2018 – YEAR OF THE CENTENARY OF UNIVERSITY REFORM

COMMUNICATION “A” 6428 12/01/2018

TO:

FINANCIAL ENTITIES,
EXCHANGE HOUSES, AGENCIES AND EXCHANGE OFFICES,
REPRESENTATIVES OF FOREIGN FINANCIAL ENTITIES NOT AUTHORIZED TO OPERATE IN THE COUNTRY,
COOPERATIVE CREDIT UNIONS (LAW 26.173),
PUBLIC‑CHARACTER GUARANTEE FUNDS:

Reference:

Circular LISOL 1‑773
OPRAC 1‑929
REMON 1‑939
RUNOR 1‑1370
CREFI 2‑104
OPASI 2‑538
CONAU 1‑1260
SECYC 1‑4
Communications “A” 6306, 6327 and 6396 – Update of ordered texts.

We address you to send, attached, the sheets that, in replacement of those previously provided, must be incorporated into the regulations on:

“Central Bank Advances to Financial Entities for Financing the Productive Sector”,
“Asset Affected as Guarantee”,
“Financial Assistance for Transient Illiquidity”,
“Mutual Associations – Regulation of Their Financial Activity (Decree 1367/93)”,
“Authorization and Composition of Capital of Financial Entities”,
“Cooperative Credit Unions (Law 26.173)”,
“Minimum Capital of Financial Entities”,
“Exchange Houses, Agencies and Exchange Offices”,
“Assignment of Credit Portfolios”,
“Debtor Classification”,
“Correspondent Accounts”,
“Term Deposits and Investments”,
“Determination of the Micro, Small or Medium Enterprise Condition”,
“Profit Distribution”,
“Minimum Cash”,
“Expansion of Financial Entities”,
“Financing of the Non‑Financial Public Sector”,
“Public‑Character Guarantee Funds”,
“Credit‑Risk Segmentation”,
“Guarantees”,
“Credit Management”,
“Credit Grading”,
“Violations of Minimum Capital and Technical Ratios – Applicable Criteria”,
“Guidelines for Corporate Governance in Financial Entities”,
“Guidelines for Risk Management in Financial Entities”,
“Ordering, Issuing and Dissemination of Communications and Press Releases”,
“Credit Policy”,
“Net Foreign‑Currency Position”,
“Minimum Provisions for Uncollectibility Risk”,
“Liquidity‑Coverage Ratio”,
“Ratio for Fixed Assets and Other Concepts”,
“Representatives of Foreign Financial Entities Not Authorized to Operate in the Country”,
“Consolidated Supervision”, and
“Veracity of Accounting Registrations”,

as provided for by the resolutions disseminated by Communications “A” 6306, 6327 and 6396.

In addition, interpretative clarifications are introduced in point 1.1 of the regulations on “Determination of the Micro, Small or Medium Enterprise Condition” and in points 2.1.1 and 2.1.2 of the regulations on “Credit Policy”.

Finally, we remind you that on the Institution’s website www.bcra.gob.ar, under Financial System – LEGAL AND REGULATORY FRAMEWORK – Ordering and Summaries – Ordered Texts of General Regulation, you will find the modifications with texts highlighted in special characters (strikethrough and bold).

Sincerely,

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Matías Gutiérrez Girault – Manager of Regulation Issuance

Darío C. Stefanelli – Senior Manager of Regulation Issuance and Applications

ANNEX

2.5.2.2. (continued)

c) Early cancellations made by clients in the immediately preceding calendar month, according to point 3.4.

2.5.2.2. On the fourth business day counted from the day after the Credit Management Department becomes aware of the situation foreseen in point 4.3.4, the following items will be debited from the entity’s current account – opened at the BCRA –:

the amount of capital owed originating from the operation in which the breach in the use of funds was detected, which will be considered overdue;
the proportional interest accrued from the close of the previous month until the date of the aforementioned awareness; and
the punitive interest referred to in point 4.3.4.

2.6. Constitution of Guarantees

Financial entities must constitute guarantees that back the funds awarded in the auctions, prior to the crediting of funds in their respective current accounts at the BCRA.

The guarantees to be affected must represent at least 125 % of the capital of the advances of each financial entity in the respective auction, a proportion that must be maintained throughout the entire term with respect to the outstanding balance, with the flexibility specified in point 2.6.4.

2.6.1. Eligible Instruments

Financial entities must affect, as guarantee for the fulfillment of the advances and in favor of the BCRA:

2.6.1.1. National public securities; and/or
2.6.1.2. Guaranteed Loans issued by the National Government; and/or
2.6.1.3. Up to the equivalent limit of twenty‑five percent (25 %) of the amount of the required guarantees:
- i) BCRA monetary‑regulation instruments; and/or
- ii) Provincial public securities or those of the Autonomous City of Buenos Aires, provided they have normal and regular quotation for significant amounts in domestic markets.

The cited percentage must not be exceeded during the term of the advances.

CENTRAL BANK ADVANCES TO FINANCIAL ENTITIES WITH DESTINATION TO PRODUCTIVE‑SECTOR FINANCING

Section 2 – Terms and Conditions of the Advances

Version: 3a. COMMUNICATION “A” 6428

Effective Date: 01/01/2018

2.6.2. Valuation

2.6.2.1. National public securities and Guaranteed Loans issued by the National Government

When they have normal and regular quotation for significant amounts in domestic markets, their quotation will be the one reported in the “48‑hour cash” modality of the MAE corresponding to the last business day prior to the submission of the request for crediting funds in the operational current account.

When they do not have normal and regular quotation for significant amounts in domestic markets, the value reported in the “VELI Wheel” of the MAE corresponding to the business day prior to the submission of the request will be applied.

2.6.2.2. BCRA monetary‑regulation instruments

The reference price – without appraisal – reported by the MAE for REPO Wheel operations corresponding to the last business day prior to the submission of the request for crediting funds in the operational current account will be taken.

2.6.2.3. Provincial public securities or those of the Autonomous City of Buenos Aires, with normal and regular quotation for significant amounts in domestic markets

The quotation of the “48‑hour cash” modality of the MAE corresponding to the last business day prior to the submission of the request for crediting funds in the operational current account will be taken.

2.6.3. Perfection

2.6.3.1. Instruments covered in point 2.6.1, except Guaranteed Loans

In addition to the corresponding pledge contract, a representative receipt of its transfer to Account No. 400, Client No. 125, of the BCRA Credit Management Department in Caja de Valores S.A. must be attached.

2.6.3.2. Guaranteed Loans

A pledge contract must be attached, together with a copy of the account opening certificate at Caja de Valores S.A. or a balance report and registration forms signed by the officials registered in that Caja. The pledge contracts and Caja de Valores S.A. forms must be submitted in two copies, with notarial certification.

CENTRAL BANK ADVANCES TO FINANCIAL ENTITIES – VERSION 4a. COMMUNICATION “A” 6428

Effective Date: 01/01/2018

ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS ON “CENTRAL BANK ADVANCES TO FINANCIAL ENTITIES WITH DESTINATION TO PRODUCTIVE‑SECTOR FINANCING”

Ordered Text – Source Regulation

Section	Point	Paragraph	Comm.	Annex	Point	Paragraph	Observations
1°	“A”	5089	According to Comm. “A” 5489.
1.1.	“A”	5089	1.	According to Comm. “A” 5303.
1.2.1.	“B”	9911	1.1.	According to Comm. “B” 10333 and “A” 5303.
1.2.2.	“A”	5089	3.	According to Comm. “A” 5232, 5278 and 5303.
1.2.2.1.	“A”	5089		According to Comm. “A” 5232, 5278 and 5303.
1.2.2.2.	“A”	5278		According to Comm. “A” 5303.
1.2.3.	“B”	9911	1.2.	According to Comm. “A” 5303.
2.1.	“B”	9911	2.1.	According to Comm. “A” 5303.
2.2.	“B”	9911	2.2.	According to Comm. “A” 5303.
2.3.	“B”	9911	2.3.	According to Comm. “A” 5303.
2.4.	“A”	5089		“B”	9911	4.2.	According to Comm. “B” 10333 and “A” 5303.
2.5.1.	“B”	9911	2.5.1.	According to Comm. “B” 10209 and 10333, “C” 57026 and “A” 5303.
2.5.2.	“B”	9911	2.5.2.	According to Comm. “A” 5303 and 5489.
2.6.	“A”	5089	“B”	9911	4.6.	According to Comm. “A” 5303 and 5489.
2.6.1.	“A”	5489	3.	According to Comm. “A” 6327.
2.6.2.	“B”	9911	2.6.1.	According to Comm. “A” 5303, 5489, 6327 and 6331.
2.6.3.	“B”	9911	2.6.2.	According to Comm. “A” 5303, 5489 and 6331.
2.6.4.	“B”	9911	2.6.3.	According to Comm. “A” 5303 and 5489.
2.7.1.	“A”	5089	4.5.	According to Comm. “A” 5278 and 5303.
2.7.2.	“B”	9911	2.7.1.	According to Comm. “A” 5303.
2.7.3.	“B”	9911	2.7.2.	According to Comm. “A” 5303.
2.8.1.	“A”	5089	“B”	9911	4.1.	According to Comm. “A” 5303.
2.8.2.	“B”	9911	2.8.2.	According to Comm. “A” 5303.
2.9.	“A”	5089	4.4.	According to Comm. “A” 5303.
3.1.	“A”	5089	“B”	9911	5.1.	According to Comm. “A” 5303.
3.2.	“B”	9911	3.1.	According to Comm. “A” 5303.
3.3.	“A”	5089	“B”	9911	5.2.	According to Comm. “A” 5278 and 5303.
3.4.	“B”	9911	3.5.	According to Comm. “A” 5303.
3.5.	“B”	9911	3.7.	According to Comm. “A” 5303.
3.6.	“B”	9911	3.6.	According to Comm. “B” 10209 and 10333, “A” 5303.
4.1.	“A”	5089	6.	According to Comm. “A” 5303.
4.2.	“B”	9911	4.4.	According to Comm. “B” 10209 and 10333, “A” 5303.
4.3.	“A”	5089	7.	According to Comm. “A” 5209 and 5303.
4.4.	“B”	9911	5.	According to Comm. “A” 5303 and 5489.

SECTION 1 – LEGAL LIMITATION

In accordance with the Financial Entities Law, such intermediaries may not affect their assets as guarantees without prior authorization from the Central Bank of the Argentine Republic (BCRA).

1.2. Operations with Credit‑Portfolio Guarantees

Financial entities may not carry out assignments of credit portfolios, as well as participation certificates and debt securities of financial trusts covered by the Financial Entities Law without quotation, with or without liability on the part of the assignor, by agreeing to repurchase the transferred assets, nor passive passes or any other type of operation whose correlated prestations are analogous and imply that the return of funds is guaranteed with such assets, except in expressly authorized cases.

1.3. Operations Not Covered

1.3.1. The affecting of assets as guarantees does not require prior authorization in the following cases:

Financing, whatever its modality, and/or the guarantees that back them, when the guarantees are for credit lines assigned by second‑tier commercial banks or international financial organizations, provided that the affected operations have been granted with imputation to the resources provided by them and that the amount of the affectations does not exceed the corresponding assistance received.
Own‑use assets, as guarantee of the outstanding balance for their acquisition.
Assets affected as guarantees by operations of:
- a) Rediscounts and advances, as provided in sub‑paragraphs b), c) and f) of article 17 of the BCRA Organic Charter.
- b) Passive passes with the BCRA.
- c) Liquidity window for operations with guarantees of Guaranteed Loans and/or Bogar 2020 carried out with the BCRA.

1.3.2. Operations of species transfer that have normal and regular quotation for significant amounts in domestic markets and species with daily quotation for significant amounts in foreign exchanges or markets are also not considered covered by the legal limitation, provided that no appraisal or coverage margins are constituted in favor of counterparties.

SECTION 1 – PROHIBITIONS (Version 5a. COMMUNICATION “A” 6428)

Effective Date: 01/01/2018

The contract must evaluate the constitution of initial margins and foresee the daily integration of variation margins ("mark‑to‑market").
Guarantee margins, considered for each operation, must not exceed 20 % of the transacted value.
The counter‑party must:
- a) Be a foreign bank that complies with point 3.1 of the regulations on “Credit Evaluations”, requiring an international risk rating of "investment grade" or higher.
- b) Be subject to internationally accepted anti‑money‑laundering and counter‑terrorism‑financing standards, as defined by the Financial Action Task Force (FATF‑GAFI).
- c) Be domiciled, or have its parent or controlling company domiciled, in a country that is a member of the Basel Committee on Banking Supervision.

2.2.2. Authorized Entities

Local financial entities, subject to compliance with the limits set out in point 3.2.

2.2.3. Affected Assets

Cash and securities, except those counted to integrate the minimum cash.

2.3. For Passive Passes

2.3.1. Guarantee‑eligible Operations

Passive pass operations of the following assets:

2.3.1.1. Securities that have normal and regular quotation for significant amounts in domestic markets, except participation certificates and debt securities of financial trusts.
2.3.1.2. Credit portfolios.
2.3.1.3. Participation certificates and debt securities of financial trusts.
2.3.1.4. Securities that do not have normal and regular quotation for significant amounts in domestic markets and BCRA monetary‑regulation instruments, at the price reported in the Electronic Operations System (SIOPEL) for this type of operation with the mentioned instruments.

SECTION 2 – GENERAL AUTHORIZATIONS (Version 8a. COMMUNICATION “A” 6428)

Effective Date: 01/01/2018

2.3.2. Authorized Taking Entities

Local financial entities, subject to compliance with the limits set out in point 3.2.

2.3.3. Authorized Counterparties

Placing or investing entities must be:

2.3.3.1. Local financial entities.
2.3.3.2. Foreign banks that comply with point 3.1 of the regulations on “Credit Evaluations”, requiring an international risk rating classified as "investment grade".

2.3.4. Appraisal and Prior Authorization

The execution of passive‑pass securities operations that have normal and regular quotation for significant amounts in domestic markets – except the assets mentioned in point 2.3.1.3 – with an appraisal exceeding 30 % of the financing, and all passive‑pass credit‑portfolio, participation‑certificate and financial‑trust‑debt‑security operations must obtain prior authorization from the Superintendency of Financial and Currency Entities (SEFyC).

2.3.5. Exceptions

SEFyC may authorize financing operations that do not conform to the prescribed modality or requirements.

2.3.6. Information to be Provided

Within 24 hours of the date of execution of each operation, the taking entity must supply SEFyC, at minimum, the following data:

2.3.6.1. Spot sale amount and term purchase amount.
2.3.6.2. Appraisal.
2.3.6.3. Traded security and, when applicable, debtor classifications and average portfolio term.
2.3.6.4. Operation maturity date.

SECTION 2 – GENERAL AUTHORIZATIONS (Version 4a. COMMUNICATION “A” 6428)

Effective Date: 01/01/2018

For the low‑value chamber, the minimum will be the simple average of the five highest net debtor balances recorded in the last quarter, taking into account that the month‑change for establishing the quarter to be considered may be analyzed up to the 15th of each month.

When the monthly computation of the guarantee base is performed, the following applies:

a) If the new base is higher than the previous one, the amount equivalent to the difference must be deposited to update the guarantee magnitude within the established deadline.
b) If for three consecutive months the new bases are lower than the amount of the guarantee already constituted, the difference between that guarantee and the largest of the three considered bases will be immediately returned to the entity.

When it concerns the cancellation of balances of immediate‑fund‑transfer operations, the amount of the guarantees will be established by mutual agreement between the entities and the settlement‑service providers, observing the provisions established by this Institution.

For the high‑value chamber, the guarantee amount cannot be lower than the net debtor balance of the day.

2.7. By Operations with Canceling Checks

2.7.1. Guarantee‑eligible Operations

Net balance of guarantee accounts counted as part of the minimum cash integration.

2.7.2. Authorized Entities

Those that have SEFyC rating 3, 4 or 5 and whose liabilities are not guaranteed by the National Government, provincial governments or the Government of the Autonomous City of Buenos Aires.

2.8. By Obligations Linked to Operations Instrumented through the ALADI Reciprocal Payments and Credits Convention

The guarantee affecting by financial entities in favor of the BCRA of national public securities – provided they have normal and regular quotation for significant amounts in domestic markets – and/or BCRA monetary‑regulation instruments, as required normatively for operations instrumented through the ALADI convention, to the extent they are linked to infrastructure or equipment works (which in both cases constitute capital investments) contemplated in point 5.1 of the regulations on “Financing of the Non‑Financial Public Sector” regarding the type of work and/or equipment, regardless of the manner in which their execution or acquisition is instrumented and financed.

ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS ON “ASSET AFFECTED AS GUARANTEE”

Ordered Text – Source Regulation

Section	Point	Paragraph	Comm.	Annex
1.1.	“A”	2802	1.1.	According to art. 28, inc. b), of Law 21.526.
1.2.	“A”	2774	I	6. Includes interpretative clarification.
1.3.	“A”	2802	1.3.	Incorporates criteria not previously disclosed generally. According to Comm. “A” 4817, 4888, 5691, 5740 and 6327. Includes interpretative clarification.
2.1.	“A”	2281	According to Comm. “A” 2753.
2.1.1.	“A”	2281	According to Comm. “A” 2753, 2832 and 5183.
2.1.2.	“A”	2281	According to Comm. “A” 2753, 5671 and 5740.
2.1.3.	“A”	2281	According to Comm. “A” 2753, 3274 and 3558. Includes interpretative clarification.
2.2.	“A”	2774	II
2.2.1.	“A”	2774	II	According to Comm. “A” 4132, 5671, 5740, 6038 and 6074. Includes interpretative clarification.
2.2.2.	“A”	2774	II	According to Comm. “A” 5671 and 6061.
2.2.3.	“A”	2774	II	According to Comm. “A” 3274 and 3558. Includes interpretative clarification.
2.3.	“A”	2774	I	1., 2., 3. and 5. According to Comm. “A” 3258.
2.3.1.	“A”	2774	I	1. According to Comm. “A” 3258, 4876, 5691 and 6327.
2.3.2.	“A”	2774	I	1. and 2. According to Comm. “A” 5671.
2.3.3.	“A”	2774	I	2. According to Comm. “A” 5671 and 5740.
2.3.4.	“A”	2774	I	2. and 5. According to Comm. “A” 3258, 5691 and 6327.
2.3.5.	“A”	2774	I	3.
2.3.6.	“A”	2774	I	5.
2.4.	“A”	4817	7. According to Comm. “A” 4888.
2.4.1.	“A”	4817	7. According to Comm. “A” 5671.
2.4.2.	“A”	4817	7. According to Comm. “A” 4831, 5671, 5740 and 6232. Includes interpretative clarification.
2.4.3.	“A”	4817	7. According to Comm. “A” 4831 and 4888.
2.4.4.	“A”	4817	7.
2.4.5.	“A”	4817	7.
2.5.	“A”	4972	7. According to Comm. “A” 5520.
2.6.	“A”	2610	I II	1. According to Comm. “A” 3558.
2.6.1.	“A”	2610	I II	1. According to Comm. “A” 3274.
2.6.2.	“A”	2610	I II	1.
2.6.3.	“A”	2610	I II	1. According to Comm. “A” 5671 and 5740.
2.6.4.	“A”	2610	I II	1. According to Comm. “A” 2683 and 5194.
2.7.	“A”	3216	According to Comm. “A” 3274 and 3558.
2.8.	“A”	4838	8. According to Comm. “A” 4926, 4937, 6327 and “B” 9745.
2.9.	“A”	4725	3.
2.10.	“A”	5691	5.
3.1.	“A”	2774	II	2. last. According to Comm. “A” 2832, 4153, 4725, 4817, 4972, 5691 and “B” 9745.
3.2.	“A”	2774	I	2.a) 1st. According to Comm. “A” 4817, 4972 (point 8.) and 5671.

