Point 5.5 of IFRS 9 - Impairment of financial assets - Application as from 01.01.2020.

2018 - YEAR OF THE CENTENARY OF THE UNIVERSITY REFORM

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION “A” 6430
12/01/2018

TO THE FINANCIAL INSTITUTIONS:

Ref.: Circular
CONAU 1 - 1262

Point 5.5 of IFRS 9 - Impairment of financial assets - Application as from 01.01.2020.

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We address you to inform you that as from the fiscal years beginning on 01.01.2020, the provisions regarding Impairment of Financial Assets contained in point 5.5 of IFRS 9 must begin to be applied, the application of which was transitorily excepted by the terms of Communication “A” 6114.

In that regard, in order to know and validate the models, financial institutions must submit quantitative information regarding the numerical impact as of 31.12.18. and qualitative information about their expected loss estimation models, before 01.10.2018.

It is worth mentioning that, in due course, the details regarding the minimum content that this information must have as well as the adjustments to the Rules on Classification of Debtors, Guarantees and Minimum Provisions for Bad Debt Risk will be disclosed.

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Ricardo O. Maero
Principal Manager of Reporting Regime and
Information Centers
Estela M. del Pino Suárez
Deputy General Manager of Reporting Regime and Protection of Financial Services Users