriate to consider that to which the largest proportion of the credit is assigned; or b) where the domicile declared by that MiPyME before the AFIP and the provincial tax collection body is located, when it is financing destined for working capital (including the discount of deferred payment cheques). If the applicant turns out to be domiciled in different jurisdictions according to the AFIP and the provincial tax collection body, or is located in multiple jurisdictions, it must present to the granting financial institution a copy of form CM 01 of the Multilateral Agreement, and it shall be considered that 100% of the credit was disbursed in the locality of the domicile declared in that form. For these purposes, the simple average of the daily balances of the financings in force during the corresponding calendar semester shall be considered. FINANCING LINE FOR PRODUCTION B.C.R.A. AND FINANCIAL INCLUSION
Section 3. Applications.
Version: 4a. COMMUNICATION "A" 6217
Effective:
04/07/2017

3.2. Special application.
The amount to be imputed for the total balance of the financings granted in accordance with the provisions of points 4.7. and 4.9. shall result from the sum of:
3.2.1. the product between that balance –up to an amount equivalent to 7.5% of the quota defined in
point 2.1.2. or 2.2.1., as applicable– and a coefficient equal to 2 (two);
3.2.2. the remainder of the total balance in excess of the limit defined in point 3.2.1.
The amount to be imputed of the financings granted in accordance with the provisions of point 4.11.2. shall result from applying to their balance a coefficient equal to 3 (three).
3.3. Special treatment.
50% of the increase in financings to MiPyMEs in pesos, registered between the months of October 2016 and June 2017, that involve disbursements of funds and that cannot be imputed to this financing line due to the conditions under which they are agreed –such as rate and/or term–, may be imputed to the Quota provided in point 2.2.1., considering for that purpose the difference of the average balances of those months. FINANCING LINE FOR PRODUCTION B.C.R.A. AND FINANCIAL INCLUSION
Section 3. Applications.
Version: 4a. COMMUNICATION "A" 6217
Effective:
04/07/2017

For their imputation, a special report of external auditor of the non-covered financial institution on their compliance must be available, which must contain, in addition to the characteristics specified in Section 9., the dates and amounts of each application to the destinations provided herein.
4.9. Financings to financial institutions destined to grant the assistance agreed in
the terms of point 4.7. and the incorporations they make of that assistance when it has been granted by other financial institutions. The entity that funds the financings or the assignee, as the case may be, may impute the aforementioned assistance, for which it must have a special report of external auditor in the terms provided by point 4.8.
4.10. Assistance for working capital to MiPyMEs with coverage.
Comprises new financings, granted as from 8.1.16, for working capital that are destined to livestock activity –for the acquisition and/or production of bovine, ovine, porcine, poultry, beekeeping, etc. cattle–, dairy (milk) or other productive activities developed in regional economies that have the coverage provided in point
2.2.9. of the rules on "Minimum provisions for bad debt risk".
The assistance must be agreed under the conditions of maximum interest rate -without computing the cost of coverage-, currency and term provided in points 5.1. and 5.2. These financings may reach up to 10% of the Quota defined in Section 2.
4.11. Financings with credit cards within the framework of the "AHORA 12" Programme.
4.11.1. Financings to non-financial companies issuing credit cards at an interest
rate of up to 17% nominal annual.
The financial institution must require and have documentation that proves that the borrowing company has allocated the funds to grant financings under the conditions of the aforementioned programme.
4.11.2. Financings granted through credit cards under the modalities of 3 and 6
interest-free instalments.
The non-financial companies issuing credit cards of point 4.11.1. and the financial institutions of point 4.11.2. must have adhered to the "AHORA 12" Programme to which Joint Resolution No. 671/14 and 267/14 of the former Ministry of Economy and Public Finance and of the former Ministry of Industry and its amending and supplementary rules refer. The total of these financings may reach up to 25% of the corresponding Quota defined in Section 2. FINANCING LINE FOR PRODUCTION B.C.R.A. AND FINANCIAL INCLUSION
Section 4. Eligible financings.
Version: 5a. COMMUNICATION "A" 6217
Effective:
04/07/2017

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON "FINANCING LINE FOR PRODUCTION AND FINANCIAL INCLUSION" ORDERED TEXT ORIGINATING RULE Sect. Point Par. Com. Annex Sec. Point Par. OBSERVATIONS
1. "A" 5874 sole 1.
2.1.1. "A" 5874 sole 2. According to Com. "A" 5975 and 6084.
2.1.2. "A" 5975 3. According to Com. "A" 6084.
2.
2.2.1. "A" 6084 2.
3.1. "A" 5874 sole 3. According to Com. "A" 5975, 6209 and
6217.
3.2. "A" 5975 3. According to Com. "A" 6084 and 6217.
3.
3.3. "A" 6084 3.
4.1. "A" 5874 sole 4.1.
4.2. "A" 5874 sole 4.2. According to Com. "A" 5923, 5975 and
6084.
4.3. "A" 5874 sole 4.3. According to Com. "A" 6084.
4.4. "A" 5874 sole 4.4.
4.5. "A" 5874 sole 4.5. According to Com. "A" 5950, 6069,
6084 and 6120.
4.6. "A" 5874 sole 4.6. According to Com. "A" 5950, 6069,
6084 and 6120.
4.7. "A" 5874 sole 4.7. According to Com. "A" 5975 and 6084.
4.8. "A" 5913 1. According to Com. "A" 5929 and 5975.
4.9. "A" 5975 4.
4.10. "A" 6032 1.
4.
4.11. "A" 6120 2. According to Com. "A" 6217.
5.1. "A" 5874 sole 5.1. According to Com. "A" 5898, 5975 and
6084.
5.
5.2. "A" 5874 sole 5.2. According to Com. "A" 5975, 6032 and
6084.
6. "A" 5874 sole 6.
7. 7.1. "A" 5874 sole 7.1.
7.2. "A" 5874 sole 7.2.
8. "A" 5874 sole 8.
9. "A" 5874 sole 9.
10. "A" 5874 sole 10.
11. "A" 5874 sole 11. According to Com. "A" 5975 and 6084.
12. "A" 5874 sole 12.2. According to Com. "A" 5975 and 6084.