2.1. Advance on Account for Transient Illiquidity

2.1.1. Guarantee

The guarantee will be constituted over the following assets to the satisfaction of the BCRA:

2.1.1.1. Public‑offering securities or other assets and/or values.
2.1.1.2. First‑rank mortgages over the entity’s own assets.

2.1.2. When the guarantee consists of Class “A” or “B” debt securities of financial trusts, the following conditions apply:

2.1.2.1. Particulars

i) The fiduciary of financial trusts must apply to the underlying asset the classification and provisioning rules established by the BCRA and report the credits to the Financial System Debtors Central, administered by this Institution (as established in the regulations on “Financial Trusts covered by the Financial Entities Law”).

ii) The trust’s constitution must include a report from the designated review and control agent, when its intervention is foreseen in the trust contract.

iii) The registration agent must be the fiduciary of the trust or Caja de Valores S.A.

iv) The custodian of the debt securities or, where applicable, of their provisional representative certificates must be Caja de Valores S.A.

v) The trust’s quarterly and annual financial statements must include an External Auditor’s report.

vi) The trust’s underlying assets must be credits, rights arising from the assignment of cash‑flow streams, or instruments classified as normal‑situated at the date they were entrusted to the trust.

In addition, financial trusts whose underlying assets are the right to collect cash‑flow from leasing fees (financial leasing) will be admitted.

2.1.2.2. General

i) The order of decreasing priority will be the following:

ASSISTANCE FOR TRANSIENT ILLIQUIDITY (B.C.R.A.)

Section 2 – Particular Characteristics

Version: 5a. COMMUNICATION “A” 6428

Effective Date: 01/01/2018

Update of Ordered Texts – Circular LISOL 1‑773, OPRAC 1‑929, REMON 1‑939, RUNOR 1‑1370, CREFI 2‑104, OPASI 2‑538, CONAU 1‑1260, SECYC 1‑4, Communications “A” 6306, 6327, 6396

a) Class “A” securities, and

b) Class “B” securities

If applicable, their respective provisional certificates.

ii) Regarding debt securities or, if applicable, their representative provisional certificates, their constitution as collateral will be admitted provided that at the time of their allocation it is verified for each of those securities or certificates that the trust has issued other instruments of lower credit priority and that these latter represent at least 10 % of the total value of the pledged asset, net of provisions, according to the latest financial or accounting statement—quarterly or annual as appropriate—available, whose age must not exceed 90 calendar days. This condition must be verified both at the time of financial assistance by the BCRA and at each requested extension.

iii) A certified copy by a Public Notary, with legalization if applicable, of the Trust Contract and the corresponding security must be attached. In its place, when dealing with public‑offering issuances, a copy of the corresponding prospectus must be attached. Additionally, a ownership certificate issued by the intervening registration agent and/or the securities deposit at Caja de Valores S.A. must be attached.

iv) External auditor’s report of the trust, with a signature duly legalized by the corresponding Professional Council, relating to the constitution of the trust and the periodic updates of the financial or accounting statements—as appropriate—according to the norms governing the operation of the trust.

Furthermore, the external auditor must issue, as applicable, according to the valuation standards applied by the trust, a special report indicating that the pledged assets correspond to private‑sector non‑financial debtors that were in normal situation according to BCRA provisions at the date they were pledged, and that they have been valued in accordance with the applicable BCRA provisions, the classification and provisioning norms, including the appropriation model of provisions established in the regulations on “Financial Trusts Covered by the Financial Entities Law”.

v) External auditor’s report of the financial institution, with a signature duly legalized by the corresponding Professional Council, expressly stating that the valuation of the respective debt security, or if applicable, its representative provisional certificate, recorded in the accounting books of the requesting entity, does not exceed that resulting from the review of the valuation performed by the external audit of the financial institution, in accordance with the classification and provisioning norms, including the appropriation model of provisions established in the regulations on “Financial Trusts Covered by the Financial Entities Law”.

FINANCIAL ASSISTANCE FOR TRANSIENT ILLIQUIDITY

B.C.R.A.

Section 2. Particular Characteristics.

Version: 3a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

The financial institution shall ensure that the trustee sends a report issued by the external auditor of the trust, verifying that its underlying assets meet the conditions required under point iv) and that they are classified according to the BCRA norms applicable to that matter.

The external auditor’s report of the financial institution must attach the latest quarterly and annual financial or accounting statements—whichever applies—of the trust that include the applicable provisions, as well as the corresponding reports of its external auditor, both regular and special. It must also verify that the external auditor of the trust has issued those reports in accordance with the norms applicable in each case.

The book value and the corresponding valuation review indicated in this report shall refer to the current residual value as of the date established in the preceding point ii), and the external auditor must also verify and report that the conditions set out in that point are met.

It must also expressly state that the debt security or, if applicable, its representative provisional certificate, is owned by the financial institution and is the highest‑ranking security in its portfolio, according to the terms and conditions of the trust contract.

This report must be accompanied by a copy of the certificate issued by Caja de Valores S.A. or the corresponding entity, to verify that the debt security is registered in the name of the financial institution and that it bears no liens or restrictions of any nature.

In the external auditor’s report of the financial institution it must be expressly indicated, without limitations or reservations, the scope of the work performed and that the evaluation carried out is independent of that performed by the audited financial institution.

No external auditor reports of the financial institution containing limitations in scope or any observations will be accepted.

vi) Without prejudice to the work of the external auditor of the trust, the BCRA reserves the right to conduct a review of the instrumental quality of the affected underlying assets, for which it may require the financial institution to deliver the respective original instruments, accompanied by the Formulas 3055 duly completed, showing the balances as of a specific date and the corresponding magnetic supports.

FINANCIAL ASSISTANCE FOR TRANSIENT ILLIQUIDITY

B.C.R.A.

Section 2. Particular Characteristics.

Version: 5a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

vii) For this purpose, financial services that mature after the day following the financial or accounting statement—whichever applies—to which the valuation of the debt securities performed by the external auditor refers, and up to the date of the request for BCRA financial assistance, will not be counted.

viii) Financial institutions may submit directly to the Credit Management Department, with a notice of no less than 5 business days, the corresponding fund request requesting the crediting of the respective resources; in such case the institutions must fulfill the remaining requirements set out in this regime.

ix) Once the financial assistance has been effected and, should the debt securities used as collateral mature during the assistance period, the corresponding debit will be made, except that the minimum required coverage will be maintained with the remaining guarantees.

2.2. Re‑discounting for Transient Illiquidity

2.2.1. Credits and/or securities to be re‑discounted

They must correspond to financing to private‑sector non‑financial debtors, classified—by all financial institutions with respect to which they hold debt—in normal situation (points 6.5.1 and 7.2.1 of the “Debtor Classification” regulations), according to the latest information available in the Central Debtors Registry administered by this Institution on the date of the assistance request, excluding financial leasing operations.

2.2.2. Endorsement

Re‑discounted credits must be endorsed, when applicable, by stamping a seal with the legend “Endorsed Value in Favor of the BCRA” and the signatures of the official(s) authorized for that purpose, with the corresponding clarification.

Such endorsements must be carried out before a Public Notary, who will record in the formulas that the re‑discounted credits listed therein were endorsed in his presence and that the signatories have sufficient authority to do so. The notarial act must be legalized if applicable. When urgency advises, endorsements may be signed in the presence of at least two officials of the Credit Management Department, who will record this in the formulas where the credits are listed.

FINANCIAL ASSISTANCE FOR TRANSIENT ILLIQUIDITY

B.C.R.A.

Section 3. Requirements and Documentation to Submit.

Version: 4a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

3.1. Requirements. Documentation.

3.1.1. Fund Request. Standard Letter

The fund request shall be made through a standard letter, in triplicate, according to the models shown in points 4.1 and 4.2, depending on whether it concerns account‑advances or re‑discounts, to be presented to the Credit Management Department between 10:00 and 15:00.

3.1.2. Formulas 2929/3055. Completion

Formulas 2929 (credits without real guarantee, as per the model inserted in point 4.9) and/or 3055 (credits with real guarantee and the entities’ own assets, as per the model in point 4.10), as applicable, shall be submitted in triplicate.

On the same day the formulas are presented, the electronic support for them must be sent through the authorized information systems. The offered credits shall be detailed ordered by their maturity date, starting with the nearest, which must not fall within the maximum period foreseen for the financial assistance. Formulas 2929 and 3055 must be presented separately for credits in pesos and in United States dollars, depending on the currency in which the credits were contracted.

The amount to be recorded for the credits listed in those formulas shall be the debt balance of each (principal and interest) at the close of the financial or accounting statement—whichever applies—corresponding to the second month prior to the date of the request, deducting the installments that mature from the day after the base‑date information on the debt balance up to the last day of the eighth month thereafter, and recording as the credit’s maturity the final maturity date. When the credit consists of a negotiable instrument, it may not be offered for an amount greater than its face value.

If there are causes that determine the elimination of one or more of the credits listed in the submitted formulas (duplicate order numbers, lack of maturity date, or maturity occurring during the utilization period, etc.), the crediting of resources will be made for the amount of the obligations not observed.

3.1.3. Physical Delivery of Documentation

All representative instruments of the offered credits or securities shall be delivered to this Institution. The physical presentation must respect the sequential order used in the preparation of Formulas 2929 or 3055.

In the cases where applicable – in accordance with the provisions of Article Two of Decree Law No. 15348/46 approved by Decree No. 897/1995 – the assets subject to pledged registration shall remain in the debtor’s possession.

3.1.4. Other Requirements

The request must also be accompanied by the following documentation:

Section 3. Requirements and Documentation to Submit.

Version: 4a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

v) That prior to the granting of financial assistance for transient illiquidity, the requesting financial institution has exhausted its holdings of eligible assets available for repurchase operations with this Institution, as well as for the “Liquidity Window” and other existing assistance policy options at the time of the request.

3.1.5.2. Formulas 2929 and 3055 must be intervened by the external auditor.

3.1.5.3. The external auditor’s intervention in the various aspects mentioned in these regulations shall be framed within the provisions established in the Minimum Standards on External Audits. No external auditor reports of the financial institution containing limitations in scope or any observations will be accepted.

3.1.6. Central Debtors of the Financial System The Central Debtors application and operational guide for validating the classification of debtors whose credits are offered for re‑discounting are available on the BCRA website and must be used obligatorily when requesting a re‑discount.

Printed formulas generated by the application – corresponding to the version of the Central Debtors of the Financial System in force on the date of presentation – shall be delivered to the Credit Management Department together with the rest of the documentation at the time of submitting the corresponding fund request. On the same date, the electronic support must be sent through the authorized information services.

Technical queries related to the use of this application shall be addressed to the Information Management Department.

3.1.7. Securities. Valuation and Transfer.
Securities will be valued according to the following detail:

Provincial public securities or of the Autonomous City of Buenos Aires, with normal and habitual quotation for significant amounts in domestic markets. The quotation of the “48‑hour Cash” modality of the MAE, or of the Buenos Aires Stock Exchange in its absence, corresponding to the last business day prior to the date of the assistance request or its renewal, shall be used.
Private securities with public offering. The quotation of the “48‑hour Cash” modality of the Buenos Aires Stock Exchange, corresponding to the last business day prior to the date of the assistance request or its renewal, shall be used.
Other transferable public securities. The estimated valuation by the BCRA’s competent technical area shall be considered.

Section 3. Requirements and Documentation to Submit.

Version: 5a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

Securities with public offering that guarantee an advance must be transferred to Account No. 400, Client No. 75, which the BCRA holds at Caja de Valores S.A. A copy of the corresponding transfer with the resulting balance must also be attached.

3.1.8. Valuation Decrease: Coverage

If during the validity of a financial assistance the value of the assets mentioned in points 2.1.1 and 2.2.1 affected as collateral or transferred in ownership becomes lower than the percentage established in point 1.7 of Section 1 with respect to the amount owed to the Central Bank of the Argentine Republic, the institution must cover the resulting difference within 72 or 96 business hours, respectively. Otherwise, an automatic debit will be made from the institution’s current account at the BCRA for the portion of debt not covered by the corresponding guarantee.

3.1.9. Utilization Period

If the maximum period foreseen for each financial assistance (180 calendar days) coincides with a non‑business day, the utilization period will be reduced so that the operation’s maturity falls on a business day.

If the maturity day unexpectedly falls on a non‑business day, the loan’s validity will be automatically extended – with the accrual of the respective interest – until the next business day.

3.1.10. Fund Movements

Credits and cancellations of the enabled resources and interest debits shall be made in the current account that the institution maintains at the BCRA.

Origin of the Provisions Contained in the Regulations on “Financial Assistance for Transient Illiquidity”

Ordered Text – Source Norm

Section	Point	Paragraph	Comm.	Annex	Point	Paragraph
1°	“A”	2673	único	1.1.	1°	According to Comm. “A” 5304.
2°	“A”	4868	I	4.d.	According to Comm. “A” 4876.
“A”	4868	II	2.i.	According to Comm. “A” 5304.
3°	“A”	3901	I	I.	According to Comm. “A” 4859 and 4876.
4°	“A”	2673	único	1.2.	According to Comm. “A” 2925 and 5304.
5°	“A”	2673	único	1.2.2.	According to Comm. “A” 2925 and 5304.
1.1.	“A”	2673	único	1.1.1.1.	According to Comm. “A” 3901, 4859 and 4876.
1.2.1.	“A”	2673	único	1.1.1.2.	According to Comm. “A” 3901 and 4859.
1.2.2.	“A”	2673	único	1.1.1.7.	According to Comm. “A” 2925 and 5304.
1.2.3.	“A”	3901	I	III.	2. According to Comm. “A” 4876 and 5304.
1.3.	“A”	3901	I	IV.	According to Comm. “A” 4859, 4868, 4876 and 5304.
1.4.	“A”	4859	único	V.
1.5.	“A”	2673	único	1.1.1.6.	According to Comm. “A” 2925, 3901, 4859 and 6243.
1.6.	“A”	2673	único	1.1.1.5.	According to Comm. “A” 2925 and 5304.
1.7.	“A”	4868	III	According to Comm. “A” 4876, 5304, 5516 and 6243.
1.8.	1°	“A”	3901	II	1.	According to Comm. “A” 5304.
1.8.1.	“A”	3901	II	1.1.
1.8.2.	“A”	3901	II	1.2.
1.8.3.	“A”	3901	II	1.3.	According to Comm. “A” 6275.
1.8.4.	1°	“A”	3901	II	1.4.	According to Comm. “A” 5304.
2°	“A”	3901	II	2.	According to Comm. “A” 5304.
1.8.4.1.	“A”	3901	II	2.1.
1.8.4.2.	“A”	3901	II	2.2.	According to Comm. “A” 5304.
1.8.5.	“A”	2673	1.2.3.	According to Comm. “A” 2925 and 5304.
2°	“A”	2673	único	1.2.4.	According to Comm. “A” 2925.
1.
1.8.
3°	“A”	3901	II	3.
2.1.1.	“A”	2673	único	1.1.1.3.	According to Comm. “A” 2925 and 5304.
2.1.2.	1°	“A”	4868	II	1.	According to Comm. “A” 5304.
i	“A”	4868	II	1.a.	According to Comm. “A” 4876 and 6303.
ii	“A”	4868	II	1.b.	According to Comm. “A” 5671.
iii	“A”	4868	II	1.c.
iv	“A”	4868	II	1.d.
v	“A”	4868	II	1.e.	According to Comm. “A” 6327.
2.1.2.1.
vi	“A”	4868	II	1.f.	According to Comm. “A” 4876.
i	“A”	4868	II	2.a.
ii	“A”	4868	II	2.b.	According to Comm. “A” 6327.
iii	1°	“A”	4868	II	2.c.	1°
iii	2°	“A”	4868	II	2.c.	2° According to Comm. “A” 4876.
iv	“A”	4868	II	2.d.	According to Comm. “A” 4876, 5304 and 6327.
v	1°	“A”	4868	II	2.e.	1° According to Comm. “A” 6428.
2.
2.1.2.2.
v	2°	“A”	4868	II	2.e.	2° According to Comm. “A” 5304.

ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS ON “FINANCIAL ASSISTANCE FOR TRANSIENT ILLIQUIDITY”

Ordered Text – Source Norm

Section	Point	Paragraph	Comm.	Annex	Point	Paragraph
v	3°	“A”	4868	II	2.e.	3° According to Comm. “A” 6327.
v	4°	“A”	4868	II	2.e.	4° According to Comm. “A” 5304.
v	5°	“A”	4868	II	2.e.	5°
v	6°	“A”	4868	II	2.e.	6° According to Comm. “A” 4876.
v	7°	“A”	4868	II	2.e.	7°
v	8°	“A”	4868	II	2.e.	8°
vi	“A”	4868	II	2.f.
vii	“A”	4868	II	2.h.	According to Comm. “A” 6327.
viii	“A”	4868	II	2.i.	According to Comm. “A” 5304.
ix	“A”	4868	II	2.j.
2.2.1.	“A”	2673	único	1.1.2.3.	According to Comm. “A” 2775, 4876, 5304, 6243 and “B” 9074
2.2.2.	“A”	2673	único	2.1.3.	According to Comm. “A” 5304.
3.1.1.	“A”	2673	único	2.1.1.	According to Comm. “A” 2925 and 5304.
3.1.2.	“A”	2673	único	2.1.2.	According to Comm. “A” 2925, 5304, 6243 and 6327.
3.1.3.	“A”	2673	único	2.1.4.	According to Comm. “A” 2925 and 5304.
3.1.4.	“A”	2673	único	2.1.5.	According to Comm. “A” 2925.
3.1.4.1.	“A”	2673	único	2.1.5.1.	According to Comm. “A” 2925, 4868 and 5304.
3.1.4.2.	“A”	2673	único	2.1.5.2.	According to Comm. “A” 2925 and 4868.
3.1.4.3.	“A”	2673	único	2.1.5.3.	According to Comm. “A” 2925 and 5304.
3.1.4.4.	“A”	2673	único	2.1.5.4.	According to Comm. “A” 2925 and 5304.
3.1.5.	“A”	2673	único	2.1.6.	According to Comm. “A” 2925.
i)	“A”	2775	único	2.1.6.1.1.	According to Comm. “A” 2925 and 5304.
ii)	“A”	2673	único	2.1.6.1.1.	According to Comm. “A” 2775, 2925, 5304 and 6243.
iii)	“A”	2673	único	2.1.6.1.2.	According to Comm. “A” 2775, 2925 and 5304.
iv)	“A”	2673	único	2.1.6.1.3.	According to Comm. “A” 2925.
3.1.5.1.
v)	“A”	5304
3.1.5.2.	“A”	2673	único	2.1.6.2.	According to Comm. “A” 2925.
3.1.5.3.	“A”	2673	único	2.1.6.3.	According to Comm. “A” 4868.
1°	“A”	2673	único	2.1.7.	1° According to Comm. “A” 2925 and 6243.
2°	“A”	2673	único	2.1.7.	2° According to Comm. “A” 2925, 5304 and 6243.
3.
3.1.6.
3°	“A”	2673	único	2.1.7.	4° According to Comm. “A” 5304.
1°	“A”	2673	único	2.2.1.	1° According to Comm. “A” 2925, 6243, 6327 and 6331.
3.1.7.
2°	“A”	2673	único	2.2.1.	2° According to Comm. “A” 2925 and 6331.
3.1.8.	“A”	2673	único	2.2.2.	1° According to Comm. “A” 2775, 2925, 4868, 4876 and 5304.
3.1.9.	“A”	2673	único	2.2.3.	According to Comm. “A” 2925, 3901 and 4859.
3.
3.1.10.	“A”	2673	único	2.2.4.	According to Comm. “A” 2925.

