Financing line for productive investment of MSMEs, minimum cash, spot and forward transactions, repos, collateralized loans, other derivatives and mutual investment funds, and financial services during the COVID-19 health emergency

2020 - YEAR OF GENERAL MANUEL BELGRANO

COMMUNICATION “A” 7155 04/11/2020

TO FINANCIAL INSTITUTIONS,
TO FOREIGN EXCHANGE OPERATORS,
TO NON-FINANCIAL COMPANIES ISSUING CREDIT CARDS, TO ELECTRONIC CLEARING HOUSES, TO COMPANIES ADMINISTERING AUTOMATED TELLER MACHINE NETWORKS, TO OTHER NON-FINANCIAL CREDIT PROVIDERS, TO NON-FINANCIAL COMPANIES ISSUING PURCHASE CARDS, TO SECURITIES CARRIERS, TO FINANCIAL MARKET INFRASTRUCTURES:

Ref.: Circular
REMON 1 - 1033
LISOL 1 - 921
RUNOR 1 - 1617
OPASI 2 - 627
OPRAC 1 - 1072
CAMEX 1 - 870
SERVI 1 - 77
SINAP 1 - 117

Financing line for productive investment of MSMEs. Minimum cash. Spot transactions to be settled and forward transactions, repos, collateralized loans, other derivatives and mutual investment funds. Financial services within the framework of the health emergency declared by Decree No. 260/2020 CORONAVIRUS (COVID-19). Update .

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We address you to send you the sheets that, replacing those previously provided, should be incorporated into the rules on “Spot transactions to be settled and forward transactions, repos, collateralized loans, other derivatives and with mutual investment funds”, “Minimum cash” and “Financial services within the framework of the health emergency declared by Decree No. 260/2020 Coronavirus (COVID-19)” based on the provisions disseminated through Communications “A” 7122, 7131, 7139 and 7140.

Likewise, the consolidated text of the rules on “Financing line for productive investment of MSMEs” is attached in accordance with the provisions disseminated by Communication “A” 7140 (point 1) and incorporates a clarification in point 4.2.

It is recalled that on the page of this Institution www.bcra.gob.ar, by accessing “Financial System – LEGAL AND REGULATORY FRAMEWORK – Compilation and summaries – Consolidated 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

Matías A. Gutiérrez Girault
Issuance Manager of Rules
Darío C. Stefanelli
Principal Manager of Issuance and Regulatory Applications

WITH COPY TO EXTRA-BANK COLLECTION COMPANIES

ANNEX

B.C.R.A.
CONSOLIDATED TEXT OF THE RULES ON
“FINANCING LINE FOR PRODUCTIVE INVESTMENT
OF MSMEs”

-Index-

Section 1. Entities covered.

Section 2. Quota.

Section 3. Applications.

3.1. Purpose.

3.2. Compliance defects.

Section 4. Eligible financings.

4.1. Financing of investment projects.

4.2. Working capital and discounting of deferred payment checks and other documents.

4.3. Special.

Section 5. Terms and conditions of 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.

Section 8. Information regime.

Section 9. Special external auditor's report.

Section 10. Non-admitted charges.

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Effective:
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B.C.R.A.
CONSOLIDATED TEXT OF THE RULES ON
“FINANCING LINE FOR PRODUCTIVE INVESTMENT
OF MSMEs”

-Index-

Section 11. Breaches.

11.1. Increase in minimum cash requirement.

11.2. Sanctions.

Correlation table.

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FINANCING LINE FOR INVESTMENT
B.C.R.A.
PRODUCTIVE OF MSMEs
Section 1. Entities covered.

Financial entities that as of 16.10.20 are included in group A, in accordance with the provisions of Section 4. of the rules on “Authorities of financial entities”, and those that –not included in said group– operate as financial agents of the National, provincial, of the Autonomous City of Buenos Aires and/or municipal governments.

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FINANCING LINE FOR INVESTMENT
B.C.R.A.
PRODUCTIVE OF MSMEs
Section 2. Quota.

The financial entities covered must maintain, from 16.10.2020 and until 31.3.2021, a balance of covered financings that is, at a minimum, equivalent to 7.5 % of their deposits from the non-financial private sector in pesos, calculated based on the monthly average of daily balances of September 2020.

In the case of covered entities that are not included in group A, the minimum percentage to apply will be 25 % of that previously provided.

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FINANCING LINE FOR INVESTMENT
B.C.R.A.
PRODUCTIVE OF MSMEs
Section 3. Applications.

3.1. Purpose.

The quota defined in Section 2. must be granted to MSMEs in accordance with the definition in force in the rules on “Determination of the condition of micro, small or medium-sized enterprise”.

