2009 - Year of Tribute to Raúl SCALABRINI ORTIZ

COMMUNICATION “A” 4947
26/05/2009

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
OPRAC 1 - 627

Financing to the non-financial public sector. Amendments.

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We address you to inform you that this Institution adopted the following resolution:

“- Replace point 4.1.1.2. of Section 4. of the rules on “Financing to the non-financial public sector” with the following:

“4.1.1.2. Collateral of fixed-term deposit certificates issued by the lending entity, under the conditions set forth in points 1.1.3. -first paragraph- and 3.1.3. of the rules on “Guarantees”.

The collateralized certificates may have a maturity equal to or earlier than the credit transaction. In the latter case, the collateral must provide for the financial entity's right to exercise the option of automatic renewal of the time deposit or to retain the relevant funds.”

We send you in annex the pages that, in replacement of those previously provided, must be replaced in the ordered text of the rules on “Financing to the non-financial public sector”.

Likewise, it is recalled that on this Institution's page www.bcra.gov.ar, by accessing “regulations” (“ordered texts”), you will find the amendments made with texts highlighted in special characters (strikethrough and bold).

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Issuance Manager of Rules
José I. Rutman
Deputy General Manager of Rules

ANNEX

B.C.R.A.
FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR
Section 4. Exceptions.

The set of those resources must come from a number of no fewer than 1.000 obligors to payment -directly or indirectly-, without the collection rights of each obligor exceeding 5% of the total amount assigned and the funds disbursed must not exceed 100% of the average income obtained during the two years prior to the last day of the month immediately preceding the date of its granting corresponding to the concepts set forth above.

For the purposes of determining the number of clients and the concentration of billing provided for in the preceding paragraphs, sales to clients that are distributors of the services acquired shall be considered as billing made indirectly.

In the cases that apply, the loan agreements that are signed must contain a clause that authorizes the financial agents that are designated or collecting entities to make the direct transfer to the accounts of the creditor intermediaries of the amount assigned as collateral.

4.1.1.2. Collateral of fixed-term deposit certificates issued by the lending entity, under the conditions set forth in points 1.1.3. -first paragraph- and 3.1.3. of the rules on “Guarantees”.

The collateralized certificates may have a maturity equal to or earlier than the credit transaction. In the latter case, the collateral must provide for the financial entity's right to exercise the option of automatic renewal of the time deposit or to retain the relevant funds.

4.1.1.3. Collateral of national public securities or monetary regulation instruments of the Central Bank of the Argentine Republic, under the conditions set forth in points 1.1.5. and 3.1.5. of the rules on “Guarantees”, to the extent that they are denominated in the same currency.

The collateral must provide for the financial entity's right to retain the proceeds of the instruments when they have a maturity earlier than that of the financing as well as the replenishment of the guarantee when the required collateral margins are reduced as a consequence of the variation in the market value of the collateralized instruments.

In all cases, there must be the corresponding budgetary appropriation of the guarantee through a general budget law or a specific law or equivalent rule, as applicable, in accordance with the nature of the asset subject to the guarantee and, in the particular case of entities or companies of the non-financial public sector not covered by the indicated requirement -based on the nature of their income-, for the appropriation as collateral of such resources they must have the authorization of their board of directors or equivalent authority with decision-making powers regarding their indebtedness.

4.1.2. There is express approval of the financing or intervention in its analysis by the Ministry of Economy and Public Finance, as applicable, in accordance with the legal, regulatory or procedural rules that said State agency must observe in the matter.

Version: 2nd. COMMUNICATION “A” 4947
Effective date:
26/05/2009

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON “FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR”

CENTRAL BANK OF THE ARGENTINE REPUBLIC

ORDERED TEXT			SOURCE RULE				Observations
Section	Point	Paragraph	Com.	Annex	Point	Paragraph
1.	1.1.		“A” 3054	sole	1.1.		According to Com. "A" 4798 and "A" 4937.
	1.2.		"A" 3054
	1.3.		"A" 4527				According to Com. "A" 4581.
2.	2.1.		"A" 3054	sole	2.1.		According to Com. "A" 4937.
	2.2.		"A" 3054	sole	2.2.
3.	3.1.		"A" 3054	sole	3.1.
	3.2.		"A" 3054	sole	3.2.		According to Com. "A" 4932 and "A" 4937.
4.	4.1.		"A" 3054	sole			According to Com. "A" 3144, 3548, 3911, 4718, 4798 and 4947