FINANCIAL ACTIVITY

Financial assistance services provided by mutual associations constitute ordinary intermediation between the supply and demand of financial resources.

Exceptions

The provision of financial assistance services is excluded from this classification when all of the following characteristics are verified:

1.1. Secondary Activity

The provision does not constitute the primary activity of the mutual association but represents a complementary part of its total operation.

This secondary status is configured when the resources appropriated to the Economic Assistance Service originating from the portion of normal dues assigned to that purpose, the earnings from the specific operation, and/or other concepts that may be incorporated do not exceed 30 % of the total resources of the mutual entity, encompassing the whole set of services, as derived from the figures shown in the financial or accounting statements—whichever applies—at the close of each fiscal year.

1.2. Beneficiaries

The beneficiaries of the financings agreed within this regime are only the members of the mutual association covered by the categories provided in the bylaws, who have a minimum seniority of one year. This last requirement shall not apply when the beneficiaries are active or adhering members related by first‑degree kinship.

MUTUAL ASSOCIATIONS

Regulation of Their Financial Activity (Decree 1367/93)

Version: 2a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

Ordered Text – Source Norm

Sec.	Point	Paragraph	Comm.	Annex	Point
1.	“A”	2257	1.	1º (partial)	According to Comm. “A” 2387. Includes formal amendments.
2.	“A”	2257	1.	1º (partial)	According to Comm. “A” 2387. Includes formal amendments.
2.1.	“A”	2257	1.1.	According to Comm. “A” 2387 and 6327. Includes formal amendments.
2.2.	“A”	2257	1.2.	According to Comm. “A” 2387. Includes formal amendments.
2.3.	“A”	2257	1.3.	According to Comm. “A” 2387. Includes formal amendments.
2.4.	“A”	2257	1.4.	According to Comm. “A” 2387. Includes formal amendments.
2.5.	“A”	2257	1.5.	According to Comm. “A” 2387. Includes formal amendments.
3.	3.	“A”	2257	penultimate	According to Comm. “A” 2387.

Index

Section 5. Modifications of Shareholding Composition and Control Structure

5.1. Modifications of the shareholding composition.
5.2. Significant modifications of the shareholding composition.
5.3. Other modifications of the shareholding composition.
5.4. Offerings in markets.
5.5. Significant modifications of the shareholding composition of legal persons domiciled abroad.
5.6. Non‑compliance.
5.7. Shareholder information model.

Section 6. Common Provisions

6.1. Deficient applications.
6.2. Personal background, asset statements and sworn declarations.
6.3. Information on sources of funds.
6.4. Documentation requirements.
6.5. Transport of securities.

Section 7. Special Information

7.1. Persons linked to shareholders and authorities.
7.2. Consolidated financial statements.
7.3. Relatives of shareholders, authorities and external auditor.
7.4. Operations of foreign entities with residents in the country.

Correlation Table

Secc.	Punto	Párr.	Com.	Anexo	Cap.	Secc.	Punto
1.1.1.	“A”	2241	I	1.	2°	Según Com. “A” 4368, 5107 y 5841.
1.1.1.1.	“A”	2241	I	1.	2°	Según Com. “A” 4368, 5107 y 5841.
1.1.1.2.	“A”	2241	I	1.	2°	Según Com. “A” 4368, 5107 y 5841.
1.1.2.	“A”	4712				Según Com. “A” 6129.
1.1.3.	“A”	2241	I	1.	1°	Según Com. “A” 6129.
1.2.	“A”	2241	I	1.	1.1.4.
1.3.	“A”	5355	9.
2.1.	1°	“A”	2241	I	1.	1°	último “A” 2241 I 1. 1.5. Según Com. “A” 6129.
2.2.	“A”	2241	I	1.	último
2.3.	“A”	6129
2.3.1.	“A”	2241	I	1.	1.1.3.	Según Com. “A” 5785.
2.3.2.	“A”	6290	1.
2.3.3.	“A”	2241	I	1.	1.1.2.	Según Com. “A” 4061, 4284, 5248, 5345, 5485, 5785, 6129 y 6304.
1.6.1.
2.3.4.	1°	Según Com. “A” 6129.	último “A” 2241 I 1. 1.6.4.
2.3.5.	“A”	2241	I	1.	1.1.5.	Según Com. “A” 6129.
2.4.	1°	“A”	2241	I	1.	1.2.1.	Según Com. “A” 2940, 6129 y 6304.
2.4.1.	“A”	2241	I	1.	1.2.1.	Según Com. “A” 2940 y 6129.
2.4.2.	“A”	2241	I	1.	1.2.2.2.	Según Com. “A” 6129.
2.4.3.	“A”	2241	I	1.	1.2.2.1.
2.4.4.	“A”	2241	I	1.	1.2.2.3.
2.4.5.	“A”	2241	I	1.	1.2.2.5.	Según Com. “A” 6304.
2.4.6.	“A”	2241	I	1.	1.2.2.4.	1°
2.4.7.
2.4.7.1.	“A”	2241	I	1.	1.2.2.4.1.	Según Com. “A” 6129.
2.4.7.2.	“A”	2241	I	1.	1.2.2.4.2.	Según Com. “A” 6129 y 6327.
2.4.7.3.	“A”	2241	I	1.	1.2.2.4.3.	Según Com. “A” 5485, 6129 y 6304.
2.4.7.4.	“A”	2241	I	1.	1.2.2.4.4.	Según Com. “A” 6129.
2.4.7.5.	“A”	2241	I	1.	1.2.2.4.5.
2.4.7.6.	“A”	6304	4.
2.4.8.	“A”	2241	I	1.	1.2.2.6.	Según Com. “A” 5248, 5485, 5785, 6129 y 6304.
2.4.8.1.	“A”	2241	I	1.	1.2.2.6.	Según Com. “A” 5248, 5485, 5785 y 6129.

AUTHORIZATION AND CAPITAL COMPOSITION OF FINANCIAL ENTITIES

B.C.R.A.

Section 2. New Financial Entities

Version: 4a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

2.4.5. Draft of the deed of incorporation and statutes or organic charter governing the entity.

2.4.6. Capital to be initially integrated.

2.4.7. List of persons committed to providing the initial capital, indicating domicile, nationality and respective participation, accompanied by the documentation indicated in point 6.3., proving that those persons possess the solvency and liquidity appropriate to effect, within the period foreseen in point 2.9.3., the committed capital contributions. Asset statements must correspond to the month immediately preceding the submission of the authorization request.

If legal persons will be among the shareholders, the following must also be supplied:

2.4.7.1. Copy of the statutes or articles of incorporation, with proof of approval and registration before the corresponding supervisory authority according to the corporate form.

2.4.7.2. Financial statements and reports for the two most recent closed fiscal years, certified by a public accountant.

2.4.7.3. List of members of the administration, supervision and management bodies, with personal data for each.

2.4.7.4. List of current shareholders or partners, indicating domicile, nationality, number of shares or quotas, nominal value of the participation and voting rights for each person.

2.4.7.5. In the case of joint‑stock companies, attendance of shareholders recorded at the two most recent ordinary assemblies, with the data indicated in point 2.4.7.4. for each.

2.4.7.6. Sworn declaration stating that the person is not subject to the provisions of point 2.3.2. and reporting any judicial proceedings in which they are being processed – if applicable.

2.4.8. For each shareholder and member of the governing bodies (shareholders, partners or equivalents), of the administration (directors, councilors or equivalent authorities) and of the supervision (auditors and members of the Supervisory Board or equivalents) of the entity:

2.4.8.1. Background on responsibility, suitability and experience in financial activity.

2.4.8.2. Sworn declaration that none of the disqualifications set out in article 10° of the Financial Entities Law apply, that they do not appear in the resolutions on terrorist financing communicated by the UIF, that they have not been designated by the United Nations Security Committee, that they have not been convicted of money‑laundering and/or terrorist financing offences and that they have not been sanctioned with a fine by the UIF or with disqualification, suspension, prohibition or revocation by the BCRA, the CNV and/or the SSN.

AUTHORIZATION AND CAPITAL COMPOSITION OF FINANCIAL ENTITIES

B.C.R.A.

Section 3. Merger of Financial Entities

Version: 3a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

3.4.5. Copies of the minutes of meetings of the Boards, Supervisory Councils or administrations of the intervening entities, in which the following were approved:

3.4.5.1. The report referred to in point 3.4.3.

3.4.5.2. The designation of representatives to sign the merger commitment.

3.4.6. Financial statements of the intervening entities, individual and consolidated, accompanied by the corresponding external audit opinions.

3.4.7. Consolidation of the statements inherent to the regulations on liquidity and solvency established by the provisions in force.

3.4.8. If additional capital contributions are required, the information indicated in point 6.3 must be presented. Asset statements must correspond to the month prior to the submission of the authorization request.

3.4.9. Regarding the entity resulting from the merger:

3.4.9.1. Deed of incorporation and statutes governing the resulting merged entity or a draft of reforms to be introduced into the statutes of the absorbing entity in the case of a merger by absorption.

3.4.9.2. List of shareholders of the resulting merged entity, or of the absorbing entity, indicating domicile, nationality and individual participation when it exceeds 2 % of the capital and/or votes.

3.4.9.3. List of future members of the administration bodies (directors, councilors or equivalent authorities) and supervision bodies (auditors and members of the Supervisory Board or equivalents) of the resulting merged entity or, where applicable, of the absorbing entity, each of whom must provide the information foreseen in points 2.4.8.1. to 2.4.8.5., unless it has already been sent to SEFyC.

3.4.9.4. Location where the central or main headquarters of the resulting or absorbing entity will operate, also clarifying whether the remaining offices will continue to operate once the merger is completed or will be closed.

3.4.9.5. Business plan and projections with the guidelines of the corresponding informational regime.

3.5. Conditions of authorizations.

Authorizations granted for the merger of entities are conditioned upon compliance, within the periods established by the respective resolutions, with the following requirements:

3.5.1. That the respective general shareholders' meetings approve:

3.5.1.1. The merger agreement.

3.5.1.2. The constitution of the resulting merged entity or the reform of the statutes of the absorbing entity.

3.5.1.3. The dissolution of the merged entities, when applicable.

3.5.2. Registration before the corresponding supervisory authority, according to the corporate form, of the definitive merger agreement and of the statutes governing the resulting entity or of the reforms introduced into the statutes of the absorbing entity.

In cases of mergers that do not result in the creation of a new company, this condition may be fulfilled within the period set in the respective resolution after the merger date.

3.5.3. Any other condition or requirement established in the authorization resolution.

3.5.4. All requirements must be fulfilled at least 30 calendar days before the scheduled start of activities of the resulting merged entity, notifying SEFyC so that it may issue a corresponding statement.

3.6. Informational regime.

3.6.1. Prior to the merger.

Authorized financial entities that intend to merge must continue preparing and sending to SEFyC, up to the month preceding the start of operations of the new entity, the financial statements that would correspond and the remaining informational regime that applies.

3.6.2. Upon completion of the merger.

When the merged entity begins operations, it must submit to SEFyC:

3.6.2.1. The closing balance sheets for each individual entity as of the day before that date and the opening balance sheet of the new entity. Subsequently, at the end of each calendar month, including the opening month, the new entity must present the monthly financial statements in accordance with the regulations in force.

3.6.2.2. At the end of the month of activity commencement, the remaining informational regime, consolidating the data of its predecessors corresponding to the concepts that make up the various reports, for the period from the first day of that month to the day before the date the entity began operating. In subsequent periods, the entity must continue complying with the respective provisions for the submission of the corresponding statements.

The balances of the various concepts that make up the income statements of the predecessor entities must be consolidated by the new entity in the appropriate rows of the financial statements that the latter must submit at the close of its first monthly period after the start of activities.

3.6.3. Irregular fiscal years.

If the new entity experiences irregular‑duration fiscal year closures, the update of the residual value of assets and their respective depreciations must be performed as if they were full fiscal years, provided that the assets subject to revaluation are incorporated into the entity’s equity at the beginning and end of the irregular fiscal year.

3.6.4. Document retention.

The new entity must retain, for the periods established by applicable legislation, all documentation and records of the accounting registrations of the predecessor entities.

3.6.7. Transfer of goodwill.

The rules applicable to the merger of financial entities shall also apply, insofar as they are compatible, to the transfer of goodwill of the entities.

AUTHORIZATION AND CAPITAL COMPOSITION OF FINANCIAL ENTITIES

B.C.R.A.

Section 4. Transformation of Financial Entities

Version: 2a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

4.4.5. All requirements related to the transformation must be fulfilled at least 30 calendar days before the start of activities in the new class, notifying SEFyC so that it may issue a corresponding statement.

At that time, a certification issued by the external auditor and signed by the Professional Council of Economic Sciences must be attached, demonstrating that the minimum equity requirement for the new class, according to the “Minimum Capital of Financial Entities” rules, is met, using the following wording:

"I certify that the detail of the items constituting the equity of [entity name], matches the entries of the main and auxiliary accounting of the entity as of [date], and that its allocation, besides complying with generally accepted accounting principles, conforms to the definition of the concept ‘Equity’ determined by the Central Bank of the Argentine Republic."

4.5. Informational regime.

In cases of transformation, total continuity of the entity is presumed. Consequently, when the start of activities in the new class does not occur on the first day of the month, the entity must send, in its own name, the information required by SEFyC covering the entire month, including operations of both the new and the previous class. In accordance with this continuity criterion, the entity operating in the new class must also submit the financial statements as of the respective closing date.

SWORN DECLARATION ON COMPANIES OR ENTITIES OF THE COUNTRY OR ABROAD LINKED TO SHAREHOLDERS, MEMBERS OF MANAGEMENT AND CONTROL BODIES, AUDITORS AND GENERAL MANAGERS OF THE FINANCIAL ENTITY

ENTITY:
The undersigned (1), who will join (1) the entity in the capacity of (3), declares under oath that the data provided herein are correct, complete and a true expression of the truth and that, according to the linkage guidelines set out in points 2.2.1., 2.2.2. and 2.2.3. of the “Credit Risk Segmentation” rules, the companies, banks or other financial institutions of the country or abroad to which the represented firm is linked (1) are limited to those listed in the Annex forming part of this declaration and that, therefore, no other linkage exists under the said regulation. Furthermore, the declarant commits to inform any modification that occurs in this respect within five calendar days of its occurrence, by submitting a new sworn declaration that will also be incorporated, even when no facts arise that would alter the situation, reporting the status as of 31‑12 of each year.

Date:
Signature:
Document: Type (4) No. Country and issuing authority (5):
Role invoked (6):
Legal entity name (7):
CUIT/CUIL (1) No.:
We certify that the signature above matches the one registered in our books / was made in our presence (1).
(Seal of the entity and signatures of two authorized officials)

Observations:

Cross out what does not apply.
In the case of natural persons required to submit this declaration, include name and surname, even if a proxy signs on their behalf.
Indicate shareholder, director –or equivalent authority–, member of the Board of Directors, auditor, general manager, deputy general manager.
Indicate the type of document according to those accepted in the “Identification Documents in Force” rules.
Include only in the case of foreigners who do not reside in the country.
Indicate holder, legal representative, proxy. When a proxy, the granted power must be broad and general and be in force on the date the declaration is signed.
Include only when the signatory acts as proxy or legal representative of a legal entity.
This declaration must be submitted in duplicate; the copy retained by the financial entity will serve as proof of receipt of this declaration.

Section 7. Special Information

Version: 3a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

7.2. Consolidated financial statements.

Financial entities must require each shareholder of the country or abroad, or, where applicable, the shareholder group that controls them, to prepare semi‑annual consolidated financial statements of the group or economic entity, with a public accountant’s audit opinion. These statements must be submitted to SEFyC within 120 calendar days after the end of the semesters, unless exceptions are determined by the Superintendent. The preceding informational requirement does not apply when the shareholders or shareholder group are themselves financial entities of the country or abroad, provided that a consolidated supervision regime exists in the country of origin. For consolidated financial statements of foreign groups, they must be audited by firms of recognized prestige. The definitions of “economic group” and “control” contained in points 2.3. and 2.2.1. of the “Credit Risk Segmentation” rules shall apply.

7.3. Relatives of shareholders, authorities and external auditor.

7.3.1. Information to be required.

Financial entities must require the annual submission of sworn declarations on kinship relationships, using the model contained in point 7.3.4., from the following persons:

7.3.1.1. Shareholders holding 5 % or more of the share capital and/or of the total voting rights of the voting instruments issued by the financial entity.
7.3.1.2. Directors –or equivalent authority– and the highest local responsible of foreign financial entity branches.
7.3.1.3. Auditor or members of the Supervisory Council.
7.3.1.4. General manager and deputy general manager or equivalents.
7.3.1.5. External auditor.

7.3.2. Retention of the declarations.

The entity must retain the sworn declarations for the purposes of the controls that the auditor must periodically perform in accordance with the current regulations.

7.3.3. Non‑compliance.

Falsification of the data contained in the declarations of the aforementioned members and the external auditor of the financial entity shall make the signatories liable to the sanctions provided in article 296 of the Penal Code.

Section 5. Modifications of Shareholding Composition and Control Structure

Version: 4a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

5.2.4.2. Regarding natural persons.

For each natural‑person acquirer of shares or contributor:
1. Their personal data, the information and documentation required in points 2.4.8.1. to 2.4.8.5.
2. List of financial entities with which they operate, indicating the role (account holder, borrower, etc.).
3. Complete asset statement corresponding to the month immediately preceding the share transaction, submitted as indicated in point 6.3.1.1.
4. Copies of sworn declarations submitted to the Federal Administration of Public Revenues for income tax and personal assets tax (or their substitutes/complements) for the last three years, with the respective filing receipts, if they are obliged taxpayers; otherwise, a sworn declaration that they are not a taxable subject.

5.2.4.3. Regarding legal persons.

1. Copy of the statutes or articles of incorporation, with proof of registration before the corresponding supervisory authority according to the corporate form.
2. Financial statements for the two most recent closed fiscal years, with an external auditor‑public accountant report whose signature is legalized according to point 6.4.4.
3. Certification issued by an independent public accountant (signature legalized according to point 6.4.4) stating that the company has the necessary resources to meet the contribution or obligations arising from the negotiated share transaction and the origin of those resources when they do not arise from sales revenue, confirming that the preparation complied with the legal, regulatory and professional provisions in force on anti‑money‑laundering and terrorist financing. If there are irrevocable contributions for future capital integrations, information on the procedures carried out or to be carried out for their capitalization must be provided, and the information concerning the persons who made the contributions must be submitted as required in point 5.2.4.2.

ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “AUTHORIZATION AND CAPITAL COMPOSITION OF FINANCIAL ENTITIES”

AUTHORIZATION AND COMPOSITION OF CAPITAL OF FINANCIAL ENTITIES

ORDERED TEXT ORIGINAL REGULATION

Sec. Point Para. Comm. Annex Chap. Sec. Point Para.