The following MSMEs are excluded:

3.1.1. with agricultural activity that maintain a stockpile of their wheat and/or soybean production for a value greater than 5 % of their annual harvest capacity. The financial entity will be responsible for verifying that the applicant is not included in this exclusion, requesting information and documentation that accredits it;

3.1.2. that after 19.3.2020 have imported final consumer goods, except in the case of medical products and/or supplies.

For these purposes, the simple average of the daily balances of the financings in force during the period between 16.10.2020 and 31.3.2021 will be considered.

At least 30 % of the quota must be allocated to the provisions of point 4.1.

3.2. Compliance defects.

Financial entities may count for compliance with the quota of Section 2. the financings allocated in points 1.5.4., 1.5.5. and 1.5.7. of the rules on “Minimum cash” and that have been disbursed until 15.10.2020.

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FINANCING LINE FOR INVESTMENT
B.C.R.A. PRODUCTIVE OF MSMEs
Section 4. Eligible financings.

4.1. Financing of investment projects.

Financing of investment projects intended for the acquisition of capital goods and/or the construction of facilities necessary for the production of goods and/or services and the marketing of goods and/or services.

Financings agreed under other special credit regimes may not be classified as an eligible application to the extent that the funds for such assistance are provided to the entity for that specific purpose or constitute contingent liabilities.

4.2. Working capital and discounting of deferred payment checks and other documents.

It may be allocated to the financing of working capital and the discounting of deferred payment checks and MiPyME Electronic Credit Invoices, in the latter case accepted by companies that comply with the provisions of point 2.2.1. of the rules on "Credit assessments", of clients that meet the condition of MiPyME.

The instruments to be discounted must come from the collection of sales operations and/or the provision of services corresponding to the activity of the discounting MiPyME. This condition may be verified by means of the sworn statement made by the client and/or by any other means that the entity deems sufficient.

4.3. Special.

4.3.1. Providers of human health services, authorized by the competent body of the corresponding jurisdiction, that do not meet the condition of MiPyME, to the extent that they provide inpatient services within the framework of the Health Emergency declared by Decreto N°260/2020 and it is allocated to the purchase of medical supplies and equipment.

4.3.2. Non-MiPyME clients, to the extent that the funds are allocated to the acquisition of machinery and equipment produced by local MiPyMEs.

4.3.3. Financings to financial entities not covered by these rules and/or to companies that provide financial assistance through financial leasing operations ("leasing") – point 2.2.8. of the rules on "Complementary services of financial activity and other permitted activities" –, provided that they allocate the funds to the granting of the financings provided for in points 4.1. and/or 4.2., under the conditions established in these rules.

The entities must apply the funds to the destinations provided for in this point within a period no greater than 10 business days between the date on which they receive the assistance from the financial entity and its credit application to MiPyME.

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FINANCING LINE FOR PRODUCTIVE INVESTMENT
B.C.R.A.
OF MiPyME
Section 4. Eligible financings.

For the purposes of its imputation, there must be a special report from an external auditor of the financial entity not covered on its compliance, which must contain, in addition to the characteristics specified in Section 9., the dates and amounts of each application to the destinations provided for herein.

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FINANCING LINE FOR PRODUCTIVE INVESTMENT
B.C.R.A.
OF MiPyME
Section 5. Terms and conditions of the financings.

5.1. Maximum interest rate.

5.1. Destinations of point 4.1.: 30 % fixed nominal annual.

5.2. Destinations of points 4.2. and 4.3.: 35 % fixed nominal annual.

In the case of credits with third-party reimbursements, the gross TNA of the reimbursement to the financial entity must be considered.

5.2. Currency and terms.

The financings of point 4.1. must be denominated in pesos and have – at the time of disbursement – an average term equal to or greater than 24 months, weighting for this purpose the principal maturities, without the total term being less than 36 months.

The operations of point 4.2. must also be in pesos and will not have a minimum term.

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FINANCING LINE FOR PRODUCTIVE INVESTMENT
B.C.R.A.
OF MiPyME
Section 6. Main obligations of financial entities in the operation.

6.1. Require and have the documentation that accredits compliance with the required conditions.

6.2. Assume full and absolute responsibility for the correct processing and execution of operations with its clients, as well as all credit risks arising from the loans that they approve and grant.

6.3. Verify that the borrower and the credit fall within this regulation.

6.4. Open a specific file for each financing granted, with all the information corresponding to the application, evaluation and pertinent documentation, in accordance with the provisions of point 3.4. of the rules on "Debtor classification".

