Interest rates on credit operations. Financing subject to interest rate regulation by the Central Bank of the Argentine Republic. Time deposits and investments. Minimum passive rate. Minimum cash reserve. Protection of financial service users. Complementary financial services and permitted activities. Adjustments

"2015 - YEAR OF THE BICENTENNIAL OF THE CONGRESS OF THE FREE PEOPLES" COMMUNICATION "A" 5853 12/17/2015 TO FINANCIAL INSTITUTIONS, TO EXCHANGE HOUSES, AGENCIES AND OFFICES, TO NON-FINANCIAL CREDIT CARD ISSUING COMPANIES, TO TRUSTEES OF FINANCIAL TRUSTS COVERED BY THE FINANCIAL INSTITUTIONS LAW, TO NON-FINANCIAL PURCHASE CARD ISSUING COMPANIES:
Ref.: Circular
OPRAC 1 - 794
OPASI 2 - 485
RUNOR 1 - 1165
REMON 1 - 899
Interest rates on credit operations. Financing subject to interest rate regulation by the Central Bank of the Argentine Republic. Time deposits and investments. Minimum passive rate. Minimum cash reserve. Protection of financial service users. Complementary financial services and permitted activities. Adjustments . ______ We address you to inform you that this Institution adopted the resolution that, in its pertinent part, provides:
"1. Replace point 1.1. of the rules on 'Interest rates on credit operations' with the following:
"1.1. Basic criterion.
Compensatory interest rates shall be freely agreed between financial institutions and clients, taking into account, where applicable, the provisions established in cases of specific regimes. In financing linked to credit card operations, the provisions of Section 2 shall be observed."
2. Repeal points 4.1.2. and 4.2.2. of the rules on 'Interest rates on credit operations'.
3. Incorporate as the last paragraph of point 4.1. of the rules on 'Interest rates on credit operations' the following:

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4.1. In premises of financial institutions.
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"Advertising of the total financial cost must be made in a highlighted color typeface and of a size at least five times larger than that used to inform the level of the nominal annual rate."
4. Replace the last paragraph of point 4.2. and point 4.3. of the rules on 'Interest rates on credit operations' with the following:
4.2. In graphic media or in other media other than those provided in point 4.3.
….
"Advertising of the total financial cost must be made in a highlighted color typeface and of a size at least five times larger than that used to inform the level of the nominal annual rate and/or the number of installments and/or their amount." "4.3. Advertising by radio, television or telephone. In radio or television advertising of the operations mentioned in point 4.2. and only when reference is made to installment amounts and/or the level and/or class of interest rate, the total financial cost must additionally be informed. Television advertising of the total financial cost must be made in a highlighted color typeface and of a size at least five times larger than that used to inform the level of the nominal annual rate and/or the number of installments and/or their amount."
5. Repeal the provisions of Section 6. 'Financing subject to interest rate regulation by the B.C.R.A.' of the rules on 'Interest rates on credit operations'.
6. Replace point 1.11.1. of the rules on 'Time deposits and investments' with the following:
"1.11.1. Fixed-rate deposits.
According to the rate freely agreed."
7. Repeal points 1.11. and 1.12. of the rules on 'Minimum cash reserve'.
8. Replace, as of 1.1.16, subsection iv) of point 2.3.5.1. of the rules on 'Protection of financial service users' with the following:
"iv) in breach of the level of the maximum interest rate applicable to financing linked to credit cards provided in the rules on 'Interest rates on credit operations'; and/or"

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9. Repeal, as of 1.1.16, point 2.3.5.2. of the rules on 'Protection of financial service users'.
10. Replace point 2.4.2. of the rules on 'Protection of financial service users' with the following:
"2.4.2. By Internet.
These obligated subjects must publish on the home page of their institutional Internet site all commissions, charges, interest rates and total financial cost of all products and/or services, own or third-party, offered to the aforementioned financial service users and that the latter must pay."
11. Replace point 2.2.6. of the rules on 'Complementary financial services and permitted activities' with the following:
"2.2.6. Issuance of credit, debit and similar cards.
Without exceeding 25% of the total amount of their financing at the end of each month, they may hold financing not subject to the Credit Card Law, to financial service users."
12. Establish that the provisions of this resolution shall apply to new operations agreed as of 12.17.15 inclusive. With respect to operations agreed at a regulated rate, breaches detected up to 12.31.15 shall be treated in accordance with the rules in force as of 12.16.15; in the case of breaches detected as of 1.1.16, the provisions made known through Communication "A" 5849 shall apply."
Likewise, we inform you that we will subsequently send you the pages that, in replacement of those previously provided, must be incorporated into the referenced rules as a consequence of the adopted measure. We greet you attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC Matías A. Gutiérrez Girault Darío C. Stefanelli Manager of Issuance of Rules Principal Manager of Issuance and Regulatory Applications