2000-07-28 | A 3141Added · Updated
Reciprocal guarantee societies and provincial funds must maintain a risk fund equal to 25% of granted sureties, invested in assets under Law 24.241 with up to 100% in time deposits, and held in custody by banks rated AA or superior. Individual surety limits per partner cannot exceed 2.5% of the risk fund, and sureties are prohibited with linked partners. These entities must register with the Superintendence of Financial and Currency Entities, report debtor classifications to the Central of Debtors, and classify credit card users or fiduciary trust debtors according to consumer or housing portfolio norms.
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BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 3141 I 27/07/00 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: LISOL 1 – 306
RUNOR 1 - 395
Guarantees or sureties granted by reciprocal guarantee societies and provincial funds. Treatment as preferred guarantees "A". Update of ordered texts
We address you to inform you that this Institution has adopted, on the subject referenced, the following resolution.
Incorporate as preferred guarantee "A" in Section 1. of the norms on "Guarantees", the following point:
"1.1.18. Guarantees or sureties granted by reciprocal guarantee societies registered in the Registry enabled at the Central Bank of the Argentine Republic or by provincial funds constituted with the same object as those societies, admitted by this Institution, regardless of the term of the operation, provided that they disburse the unpaid credits within 30 calendar days of their maturity and to the extent that the interest rates of the respective operations do not exceed those established for the first tier of the Risk Indicator Table applicable to the remaining financings (point 5.2. of Section 5. of the norms on "Minimum capital of financial entities")."
Substitute point 1.2.3. of Section 1. of the norms on "Guarantees" with the following:
"1.2.3. Guarantees or sureties granted by reciprocal guarantee societies registered in the Registry enabled at the Central Bank of the Argentine Republic or by provincial funds constituted with the same object as those societies, admitted by this Institution, regardless of the term of the operation, to the extent that the remaining requirements mentioned in point 1.1.18 are not met."
Substitute point 2.1.3. of the norms on "Reciprocal Guarantee Societies" with the following:
"2.1.3. Investment.
It must be invested in the assets provided for by art. 74 of Law 24.241 (for investments of pension and retirement funds), within the limits and other conditions established for this purpose, according to the criteria disseminated by the Superintendence of Pension Fund Administrators, with the caveat that allocation of up to 100% of the fund into time deposits will be admitted."
Establish, with effect from October 2000, that reciprocal guarantee societies or provincial funds constituted with the same object as these societies that respond for unpaid credits, must report to the "Central of Debtors of the Financial System" on the situation of the debtor taking into account the norms on "Classification of Debtors" and the informational regime provided by the Superintendence of Financial and Currency Entities.
Substitute point 3.1.1.12. of Section 4. of the norms on "Minimum Capital of Financial Entities" with the following:
"3.1.1.12. Granted by reciprocal guarantee societies registered in the registry enabled at the B.C.R.A. or by provincial funds constituted with the same object as those societies, admitted by this Institution, to the extent that the interest rates of the respective operations do not exceed those established for the first tier of the Risk Indicator Table applicable to the remaining financings, to calculate the minimum capital requirement for credit risk. 50"
Substitute point 3.1.19. of Section 3. of the norms on "Guarantees" with the following:
"3.1.19. Of reciprocal guarantee societies or provincial funds constituted with the same object as those societies (points 1.1.18. and 1.2.3.): 90%."
Substitute point 2.2.11. of the norms on "Credit Graduation" with the following:
"2.2.11. Credits that have sureties extended by reciprocal guarantee societies registered in the Registry enabled at the Central Bank of the Argentine Republic or by provincial funds constituted with the same object as those societies, admitted by this Institution, to the extent that the interest rates of such operations do not exceed those established for the first tier in the Risk Indicator Table applicable to the remaining financings, to calculate the minimum capital requirement for credit risk."
Attached are the sheets that, in replacement of those previously provided, should be incorporated into the ordered texts of the norms on "Minimum capital of financial entities", "Guarantees", "Credit Graduation" and "Reciprocal guarantee societies (Art. 80 of Law 24.467)", in the latter case with a new format, and the corresponding to the indicative tables of the origin of the provisions that are affected.
We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Juan Carlos Isi Andrew Powell
Deputy Manager Chief Economist
Regulatory Regime Area of Economics and Finance
ANNEX: 17 sheets
GUARANTEES B.C.R.A. Section 1. Classes. patrimonial value computable of the entity of the month prior to which corresponds. This limit will not be observed in case that the entity has a credit file of said obligor, so the operations will be computed within the margins of assistance that the applicable norms provide in the matter.