6.5. Consider that the interest rates to be applied for financings that they may eventually grant in order to complement this line – whatever their concept: additional margin, working capital, etc. – must be related to the average rates charged to the clientele for those destinations in order not to distort the objective of this regime.

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B.C.R.A.
FINANCING LINE FOR PRODUCTIVE INVESTMENT
OF MiPyME
Section 7. Other provisions.

7.1. Syndicated loans.

The entities may integrate this portfolio through loans granted jointly with other entities, in the corresponding proportion.

7.2. Early cancellations.

If early cancellations are accepted, the right to cancellation must be solely in favor of the borrowers.

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FINANCING LINE FOR PRODUCTIVE INVESTMENT
OF MiPyME
B.C.R.A.
Section 8. Reporting regime.

Financial institutions must comply with the reporting regime established in this regard for the purposes of controlling this operation.

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FINANCING LINE FOR PRODUCTIVE INVESTMENT
B.C.R.A.
OF MiPyME
Section 9. Special external auditor's report.

The financial institutions covered must submit a special external auditor's report, registered in the “Registry of auditors” of the Superintendency of Financial and Exchange Institutions, on compliance with the destinations, terms and other conditions established in these rules, in accordance with the model that will be made known for this purpose.

This special report must not contain limitations on the scope of the tasks, nor a qualified opinion or a disclaimer of opinion.

The intervention of the external auditor in all aspects required in this operation falls within the provisions established in the Minimum Standards on External Audits.

The entity may also comply with the preceding requirement by submitting a special report from its internal audit whose procedures, scope and conclusions conform to the aforementioned conditions and model.

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FINANCING LINE FOR PRODUCTIVE INVESTMENT
OF MiPyME
B.C.R.A.
Section 10. Non-admitted imputations.

Financings granted without fully complying with the conditions provided herein may not be imputed as application of resources of this regime.

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FINANCING LINE FOR PRODUCTIVE INVESTMENT
B.C.R.A.
OF MiPyME
Section 11. Non-compliances.

11.1. Increase in the minimum cash requirement.

The failure to apply the quota of Section 2. will generate an increase in the minimum cash requirement on average in pesos as from the requirement of 1.4.21 for an amount equivalent to that defect increased by 20% and for a period of 5 months, without prejudice to the application of the provisions of point 11.2.

11.2. Sanctions.

The provisions of article 41 of the Law on Financial Institutions shall apply.

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B.C.R.A.

ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “FINANCING LINE FOR PRODUCTIVE INVESTMENT OF MiPyME ”

CONSOLIDATED TEXT SOURCE RULE
Sect. Point Par. Comm. Annex Sec. Point Par.
OBSERVATIONS
1. “A” 7140 sole 1.
2. “A” 7140 sole 2.
3.1. “A” 7140 sole 3.1.
3.
3.2. “A” 7140 sole 3.2.
4.1. “A” 7140 sole 4.1.
4.2. “A” 7140 sole 4.2. According to “A” 7155. Includes clari-
fi-cation interpretative.
4.3. “A” 7140 único 4.3.
4.3.1. “A” 7140 único 4.3.1.
4.3.2. “A” 7140 único 4.3.2.
4.
4.3.3. “A” 7140 único 4.3.3.
5.1. “A” 7140 único 5.1.
5.
5.2. “A” 7140 único 5.2.
6.1. “A” 7140 único 6.1.
6.2. “A” 7140 único 6.2.
6.3. "A" 7140 único 6.3.
6.4. "A" 7140 único 6.4.
6.
6.5. "A" 7140 único 6.5.
7.1. "A" 7140 único 7.1.
7.
7.2. "A" 7140 único 7.2.
8. “A” 7140 único 8.
9. “A” 7140 único 9.
10. "A" 7140 único 10.
11.1. "A" 7140 único 11.1.
11.
11.2. "A" 7140 único 11.2.

B.C.R.A.
CONSOLIDATED TEXT OF THE RULES ON “CASH TRANSACTIONS TO BE SETTLED AND FORWARD, REPOS, GUARANTEES, OTHER DERIVATIVES AND WITH MUTUAL INVESTMENT FUNDS”

-Index-

Section 6. Options.

6.1. Purchase of options.

6.2. Sale of options.

6.3. Options whose underlying asset is raw materials or basic products –“commodities”–.

Section 7. Transactions with mutual investment funds.

7.1. Name.

7.2. Restrictions.

7.3. Transparency.

7.4. Identification and tax situation.

Section 8. Net LELIQ position.

8.1. Limits.

8.2. Extension.

8.3. Decreases.

8.4. Non-compliances.

Section 9. Transitional provisions.