For this purpose, the balance of the covered financings of the period prior to the computation of the requirement that meet the indicated requirements shall be considered.
1.5.5.2. To non-financial companies issuing credit cards at an interest rate
of up to 17% nominal annual, to the extent that those companies have adhered to the "AHORA 12" Programme. For this purpose, the financings of the period prior to the computation of the requirement shall be considered, measured as a monthly average of daily balances. The financial institution must require and have documentation that proves that the borrowing company has allocated the funds to grant financings under the conditions of the aforementioned Programme. This deduction, furthermore, may not exceed 1% of the peso items subject to requirement, on average, of the month prior to the computation. The total decrease of the requirement –resulting from considering the provisions of points 1.5.1. to
1.5.5. jointly– may not exceed the amount of the requirement previously determined.
1.6. Specific increases of requirement due to concentration of liabilities.
When an excessive concentration of liabilities is verified (in holders and/or terms), that implies a significant risk with respect to the individual liquidity of the financial institution and/or has an important negative effect on systemic liquidity, additional minimum cash may be set on the liabilities comprised of the financial institution and/or those complementary measures deemed pertinent. This situation shall be considered to be configured when, among others, any of the following factors is present:

• A high percentage of liabilities is concentrated in the same holder or holders.
• In term obligations, the term is short.
• The aforementioned liabilities represent a significant percentage with respect to the integration
  of the minimum cash and/or of the total deposits of the private sector in the entity.
  1.7. Transfers.
  1.7.1. Admitted margin.
  The integration of the minimum cash of the positions in monthly or quarterly average of daily balances of the comprised obligations may not be less than 80% of the requirement resulting from the following expression:
  EEMA (n) = EEF (n) + ENI (n-1)
  MINIMUM CASH B.C.R.A.
  Section 1. Requirement.
  Version: 11a. COMMUNICATION "A" 6217
  Effective:
  04/07/2017

MINIMUM CASH
ORDERED TEXT ORIGINATING RULE OBSERVATIONS
Sec. Point Par. Com. Annex Sec. Point Par.
1.3.8. "A" 3498 sole 1. 1.3.11. According to Com. "A" 3597, 3732,
4032 and 5356.
1.3.9. "A" 3498 sole 1. 1.3.12. According to Com. "A" 3905, 3917,
3967, 4032, 4179, 4276,
4449, 4549, 4851, 5356,
5534, 5555, 5569, 5873,
5893, 5980 and 6195.
1.3.10. "A" 3549 1.
1.3.11. "A" 3549 1. According to Com. "A" 4179, 4388,
4549, 4851, 5356, 5534,
5555, 5569, 5873, 5893,
5980 and 6195.
1.3.12. "A" 4360 2. According to Com. "A" 5356.
1.3.13. "A" 4754 6. According to Com. "A" 5356, 5980
and 6195.
1.3.14. "A" 5945 4. According to Com. "A" 6069 and
6204.
1.3.15. "A" 6069 4.
1.4. "A" 3905 3. According to Com. "A" 4179, 4449,
4473, 5671, 5740. Includes interpretive clarification.
1.5. "A" 5356 2. According to Com. "A" 5471.
1.5.1. "A" 5356 2. According to Com. "A" 5471 and
5623.
1.5.2. "A" 5471 1. According to Com. "A" 5623 and
6209.
1.5.3. "A" 5623 2. According to Com. "A" 6209.
1.5.4. "A" 5524
1.5.5. "A" 5631 1. According to Com. "A" 5638 and
6217.
1.5. last "A" 5623 4. According to Com. "A" 5631.
1.6. "A" 3274 II 1. 1.5. According to Com. "A" 3498.
1.7. "A" 3274 II 1. 1.6.
1.7.1. "A" 3274 II 1. 1.6.1. According to Com. "A" 4405 and
4449.
1.7.2. "A" 3274 II 1. 1.6.2. According to Com. "A" 3304 and
4449.
1.8. "A" 3498 sole 1. 1.8. According to Com. "A" 4147.
1.
1.9. "A" 5380 According to Com. "A" 5449, 5516,
5600, 5654 and 5771. Includes interpretive clarification.
2.1. "A" 3274 II 2. 2.1. According to Com. "A" 3498, 3597,
4716 (interpret. clarification),
4815 and "B" 9186.
2.1.1. "A" 3274 II 2. 2.1.2. According to Com. "A" 3304, 3498,
4016 and 4147.
2.1.2. "A" 3498 sole 2. 2.1.3. According to Com. "A" 4147.
2.1.3. "A" 3274 II 2. 2.1.3. According to Com. "A" 3498, 4147,
4276 and 5194.
2.
2.1.4. "A" 3274 II 2. 2.1.4.