1.1.18. Guarantees or sureties granted by reciprocal guarantee societies registered in the Registry enabled at the Central Bank of the Argentine Republic
or by provincial funds constituted with the same object as those societies, admitted by this Institution, regardless of the term of the operation, provided that they disburse the unpaid credits within 30 calendar days of their maturity and to the extent that the interest rates of the respective operations do not exceed those established for the first tier of the Risk Indicator Table applicable to the remaining financings (point 5.2. of Section 5. of the norms on “Minimum capital of financial entities”).
1.2. Preferred “B”.
They are constituted by real rights on goods or third-party commitments that, faithfully instrumented, ensure that the entity will be able to dispose of the funds in concept of cancellation of the obligation contracted by the client, complying previously with the procedures established for the execution of the guarantees, and by the guarantees defined in point 1.1. with the exception of those included in the point 1.1.11., in so far as the residual term of the operations exceeds the term of 6 months. They are included in this category, with the character of taxative enumeration, the following:
1.2.1. First degree mortgage on real estate.
1.2.2. Fixed pledge with first degree registration.
1.2.3. Guarantees or sureties granted by reciprocal guarantee societies registered
in the Registry enabled at the Central Bank of the Argentine Republic or by provincial funds constituted with the same object as those societies, admitted by this Institution, regardless of the term of the operation, to the extent that the remaining requirements mentioned in the point 1.1.18 are not met.
1.2.4. Preferred “A”, in operations with residual term superior to 6 months, with
exception of those included in point 1.1.11.
Version: 2nd. Communication “A” 3141 Validity:
27.07.00
GUARANTEES B.C.R.A. Section 1. Classes.
1.3. Remaining guarantees.
Guarantees not explicitly included in the preceding points, such as the mortgage in a degree other than first and the pledge or caution of shares or commercial documents and the encumbrances constituted abroad with adjustment to legislations different from the local -except the cases expressly provided for-, will be considered non-preferred. Version: 1st. Communication “A” 3141 Validity:
27.07.00
GUARANTEES B.C.R.A. Section 3. Computation.
3.1.17.1. Up to 1.50: 75% of the appraised value of the good.
3.1.17.2. More than 1.50 and up to 2: 55% of the appraised value of the good.
3.1.17.3. More than 2: 40% of the appraised value of the good.
3.1.18. Fixed pledge with first degree registration (point 1.2.2.): 75% of the appraised value of the good.
3.1.19. Of reciprocal guarantee societies or provincial funds constituted with
same object as those societies (points 1.1.18. and 1.2.3.): 90%.
3.1.20. Credit titles (point 1.1.17.): 85% of the nominal value of the documents.
3.2. Partial coverage with preferred guarantees.
When the existing preferred guarantees do not cover the entirety of the assistance to the client, the part not reached with that coverage will have the treatment established for developments without preferred guarantees. Version: 3rd. Communication “A” 3141 Validity:
27.07.00
B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE NORMS ON GUARANTEES
Section Point Paragraph Com. Annex Point Paragraph Observations
Section Point Paragraph Com. Annex Point Paragraph Observations
3. 3.1. “A” 2932 unique 3.1.
3. 3.1.1. “A” 2932 unique 3.1.1.
3. 3.1.2. “A” 2932 unique 3.1.2.
3. 3.1.3. “A” 2932 unique 3.1.3.
3. 3.1.4. “A” 2932 unique 3.1.4.
3. 3.1.5. “A” 2932 unique 3.1.5.
3. 3.1.6. “A” 2932 unique 3.1.6.
3. 3.1.7. “A” 2932 unique 3.1.7.
3. 3.1.8. “A” 2216 I 1. 3rd, g) According to Com. “A” 2932
3. 3.1.9. “A” 2216 I 1. 3rd, h) According to Com. “A” 2932
3. 3.1.10. “A” 2216 I 1. 3rd, i) According to Com. “A” 2932
3. 3.1.11. “A” 2932 unique 3.1.11. According to Com. “A” 3104
3. 3.1.12. “A” 2932 unique 3.1.12.
3. 3.1.13. “A” 2932 unique 3.1.13.
3. 3.1.14. “A” 2932 unique 3.1.14.
3. 3.1.15. “A” 2932 unique 3.1.15.
3. 3.1.16. “A” 2932 unique 3.1.16.