Correlation table.

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Section 8. Net LELIQ position.

8.1.2.2. From 1.9.2020. It will be the sum of:

• − 15 % of the LELIQ holdings that exceed those admitted for the integration of the minimum cash requirement in pesos, provided for in point 1.3.16. of the rules on “Minimum cash”, registered as of 19.3.2020; and

• − the amount of the decrease in the average minimum cash requirement in pesos provided for in point 1.5.5. of the rules on “Minimum cash” or 6 % of the items subject to requirement, whichever is lower, plus 40 % of the monthly average of daily balances of the previous period of the financings allocated to the “Financing line for productive investment of MiPyME” –or, in the case of entities not covered by those rules, 40 % of the financings that fully fall within the conditions provided for in the aforementioned Line–, without considering those applied to point 8.3.1.

The amount of financings to be considered will be the monthly average of daily balances of the previous period of the financings allocated to the aforementioned Line –or, in the case of entities not covered by those rules, of the financings that fully fall within the conditions of the aforementioned Line–, except those applied to point 8.3.1., plus the increase recorded between the monthly average balance of the previous period and the balance as of 19.3.2020 of the financings provided for in the first paragraph of point 1.5.5. of the rules on “Minimum cash”. When the financings referred to in the last term have been allocated to MiPyME for the payment of salaries –in the terms provided for in that point and the financial entity is a payment agent for those salaries– they will be counted at 130 % for the purposes of this point, for which the MiPyME must submit a sworn declaration on the destination of the funds.

8.2. Extensions.

The excess net position will be extended, concurrently if applicable, as follows:

8.2.1. From 1.6.2020, for financial entities that from that date receive deposits at the minimum passive rate established in subparagraph ii) of point 1.11.1.1. of the rules on “Deposits and term investments” –annual nominal rate of 88.89 % of the simple average of the rates of the LELIQ auctions–, in the amount equivalent to 18 % of the term deposits and investments in pesos constituted by the non-financial private sector and by the National, provincial, Autonomous City of Buenos Aires and/or municipal governments –in the case of official placements, only those that have paid a rate not lower than the minimum passive rate of the aforementioned subparagraph ii) of point 1.11.1.1.–, measured as the monthly average of daily balances of the previous month.

8.2.2. From 1.8.2020, for the amount resulting from the positive difference between the limit for the cash position established in the last paragraph of point 2.2.2. of the rules on “Net global foreign currency position” –two million five hundred thousand United States dollars (USD 2,500,000) or 4 % of the RPC of the month prior to the corresponding one, whichever is greater– and the monthly average of daily balances of the observed cash position, or zero if negative, corresponding to the same month.

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CASH TRANSACTIONS TO BE SETTLED AND FORWARD, REPOS, GUARANTEES, B.C.R.A. OTHER DERIVATIVES AND WITH MUTUAL INVESTMENT FUNDS
Section 8. Net LELIQ position.

8.2.3. As of 1.9.2020, for financial institutions that take deposits at the minimum passive rate established in subparagraph i) of point 1.11.1.1. of the rules on “Deposits and time investments” –from natural persons of up to $ 1 million at an annual nominal rate of 94.44% of the simple average of the rates of the LELIQ auctions–, in the amount equivalent to 13% of those deposits, measured as the monthly average of daily balances of the previous month.

The extension of point 8.2.3. shall be increased by 18 percentage points and shall be equivalent to 31% of those deposits, measured as the monthly average of daily balances of the previous month, for financial institutions included in point 1.11.1.2. of the rules on “Deposits and time investments” that have not opted to pay the minimum passive rate provided for in subparagraph ii) of point 1.11.1.1. of the aforementioned rules.

8.3. Decreases.

8.3.1. From 11.5.2020 and until 30.6.2020, financial institutions must reduce the excess net position by an additional 1% of the excess holding recorded as of 19.3.2020.

In order to adapt, they must decrease their excess net position as they collect the LELIQ.

As of 1.7.2020, that excess net position shall be reduced according to the following scheme:

Percentage reached	Reduction to the excess net position
100 %	1 %
< 100% up to 75%	1.5 %
< 75% up to 50%	2 %
< 50% up to 25%	2.5 %
< 25%	3 %

where “Percentage reached” is defined as the amount of financings to be considered as a percentage of the sum of: i) the reduction in the LELIQ position established in the first paragraph; ii) the decrease in the average requirement in pesos provided for in point 1.5.7. of the rules on “Minimum cash” and iii) the amount equivalent to 40% of the monthly average of daily balances of the previous period of the financings allocated to the “Financing line for productive investment of MSMEs” –or, in the case of institutions not covered by those rules, 40% of the financings that fully fall within the conditions provided for in the aforementioned Line– that have been granted to MSMEs not reported in the “Central de deudores del sistema financiero”.