OBSERVATIONS

2.4.8.2. “A” 2241 I 1. 1.2.2.6. According to Comm. “A” 5248, 5485, 5785, 6129 and 6304.
2.4.8.3. “A” 2241 I 1. 1.2.2.6. According to Comm. “A” 5248, 5485, 5785, 6129 and 6304.
2.4.8.4. “A” 2241 I 1. 1.2.2.7. 1° According to Comm. “A” 5485.
2.4.8.5. “A” 6290 1. According to Comm. “A” 6304.
2.4.9. 1° “A” 2241 I 1. 1.2.2.8.
2.4.10. “A” 2241 I 1. 1.2.2.10. According to Comm. “A” 6304.
2.4.11. “A” 2241 I 1. 1.6. 1°
“A” 2241 I 1. 1.6.2. 1°
2.4.11.1. “A” 2241 I 1. 1.6.2.1.
2.4.11.2. “A” 2241 I 1. 1.6.2.2. According to Comm. “A” 6129.
2.4.11.3. “A” 2241 I 1. 1.6.2.3. According to Comm. “A” 6129.
2.4.11.4. “A” 2241 I 1. 1.6.2.4.
2.4.11.5. “A” 2241 I 1. 1.6.2.5. According to Comm. “A” 6129.
2.4.12. “A” 2241 I 1. 1.1.1. According to Comm. “A” 5006 and 5133 and 6129.
2.5. “A” 2241 I 1. 1.2.1. According to Comm. “A” 2940.
2.6. “A” 2241 I 1. 1.1.1. 1° and 2°
2.7. “A” 2241 I 1. 1.4.3. 1° According to Comm. “A” 2940 and 4368.
2.8.1. “A” 2241 I 1. 1.4.3. last According to Comm. “A” 2940, 4368.
2.8.2. “A” 2241 I 1. 1.4.3. 1° According to Comm. “A” 2940, 4368 (pt. 4.) and 6129.
2.9. 1° “A” 2241 I 1. 1.4.1.
2.9.1. “A” 2241 I 1. 1.3.1. 1° According to Comm. “A” 4368.
2.9.2. “A” 2241 I 1. 1.3.1. According to Comm. “A” 4368 and 6129.
2.9.3. “A” 2241 I 1. 1.4.1.
“A” 2241 I 1. 1.4.1.6. According to Comm. “A” 6129.
2.9.3.1. “A” 2241 I 1. 1.4.1.1. According to Comm. “A” 6129.
2.9.3.2. “A” 2241 I 1. 1.4.1.2. According to Comm. “A” 6129 and 6304.
2.9.3.3. “A” 2241 I 1. 1.4.3. and 1.4.1.6. According to Comm. “A” 4368 and 6129.
2.9.3.4. “A” 2241 I 1. 1.4.1.3. According to Comm. “A” 6129.
2.9.3.5. “A” 2241 I 1. 1.4.1.4.
2.9.3.6. “A” 2241 I 1. 1.6.3.
2.9.3.7. “A” 2241 I 1. 1.4.1.5.
2.9.3.8. “A” 4557 I 1. 1.4.1.8. According to Comm. “A” 4649.
2.9.4. 1° “A” 2241 I 1. 1.3.2.
2.9.4.1. “A” 2241 I 1. 1.3.2.
2.9.4.2. 1° “A” 2241 I 1. 1.3.2.
last “A” 2241 I 1. 1.3.3.
2.9.5. “A” 2241 I 1. 1.4.1.6.

AUTHORIZATION AND COMPOSITION OF CAPITAL OF FINANCIAL ENTITIES

ORDERED TEXT ORIGINAL REGULATION

Sec. Point Para. Comm. Annex Chap. Sec. Point Para.

OBSERVATIONS

2.10. “A” 2241 I 1. 1.4.2.
2.11. “A” 5485 7. According to Comm. “A” 5785 and 6304.
3.1. “A” 2241 I 2. 2.1.1.
3.2. 1° “A” 3197 3., 4. and 6. According to Comm. “A” 6304.
2° “A” 3197 5.
3.3.1. “A” 2241 I 2. 2.1.1.
3.3.2. “A” 2241 I 2. 2.1.2.
3.3.3. “A” 2241 I 2. 2.1.3. According to Comm. “A” 6129.
3.4. 1° “A” 2241 I 2. 2.2.1. and 2.1.4. According to Comm. “A” 3178 and 6129.
3.4.1. “A” 2241 I 2. 2.2.1.1.
3.4.2. “A” 2241 I 2. 2.2.1.3.
3.4.3. “A” 2241 I 2. 2.2.1.2.1. According to Comm. “A” 6129.
3.4.4. “A” 3178 1. According to Comm. “A” 6129.
3.4.5. “A” 2241 I 2. 2.2.1.2.
3.4.5.1. “A” 2241 I 2. 2.2.1.2.1.
3.4.5.2. “A” 2241 I 2. 2.2.1.2.2.
3.4.6. “A” 2241 I 2. 2.2.1.5. According to Comm. “A” 6129 and 6327.
3.4.7. “A” 2241 I 2. 2.2.1.6.
3.4.8. “A” 2241 I 2. 2.1.2.
“A” 2241 I 4. 4.2.3.2.1. 1° According to Comm. “A” 4510.
3.4.9.1. “A” 2241 I 2. 2.2.1.4.
3.4.9.2. “A” 2241 I 2. 2.2.1.8. According to Comm. “A” 6129.
3.4.9.3. “A” 2241 I 2. 2.2.1.7. According to Comm. “A” 5485, 5785, 6129 and 6304.
3.4.9.4. “A” 2241 I 2. 2.2.1.9. According to Comm. “A” 6304.
3.4.9.5. “A” 6304 4.
3.5. 1° “A” 2241 I 2. 2.3.
3.5.1. “A” 2241 I 2. 2.3.1.
3.5.2. “A” 2241 I 2. 2.3.2. According to Comm. “A” 6129.
3.5.3. “A” 2241 I 2. 2.3.3.
3.5.4. “A” 2241 I 2. 2.3.4.
3.6.1. “A” 2241 I 4. 4.2.2. 1° According to Comm. “A” 6129 and 6327.
3.6.2. “A” 2241 I 4. 4.2.2. 2° According to Comm. “A” 6129.
3.6.2.1. “A” 2241 I 4. 4.2.2.1. According to Comm. “A” 6129 and 6327.
3.6.2.2. 1° “A” 2241 I 4. 4.2.2.2. 1° According to Comm. “A” 6129.
last “A” 2241 I 4. 4.2.2.2. last According to Comm. “A” 6129 and 6327.
3.6.3. “A” 2241 I 4. 4.2.2. penultimate
3.6.4. “A” 2241 I 4. 4.2.2. last
3.7. “A”2241 I 2. 2.4.
4.1. “A” 2241 I 3. 3.1.
1. 4.2. “A” 2241 I 3. 3.2. According to Comm. “A” 6129.
4.2.1. “A” 2241 I 3. 3.2.1. According to Comm. “A” 6129.

AUTHORIZATION AND COMPOSITION OF CAPITAL OF FINANCIAL ENTITIES

ORDERED TEXT ORIGINAL REGULATION

Sec. Point Para. Comm. Annex Chap. Sec. Point Para.

OBSERVATIONS

4.2.2. “A” 2241 I 3. 3.2.2. According to Comm. “A” 4052 and 6129.
4.2.3. “A” 2241 I 3. 3.2.3. and 3.2.4.
4.2.4. “A” 2241 I 3. 3.2.5.
4.2.5. “A” 2241 I 3. 3.2.6.
4.2.6. “A” 2241 I 3. 3.2.7. According to Comm. “A” 6129.
4.2.7. “A” 3178 2. According to Comm. “A” 5345 and 6129.
4.2.8. “A” 3901 II 1.3. According to Comm. “A” 6129.
4.2.9. “A” 5345 5.
4.3. 1° “A” 2241 I 3. 3.3.1. According to Comm. “A” 6129.
4.3.1. “A” 2241 I 3. 3.3.1.
4.3.2. 1° “A” 2241 I 3. 3.3.1.
4.3.2.1. “A” 2241 I 3. 3.3.1.1.
4.3.2.2. “A” 2241 I 3. 3.3.1.2.
4.3.2.3. “A” 2241 I 3. 3.3.1.3.
“A” 2241 I 4. 4.2.3.2.1. 1°
4.3.2.4. “A” 2241 I 3. 3.3.1.4.
4.3.2.5. “A” 6304 4.
4.4. 1° “A” 2241 I 3. 3.4. 1° According to Comm. “A” 6129.
4.4.1. “A” 2241 I 3. 3.4.1. According to Comm. “A” 6129.
4.4.2. “A” 2241 I 3. 3.4.2. According to Comm. “A” 6129.
4.4.3. “A” 2241 I 3. 3.4.3. According to Comm. “A” 6129.
4.4.4. “A” 2241 I 3. 3.4.4.
4.4.5. “A” 2241 I 3. 3.4.5.
4.5. “A” 2241 I 4. 4.2.1. According to Comm. “A” 6129 and 6327.
5.1. “A” 2241 V 1. 1.1., 1.4. and 1.5. 1° and 4° According to Comm. “A” 4510, 5006, 6129 and 6304.
5.1.1. “A” 2241 V 1. 1.4.
5.1.2. “A” 2241 V 1. 1.3. According to Comm. “A” 6129 and 6304.
5.1.3. “A” 6290 1.
5.1.4. “A” 5006 1. According to Comm. “A” 5133.
5.1.5. “A” 3901 II 1.3. According to Comm. “A” 6129.
5.2.1. “A” 2241 V 1. 1.1. 1° and 4° According to Comm. “A” 4510, 5006 and 6129.
5.2.2.1. “A” 2241 V 1. 1.4.
5.2.2.2. “A” 2241 V 1. 1.1. 1° According to Comm. “A” 4510, 5006 and 6129.
5.2.3.1. “A” 2241 V 1. 1.1. 1° According to Comm. “A” 4510 and 5006.
5.2.3.2. “A” 2241 V 1. 1.1. 1° According to Comm. “A” 4510, 5006, 6129 and 6304.
i) “A” 2241 V 1. 1.1.1.1. According to Comm. “A” 4510.
ii) “A” 2241 V 1. 1.1.1.2. According to Comm. “A” 4510.
5.2.4.1.
iii) “A” 2241 V 1. 1.1.1.3. According to Comm. “A” 4510.

AUTHORIZATION AND COMPOSITION OF CAPITAL OF FINANCIAL ENTITIES

ORDERED TEXT ORIGINAL REGULATION

Sec. Point Para. Comm. Annex Chap. Sec. Point Para.

OBSERVATIONS

1° “A” 2241 V 1. 1.1.2.1. 1° According to Comm. “A” 4510 and 6129.
i) “A” 2241 V 1. 1.1.2.1. 1° According to Comm. “A” 4510, 6129 and 6304.
ii) “A” 2241 V 1. 1.1.2.1. 1° According to Comm. “A” 4510.
iii) “A” 2241 V 1. 1.1.2.1. 1° and 2° According to Comm. “A” 6129 and 6304.
iv) “A” 2241 V 1. 1.1.2.2. and 1.2.2.5. According to Comm. “A” 4510 and 6129.
i) “A” 2241 V 1. 1.1.3.1. According to Comm. “A” 6129.
ii) “A” 2241 V 1. 1.1.3.2. According to Comm. “A” 4510, 6129, 6304 and 6327.
iii) “A” 2241 V 1. 1.1.3.3. According to Comm. “A” 4510, 6129 and 6304.
iv) “A” 2241 V 1. 1.1.3.4. According to Comm. “A” 6304.
v) “A” 6304 3.
vi) “A” 2241 V 1. 1.1.3.5. According to Comm. “A” 6304. Includes interpretative clarification.
vii) “A” 2241 V 1. 1.1.3.6. According to Comm. “A” 6304. Includes interpretative clarification.
5.2.4.4. i) “A” 2241 V 1. 1.1.4.1.
ii) “A” 2241 V 1. 1.1.4.2. According to Comm. “A” 6129 and 6304.
5.2.4.5. “A” 2241 V 1. 1.1.4.3.
5.2.4.6. “A” 6304 4.
5.2.5. “A” 2241 V 1. 1.1. 2° According to Comm. “A” 4510, 5248, 5485, 5785 and 6304.
5.2.5.1. “A” 2241 V 1. 1.1. 2° According to Comm. “A” 4510 and 6129.
5.2.5.2. “A” 2241 V 1. 1.1.4.4.
5.3.1. “A” 2241 V 1. 1.2. 1° According to Comm. “A” 5006, 6129 and 6304.
5.3.2. “A” 2241 V 1. 1.4. According to Comm. “A” 6304.
5.3.3. “A” 2241 V 1. 1.2. last According to Comm. “A” 5006.
5.3.4. “A” 6304 4.
5.4. “A” 2241 V 1. 1.2. 2° According to Comm. “A” 6129.
5.5. “A” 2241 V 1. 1.7.
5.6. “A” 2241 V 1. 1.6.
5.7. “A” 2241 V 1. 1.8.
6.1. “A” 2241 I 4. 4.1.1. a
4.1.2.
6.2. “A” 3135
“A” 4499
According to Comm. “A” 5485, 5785, 6129 and 6304.
6.3. 1° “A” 2241 I V 4. 1. 4.2.3.1. 1.1. 3° According to Comm. “A” 4510.

AUTHORIZATION AND COMPOSITION OF CAPITAL OF FINANCIAL ENTITIES

ORDERED TEXT ORIGINAL REGULATION

Sec. Point Para. Comm. Annex Chap. Sec. Point Para.

OBSERVATIONS

1° “A” 2241 I 4. 4.2.3.2.1. 1° According to Comm. “A” 4510, 6129 and 6304.
“A” 2241 V 1. 1.1.2.1. 1° 3°a last
“A” 2241 I 4. 4.2.3.2.1. 2° and 3°
6.3.1.1.
“A” 2241 V 1. 1.1.2.1. last
6.3.1.2. “A” 2241 I 4. 4.2.3.2.2. According to Comm. “A” 4510 and 6129.
6.3.2. “A” 2241 I 4. 4.2.3.3. According to Comm. “A” 4510, 6129 and 6304.
6.3. last “A” 4510 1. and 2. According to Comm. “A” 6129.
“A” 2241 I 1. 1.2.2.4.3.
“A” 2241 I 1. 1.2.2.7. 1°
“A” 2241 V 1. 1.1.2.4.
“A” 2241 V 1. 1.1.3.4.
1° “A” 2241 V 1. 1.1.4.2. According to Comm. “A” 4510, 5485 and 5785.
“A” 2241 I 1. 1.2.2.7. last
6.4.1. last
“A” 2241 V 1. 1.1.2.4. According to Comm. “A” 4510, 5485 and 5785.
6.4.2. “A” 6129 According to Comm. “A” 6304.
“A” 2241 I 1. 1.2.2.7. last
“A” 2241 I 1. 1.6.2. 1°
6.4.3.1.
“A” 2241 V 1. 1.1.2.4. According to Comm. “A” 4510, 5485 and 5785.
“A” 2241 I 1. 1.2.2.7. last
“A” 2241 I 1. 1.6.2. 1°
6.4.3.2.
“A” 2241 V 1. 1.1.2.4. According to Comm. “A” 4510, 5485 and 5785.
6.4.4. “A” 6129
6.4.5. “A” 6304 4.
6.5. “A” 5792 6. S/Comm. “A” 6218.
7.1.1. “A” 2241 I 1. 1.7.1. According to Comm. “A” 2573, 6129 and 6304.
7.1.2.1. 1° “A” 2241 I 1. 1.7.1. 2° According to Comm. “A” 2573.
last “A” 2241 I 1. 1.7.1. 5° According to Comm. “A” 2573 and 6304.
7.1.2.2. 1° “A” 2241 I 1. 1.7.1. 3° According to Comm. “A” 2573.
last “A” 2241 I 1. 1.7.1. 4° According to Comm. “A” 2573.
7.1.2.3. “A” 2241 I 1. 1.7.1. 6° According to Comm. “A” 2573.
i) “A” 2573 III According to Comm. “A” 6129 and 6304.
7.1.2.4.
ii) “A” 2573 IV According to Comm. “A” 6129 and 6304.
7.2. “A” 2241 I 1. 1.7.2. According to Comm. “A” 6129 and 6327.
7.3.1. “A” 2573 4. 1° and 2° According to Comm. “A” 6129.
7.3.2. “A” 2573 4. 2°
7.3.3. “A” 2573 4. last
7.3.4. “A” 2573 V According to Comm. “A” 6129.
7.4. “A” 2822 2.

2.5.4.6. Financing covered with guarantees granted by reciprocal guarantee societies or public guarantee funds registered in the BCRA records. 50

2.5.4.7. “Warrants” on fungible goods that have normal and regular quotation in local or international markets, widely disseminated and easily accessible to the public, considering the coverage margins established (point 5.5.). 75

2.5.4.8. Invoices to be collected from consumers for services already provided, issued by companies providing services to the public, considering the coverage margins established (point 5.5.). 75

2.5.4.9. Credits for financial leasing on real estate, motor vehicles and agricultural, road and industrial machinery (to the extent they are registered in the pertinent national vehicle property register and have a market that allows obtaining a reference value), considering the coverage margins established (point 5.5.). 50

2.5.4.10. Other financings –including national public securities, provided they are quoted on exchanges and markets where they are traded– that have the guarantees provided in points 2.5.4.3., 2.5.4.5., 2.5.4.7., 2.5.4.8. or 2.5.4.9., when the coverage margins are lower than those that correspond according to the rules of Section 5., and other assets. 100

2.6. Requirement for other risks.

2.6.1. Market risk.

No observation.

2.6.2. Operational risk.

The minimum capital requirement for operational risk for each month shall be equivalent to 10 % of the credit‑risk capital requirement for the respective month.

COOPERATIVE CREDIT UNIONS (LAW 26.173) – B.C.R.A.

Section 2. Minimum capitals and distribution of share capital.

Effective date: 01/01/2018

2.7. Computable patrimonial liability.

For the purposes provided in the Financial Entities Law and the regulatory provisions of the Central Bank of the Argentine Republic, the computable patrimonial liability of cooperative credit unions shall arise from the algebraic sum of the following concepts – according to the sign indicated in each case – based on the information of the latest submitted balance sheet:

Share capital (+).
Adjustments to equity (+).
Profit reserves (+).
Unassigned results (+ / -).
Credit titles (securities, fixed‑term deposit certificates and others) that are physically not in the entity’s possession (-), unless their registration and custody of registration certificates or paper securities is carried out by:
- a) Central Bank of the Argentine Republic, through operations channeled via the Central Registry and Settlement of Public Liabilities and Financial Trusts ("CRYL").
- b) Caja de Valores S.A.
  If deductible assets are maintained according to this provision, the entity must note their existence in the notes to the quarterly and annual financial statements, quantifying the amount that cannot be considered for the purpose of determining the computable patrimonial liability.
Capital contributions subscribed by members pending integration (-).
Real estate, regardless of the date of incorporation into equity, destined or not to the entity’s operation, whose accounting registration is not supported by the corresponding deed of transfer duly inscribed in the Real Property Registry, except those acquired through judicial auction (-). The deduction shall be equivalent to 100 % of the value of such assets from their incorporation into equity until the month prior to the regularization of that situation. The Superintendence of Financial and Currency Entities (SEFyC) may order exclusions in this matter, insofar as they do not undermine the purpose of the deduction.
Intangible assets, net of their accumulated depreciation (-).
Items pending allocation – debtor balances – others (-).
Amounts of assets covered in point 9.10.2. (-). Upon request by the SEFyC and with effect on the date indicated in each case, when the elements made available to the acting inspectors reveal that the accounting registrations performed by the entities do not accurately reflect the economic and legal reality of the operations or that actions have been taken to disguise the true nature or scope of the operations, the computable patrimonial liability shall be affected as indicated. This will determine the obligation to verify the framing of the various norms that use the cited liability as a basis, from the month the requirement takes effect, and, if applicable, the resulting charges must be entered within 10 business days from the notification date. Late entry shall incur the applicable default interest for each violated norm.
Differences due to insufficient constitution of minimum provisions for uncollectibility determined by the SEFyC (-). To the extent they have not been accounted for, they shall take effect at the close of the month following the month in which the entity receives the notification referred to in the first paragraph of point 9.11.