3. 3.1.17. “A” 2419 1. 1st, ii) Modified by Com. “A”
2932
3. 3.1.18. “A” 2932 unique 3.1.18.
3. 3.1.19. “A” 2932 unique 3.1.19. According to Com. “A” 3141
3. 3.1.20. “A” 3114 2.
3. 3.2. “A” 2216 II 5th
MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A. Section 4. Risk weight table. ii) Fixed with first degree registration or with displacement to the entity on motor vehicles, regarding the amount that exceeds the 75% of the market value of such goods. 100
3.1.1.9. “Warrant” on wheat, corn, sunflower,
soy and sugar and, in operations that count with the prior approval of the Superintendence of Financial and Currency Entities, on other products:
i) Regarding the credit support that does not exceed 90% of the market value of such goods. 50 ii) On the amount that exceeds 90% of the market value of such goods. 100
3.1.1.10. Constituted by invoices to be received from
consumers, issued by public service companies providing electricity, gas, water, telephone, etc. i) Regarding the assistance that does not exceed 80% of the nominal value. 75 ii) On the excess. 100
3.1.1.11. Constituted by credit card coupons.
i) Regarding the assistance that does not exceed 75% of the nominal value. 75 ii) On the excess. 100
3.1.1.12. Granted by reciprocal guarantee societies
registered in the registry enabled at the B.C.R.A. or by provincial funds constituted with the same object as those societies, admitted by this Institution, to the extent that the interest rates of the respective operations do not exceed those established for the first tier of the Risk Indicator Table applicable to the Version: 4th. Communication “A” 3141 Validity:
27.07.00
MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A. Section 4. Risk weight table. remaining financings, to calculate the minimum capital requirement for credit risk. 50
3.1.2. Documentary credits used, except those of
delayed payment, whose shipping documentation has not yet been delivered to the client. 50
3.2. To the non-financial public sector.
3.2.1. To the National Government (only regarding the
financings granted until 31.5.00). 0
3.2.2. National Government companies, (only regarding the financings granted until 31.5.00).
3.2.2.1. Constituted as mixed economy companies or with state participation, with
the express guarantee of the National Government. 0
3.2.2.2. Not constituted as mixed economy companies or with state participation, without
the express guarantee of the National Government. 50
3.2.3. Provincial, municipal and Buenos Aires City Governments and their companies -whatever the
legal nature-, with the express guarantee of the National Government or of resources from the federal tax sharing or the Federal Housing System (Law 24.464), through the assignment (direct or indirect) of the corresponding rights and that count with the pertinent intervention of the Ministry of Economy of the Nation (only regarding the financings granted until 31.5.00). 0
3.2.4. National Government companies, except mixed economy or with state participation, without their express guarantee. 50
3.2.5. Provincial, municipal and Buenos Aires City Governments and their companies -whatever the
legal nature-, that do not count with the express guarantee of the National Government or of resources from the federal tax sharing or the Federal Housing System (Law 24.464) through the assignment (direct or indirect) of the corresponding rights and that count with the pertinent intervention of the Ministry of Economy of the Nation. 100 Version: 4th. Communication “A” 3141 Validity:
27.07.00
Section Point Paragraph Com. Cap./
Annex
Point Paragraph Observations
3. 3.6.2.6. 1st “A” 2145 penultimate
3. 3.6.2.6. last Incorporates interpretative clarification.
3. 3.6.2.7. “A” 2249
3. 3.6.2.8. “A” 2474 3.1.4. 2nd Procedural norms on minimum capital requirement and integration
(point 3.1.4., 2nd paragraph).
3. 3.6.2.9. Incorporates interpretative clarification.
3. 3.7. 1st “A” 2494 5.1.1. 1st
5.1.2.
According to Com. “A”
2653. Modified by
Com. “A” 2931.
3. 3.7. 2nd “A” 2494 5.1. last According to Com. “A”
2653.
3. 3.7. last “A” 2494 5.3. Includes interpretative
clarification.
4. 1.1. a
1.4.
“A” 2136 I According to Com. “A”
2541, annex.
4. 1.4.1. “A” 2192 penultimate
4. 1.4.2. “A” 2290 1st and 2nd
4. 1.5. “A” 2136 I According to Com. “A”
2541, annex.
4. 2. “A” 2136 I According to Com. “A”
2541, annex. Modified by Com.
“A” 2793, 2872 and
3039. Point 2.2.1.
includes interpretative clarification.
4. 3.1.1.1.
a
3.1.1.6.
“A” 2136 I According to Com. “A”
2541, annex.