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B.C.R.A.
CASH TRANSACTIONS TO BE SETTLED AND FORWARD, REPOS, GUARANTEES, OTHER DERIVATIVES AND WITH MUTUAL INVESTMENT FUNDS
Section 8. Net LELIQ position.

The amount of financings to be considered shall be the sum of: i) the financings provided for in point 1.5.7. of the rules on “Minimum cash” and ii) the financings allocated to the “Financing line for productive investment of MSMEs” –or, in the case of institutions not covered by those rules, of the financings that fully fall within the conditions of the aforementioned Line– that have been granted to MSMEs not reported in the “Central de deudores del sistema financiero”; in all cases as the monthly average of daily balances of the previous period. For the month of July 2020, the average of daily balances recorded between 11.5.2020 and 30.6.2020 shall be used.

8.3.2. As of 2.10.2020 inclusive, financial institutions must reduce the excess net position by an amount equivalent to 20% of the excess net position in LELIQ recorded as the monthly average of daily balances in September 2020.

In order to adapt, they must decrease their excess net position as they collect the LELIQ.

8.4. Non-compliances.

The excesses recorded over the limits provided for in this section shall be subject to a charge, which shall be computed in accordance with the provisions of point 3.1. of the rules on “Minimum cash”, without prejudice to the application of article 41 of the Law on Financial Institutions.

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CASH TRANSACTIONS TO BE SETTLED AND FORWARD, REPOS, GUARANTEES, B.C.R.A.
OTHER DERIVATIVES AND WITH MUTUAL INVESTMENT FUNDS
Section 9. Transitional provisions.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Until 31.3.2021, institutions belonging to group C that are not branches or subsidiaries of G-SIBs shall be subject to the limits for the excess net LELIQ position indicated for 1.5.2020 in point 8.1.2., and the limits provided for in points 8.1.2.1. and 8.1.2.2., as well as the reduction established in point 8.3.1., shall not apply.

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“CASH TRANSACTIONS TO BE SETTLED AND FORWARD, REPOS, GUARANTEES, OTHER DERIVATIVES AND WITH MUTUAL INVESTMENT FUNDS”

CONSOLIDATED TEXT			SOURCE RULE						OBSERVATIONS
Sect.	Point	Para.	Com.	Annex	Chap.	Sect.	Point	Par.
7.	7.2.2.2.		“A” 2996	sole		2.	2°		According to Com. “A” 6472. Includes interpretive clarification.
	7.2.3.	1°	“B” 6566			1.			According to Com. “A” 2996 (Annex, point 3.).
		2°	“B” 6609
	7.3.1.		“A” 3027
	7.3.1.1.		“A” 2996	sole		4.1.	1°
	7.3.1.2.		“A” 2996	sole		4.1.	2°		According to Com. "A" 3027.
	7.3.2.		"A" 2996	sole		4.2.			According to Com. "A" 3027.
	7.3.2.1.	1°	"A" 2953			1.	3°		According to Com. "A" 2996 (point 4.2., par. 1°).
		2°	“A” 2996	single		4.2.	3°
	7.3.2.2.		“A” 2953			1.	4°		According to Com. “A” 2996 (item 4.2., par. 2°).
	7.4.1.		“A” 3323						According to Com. “A” 5728.
	7.4.2.		“A” 3323						According to Com. “A” 4875 and 6472.
8.		1º	“A” 6647			1.			According to Com. “A” 6661 and 7054. Includes interpretive clarification.
	8.1.1.		“A” 6937			1.			According to Com. “A” 6979, 6993, 7022 and 7054. Includes interpretive clarification.
	8.1.2.		“A” 6937			3.			According to Com. “A” 6946, 6979, 6993, 6998, 7022, 7047, 7054 and 7140. Includes interpretive clarification.
	8.2.	1°	“A” 7091						Includes interpretive clarification.
	8.2.1.		“A” 7027			3.			According to Com. “A” 7034, 7091, 7131 and 7139.
	8.2.2.		“A” 7077						According to Com. “A” 7091.
	8.2.3.		“A” 7078			2.			According to Com. “A” 7131 and 7139.
	8.2.	last	“A” 7091						Includes interpretive clarification.
	8.3.1.		“A” 7006			1. and 4.			According to Com. “A” 7022, 7054 and 7140.
	8.3.2.		“A” 7122
	8.4.		“A” 6647			3.
9.			“A” 7108			3.			According to Com. “A” 7140.