2.8. Capital contributions.

For all regulations related to capital, its integration and increase, contributions must be made exclusively in cash and at face value.

2.9. Distribution of share capital.

Participations shall at all times observe the proportions established in point 1.3.5.2.

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e) Credit origination.

Financing may be granted directly to the credit applicant or through the management of legal entities whose corporate purpose is the execution of micro‑credit activities, as defined in the first paragraph of this point, aimed at the natural persons referred to in clause a). The provision may also include technical assistance, monitoring and training services to borrowers for the development of their business capacity, provided they meet the following requirements:

Hold authorization to operate from the competent authority according to their type and, where applicable, be registered in the pertinent public register.
Have financial statements in accordance with the applicable professional accounting standards.

f) Evaluation criterion.

For the prior evaluation, granting and monitoring of financial assistance under this modality, credit methodologies shall be used that include, among other techniques, the following:

Observation of quantitative and qualitative aspects to determine the repayment capacity of clients.
Credit assessment, monitoring and/or collection carried out “in‑situ”.
Granting of group loans.
Granting of sequential loans (an agreement for an initial small‑term loan that, once repaid, may be followed by larger amounts and terms and/or lower interest rates, depending on compliance with the assumed obligations).

g) Client classification and information to the Financial Debtors Central Registry.

Debtor classification shall be carried out according to the periodicity and other conditions established in Section 8.

4.3.3. Credit segmentation.

Financings granted under points 4.3.1. and 4.3.2. shall be subject to the client limits provided in Section 7.

COOPERATIVE CREDIT UNIONS (LAW 26.173) – B.C.R.A.

Section 4. Active operations.

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9.7. Additional credit.

Additional financings may be provisioned based on the percentage established for clients in normal situation, for new financings that involve disbursements not exceeding the result of applying to the outstanding debt – in each entity – on the day prior to granting, the following proportions:

Category	%
5	10
4	20
3	30
2	40
The upgrade to higher classification levels for the client will determine the change of assistance limit as previously provided. Defaults in payments for the services corresponding to the additional assistance shall determine the obligation to provision assistance according to the objective delay or legal situation guidelines established for the classification of debtors in the consumption or housing portfolio, including borrowers included in the commercial portfolio, for which the additional financing will be treated independently of the rest of the client’s debt. The additional financing granted is independent of the assistance that may be provided in operations fully covered with preferred “A” guarantees, for which no other limitations exist beyond those provided in the pertinent norm.

9.8. Debt refinancing with capital write‑downs.

The minimum provision for uncollectibility risk to be constituted shall be equal to the amount resulting from deducting from the required provisions on the debt – without considering the provision for accrued interest, as provided in point 9.2.5 – before its refinancing, the amount corresponding to the capital write‑down. The resulting provisioning percentage on the refinanced amount shall determine the classification level to be assigned to the debtor according to the ranges in the table contained in point 9.2.1.

9.9. Fully provisioned debts of borrowers in “unrecoverable” category.

Debts of clients classified as “unrecoverable” and fully provisioned for uncollectibility risk shall be removed from the asset base starting from the seventh month after those circumstances are verified.

9.10. Requirements of the Superintendence of Financial and Currency Entities.

Section 9. Provisions for uncollectibility risk. Version: 2a. COMMUNICATION “A” 6428 Effective date: 01/01/2018

The Supervisory Commission or the Trustee shall prepare a special report on compliance with the provisions of points 11.5.1. and 11.5.2. for the period to which the financial statements presented to the Assembly of Members correspond. This report shall be made available to the members at least 40 days prior to the Assembly and must be included in the agenda of that Assembly.

Section 11. Other provisions.

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Effective date: 01/01/2018

ORDERED TEXT ORIGINAL REGULATION

Sec. Point Para. Comm. Annex Chap. Sec. Point Para.

OBSERVATIONS

1.1. “A” 4712 Unique 1. 1.1.
1.2. “A” 4712 Unique 1. 1.2.
1.3. “A” 4712 Unique 1. 1.3. Without Comm. “A” 5168, 5248, 5408, 5485, 5785 and 6304.
1.4. “A” 4712 Unique 1. 1.4.
1.5. “A” 4712 Unique 1. 1.5. Without Comm. “A” 5248, 5485, 5785 and 6304.
1.6. “A” 4712 Unique 1. 1.6.
1.7. “A” 4712 Unique 1. 1.7.
2.1. “A” 4712 Unique 2. 2.1. Without Comm. “A” 5272, 5369 and 5580.
2.2. “A” 4712 Unique 2. 2.2.
2.3. “A” 4712 Unique 2. 2.3.
2.4. “A” 4712 Unique 2. 2.4. Without Comm. “A” 5168.
2.5. “A” 4712 Unique 2. 2.5. Without Comm. “B” 9186 and “A” 5067 and 5275.
2.6. “A” 4712 Unique 2. 2.6. Without Comm. “A” 5272, 5369, 5580 and 6327.
2.7. “A” 4712 Unique 2. 2.7. Without Comm. “A” 4972 (pt. 9.) and 6327.
2.8. “A” 4712 Unique 2. 2.8.
2.9. “A” 4712 Unique 2. 2.9.
3.1. “A” 4712 Unique 3. 3.1.
3.2. “A” 4712 Unique 3. 3.2.
3.3. “A” 4712 Unique 3. 3.3. Without Comm. “A” 4809, 5091, 5164 and 5990.
3.4. “A” 4712 Unique 3. 3.4.
3.5. “A” 4712 Unique 3. 3.5.
3.6. “A” 4712 Unique 3. 3.6.
3.7. “A” 4712 Unique 3. 3.7.
4.1. “A” 4712 Unique 4. 4.1.
4.2. “A” 4712 Unique 4. 4.2.
4.3. “A” 4712 Unique 4. 4.3. Without Comm. “A” 4891 (pts 9. a 12.) and 6327.
4.4. “A” 4712 Unique 4. 4.4.
4.5. “A” 4712 Unique 4. 4.5.
4.6. “A” 4712 Unique 4. 4.6.
4.7. “A” 4712 Unique 4. 4.7. Without Comm. “A” 5520.
4.8. “A” 4712 Unique 4. 4.8. Without Comm. “B” 9186 and “A” 4972 (pt. 6.).
5.1. “A” 4712 Unique 5. 5.1. Without Comm. “A” 5275, 5671 and 5740. Includes interpretative clarification.
5.2. “A” 4712 Unique 5. 5.2. Without Comm. “A” 5067 and 5275.
5.3. “A” 4712 Unique 5. 5.3.
5.4. “A” 4712 Unique 5. 5.4.
5.5. “A” 4712 Unique 5. 5.5. Without Comm. “A” 5067 and 5275.
5.6. “A” 4712 Unique 5. 5.6.
5.7. “A” 4712 Unique 5. 5.7.
6.1. “A” 4712 Unique 6. 6.1.
6.2. “A” 4712 Unique 6. 6.2. Without Comm. “A” 5299, 5534 and 5893.
6.3. “A” 4712 Unique 6. 6.3.
7.1. “A” 4712 Unique 7. 7.1.
7.2. “A” 4712 Unique 7. 7.2.
7.3. “A” 4712 Unique 7. 7.3.
7.4. “A” 4712 Unique 7. 7.4.
7.5. “A” 4712 Unique 7. 7.5.
7.6. “A” 4712 Unique 7. 7.6.
8.1. “A” 4712 Unique 8. 8.1.
8.2. “A” 4712 Unique 8. 8.2.
9.1. “A” 4712 Unique 9. 9.1.
9.2. “A” 4712 Unique 9. 9.2.
9.3. “A” 4712 Unique 9. 9.3.
9.4. “A” 4712 Unique 9. 9.4.
9.5. “A” 4712 Unique 9. 9.5.
9.6. “A” 4712 Unique 9. 9.6.
9.7. “A” 4712 Unique 9. 9.7.
9.8. “A” 4712 Unique 9. 9.8.
9.9. “A” 4712 Unique 9. 9.9. Without Comm. “A” 6327.
9.10. “A” 4712 Unique 9. 9.10.
9.11. “A” 4712 Unique 9. 9.11.
9.12. “A” 4712 Unique 9. 9.12. Without Comm. “A” 6167.
9.13. “A” 4712 Unique 9. 9.13.
10.1. “A” 4712 Unique 10. 10.1.
10.1.1.2. “A” 4712 Unique 10. 10.1.1.2. Without Comm. “A” 5520.
10.2. “A” 4712 Unique 10. 10.2. Without Comm. “A” 5520.
10.3. “A” 4712 Unique 10. 10.3.
10.4. “A” 4712 Unique 10. 10.4.
10.5. “A” 4712 Unique 10. 10.5.
11.1. “A” 4712 Unique 11. 11.1. Without Comm. “A” 5164.
11.2. “A” 4712 Unique 11. 11.2.
11.3. “A” 4712 Unique 11. 11.3.
11.4. “A” 4712 Unique 11. 11.4.
11.5. “A” 4712 Unique 11. 11.5. Without Comm. “A” 6327.

2.1. Requirement.
It shall be determined by applying the following expression:

CRC = (k × 0.08 × APRc) + INC

where:

CRC: capital requirement for credit risk.
k: factor linked to the rating assigned to the entity according to the assessment carried out by the SEFyC, taking into account the following scale:

Assigned rating	Value of “k”
1	1
2	1.03
3	1.08
4	1.13
5	1.19

For this purpose, the last reported rating shall be considered for the calculation of the requirement that must be integrated in the third month following the month in which the notification takes place. Until communication, the value of “k” shall be equal to 1.03.

APRc: risk‑weighted assets for credit risk, determined by summing the values obtained after applying the following expression:

A × p + PFB × CCF × p + no DvP + (DVP + RCD + INC (installment)) × 12.5

where:

A: computable assets/exposures.
PFB: computable concepts not recorded on the balance sheet (“off‑balance‑sheet items”).
CCF: credit conversion factor.
p: risk weight, expressed as a fraction.
no DvP: non‑DvP operations (settlement without delivery against payment). Amount determined by summing the values obtained after applying to the included operations the corresponding risk weight (p) in accordance with the provisions of point 4.1.

CAPITAL MINIMUMS OF FINANCIAL ENTITIES
B.C.R.A.
Section 2. Minimum capital for credit risk.
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2.4.3. Concentration criterion.
The portfolio must be diversified. To this end, the total exposure to each debtor must not exceed 0.2 % of the entity’s total retail portfolio, without considering financing that is more than 90 days past due. To calculate the limit defined in the preceding paragraph, the cited percentage shall be applied to the retail portfolio balance at the end of the month preceding the month to which the balances used to determine the requirement refer. Debtors whose computable exposure balance at the end of the referenced month exceeds that limit may not be counted within the retail portfolio.

2.4.4. Limit.
The maximum exposure to the same debtor shall not exceed, at the time of the agreement, the following amounts:

2.4.4.1. Natural persons – consumer portfolio –: an amount equivalent to 75 (seventy‑five) times the Minimum, Vital and Mobile Salary established by the National Council of Employment, Productivity and the Minimum, Vital and Mobile Salary for salaried workers who fulfill the full legal working day, in force at the close of the month preceding the month in question.
2.4.4.2. SMEs (including financing to natural persons for the development of their professional activity): $10,000,000.
For the purpose of considering in the retail portfolio the credits incorporated through a portfolio purchase, the necessary information must be available to verify compliance with the criteria and limits detailed above.

2.5. Criteria for the determination of risk‑weighted assets.
2.5.1. The risk weights established in point 2.6 shall be applied.
2.5.2. The term “exposure” covers all financing granted by the entity – in its various forms such as loans, securities holdings, guarantees, sureties and other contingent liabilities – including those arising from operations carried out in securities, currency and derivatives markets.
In order to determine the amount of financing included in the exposure to the non‑financial public sector, with respect to national public securities that have normal and regular quotation for significant amounts in domestic markets that are applied to passive pass‑through operations in pesos and are funded with deposits of those public securities, the net‑position‑of‑securities criterion provided in the “Credit Risk Slicing” rules shall be observed. Exposures shall include debt balances and contingent commitments multiplied by the corresponding credit conversion factor (CCF).

CAPITAL MINIMUMS OF FINANCIAL ENTITIES
B.C.R.A.
Section 2. Minimum capital for credit risk.
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The presence of an exclusion option shall not generate any capital requirement provided that all of the following conditions are met:

3.1.4.1. The exercise of such option is not mandatory, but subject to the discretion of the originating entity.
3.1.4.2. The exclusion option is not structured to prevent investors and/or credit‑enhancement providers from absorbing losses, nor to provide any other type of credit enhancement.
3.1.4.3. It may only be exercised when 10 % or less of the original value of the underlying portfolio or of the issued securities remains outstanding.
All securitisation transactions that include an exclusion option that does not satisfy all of the preceding criteria shall result in a capital requirement for the originating entity. In the case of traditional securitisations, the underlying exposures shall be treated as if they were not securitised. In addition, the financial entity shall deduct from Tier‑1 ordinary capital (COn1) the total amount representing profit on sale resulting from the securitisation transaction, in accordance with point 8.4.1.16. If an exclusion option, after being exercised, has served as a credit enhancement, it shall be considered that the financial entity has provided an implicit credit support – i.e., not contractually contemplated – and shall receive the treatment established in point 3.1.5.2.

3.1.5. Criteria to be observed in the computation of the minimum capital requirement.
3.1.5.1. The entity must maintain the capital requirement corresponding to all its securitisation positions, including those arising from the provision of credit protection to a securitisation transaction, investment in debt securities and/or participation certificates, retention of a subordinated tranche and extension of a liquidity facility or a credit enhancement, as set out in the following points. For originating financial entities, repurchased securitisation positions shall receive the same treatment as retained positions.
3.1.5.2. When the financial entity implicitly backs a securitisation – i.e., any direct or indirect credit support that is not derived from its contractual obligations, such as replacement of defaulted underlying loans – it shall maintain the capital required for all underlying exposures to that securitisation as if they had not been securitised. In addition, it shall disclose in the notes to the published financial statements:
i) that it has provided non‑contractual credit support, and ii) the effect on its capital requirement.

CAPITAL MINIMUMS OF FINANCIAL ENTITIES
B.C.R.A. Section 3. Minimum capital for credit risk. Securitisations and fund investments.
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Likewise, it shall deduct from Tier‑1 ordinary capital (COn1) the total amount representing profit on sale resulting from the securitisation transaction, in accordance with point 8.4.1.14.

3.1.5.3. The risk‑weighted asset corresponding to a securitisation position is calculated by multiplying the position amount by the appropriate risk weight.
For off‑balance‑sheet positions, a credit conversion factor (CCF) shall be applied in accordance with point 3.1.11, and the resulting amount – i.e., the credit equivalent – shall be multiplied by the risk weight provided in point 2.6.

3.1.5.4. For an originating entity, the resulting requirement for a securitisation position shall not exceed that which would apply if the entity retained the entirety of its underlying exposures.

3.1.6. Maximum‑preference securitisation positions.
A maximum‑preference securitisation position is understood as the tranche of securities issued in the securitisation that ranks first in the payment waterfall.
The entity that holds or guarantees a maximum‑preference position in a traditional securitisation may apply the “look‑through” treatment to determine the risk weight, provided that the composition of the underlying exposure pool is known at all times. Interest‑rate or currency swaps shall not be considered for the purpose of determining whether a position is of maximum preference when applying this treatment. Under the look‑through treatment, such maximum‑preference position shall receive the weighted‑average risk weight of the underlying exposures, subject to review by the SEFyC. If the financial entity cannot determine the risk weights of the underlying exposures, the maximum‑preference position shall be weighted at 1250 %.

3.1.7. Second‑loss (or better) positions in ABCP (“Asset‑Backed Commercial Paper”) programmes.
In securitisations where the issued securities have an original maturity of up to one year (ABCP programme), positions that absorb losses in a second or later instance – except those covered in point 3.1.6 – shall be subject to the higher risk weight resulting from comparing 100 % and the highest risk weight applicable to the underlying exposures of the securitisation. This applies provided that all of the following requirements are met:

3.1.7.1. From an economic perspective, the first‑loss position provides credit protection to the remaining positions for an amount equal to the capital requirement that the underlying would generate.

CAPITAL MINIMUMS OF FINANCIAL ENTITIES
B.C.R.A. Section 3. Minimum capital for credit risk. Securitisations and fund investments.
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Effective date:
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Entities shall not observe a capital requirement for early‑amortisation clauses in any of the following circumstances:

a) Structures with credit replacement where the underlying exposures are non‑revolving and the exercise of early amortisation prevents the entity from incorporating new exposures.
b) Operations with revolving exposures that contain early‑amortisation clauses that replicate term structures – i.e., the risk of the underlying facilities does not return to the entity.
c) Structures in which investors are fully exposed to future funding requirements from borrowers even after an early‑amortisation event occurs.
d) The early‑amortisation clause only comes into force due to events unrelated to the securitised exposures or to the originating entity, such as changes in tax legislation.
The capital requirement for the investors’ participation shall be determined by multiplying: (a) the amount of the investors’ participation by (b) the applicable CCF (as indicated in point 3.1.11) and by (c) the risk weight corresponding to the underlying exposure that would apply if the exposures had not been securitised. The capital requirement for the total securitisation positions with early‑amortisation clauses – held by the financial entity and third parties – shall be subject to the maximum established in point 3.1.5.4. In addition, financial entities shall deduct from Tier‑1 ordinary capital (COn1) the total amount representing profit on sale resulting from the securitisation transaction, in accordance with point 8.4.1.16.

3.1.10. Other securitisation positions.
In all other cases, including synthetic securitisations, the total capital requirement for securitisation positions shall be obtained by applying a risk weight of 1250 %.

3.1.11. Credit conversion factors (CCF) applicable to securitisation positions.
3.1.11.1. Eligible liquidity facilities (point 3.1.8) and cash advances by the financial entity acting as payment agent.
Eligible liquidity facilities shall receive a CCF of 50 %, regardless of maturity.

CAPITAL MINIMUMS OF FINANCIAL ENTITIES
B.C.R.A. Section 3. Minimum capital for credit risk. Securitisations and fund investments.
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Cash‑advance facilities provided by the financial entity acting as payment agent to ensure a continuous flow of payments to investors – to the extent that it may cancel them discretely and unilaterally, has the right to full repayment of the advance granted and that right has seniority over any other claim on the cash flows generated by the underlying exposures – shall receive a CCF of 0 %. Financial entities may offer, within the same securitisation programme, various types of facilities that may be available under different circumstances. Given their different activation mechanisms, it may occur that facilities provided by a financial entity overlap and that the use of one facility partially prevents the use of another. In such case, it shall not be necessary for the financial entity to maintain an additional capital requirement as a consequence of the overlap; rather, the capital requirement for the position covered by overlapping facilities shall be computed only once, attributing it to the facility with the higher CCF.