4. 3.1.1.7. i) and ii) “A” 2136 I According to Com. “A”
2632. Modified by
Com. “A” 2939.
4. 3.1.1.7. iii) and iv) “A” 2136 I According to Com. “A”
2541, annex.
4. 3.1.1.7. v) “A” 2939 1.
4. 3.1.1.8.
a
3.1.1.11.
“A” 2136 I According to Com. “A”
2541, annex.
4. 3.1.1.12. “A” 2136 I According to Com. “A”
2541, annex, and Com.
“A” 3141.
4. 3.1.2. “A” 2136 I According to Com. “A”
2541, annex.
CREDIT GRADUATION B.C.R.A. Section 2. Financings included.
2.2.11. Credits that have sureties extended by reciprocal guarantee societies
registered in the Registry enabled at the Central Bank of the Argentine Republic or by provincial funds constituted with the same object as those societies, admitted by this Institution, to the extent that the interest rates of such operations do not exceed those established for the first tier in the Risk Indicator Table applicable to the remaining financings, to calculate the minimum capital requirement for credit risk.
2.2.12. Loans to other local financial entities.
2.2.13. Facilities to the Nation, provinces, municipalities and companies
controlled by any of those levels of government, to the extent that they are exempt from restrictions on financing to the non-financial public sector.
2.2.14. Commitments to provide funds assumed in syndicated loan operations, until such time as they manifest in balances of
debt in the so-called “managing bank” or in the eventual case that in that later stage the latter assumes the obligation to guarantee to the remaining participating institutions the reimbursement of the funds that they contribute for the required financing. Version: 2nd. Communication “A” 3141 Validity:
27.07.00
B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE TEXT ORDERED OF THE NORMS ON CREDIT GRADUATION
Section Point Paragraph Com. Annex Point Paragraph Observations
“A” 2410 7. According to Com. “A”
3141.
2. 2.2.12. a
2.2.14.
“B” 5902 10. last
3. 3.1.1. “A” 467 unique 1. 1st According to Com. “A”
2373
3. 3.1.2.1. “A” 467 unique 1. 2nd According to Com. “A”
2373
3. 3.1.2.2. 1st to 6th “A” 467 unique 1. 2nd According to Com. “A”
2373 and “B” 5902.
Includes interpretative clarification
3. 3.1.2.2. 7th “B” 5902 10. 1st
3. 3.1.2.2. last Incorporates interpretative
clarification
3. 3.2.1. “A” 467 unique 1. 3rd According to Com. “A”
2373, modified by
Com. “A” 2960
3. 3.2.2. “A” 2206 2.
3. 3.3. “A” 2156 5.
B.C.R.A. ORDERED TEXT OF THE NORMS ON
RECIPROCAL GUARANTY SOCIETIES (ART. 80 OF LAW 24.467)
RECIPROCAL GUARANTY SOCIETIES (ART. 80 OF LAW 24.467) B.C.R.A. Section 1. Registration at the Central Bank.
1.1. Reciprocal guarantee societies interested in that the sureties they grant enjoy, by
part of financial entities, the specific treatment provided for financings to
SMEs must manage their registration before the Central Bank of the Argentine Republic.
1.2. The registration will be carried out in the pertinent registry, enabled at the Superintendence of Financial and Currency Entities.
Version: 2nd. Communication "A" 3141 Validity:
27.07.00
RECIPROCAL GUARANTY SOCIETIES (ART. 80 OF LAW 24.467) B.C.R.A. Section 2. Requirements. Societies registered in the said Registry must observe -at all times- the following conditions:
2.1. Risk fund.
2.1.1. Requirement.
The amount equivalent to 25% of the sureties granted, as derived from the last quarterly balance sheet that counts with the opinion of an external auditor registered in the "Registry of auditors" of the Superintendence of Financial and Currency Entities.
2.1.2. Determination of the minimum amount.
The sureties granted to SMEs will be computed, weighted by the application to each one of them of the factors established in the "Risk weight table", inserted in Section 4. of the norms on “Minimum capital of financial entities”, taking into account the existence or not of counter-guarantees and, if any, their nature.
2.1.3. Investment.
It must be invested in the assets provided for by art. 74 of Law 24.241 (for investments of pension and retirement funds), within the limits and other conditions established for this purpose, according to the criteria disseminated by the Superintendence of Pension Fund Administrators, with the caveat that allocation of up to 100% of the fund into time deposits will be admitted.