The average monthly balance of the financing covered by the requirement for the period prior to the computation of the requirement that meet the indicated conditions shall be considered.

This deduction may not exceed 2% of the peso items subject to the requirement, on average, for the month prior to the computation.

1.5.5. Special within the framework of the health emergency declared by Decreto N°260/2020.

The requirement shall be reduced by an amount equivalent to 40% of the sum of the peso financings granted at a nominal annual interest rate of up to 24% for the following purposes:

1.5.5.1. MSMEs –in accordance with the definition contained in the rules on “Determination of the status of micro, small or medium-sized enterprise”–, with at least 50% of the amount of such financings to be allocated to working capital lines, such as salary payments and coverage of deferred checks;

1.5.5.2. providers of human health services, authorized by the competent body of the corresponding jurisdiction, not included above, insofar as they provide inpatient services within the framework of the Health Emergency declared by Decreto N° 260/2020 and the funds are allocated to the purchase of medical supplies and equipment;

1.5.5.3. non-MSME clients, insofar as the funds are allocated to the acquisition of machinery and equipment produced by local MSMEs.

The average monthly balance of the financing covered by the requirement for the period prior to the computation of the requirement that meet the indicated conditions shall be considered.

Financings granted to other financial institutions and to non-financial credit providers –registered in the corresponding registries authorized by the SEFyC– may be included in that sum, provided that: i) within 3 business days from the date on which they receive the assistance, those entities allocate the funds to granting financings to MSMEs under the conditions of this point and ii) they have a special report from an external auditor –registered in the “Registro de auditores” of the SEFyC–, which complies with the provisions of point 1.5.4.

This deduction may not exceed 4% of the peso items subject to the requirement on average, for the month prior to the computation, and shall be increased to 6% in the case of the following financings granted as from 1.7.2020:

− clients that received the assistance provided for in point 1.5.5.1., up to the total amount equivalent to the monthly payroll (excluding the mid-year bonus) payable by the applicant; and

− clients that have not received this special assistance, in accordance with the purposes admitted in this point.

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Effective date:
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1.5.6. Special within the framework of Decree No. 332/2020 (and amendments). The requirement will be reduced by an amount equivalent to 60% of the sum of the “Zero Rate Credits”, “Subsidized Rate Credits for Companies” and “Zero Rate Culture Credits” granted within the framework of Decree No. 332/2020 (and amendments). Its average monthly balance in the period prior to the computation of the requirement will be considered.

1.5.7. Financing to MSMEs not reported in the “Central de deudores del sistema financiero”. The requirement will be reduced by an amount equivalent to 40% of the financing in pesos to MSMEs – according to the definition contained in the rules on “Determination of the condition of micro, small or medium-sized enterprise” – that are granted at a nominal annual interest rate of up to 24%, measured as the monthly average of daily balances of the previous month, provided that said MSMEs are not reported in the “Central de deudores del sistema financiero” administered by the BCRA. Financing granted to other financial institutions and to non-financial credit providers – registered in the corresponding registries enabled by the SEFyC – may be included in that sum, provided that: i) within 3 business days from the date on which they receive the assistance, those entities allocate the funds to granting financing to MSMEs under the conditions of this point and ii) they have a special report from an external auditor – registered in the “Registro de auditores” of the SEFyC – that complies with the provisions of point 1.5.4.

The financing computed for the deduction of points 1.5.1. and 1.5.4. to 1.5.7. may only be computed in one of the aforementioned points. The allocation of the financing of points 1.5.4., 1.5.5. and 1.5.7. will be adjusted as follows:

i. Financing granted up to 15.10.2020 inclusive: its monthly average of daily balances in the previous period will continue to be computed for the corresponding deduction.

In the case of financing disbursed from 9.10.2020 and up to 15.10.2020, in both cases inclusive, the financing granted to persons – natural or legal – that:

− belong to sectors of economic activity that have not been considered eligible for any of the benefits of the Emergency Assistance Program for Work and Production (ATP) created by Decree No. 332/2020; and/or

− after 19.3.2020 have imported final consumer goods, except in the case of medical products and/or supplies.

ii. Financing granted from 16.10.2020 inclusive: only the financing provided for in point 2.1.3. of the rules on “Financial services within the framework of the health emergency declared by Decree No. 260/2020 Coronavirus (COVID-19)” may be allocated, and from 1.11.2020, for the deductions of points 1.5.5. and 1.5.7.