3.1.11.2. Controlled early‑amortisation clauses.
For retail‑portfolio credit lines, a CCF of 40 % or 90 % shall apply, depending on whether the credit line is uncommitted or committed, respectively.
For credit lines that do not correspond to the retail portfolio, the CCF to apply shall be 90 %.
A credit line is considered uncommitted when it contains clauses that enable the entity to discretely and unilaterally cancel the possibility of using the respective margins.

3.1.11.3. Uncontrolled early‑amortisation clauses.
The CCF to apply to the credit lines shall be 100 %.

3.1.11.4. Other securitisation positions.
Securitisation positions not covered by the preceding points shall receive a CCF of 100 %.

3.2. Treatment of positions in funds.
Participations in funds (asset portfolios) attributed to the investment portfolio – including off‑balance‑sheet exposures such as commitments to future subscriptions – shall be treated according to one or more of the following approaches: look‑through approach (LTA), mandate‑based approach (MBA) and fallback approach (FBA).

CAPITAL MINIMUMS OF FINANCIAL ENTITIES
B.C.R.A. Section 3. Minimum capital for credit risk. Securitisations and fund investments.
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results from the sale of classified species measured at amortised cost or fair value with changes in OCI.

7.2. Limit for entities belonging to Groups “B” and “C”.
The requirement determined through the application of the expression described in point 7.1 shall not exceed 17 % of the average of the last 36 months – prior to the month for which the requirement is determined – of the minimum capital requirement for credit risk calculated as provided in Section 2. The preceding maximum limit shall be reduced to 11 % when the financial entity has a rating of 1, 2 or 3 according to the assessment granted by the SEFyC at the time of the last inspection, with respect to all of the following aspects: the entity as a whole, its information systems and the work of those responsible for evaluating its internal control systems. In cases where the financial entity has a rating of 1 or 2 in all the cited aspects, the maximum limit shall decrease to 7 %. For this purpose, the last reported rating shall be considered for the calculation of the requirement that must be integrated in the third month following the month in which the notification takes place. The applicable limit shall be applied provided that, concurrently, the following conditions are verified for the financial entity:

7.2.1. As of September 30 of the year preceding the calculation date, the entity belongs to Groups “B” or “C” (categorisation as provided in point 4.1 of the “Authorities of financial entities” regulations);
7.2.2. It is not subject to the provisions of Section 4 of the “Distribution of results” regulations because it is a branch or subsidiary of a foreign bank classified as systemically important (G‑SIB).
In cases where not all conditions set out in points 7.2.1 and 7.2.2 are met, the operational‑risk requirement shall be computed at 100 % as provided in point 7.1.
The additional reduction in the aforementioned limit on the operational‑risk capital requirement – from 17 % to 11 % or to 7 %, as the case may be, of the average of the last 36 months preceding the month for which the credit‑risk capital requirement is determined – shall be conditioned on the financial entity having increased its balance of consumer or housing financing. In this sense, this additional reduction of the operational‑risk capital requirement shall be applied according to the following expression:
ROcap17 % – ROcap11 % / 7 % ≤ Δ consumer‑or‑housing portfolio relative to January 2015 × 8 %

CAPITAL MINIMUMS OF FINANCIAL ENTITIES
B.C.R.A.
Section 7. Minimum capital for operational risk.
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i) 100 % of the results recorded up to the last quarterly financial statement that includes an auditor’s report, corresponding to the last closed fiscal year and for which the auditor has not yet issued its opinion. ii) 100 % of the results of the current fiscal year recorded at the close of the last quarterly financial statement, once it includes an auditor’s report. iii) 50 % of profits or 100 % of losses, since the last quarterly or annual financial statement that includes an auditor’s report or opinion. These percentages shall be applied to the net accumulated balance calculated at the end of each month, unless the provisions of the two preceding paragraphs apply. iv) 100 % of the losses that are not reflected in the financial statements, corresponding to the quantification of facts and circumstances reported by the auditor, in accordance with the minimum external audit standards regarding reports of limited reviews of the financial statements, at the close of each quarter. For the purpose of computing 100 % of the results recorded up to the last quarterly or annual financial statement, the respective financial statement with the auditor’s report must be submitted to the BCRA by the date on which the monthly balance sheet submission is mandatory.

8.2.1.7. Other comprehensive income.
i) 100 % of the results recorded in the following items:

Revaluation of property, plant and equipment and intangible assets.
Gains or losses on financial instruments at fair value through other comprehensive income.
ii) 100 % of the debtor balance of each of the items recorded in other comprehensive income not mentioned in sub‑paragraph i).
The recognition of these concepts – recorded in other comprehensive income accounts or accumulated other comprehensive income, as appropriate – shall be carried out in accordance with the terms of points 8.2.1.5 or 8.2.1.6, as the case may be.

8.2.1.8. Issuance premiums resulting from instruments included in COn1.
Furthermore, in consolidation cases, includes:
8.2.1.9. Minority interests. Ordinary shares issued by subsidiaries subject to consolidated supervision and held by third parties, that meet the criteria established in point 8.3.5.
The concepts cited in the preceding points shall be reduced by the deductible concepts provided in point 8.4.1 and, where applicable, in point 8.4.2.

CAPITAL MINIMUMS OF FINANCIAL ENTITIES B.C.R.A.
Section 8. Computable patrimonial responsibility.
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8.2.2. Additional Tier‑1 Capital (CAn1).

8.2.2.1. Instruments issued by the financial entity that meet the requirements set out in point 8.3.2 and are not already included in the COn1.

8.2.2.2. Issuance premiums resulting from instruments included in the CAn1.

In addition, in consolidation cases, it includes:

8.2.2.3. Instruments issued by subsidiaries subject to consolidated supervision that are owned by third parties, which meet the criteria for inclusion in the CAn1 and are not included in the COn1, observing the criteria established in point 8.3.5.

From the concepts cited in the preceding points, the deductible concepts provided for in point 8.4.2 shall be subtracted, where applicable.

8.2.3. Complementary Net Equity – Tier‑2 Capital – (PNc).

It comprises the following concepts:

8.2.3.1. Instruments issued by the financial entity that meet the requirements set out in point 8.3.3 – not included in the PNb –.

8.2.3.2. Issuance premiums resulting from instruments included in the PNc.

8.2.3.3. Provisions for credit‑risk loss on the portfolio corresponding to debtors classified as “in normal situation” (points 6.5.1 and 7.2.1 of the rules on “Debtor Classification”) and on financings that are covered with preferred “A” guarantees, not exceeding 1.25 % of risk‑weighted credit assets.

In addition, in consolidation cases, it includes:

8.2.3.4. Instruments issued by subsidiaries subject to consolidated supervision that are owned by third parties, which meet the criteria for inclusion in the PNc and are not included in the PNb, observing the criteria established in point 8.3.5.

From the concepts cited in the preceding points, the deductible concepts provided for in point 8.4.2 shall be subtracted, where applicable.

8.3. Criteria related to computable concepts.

8.3.1. Common Tier‑1 Capital (COn1).

For a share to be considered within the COn1, the financial entity must abstain from creating, at the time of its issuance, any expectation that the share will be repurchased, redeemed or amortized, and the contractual terms must not contain any clause that could generate such an expectation.

MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A.

Section 8. Computable Patrimonial Responsibility.

Version: 4a. COMMUNICATION “A” 6428

Effective: 01/01/2018

8.3.2. Instruments included in the CAn1 must observe the following requirements:

8.3.2.1. Be fully subscribed and integrated.

8.3.2.2. Be subordinated to depositors, unsecured creditors and to the financial entity’s subordinated debt.

They must provide that, in the event of the entity’s bankruptcy and once the totality of debts with other creditors – including contractually subordinated debt – has been satisfied, the holders of computable instruments at this capital level shall have priority in the distribution of funds only and exclusively with respect to ordinary shareholders – holders of shares without equity preference – expressly waiving any general or special privilege.

8.3.2.3. Not be insured nor covered by any guarantee of the issuer or an affiliate, nor be the subject of any other agreement that legally or economically improves the order of priority in collection in the event of the entity’s bankruptcy.

8.3.2.4. Not provide for any type of capital payment, except in the case of the entity’s liquidation, when appropriate. They may not contain clauses of increasing step‑up remuneration nor other incentives for early amortization.

8.3.2.5. The financial entity may redeem them – after a minimum of five years from issuance – provided that: i) it has prior authorization from the SEFyC before exercising the purchase option; ii) it refrains from generating expectations that it will exercise the purchase option; and iii) it replaces the instrument with regulatory capital of equal or higher quality and in conditions that are sustainable for its income‑generating capacity, or demonstrates that – once the purchase option is exercised – its RPC exceeds the minimum capital requirements by a wide margin – at least 20 %.

8.3.2.6. Any capital restitution will require prior authorization from the SEFyC and the financial entity must not have the expectation nor create it in the market that it will obtain such authorization.

8.3.2.7. Discretion in the payment of dividends/interest coupons:

i) the financial entity may – at any time and at its full discretion – cancel payments in the form of dividends or interest;

ii) the provision in the preceding sub‑paragraph shall not in itself constitute a breach, nor empower the holders to demand conversion into ordinary shares. Likewise, it must not impose restrictions on the financial entity, except with respect to dividend distributions to ordinary‑share holders.

8.3.2.8. The payment of dividends/coupons shall be charged to distributable items, in the terms of Section 3 of the rules on “Result Distribution”.

8.3.2.9. Not incorporate a dividend/coupon that is periodically readjusted based on, in whole or in part, the credit risk of the financial entity.

8.3.2.10. Not have been purchased by the financial entity – nor by any entity it controls or on which it exerts significant influence –.

8.3.2.11. Not have been purchased with direct or indirect financing of the financial entity.

8.3.2.12. Not possess characteristics that hinder recapitalization, such as requiring the financial entity to compensate the investor if a new instrument is issued at a lower price during a specified period.

The instruments that are part of the liability shall absorb losses when the COn1 ratio is below 5.125 % of the APR – pre‑set trigger event –, even if the financial entity is not in any of the situations provided for in point 8.3.4.4., through:

i) its conversion into ordinary shares; or

ii) a mechanism that assigns losses definitively to the instrument, with the following effects:

a) reduce the debt represented by the instrument in case of liquidation of the entity;

b) reduce the amount to be returned in case a purchase option is exercised; and

c) reduce total or partial payments of dividends/interest coupons of the instrument.

The amount of conversion or write‑down shall be, at minimum, that which allows the entity to restore the cited COn1 ratio to the level of 5.125 % of the APR.

8.3.3. Instruments included in the PNc must observe the following requirements:

8.3.3.1. Be fully subscribed and integrated.

8.3.3.2. Be subordinated to depositors and unsecured creditors of the financial entity.

8.3.3.3. Not be insured nor covered by any guarantee of the issuer or an affiliate, nor be the subject of any other agreement that legally or economically improves the order of priority in collection in the event of the entity’s bankruptcy.

8.3.3.4. Maturity:

i) original maturity term not less than five years;

ii) no existence of increasing step‑up remuneration clauses or other incentives for early amortization;

iii) from the beginning of each of the last five years of the life of each issuance, the computable amount shall be reduced by 20 % of the nominal amount issued.

8.3.3.5. The financial entity may redeem them – after a minimum of five years from issuance – provided that: i) it has prior authorization from the SEFyC before exercising the purchase option; ii) it refrains from generating expectations that it will exercise the purchase option; and iii) it replaces the instrument with regulatory capital of equal or higher quality and in conditions that are sustainable for its income‑generating capacity, or demonstrates that – once the purchase option is exercised – its RPC exceeds the minimum capital requirements by a wide margin – at least 20 %.

8.3.3.6. The investor shall have no right to accelerate the return of the future scheduled payments (interest coupon or amortization), except in the case of bankruptcy or liquidation.

8.3.3.7. They may not incorporate a dividend/coupon that is periodically readjusted based on, in whole or in part, the credit risk of the financial entity.

8.3.3.8. Not have been purchased by the financial entity – nor by any entity it controls or on which it exerts significant influence –.

8.3.3.9. Not have been purchased with direct or indirect financing of the financial entity.

8.3.4. Additional requirements that the instruments referred to in points 8.3.2 and 8.3.3 must observe to guarantee their loss‑absorption capacity.

8.3.4.1. Their terms and conditions must include a provision whereby the instruments shall absorb losses – through a definitive write‑down or by conversion into ordinary capital – in the event that any of the events set out in point 8.3.4.4 occurs.

MINIMUM CAPITAL OF FINANCIAL ENTITIES B.C.R.A.

Section 8. Computable Patrimonial Responsibility.

Version: 4a. COMMUNICATION “A” 6428

Effective: 01/01/2018

8.3.4.2. If there is compensation to the holders of these instruments for the write‑down performed – as a consequence of loss absorption – it shall be carried out immediately and only with ordinary shares, in accordance with the applicable legislation.

8.3.4.3. The financial entity must at all times have the necessary authorizations to be able to immediately issue the corresponding number of shares, as stipulated in the terms and conditions of the instrument, when any of the events referred to in point 8.3.4.4 occurs.

8.3.4.4. Triggering events. The circumstance that will make operative the provision referred to in point 8.3.4.1 shall occur when any of the following events takes place:

i) if the financial entity’s solvency and/or liquidity is affected and the Central Bank of the Argentine Republic rejects the regularization and restructuring plan presented by the entity – article 34 of the Financial Entities Law – or revokes its authorization to operate – article 44 paragraph c) of the Financial Entities Law – or authorizes its restructuring in defense of depositors – article 35 bis of the Financial Entities Law, first paragraph – whichever occurs first; or

ii) the decision to capitalize the financial entity with public funds – or an equivalent support measure provided by the Deposit Guarantee Insurance System – within the framework of the application of article 35 bis of the Financial Entities Law because its liquidity and solvency are affected. The issuance of new shares as a consequence of any of those events must be carried out prior to any capitalization with public funds – or equivalent support measure – referred to in paragraph ii).

8.3.5. Minority participations – not conferring control – and other computable instruments as capital issued by subsidiaries subject to consolidated supervision that are owned by third parties.

8.3.5.1. Ordinary shares issued by subsidiaries subject to consolidated supervision.

A minority participation may be recognized in the COn1 of the financial entity if the instrument that originates it meets all the requirements for classification as an ordinary share for RPC purposes.

The amount to be recognized in the entity’s COn1 shall be the amount of the minority participation in the subsidiary’s COn1 net of the subsidiary’s COn1 surplus attributable to minority shareholders.

The subsidiary’s COn1 surplus is calculated as the subsidiary’s COn1 net of the lesser of the following amounts:

i) its minimum COn1 requirement plus its capital conservation buffer;

ii) the portion attributable to the subsidiary of the minimum COn1 requirement plus the capital conservation buffer, both computed on a consolidated basis.

The COn1 surplus attributable to minority shareholders shall result from multiplying the subsidiary’s COn1 surplus – determined as previously indicated – by the percentage of COn1 held by minority shareholders.

8.3.5.2. PNb issued by subsidiaries subject to consolidated supervision.

The instruments in the hands of third parties that make up the PNb of a subsidiary subject to consolidated supervision may be recognized in the PNb of the financial entity if they meet all the requirements for classification as PNb for RPC purposes.

The amount to be recognized in the entity’s PNb shall be the amount of the minority participation in the subsidiary’s PNb net of the PNb surplus of the subsidiary that corresponds to minority investors.

The subsidiary’s PNb surplus is calculated as the subsidiary’s PNb net of the lesser of the following amounts:

i) its minimum PNb requirement plus its capital conservation buffer;

ii) the portion attributable to the subsidiary of the minimum PNb requirement plus the capital conservation buffer, both computed on a consolidated basis.

The PNb surplus attributable to minority investors shall result from multiplying the subsidiary’s PNb surplus – determined as previously indicated – by the percentage of PNb held by minority investors.

The amount of this PNb that will be admissible as CAn1 excludes the amounts recognized as COn1 in accordance with point 8.3.5.1.

8.3.5.3. Capital admissible in the RPC issued by subsidiaries subject to consolidated supervision.

The instruments in the hands of third parties that make up the RPC of a subsidiary subject to consolidated supervision may be recognized in the RPC of the financial entity if they meet all the requirements for classification as PNb or PNc.

The amount to be recognized in the entity’s RPC shall be the amount of the minority participation in the subsidiary’s RPC net of the RPC surplus of the subsidiary that corresponds to minority investors.

The RPC surplus of the subsidiary is calculated as the RPC of the subsidiary net of the lesser of the following amounts:

i) its minimum RPC requirement plus its capital conservation buffer;

ii) the portion attributable to the subsidiary of the minimum RPC requirement plus the capital conservation buffer, both computed on a consolidated basis.

The RPC surplus attributable to minority investors shall result from multiplying the subsidiary’s RPC surplus – determined as previously indicated – by the percentage of RPC held by minority investors.

The amount of this RPC that will be admissible as PNc excludes the amounts recognized in the COn1 in accordance with point 8.3.5.1 and the amounts recognized in the CAn1 in accordance with point 8.3.5.2.

8.4. Deductible concepts.

8.4.1. Deductible concepts from Common Tier‑1 Capital (CDCOn1).

8.4.1.1. Credit balance arising from the application of the presumed minimum profit tax – net of provisions – that exceeds 10 % of the PNb corresponding to the previous month and credit balances arising from deferred tax assets.

8.4.1.2. Balances in correspondent accounts with foreign banks that do not comply with the provisions of point 3.1 of the rules on “Credit Assessments”. For compliance with the cited point, an international risk rating in the “investment grade” category must be held. This deduction shall be applied based on the highest balance in each bank recorded during the month to which the RPC determination corresponds. For this purpose, balances in correspondent accounts recorded with:

i) the head office of the local branches of foreign banks or their branches and subsidiaries in other countries;

ii) banks or other foreign financial institutions that control local financial entities incorporated as corporations;

iii) other foreign banks authorized to intervene in the payment and reciprocal credit agreement regimes to which the Central Bank of the Argentine Republic has adhered, as well as their branches and subsidiaries, even if they are not included in those agreements;

iv) branches and subsidiaries of local financial entities – shall not be deducted.

8.4.1.3. Credit instruments (securities, fixed‑term deposit certificates and others) that are not physically in the possession of the entity, unless their registration or custody is carried out by:

i) the Central Bank of the Argentine Republic, for operations channeled through the Central Registry and Settlement of Public Liabilities and Financial Trusts (“CRyL”);

ii) agents authorized for this purpose by the National Securities Commission;

iii) Clearstream, Euroclear and Depositary Trust Company (“DTC”).

If deductible assets are maintained in accordance with this provision, the entity shall record the existence of such concepts in a note to the quarterly and annual financial statements, quantifying the amount that is not admitted for the purpose of determining the RPC.

8.4.1.4. Securities issued by foreign governments that do not comply with the provisions of point 3.3 of the rules on “Credit Assessments”. This deduction shall be made for the amount of the highest balance recorded during the month to which the RPC determination corresponds. For this purpose, mandatory investments that branches or subsidiaries – subject to consolidated supervision – of local financial entities must make due to requirements imposed by the monetary or supervisory authority of the country where they operate shall not be considered.

8.4.1.5. Securities and debt instruments not covered in points 8.4.1.17 and 8.4.2, contractually subordinated to other liabilities, issued by other financial entities.

This deduction shall be made for the amount of the highest balance recorded during the month to which the RPC determination corresponds.