2.1.4. Custody.
The investments must be maintained in custody in some of the banks enabled to fulfill that function regarding the investments of the pension and retirement funds, or in banks abroad with international rating "AA" or superior, granted by one of the rating agencies admitted by the norms on “Evaluation of financial entities”.
2.2. Individual limit.
The total of sureties granted to a participating partner cannot exceed 2.5% of the risk fund of the granting society, corresponding to the last quarterly balance sheet with external auditor opinion.
2.3. Prohibition.
Sureties cannot be agreed upon with linked partners, for which purpose the norms regulating operations with linked clients to financial entities will be taken into account. Version: 2nd. Communication "A" 3141 Validity:
27.07.00
RECIPROCAL GUARANTY SOCIETIES (ART. 80 OF LAW 24.467) B.C.R.A. Section 2. Requirements.
2.4. Information to the Central Bank.
Regularly comply with the informational regime. This includes the information for the “Central of Debtors” on the classification of the participating partners whose debts have been cancelled in compliance with the sureties that backed the respective obligations, according to the norms on “Classification of debtors” for financial entities.
2.5. Non-compliance.
Departure from any of these conditions implies the immediate removal of the society from the Registry. Version: 2nd. Communication "A" 3141 Validity:
27.07.00
B.C.R.A
ORIGIN OF THE PROVISIONS INCLUDED
IN THE ORDERED TEXT OF THE NORMS ON
RECIPROCAL GUARANTY SOCIETIES (ART. 80 OF LAW 24.467)
Section Point Paragraph Com. Point Paragraph Observations
CLASSIFICATION OF DEBTORS
B.C.R.A. Section 10. Other entities obligated to observe the rules on classification of debtors.
10.1. Non-financial entities issuing credit cards in the "closed system" modality.
Credit card issuing companies, not constituted as financial entities but in the "closed system" modality, shall classify their respective users according to the periodicity and other conditions established for the consumer or housing portfolio.
10.2. Trustees of financial trusts included in the financial entities law.
10.2.1. Classification of debtors of fiduciary credits.
Trustees of financial trusts included in the financial entities law shall classify the debtors of the fiduciary credits according to the periodicity and other conditions established for the consumer or housing portfolio.
10.2.2. Requirements of the Superintendence of Financial and Exchange Entities.
The aforementioned trustees shall provide the Superintendence of Financial and Exchange Entities with all the information that it requires them to provide, in order to calculate the provisions that financial entities -whether or not they are the originators of the assigned credits- must constitute regarding their holdings of participation certificates and/or debt titles of the respective trusts.
10.3. Reciprocal guarantee societies.
These societies shall classify the participating members whose debts have been cancelled in fulfillment of the guarantees backing the respective obligations.
Version: 2nd Communication "A" 3141 Validity:
27.07.00
Sec. Point Para. Comm. Annex Point Para. Observations
7. 7.1. "A" 2216 I II. 1º
7. 7.2.1. 1º "A" 2216 I II.1.
7. 7.2.1. last Incorporates criterion not previously disclosed on a general basis
7. 7.2.2. "A" 2216 I II.2.
7. 7.2.3. "A" 2216 I II.3.
7. 7.2.4. "A" 2216 I II.4. Includes interpretative clarification
7. 7.2.5. "A" 2216 I II.5. Includes interpretative clarification
7. 7.2.6. "A" 2216 I II.6. According to Comm. "A" 2440
7. 7.3. "A" 2216 I II. 1º and 2º Modified by Comm. "A"
2932 (point 6.)
8. 8.1. "A" 2216 I 5. Modif. by Comm. "A" 2562
9. 9.1. "A" 2227 unique 5.2.1. last According to Comm. "A" 2649
9. 9.2. "A" 2227 unique 5.1.5. According to Comm. "A" 2649
"A" 2227 unique 5.2.2.
10. 10.1. "A" 2389 2.
10. 10.2.1. "A" 2703 3.
10. 10.2.2. "A" 2703 4.
10. 10.3. "A" 3141 4.
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This document amends: Circular LISOL 1 - 296. OPRAC 1 - 484. Document Discounting Operations. New Preferred Guarantee Modality "A". Substitution, Circular LISOL 1 - 132. OPRAC 1 - 401. Treatment of Mortgage as Preferred Guarantee, Circular LISOL 1-119, OPRAC 1-393, CONAU 1-186: Credit Graduation Limits, Minimum Requirements for Financing, and Controls on Liquidity and Solvency Norms
Source: Banco Central de la Republica Argentina — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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