The remaining financing that financial institutions grant from 16.10.2020

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inclusive will be voluntary and may not be allocated to the deductions of points 1.5.4., 1.5.5. and 1.5.7.

1.6. Specific increases in requirements due to liability concentration.

When an excessive concentration of liabilities (in holders and/or terms) is verified, which implies a significant risk with respect to the individual liquidity of the financial institution and/or has a significant negative effect on systemic liquidity, additional minimum cash requirements may be set on the included liabilities of the financial institution and/or those complementary measures deemed pertinent.

This situation will be considered to arise when, among others, any of the following factors is present:

− A high percentage of liabilities is concentrated in a single 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 the total private sector deposits in the institution.

1.7. Transfers.

1.7.1. Allowed margin.

The integration of the minimum cash of the average position of the period may not be less than 80% of the requirement resulting from the following expression:

EEMA (n) = EEF (n) + ENI (n-1)

Where

EEMA (n): adjusted minimum cash requirement corresponding to period “n”.

EEF (n): minimum cash requirement according to current rules corresponding to pe- riod “n”.

ENI (n-1): requirement not integrated in period “n-1”.

1.7.2. Period of use.

The allowed transfer of the requirement not integrated in each period to the following position may be made up to a maximum of six periods, counted from the first – inclusive – in which its use is chosen in accordance with the provisions above or from the first position immediately following that in which the transferred defects are offset or a charge is paid on them.

For its calculation, the numerals transferred from the period to which they correspond will be computed, divided by the number of days of the period to which the transfer is made.

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CENTRAL BANK OF THE ARGENTINE REPUBLIC

								MINIMUM CASH
CONSOLIDATED TEXT			SOURCE RULE					OBSERVATIONS
Sec.	Point	Para.	Com.	Annex	Sec.	Point	Para.
1.	1.3.8.		“A” 4360			2.		According to Com. “A” 5356 and 6616.
	1.3.9.		“A” 4754			6.		According to Com. “A” 5356, 5980, 6195, 6526, 6532, 6616 and 6728.
	1.3.10.		“A” 5945			4.		According to Com. “A” 6069, 6204 and 6616.
	1.3.11.		“A” 6341					According to Com. “A” 6616.
	1.3.12.		“A” 6069			4.		According to Com. “A” 6616.
	1.3.13.		“A” 6992
	1.3.14.		“A” 5356			1.		According to Com. “A” 6616 and 6706.
	1.3.15.		“A” 6526					According to Com. “A” 6532, 6550, 6587, 6616, 6706 and 7016.
	1.3.16.		“A” 6550					According to Com. “A” 6556, 6559, 6575, 6587, 6616, 6706, 6738, 6740, 6817, 7018, 7029, 7047 and 7092. Includes interpretive clarification.
	1.3.	Last	“A” 6526					According to Com. “A” 6532, 6556, 6569, 6575, 6587, 6616, 6628, 6740 and 7016.
	1.4.		“A” 3905			3.		According to Com. “A” 4179, 4449, 4473, 5671, 5740, 6232, 6349, 6719, 6871 and 7046.
	1.5.		“A” 5356			2.		According to Com. “A” 5471.
	1.5.1.		“A” 5356			2.		According to Com. “A” 5471, 5623, 6531, 6703 and 6705.
	1.5.2.		“A” 5631			1.		According to Com. “A” 5638, 6217, 6531, 6857, 6910, 6937 and 7114.
	1.5.3.		“A” 6740			1.
	1.5.4.		“A” 6858			1.		According to Com. “A” 6901 and 6907.
	1.5.5.		“A” 6937			2.		According to Com. “A” 6943, 7054, 7140 and 7155.
	1.5.6.		"A" 6993			2.		According to Com. "A" 7082.
	1.5.7.		"A" 7006			2.
	1.5.	last	"A" 6858			2.		According to Com. "A" 6965, 6993, 7006, 7140 and 7155.
		i)	"A" 7132					According to Com. 7140.
		ii)	"A" 7140			2.
	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, 4449, 6349, 6719 and 7046.
	1.7.2.		"A" 3274	II	1.	1.6.2.		According to Com. "A" 3304, 4449, 6349 and 6719.
	1.8.		"A" 3498	sole	1.	1.8.		According to Com. "A" 4147, 6537 and 7003.
	1.9.		"A" 5380					According to Com. "A" 5449, 5516, 5600, 5654 and 5771. Includes interpretive clarification.
2.	2.1.		"A" 3274	II	2.	2.1.		According to Com. "A" 3498, 3597, 4716, 4815, 6288, 6763 and "B" 9186.