8.4.1.6. Shareholders.

8.4.1.7. Real estate, regardless of the date of its incorporation into the equity, whether or not intended for the entity’s operation, whose accounting registration is not supported by the corresponding deed of transfer duly registered in the respective Real Property Registry, except those acquired through judicial auction.

The deduction shall be equivalent to 100 % of the value of such assets from their incorporation into the equity until the month preceding the regularization of that situation.

The SEFyC may grant exclusions in this matter, to the extent that they do not undermine the purpose of the deduction.

8.4.1.8. Intangible assets, net of the respective accumulated depreciation. Includes the business key that is part of the valuation of significant investments in the capital of financial entities not subject to consolidated supervision and the key value that is part of the participation in other companies that forms part of the book value of the investment.

8.4.1.9. Items pending allocation – debtor balances – others.

8.4.1.10. Upon request made by the SEFyC and effective on the date indicated in each case, financial entities shall deduct the amounts of the included assets when, from the elements made available to the acting inspectors, it emerges that the accounting records made by the entities do not accurately reflect the economic and legal reality of the operations or that actions or schemes have been carried out to disguise or conceal the true nature or scope of the operations.

The impact on the RPC resulting from the application of the foregoing shall determine the obligation to verify the alignment of the various rules that use the cited responsibility as a basis, from the month in which the request takes effect and, where applicable, the resulting charges shall be recorded within ten business days counted from the date of notification of the request. In the event of entry outside the stipulated term, the corresponding default interest shall be paid arising from the application of each breached rule.

8.4.1.11. Differences due to insufficient establishment of minimum provisions for credit‑risk loss determined by the SEFyC, to the extent that they have not been accounted for, effective at the close of the month following that in which the entity receives the notification referred to in the first paragraph of point 2.7 of the rules on “Minimum provisions for credit‑risk loss”.

8.4.1.12. Participations in companies whose corporate purpose is the development of the following activity:

i) Financial assistance through financial leasing operations of capital goods, durable and real estate, acquired for that purpose (“leasing”) or on credits arising from sales (“factoring”).

MINIMUM CAPITALS OF FINANCIAL ENTITIES

B.C.R.A.

Section 8. Computable Patrimonial Responsibility

Effective Date: 01/01/2018

8.4.1.13

The excess over the limits for the allocation of assets as collateral, as provided in Section 3 of the rules on "Allocation of assets as collateral".

8.4.1.14

The highest balance of credit assistance granted in the month, when the advances foreseen in point 3.2.5 of the rules on "Financing of the non‑financial public sector" exceed the authorised limit and/or are not cancelled within the periods provided therein.

8.4.1.15

Profits from sales related to securitisation operations, as applicable according to points 3.1.4, 3.1.5.2 and 3.1.9, and from sale or assignment of portfolios with liability for the assignor.

This deduction will be computed to the extent that credit risk persists and in proportion to the capital requirement that remains for the underlying exposures or the sold/assigned portfolio with liability.

8.4.1.16

In the case of liabilities from derivative instruments measured at fair value, unrealised gains and losses due to variations in the financial entity’s own credit risk are deducted. Adjustments for the entity’s own credit risk are allowed exclusively (‑ or +, as appropriate); compensation of those adjustments with those arising from counter‑party credit risk is not permitted.

8.4.1.17

Investments in the capital of financial entities subject to consolidated supervision.

Participation in financial entities, except where franchises apply that prohibit deduction.
Participation in foreign financial entities.

8.7. Procedure

The request for authorisation of capital contributions with the instruments referred to in points 8.6.1 to 8.6.3 must be accompanied by a copy of the Assembly (or equivalent authority) minutes certified by a public notary, showing the decision and indicating that the Assembly had at its disposal the special external auditor report required for cases where the contribution includes the debt instruments mentioned in the following paragraph.

When the capital contributions referred to in point 8.6.3 are involved, the debt instruments must be recorded in the latest annual or quarterly financial statement, as appropriate, immediately prior to the date of the convened Assembly. That financial statement must include the external auditor’s intervention required for each case according to the applicable standards and must have been previously submitted to the BCRA, accompanied by a special auditor report prepared in the terms specifically established in the Minimum Standards on External Audits issued by the SEFyC.

ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “MINIMUM CAPITALS OF FINANCIAL ENTITIES”

Ordered Text – Source Norm

Section	Point	Paragraph	Comm.	Cap./Annex	Observation
1.1.	“A” 2136	1.	1° According to Comm. “A” 2859, 3558, 5272, 5369, 5580 and 5867.
1.2.	“A” 2241			CREFI‑2
1.3.1.	“A” 2136		According to Comm. “A” 4368, 4771, 5168, 5351, 5355, 5983 and 6260.
1.3.	“A” 2136	2.	1° According to Comm. “A” 2223.
1.4.1.	“A” 2136	3.1.	“A” 3171 According to Comm. “A” 3959.
…	…	…	…	…	…

(The table continues with the same structure for all rows listed in the source document.)

SECTION 8. MINIMUM CAPITALS OF FINANCIAL ENTITIES – COMMUNICATION “A” 6428 – VERSION 3a

Effective Date: 01/01/2018

8.4.1.1 – 8.4.1.17 (selected items)

Point	Reference	Description
8.4.1.1	“A” 4296	2. According to Comm. “A” 4576, 4665, 5369 (Annex I) and 6327.
8.4.1.2	“A” 2287	3. 3.1. and 3.3. latest according to Comm. “A” 2890, 4172, 5093, 5671 and 5740.
8.4.1.3	“A” 2263	2. According to Comm. “A” 4172 and 6327.
8.4.1.4	“A” 2474	Procedure rules on capital requirement and integration (point 3.2.7). Modified by Comm. “A” 4172.
8.4.1.5	“A” 2264	1. According to Comm. “A” 4172, 4576 (point 7.), 5369 (Annex I) and 5831.
8.4.1.6	“A” 414 (LISOL‑1)	VI 3.2. According to Comm. “A” 4172.
8.4.1.7	“A” 2730	According to Comm. “A” 4172.
8.4.1.8	“A” 2545	According to Comm. “A” 4172, 5369 (Annex I) and 6327.
8.4.1.9	“A” 414 (LISOL‑1)	VI 3.2. According to Comm. “A” 4172.
8.4.1.10	“A” 2287	4. According to Comm. “A” 4172.
8.4.1.11	“A” 2893	1. According to Comm. “A” 4172.
8.4.1.12	“A” 3087	According to Comm. “A” 4172, 5369 (Annex I), 5700 and 6277.
8.4.1.13	“A” 4725	6.
8.4.1.14	“A” 5069	2.
8.4.1.15	“A” 5369 I
8.4.1.16	“A” 5369 I
8.4.1.17	“A” 1215	Specifications of non‑deductible participation items for determining computable patrimonial responsibility. According to Comm. “A” 4172.

SECTION 2. POST‑FACTUM INFORMATION

The corresponding registration of the company’s statutes must be sent to the competent corporate supervisory authority in the Public Registry of the relevant jurisdiction.
Any amendments to the articles of incorporation or statutes and to the authorities referred to in point 2.2.8, current or special domicile, must be reported to the BCRA within five business days. For new authorities, the information referred to in that point must be attached.

SECTION 2.4. TREATMENT OF AUTHORIZATION REQUESTS

The Authorization Management, within fifteen business days of receipt of the authorization request, will verify that it contains all required information and documentation and will request by e‑mail any missing items.
The applicant has ten business days, counted from the date of receipt of the e‑mail, to respond to the request.
- If no response is received within that term, or the response is incomplete, the Authorization Management will consider the request expired, archive it, and notify the interested party.
Within thirty business days after the complete submission of all requirements listed in point 2.2, a response will be sent by e‑mail to the authorization request.

SECTION 2.5. GUARANTEE

Exchange houses must provide a guarantee of $500,000, which must cover compliance with the regulations governing their activity.
- When constituting the guarantee, the source of funds must be proven with the relevant information, which will be evaluated by the BCRA.
The guarantee must be composed of national public securities – that have normal and regular quotation for significant amounts in the country’s markets – or BCRA monetary‑regulation instruments, opting for a single type.
- For this purpose, a pledge in favour of the Institution will be created over the cited securities deposited in special accounts opened in the name of the entity and under the order of the BCRA in the Central Registry and Settlement of Public Liabilities and Financial Trusts (CRyL), following the procedure set out in point 9.2.
- Services of rent and/or amortisation of the cited instruments will also be counted as guarantee to the extent they are deposited in those special accounts and pledged to the BCRA.

EXCHANGE HOUSES, AGENCIES AND BUREAUX DE CHANGE – B.C.R.A.

Section 2. Authorization to Operate – Version 4a – COMMUNICATION “A” 6428

Effective Date: 01/01/2018

3.2.6.5

In the particular case of exchange houses, the balances registered in assets held in correspondent accounts with foreign banks that do not comply with the provisions of point 3.1 of the rules on "Credit Evaluations" or that do not have an international risk rating in the "investment grade" category will be deducted. The deduction will be made based on the highest balance in each entity recorded during the semester to which the computable patrimonial responsibility determination corresponds.

3.3. Capital Contributions of Exchange Houses and Agencies

For all regulations linked to capital, its integration and increase, contributions may be made:

By crediting them to accounts opened in local financial entities.
In national public securities – that have normal and regular quotation for significant amounts in the country’s markets – or BCRA monetary‑regulation instruments, opting for a single type. The "48‑hour cash" quotation of the Electronic Open Market (MAE) will be considered.
- The source of funds must be proven; for exchange houses, this must be done through the public accountant certification provided for in point 2.2.7.

Section 3. Minimum Capitals – Version 5a – COMMUNICATION “A” 6428

Effective Date: 01/01/2018

7.1

Exchange houses, agencies and bureaux de change must keep up‑to‑date, in accordance with the prescriptions of the Civil and Commercial Code of the Nation, the registers indicated and must keep the related documentation properly ordered. All these elements must be permanently available to the BCRA at the authorised premises.

7.2

Exchange houses and agencies must observe the accounting standards, reporting regimes and audit standards established for them.

7.3

Exchange houses must also submit to the BCRA the financial or accounting statements – as appropriate – and any other information established, in the form and within the deadlines that will be determined.

SECTION 7. ACCOUNTING AND INFORMATION REGIME – VERSION 4a – COMMUNICATION “A” 6428

Effective Date: 01/01/2018

(The following tables list the ordered text references and their source norms; they are reproduced as in the source but formatted as markdown tables.)

Section	Point	Paragraph	Comm.	Annex	Observation
2.5.2.	“A” 90	XVI 1.5.2.	According to Comm. “A” 422, 2744, 3795, 5806, 6053 and 6327.
2.5.3.	“A” 90	XVI 1.5.4.	According to Comm. “A” 422, 3795 and 6053.
2.6.	“A” 90	XVI 1.2.1.	According to Comm. “A” 422, 6053, 6094 and 6378.
…	…	…	…	…	…

CREDIT PORTFOLIO ASSIGNMENT – B.C.R.A.

Section 1. Scope – Version 4a – COMMUNICATION “A” 6428

Effective Date: 01/01/2018

1.1 Definition

Sales or assignments, with or without liability for the assigning financial entity, that are carried out with respect to credits granted to third parties, regardless of their instrument and the reason for their incorporation into the entity’s assets, which are recorded in the accounting items "Loans", "Other credits by financial intermediation", "Various credits" or off‑balance‑sheet items – in the latter case, when they are unrecoverable credits.

1.2 Exception

Debt securities and negotiable obligations issued by companies whose average maturity is one year or more, with a public offering authorised in the country or abroad, acquired by the entities for resale and with the purpose of pre‑financing the issuance, will be excluded from the requirements of these rules during the placement period, provided the period does not exceed ninety (90) consecutive days counted from the start date of the public offering.

1.3 Responsibilities

Assigning financial entities shall be responsible for the validity of the titles or documents they assign (guarantee of eviction). They may also be responsible for possible defaults by debtors regarding the cancellation of their obligations, except in the cases indicated below.

Financial entities that have a rating of 3, 4 or 5 granted by the Superintendency of Financial and Currency Entities (SEFyC) may not assume responsibility for possible defaults of debtors when the clients have been classified in categories 3, 4, 5 or 6 in any of the last six months according to the rules on "Debtor Classification" ("with problems", "medium risk", "high insolvency risk", "high risk", "unrecoverable" or "technically unrecoverable").

1.4 Repurchase

Repurchase of assigned documents with liability will be allowed when the debtor does not fulfil the obligation.

1.5 Assignment to Financial Trusts

When entities assign credits originated by them to financial trusts, they must comply with the rules on "Financial Trusts" included in the Financial Entities Law.

Section 2. Requirements – Version 2a – COMMUNICATION “A” 6428

Effective Date: 01/01/2018

2.1.4 Clauses to Include in Contracts

For assignments without liability for the assignor, the agreement must contain a clause whereby the assignee irrevocably waives any claim arising from the insolvency or default of the transferred debtors.

For other cases, a clause must specify which entity will record the assigned portfolio in its assets.

2.1.5 Information on Debtor Classification

The assigning financial entity must inform the assignees at the time of the operation of the worst classification assigned to the transferred debtors in the last six months and the latest classification communicated to the "Financial System Debtors Central".
In sales or assignments of portfolios without liability for the assignor, when the purchasers are entities other than financial entities or financial trusts and the assignor or another financial entity manages collection, those entities must continue to provide the Central Bank of the Argentine Republic with data on the classification of the transferred debtors, according to the guidelines established in the rules on "Debtor Classification" and the reporting regime set by the SEFyC.

2.1.6 Sale to Related Persons

Sale of portfolios to persons related to the financial entity is permitted, subject to SEFyC authorisation and provided the operations are without liability for the assignor. A submission must be made with the elements mentioned in point 2.2.2 that are pertinent. The information referred to in items i) and ii) of point 2.2.2.3 must be accompanied by an external auditor’s opinion on the provenance of the data included and, in particular, on the correct valuation of the credits.

End of Document

Ordered Text Source Norm

Section Point Paragraph Comm. Annex Point Paragraph

Observations

1.1. “A” 3337 According to Comm. “A” 6327.
1.2. “A” 3337
1.3. 1° “B” 6234 3° According to Comm. “A” 3337 and “B” 9074.
2° “A” 3337
1.4. “A” 3337
1.
1.5. “A” 6303
2.1.1. “A” 2156 1° According to Comm. “A” 3337.
2.1.2. “A” 2634 a) According to Comm. “A” 3337.
2.1.3.1. 1° “A” 2634 d) According to Comm. “A” 3337.
2° “A” 3337
1° “A” 2634 d) According to Comm. “A” 3274, 3337, 3558 and 4259.
2.1.3.2.
2° “A” 3337
2.1.4. “A” 3337 According to Comm. “A” 6327.
2.1.5.1. “A” 2156 4. According to Comm. “A” 3337.
2.1.5.2. “A” 2703
“B” 6330
3.

a)
According to Comm. “A” 3145 and 3337.
2.1.6. “A” 3337 According to Comm. “A” 5671, 5740 and 6232.
2.2. “A” 3337
2.2.1. “A” 3337
2.2.2. 1º “A” 3337
2º “A” 2634
”A” 3145 a) and b) last
According to Comm. “A” 3337, 5671, 5740 and 6232.
2.2.2.1. “A” 2634 c.1) According to Comm. “A” 3337.
2.2.2.2. “A” 3337
2.2.2.3. “A” 3337
2.2.2.4. “B” 6330 2.2. According to Comm. “A” 3337.
2.2.2.5. “A” 3337
3° “A” 2634 c.5) According to Comm. “B” 6330, “A” 3337 and 5520.
4° “A” 3337 According to Comm. “A” 5671, 5740 and 6232.
2.2.2.
5° “B” 6330 2°
1° “A” 3337
2° “A” 2634
“A” 3145 a) and b) last
According to Comm. “A” 3337, 5671, 5740 and 6232. Includes interpretative clarification.
3° “B” 6330 2°
4° “A” 3337
2.2.3.
5° “A” 3337 According to Comm. “A” 6232.
2.2. Ante‑last and last
“A” 3337
2.
2.3. “A” 2634 f) According to Comm. “A” 3337.

B.C.R.A.

Origin of the Provisions Contained in the Regulations on “Assignment of Credit Portfolios”

2.1. Included Concepts.

2.1.1. Loans (principal, quotation differences and accrued interest to be collected) without deducting provisions for uncollectibility risk and devaluation risk.
2.1.2. Other credits from financial intermediation (principal, premiums and accrued interest to be collected) without deducting provisions for uncollectibility risk and devaluation risk.
2.1.3. Credits from financial leasing without deducting the corresponding provisions.
2.1.4. Various credits (principal and accrued interest to be collected) linked to the sale of fixed assets, including those taken in defense or as payment of credits, without deducting provisions for uncollectibility risk.
2.1.5. Contingent liabilities.
- 2.1.5.1. Granted guarantees.
- 2.1.5.2. Guarantees granted on deferred‑payment checks.
- 2.1.5.3. Advances on current accounts, documentary credits and other agreed credits (unused balances).
- 2.1.5.4. Documentary credits used and accepted bills of exchange, of deferred payment.
- 2.1.5.5. Documents re‑discounted in other financial entities.
2.1.6. Negotiable obligations –including subordinated ones– and debt securities of financial trusts not covered by the regulations on “Financial Trusts included in the Financial Entities Law”, valued at amortized cost and/or fair value with changes in other comprehensive income.

2.2. Exclusions.

2.2.1. The following concepts from financial intermediation:
- 2.2.1.1. Debtors from active passes, forward sales and spot sales to be settled.

Classification of Debtors B.C.R.A.

Section 2. Included Financings.

Version: 4a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

6.1. Basic Information.

The review of the commercial portfolio shall be carried out on the basis of updated financial information (financial or accounting statements –as appropriate– and complementary information, investment projects, etc.) that clients must provide upon request of the entities, applying parameters valid for each sector and taking into account other circumstances of the economic activity.

6.2. Classification Criterion.

The basic evaluation criterion is the debtor’s repayment capacity based on the estimated cash flow and, only secondarily, on the liquidation of the client’s assets, since the granting of financing must respond to the true credit needs and be carried out under amortization conditions consistent with the real repayment possibilities allowed by the client’s activity and cash generation. In that analysis, emphasis shall be placed on measuring the degree of exposure recorded in foreign currency based on the debtor’s indebtedness and income generation in that currency, as well as on those incomes and expenses linked to the evolution of the Reference Stabilization Coefficient. For clients with financing in foreign currency, regardless of the source of funds applied, emphasis shall be placed on analyzing whether the client has sufficient payment capacity to meet maturities even under significant exchange‑rate variations. For this purpose, at least two scenarios shall be considered in which significant exchange‑rate variations of different magnitudes are contemplated over a term of up to one year. In cases of clients residing abroad, the criteria defined in Section 2 of the regulations on “Guidelines for Risk Management in Financial Entities” related to “country risk” shall also be taken into account. Among other aspects, the following shall be considered regarding the country of residence of the debtor and its guarantor: i) the economic situation; ii) the size and structure of external debt relative to the economy; iii) the implicit weaknesses in the country’s current account; and iv) the evaluation of the country’s financial history. In cases of financial entities, the analysis shall consider the liquidity of the debtor intermediary and the quality of its portfolio.

6.3. Minimum Classification Periodicity.

The review shall be performed at least with the periodicity indicated below, leaving a record of it in the file of the analyzed client:

6.3.1. During each calendar quarter, for individually considered clients whose financings at any time amount to 5 % or more of the computable patrimonial responsibility or of the financial trust’s assets of the previous month, depending on whether the subject is an entity or a financial trust, respectively. For these purposes, the group or economic set shall be treated as a single client.