FINANCIAL SERVICES WITHIN THE FRAMEWORK OF THE HEALTH EMERGENCY B.C.R.A. ORDERED BY DECREE No. 260/2020 CORONAVIRUS (COVID-19)
Section 2. Other provisions.

In each of those accreditations, the amount equivalent to the payment of the total sums that must be paid for the resulting monthly periods as integrated tax and social security contributions borne by taxpayers adhering to the Simplified Regime for Small Taxpayers or mandatory social security contributions of the regime for self-employed workers shall be added. The referred amount will be withheld and deposited by the financial entity in the AFIP.

The “Zero rate credit” will have a grace period of 6 months from the first accreditation. From the following month, it will be repaid in at least 12 equal and consecutive monthly installments.

The “Zero rate culture credit” will have a grace period of 12 months from its first accreditation. From the thirteenth month, it will be repaid in at least 12 equal and consecutive monthly installments.

In the event of partial payment of the settled balance of the credit card, the funds received by the financial entities must be applied first to the cancellation of these installments.

The corresponding account statement must report the collection of each installment as a separate and duly identified concept.

The interest rate that FONDEP will recognize to financial entities, as provided in article 9°bis of Decree No. 332/2020, will be 15% nominal annual on the balances of the disbursed financings.

2.1.3. Financings within the framework of the Emergency Assistance Program for Work and Production (ATP) created by Decree No. 332/2020.

Financial entities included in group A, in accordance with the provisions of Section 4. of the rules on “Authorities of financial entities”, and those that – not being included in said group – operate as financial agents of the National, provincial, of the Autonomous City of Buenos Aires and/or municipal governments, must grant – within the framework of the Emergency Assistance Program for Work and Production (ATP) created by Decree No. 332/2020 – financings for a maximum limit equivalent to the amount resulting from the number of salaried workers (F. 931) multiplied by the amount of the Minimum Vital and Mobile Salary plus 20%, to the MSMEs of the list that will be provided by the Federal Administration of Public Revenues, which may have a guarantee as established by FOGAR.

These financings will be optional for the remaining financial entities.

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B.C.R.A.

ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “FINANCIAL SERVICES WITHIN THE FRAMEWORK OF THE HEALTH EMERGENCY DECLARED BY DECREE NO. 260/2020 CORONAVIRUS (COVID-19)”

CONSOLIDATED TEXT SOURCE RULE
Section Point Paragraph Com. Cap. Point Paragraph
OBSERVATIONS
1.1. 1
er
“A” 6942 2. According to Com. “A” 6949, 6951 6953, 6954, 6956, 6958, 6982 and “C” 86999.
1.1.1.1. “A” 6933 According to Com. “A” 6949, 6958,
6982 and 7025.
1.1.1.2. “A” 7067 According to Com. “A” 7084 and 7088.
1.1.1.3. “A” 6958 1. According to Com. “A” 6982, 7017 and
7028.
1.1.2. “A” 6944 3. According to Com. “A” 6958, 6982 and
7025. Decree No. 605/2020,
article 6°.
1.1.3.1. “A” 6944 1. According to Com. “A” 6949, 6982 and
7025.
1.1.3.2. “A” 6942 2.1. According to Com. “A” 6944 and 7025.
1.1.3.3. “A” 6942 2.2. According to Com. “A” 7025.
1.1.3.4. “A” 6948 7. According to Com. “A” 7084.
1.1.3.5. “A” 6949 6.
1.2. “A” 6958 2. According to Com. “A” 6982.
1.3. “A” 6942 1. According to Com. “A” 6949 and 6958.
1.
1.4. “A” 6977 According to Com. “A” 7025. Decree
No. 605/2020, article 6°. i) “A” 6942 3. According to Com. “A” 6949, 6964, and
7025. Includes interpretive
clarification. ii) “A” 7095 According to Com. “A” 7102.
2.1.1.1. last “A” 6949 4 1
er According to Com. “A” 7025, 7044,
7056 and 7111.
2.1.1.2. “A” 6942 3. According to Com. “A” 6949, 7025,
7044, 7056, 7107 and 7130.
2.1.2. “A” 6993 1. According to Com. “A” 7082 and 7092.
2.1.3. “A” 7140 2.
2.1.4. “A” 7082 1. According to Com. “A” 7092, 7102 and
7130.
2.2. “A” 6942 6. According to Com. “A” 6949 and 7025.
2.3. “A” 6942 7. According to Com. “A” 6949 and 7025.
Decreto N° 297/2020, article
6º.
2.
2.4. “A” 6942 8. According to Com. “A” 6949 and 7025.
Decreto N° 297/2020, article
6º.
3. “B” 11992