Classification of Debtors

Section 6. Classification of Commercial Portfolio Debtors.

Version: 9a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

Ordered Text Source Norm

Section Point Paragraph Comm. Annex Point Paragraph

Observations

1.1. “A” 2216 I 1° Includes interpretative clarification.
1.1.2.1. “A” 2216 I 6. 2°
1.2.2. “A” 2216 I I.d. 2° and 3°
“A” 2216 I 1° According to Comm. “A” 5067.
“A” 2216 I I.d. 1°
“A” 2448 Debtor situation statement (point 6.1.).
2.1.1. a
2.1.3. and
2.1.5.
“A” 2587 Correspondence table between the Debtor Situation Statement and the Balance of Balances (modified by Comm. “A” 2514).
2.1.4. “A” 2736 3.
2.1.6. “A” 6396 2. According to Comm. “A” 6428. Includes interpretative clarification.
2.2.1. “A” 2448 Debtor situation statement (point 6.1., modified by Comm. “A” 2421). According to Comm. “A” 6396.
2.2.1.1. a
2.2.1.4.
“A” 2448 Debtor situation statement (point 6.1., modified by Comm. “A” 2421).
2.2.1.5. “A” 2448 Debtor situation statement (point 6.1., modified by Comm. “A” 2421 and 3064).
2.2.1.6. a
2.2.1.7.
“A” 2448 Debtor situation statement (point 6.1., modified by Comm. “A” 2421).
2.2.2. “A” 2448 Debtor situation statement (point 6.2.).
2.2.3. “A” 2287 5.
2.
2.2.4. “A” 2412 In the second paragraph of point 2.2.4.3. incorporates a criterion not previously disclosed generally. According to Comm. “A” 5671 and 5740.
3.1. “A” 2216 I 2. 1°
3.2. “A” 2216 I 4.
3.3. 1° “A” 2216 I 2. 2°
3.3.1. “A” 2216 I 2. 2°
3.3.2. “A” 2216 I 2. 2° Includes interpretative clarification.
3.3.3. “A” 2216 I 6. last According to Comm. “A” 2358 (point 1.), 4310 (point 1.), 4975, 5311, 5637 and 5998.
3.3.4. “A” 2216 I 7. last
3.3.5. “B” 5644 2.
3.3.6. Incorporates a criterion not previously disclosed generally.
3.3.7. “A” 4325 2. According to Comm. “A” 4559 (point 6.).
3.3.8. “A” 4683 2.
3.
3.3.9. “A” 4683 3.

B.C.R.A.

Origin of the Provisions Contained in the Regulations on “Debtor Classification”

Debtor Classification

Ordered Text Source Norm

Section Point Paragraph Comm. Annex Point Paragraph

Observations

“A” 2216 I I. 1°
“A” 2216 I I. 2°
5.1.1.1.
“A” 2216 I II. 4°
According to Comm. “A” 2410, 4310 (point 1.), 4975, 5311, 5637 and 5998.
1° “A” 2216 I 6. last According to Comm. “A” 2358, 4310 (point 1.), 4975, 5311, 5637 and 5998.
2° “A” 2216 I I. 1° According to Comm. “A” 2410.
5.1.1.2. last “A” 2216 I 6. last According to Comm. “A” 2358.
5.1.2.1. “A” 2216 I 6. 1°
5.1.2.2. “A” 2216 I 6. 1°
5.1.2.3. “A” 4891 6. According to Comm. “A” 4975, 5637, 5998 and 6221.
5.
5.1.2.4. “A” 2216 I II. 3° According to Comm. “A” 2358, 4310 (point 1.), 4975, 5311, 5637 and 5998.
6.1. “A” 2216 I I. last According to Comm. “A” 6327.
1° “A” 2216 I I.a. 1°
2° “A” 3918 According to Comm. “A” 3987.
3° “A” 4453 According to Comm. “A” 4577 and 5398.
4° “A” 5398
6.2.
5° Incorporates a criterion not previously disclosed generally.
6.3. “A” 2216 I I.a. 2°
6.3.1. “A” 2216 I I.a. 2°, i) According to Comm. “A” 2223 (point 1.) and 3339.
6.3.2. “A” 2216 I I.a. 2°, ii) According to Comm. “A” 2223 (point 1.), 3339, 4972 (point 10.), 5311 and 5998.
6.3.3. “A” 2216 I I.a. 2°, iii)
6.4. 1° “A” 2216 I I.b. 1° According to Comm. “A” 3339.
6.4.1. “A” 2216 I I.b. 1°, i) According to Comm. “A” 3339.
6.4.2. “A” 2216 I I.b. 1°, ii) According to Comm. “A” 3339.
6.4.3. "A" 2893 4.
6.4.4. “A” 3339 unique
6.4. last “A” 2216 I I.b. last According to Comm. “A” 2223 (point 1.), 3339, 4972 (point 10.), 5311 and 5998.
1° “A” 2216 I I.d. 1° According to Comm. “A” 2440.
2° “A” 4060 10.
3° “A” 2216 I I.d. last According to Comm. “A” 3339 and 4972 (point 10.).
6.5. last “A” 2216 I I.d. last Includes interpretative clarification.
6.5.1. “A” 2216 I I.d.1. According to Comm. “A” 2932 (point 16.), 3339 and 5671.
6.5.1.1. “A” 2216 I I.d.1.a) According to Comm. “A” 3955.
6.5.1.2. “A” 2216 I I.d.1.b) According to Comm. “A” 3339.
6.5.1.3. “A” 2216 I I.d.1.c)
6.5.1.4. “A” 2216 I I.d.1.d) According to Comm. “A” 2932 (point 5.).
6.5.1.5. “A” 2216 I I.d.1.e)
6.5.1.6. “A” 2216 I I.d.1.f) According to Comm. “A” 3339.
6.5.2. “A” 2216 I I.d.2. According to Comm. “A” 3339.
“A” 2216 I I.d.2. 1°, 2° and 3° According to Comm. “A” 3339. i) “A” 2216 I I.d.2.a) According to Comm. “A” 3339 and 3955. ii) “A” 2216 I.d.2.b) According to Comm. “A” 3339. 6. 6.5.2.1. iii) “A” 2216 I I.d.2.c) According to Comm. “A” 3339.

Participating Entities.

Financial entities of the country are authorized to offer account opening and the provision of related services to other financial entities of the country for the execution of admitted local transactions, in order to carry out the operations that the latter perform on behalf of third parties, relating to: settlement of collections and payments, liquidity management, loans, collection, transfers and clearing, in accordance with the provisions of the regulations on “Credit Policy”. These regulations shall not apply to the opening of custody accounts for financial entities of the country and abroad and to sight‑deposit accounts opened in financial entities of the country by local exchange houses and/or by local and foreign financial entities, provided they are used exclusively for the execution on a proprietary basis of local collection and payment transactions.

1.2. Opening and Operation – Minimum Information Required.

The information required for account opening shall be kept in a file that, for each client, must be maintained according to the provisions of point 1.1 of the regulations on “Credit Management”, together with the information and other elements that allow the identification of the client, as established in the applicable legislation according to point 1.1 of the regulations on “Prevention of Money Laundering, Terrorist Financing and Other Illicit Activities”, rating, credit margins and any other data that the opening entity requires for its assessment. This requirement shall apply regardless of whether the movements of correspondent accounts –whatever their nature– generate credit‑side balances (deposits or other obligations of the opening financial entity) or debit‑side balances. In this sense, the requesting financial entity must present the documentation detailed below:

1.2.1. Purpose of the account.
1.2.2. Legally authorized representatives with signing authority to operate with the entity on behalf of the requesting entity, who must meet the identification requirements for natural persons –regular customers– provided in the applicable legislation according to point 1.1 of the regulations on “Prevention of Money Laundering, Terrorist Financing and Other Illicit Activities”.
The information set out in this point must be updated by the requesting entity when modifications occur or, failing that, every two years.
The opening of the account must be approved by the Board of Directors or Administrative Council, or the highest local authority in the case of branches of foreign financial entities, as appropriate. Total or partial inability to comply with any of the information, authorization and/or updating requirements shall constitute a barrier to the opening and/or maintenance of the correspondent account.

Correspondent Accounts B.C.R.A.

Section 1. Provision of Correspondent Service to Financial Entities – “your account”.

Version: 4a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

2.1. Participating Entities.

Financial entities of the country are authorized to request the opening of correspondent accounts, in financial entities of the country and abroad, in order to carry out admitted third‑party operations, relating to: settlement of collections and payments, liquidity management, loans, collection, transfers and clearing, in accordance with the provisions of the regulations on “Credit Policy”. The opening of the account must be approved by the Board of Directors or Administrative Council, or the highest local authority in the case of branches of foreign financial entities, as appropriate. These regulations shall not apply to the opening of custody accounts in financial entities of the country and abroad. Regarding foreign financial entities, they shall be considered as such those that, incorporated under applicable foreign law, have as permitted activity the habitual intermediation between supply and demand of financial resources –public deposits– under the terms of the Argentine Financial Entities Law and its regulations, regardless of their corporate form or whether they are public, private or mixed. Financial entities shall require information that allows the identification of their counterparties in accordance with the applicable legislation according to point 1.1 of the regulations on “Prevention of Money Laundering, Terrorist Financing and Other Illicit Activities”.

2.2. Opening and Operation of Accounts Opened in Foreign Financial Entities.

The opening of the accounts in foreign financial entities referred to in point 2.1 must be carried out with entities that meet the following requirements, regardless of whether the movements of the correspondent accounts –whatever their nature– generate credit‑side or debit‑side balances:

They have a Money‑Laundering and Terrorist‑Financing Prevention Manual that incorporates international standards and have designated a person responsible for its implementation.
They conduct business in the jurisdiction where they are authorized to carry out financial activity, employ full‑time senior and administrative staff at their registered office, keep operation records at that office and are subject to supervision by the authority that authorizes them to conduct financial business and/or the competent supervisory body (i.e., they are not a “shell bank”).
The supervisory authority of the country where the entity is domiciled adheres to the “Basic Principles for Effective Banking Supervision” issued by the Basel Committee on Banking Supervision.

Correspondent Accounts B.C.R.A.

Section 2. Request for Correspondent Service in Financial Entities – “our account”.

Version: 4a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

Ordered Text Source Norm

Section Point Paragraph Comm. Annex Point Paragraph

Observations

1.1. “A” 5093 According to Comm. “A” 5133 and 6327.
1.2. “A” 5093 According to Comm. “A” 5223.
1.2.1. “A” 5093
1.2.2. “A” 5093 According to Comm. “A” 5223.
1.3. “A” 5093
1.3.1. “A” 5093
1.3.2. “A” 5093
1.
1.4. “A” 5093
2.1. “A” 5093 According to Comm. “A” 5133, 5223 and 6327.
2.2. “A” 5093 According to Comm. “A” 5133, 5162, 5671 and 5740. Includes interpretative clarification.
2.2.1. “A” 5093
2.2.2. “A” 5093 According to Comm. “A” 5133.
2.2.3. “A” 5093
2.
2.2.4. “A” 5093
3.1. “A” 5093
3.1.1. “A” 5093
3.1.2. “A” 5093
3.1.3. “A” 5093
3.2. “A” 5093
3.2.1. “A” 5093 According to Comm. “A” 5133.
3.
3.2.2. “A” 5093

B.C.R.A.

Origin of the Provisions Contained in the Regulations on “Correspondent Accounts”

1.7.2. By other means.
1.7.2.1. Automated teller machines.
A corresponding certificate with the essential operation data shall be issued.
When this modality can be used, customers shall be informed of the recommendations and safeguards to adopt regarding its use as set out in point 3.4.
1.7.2.2. Transfers –including electronic ones–, telephone orders, via the Internet, and other similar alternative means.
The operation record in the periodic summary (point 1.6.2.2.) shall serve as proof of the operation.
Entities shall have implemented IT security mechanisms that guarantee the genuineness of the operations.

1.8. Admitted Currencies and Securities.

1.8.1. Argentine pesos.
1.8.2. United States dollars and euros.
i) Total or partial cancellations must be effected in the same asset class (banknotes or transfers) in which the funds were deposited. ii) When the deposit was made in banknotes, the depositor may, at the time of total or partial withdrawal, choose to receive banknotes or transfers, or credit to sight‑deposit accounts in dollars.
1.8.3. Other currencies.
Upon request of the entities, the Central Bank of the Argentine Republic (BCRA) may authorize the acceptance of term‑deposit accounts in other currencies.
For cancellations, the criterion set out in point 1.8.2 shall apply.
1.8.4. Public and private securities and BCRA monetary regulation instruments.
i) Only banks and financial companies may collect them. ii) They must have normal and regular quotation for significant amounts in domestic markets. iii) Private securities must have a public offering authorized by the National Securities Commission.

DEPOSITS AND TERM INVESTMENTS B.C.R.A.

Section 1. Fixed‑Term Deposits.

Version: 13a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

1.9. Deposits of Purchasing Power Units and Housing Units.
1.9.1. Deposits of Purchasing Power Units (UVA) updated by the “CER” – Law 25.827.
The deposited amount –which will be updated by applying the Reference Stabilization Coefficient (“CER”)– shall be expressed in a quantity of Purchasing Power Units “UVA”. The value of each “UVA” at the moment of its creation shall be given by the following expression:

```
$ 14.05 × ("CER"_tc‑1 / "CER"_t0)
```
Where:

CER_t0: index of 31‑03‑2016.
CER_tc‑1: index of the banking business day preceding the date of creation of the imposition.

1.9.2. Deposits of Housing Units updated by the “ICC” – Law 27.271 (“UVI”).
The deposited amount –which will be updated by applying the construction cost index for Greater Buenos Aires (“ICC”) published by INDEC for single‑family housing model 6– shall be expressed in a quantity of Housing Units “UVI”. The value of each “UVI” at the moment of its creation shall be given by the following expression:

```
$ 14.05 × ("CAICC"_tc‑1 / "CAICC"_t0)
```
Where:

$ 14.05: construction cost of one thousandth of a square meter of housing as of 31‑03‑2016 – obtained from the simple average for the Autonomous City of Buenos Aires and the cities of Córdoba, Rosario, Salta and the Littoral zone (Paraná and Santa Fe) of the latest available construction cost data for various types of housing.
CAICC_t0: adjustment coefficient for the construction cost index for Greater Buenos Aires (“ICC”) published by INDEC for single‑family housing model 6, as of 31‑03‑2016.

DEPOSITS AND TERM INVESTMENTS B.C.R.A.

Section 1. Fixed‑Term Deposits (Version 14a).

Version: 14a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

2.5.5.1. National public securities that have normal and regular quotation for significant amounts in domestic markets.
2.5.5.2. Foreign public securities.
i) “Brady” series issued by Brazil (“C Bond”; “Par”, “Discount”). ii) Bonds issued by the treasuries of the central governments of Germany, the United States of America, France, England and Italy.
2.5.5.3. Stock market indices.
i) Merval (Buenos Aires). ii) Burcap (Buenos Aires). iii) Dow Jones (New York). iv) Standard & Poor's (New York). v) Bovespa (São Paulo). vi) IPSA (Santiago de Chile). vii) FTSE (London). viii) CAC (Paris). ix) DAX (Frankfurt). x) Nikkei (Tokyo). xi) MEXBOL (Mexico). xii) Dow Jones Euro 50 (STOXX 50). xiii) Dow Jones Euro (STOXX). xiv) Nasdaq (New York). xv) FTSE Eurotop 100 (London). xvi) IBEX 35 (Madrid).

DEPOSITS AND TERM INVESTMENTS B.C.R.A.

Section 2. Term Investments.

Effective date: 01/01/2018

DEPOSITS AND TERM INVESTMENTS

ORDERED TEXT SOURCE OF ORIGIN

Sec. | Punto | Párr. | Com. | Anexo | Cap. | Secc. | Punto | Párr. | OBSERVACIONES --- | --- | --- | --- | --- | --- | --- | --- | --- | ---
1.6.2.2. | 1° “A” | 1913 | 2° S/Com. “A” | 4809. | 2°a | 4° | “A” | 3323 |
1.7.1. | “A” | 1653 | “A” | 1913 | I | 3.4.2. | 2. | 2° |
1.7.2. | “A” | 3043 |
1.8.1. | “A” | 1199 | I | 3. |
1.8.2. | “A” | 1820 | I | 3.2. | 2° S/Com. “A” | 3293, 3527, 3682 (pto. 10.), 3827 (pto. 9.) y 4140.
1.8.3. | “A” | 1820 | I | 3.2. | 1° “A” | 1465 | I | 2. S/Com. “A” | 4716 y “B” 9186.
i) “A” 2275 2. 1° ii) “A” 2275 2.1. Según Com. “A” 6327.
1.8.4. iii) “A” 2275 2.1. Según Com. “A” 6327.
1.9. | “A” 3660 | S/Com. “A” 3827 (pto. 9.), 5945 y 6069.
1.9.1. | “A” 3660 | S/Com. “A” 3827 (pto. 9.), 5945 y 6069.
1.9.2. | “A” 6069 | 1.
1.9. últs. | “A” 5945 | 1. S/Com. “A” 6069.
1.10. | “A” 4874 | 2.
1.11.1. | “A” 1465 “A” 1653 “A” 1820 I 2.1.2.
3.1.1.2.
3.3.1.2.
3.4.
S/Com. “A” 3660, 5640, 5651, 5654, 5659, 5781, 5786, 5849 y 5853. Incluye aclaración interpretativa.
1.11.2.1. | “A” 2188 | 2.1. 1° S/Com. “A” 2962 (pto. 2.1.), 3660, 4543, 4654 y 5257.
1.11.2.2. | “A” 2188 | 2.1. 2° S/Com. “A” 2962 (pto. 2.2.), 3660 y 4543.
1.11.2.3. | “A” 2188 | 2.3. S/Com. “A” 2962 (pto. 2.2.), 3660, 4543 y 4654.
1.11.3. | “A” 3660 | S/Com. “A” 5945 y 6069.
1.11.4. | “A” 4874 | 3.
1.11.5. | 1° “A” 1199 I 5.3.2. S/Com. “A” 3660.
1.11.5.1. | “A” 1465 I 2.1.2. 2° S/Com. “A” 3660.
1.11.5.2. | “A” 3660 | S/Com. “A” 5945 y 6069.
1.11.6.1. | “A” 1199 I 5.3.2. S/Com. “A” 3660.
1.11.6.2. | “A” 2482 | 2. S/Com. “A” 3660.
1.11.6.3. | “A” 4874 | 4.
1.12.1.1. | “A” 1653 “A” 1820 “A” 2061 I 3.1.1.1.
3.3.
1.1.1.
S/Com. “A” 3485, 3527, 3660, 3682 (pto. 11.), 3827 (pto. 9.) y 4032.
1.
1.12.1.2. | “A” 1465 “A” 1603 “A” 2275 I 2.1.1.
5.
2.
S/Com. “A” 3660.

DEPOSITS AND TERM INVESTMENTS

ORDERED TEXT SOURCE OF ORIGIN

Sec. | Punto | Párr. | Com. | Anexo | Cap. | Sec. | Punto | Párr. | OBSERVACIONES --- | --- | --- | --- | --- | --- | --- | --- | --- | ---
2.2.2. | “A” 2482 | 1.A)2. | 4°
2.2.3. | “A” 2482 | 1.A)5.
2.3.1. | “A” 2482 | 1.B)1. | 1° S/Com. “A” 4754.
2.3.2. | “A” 2482 | 1.B)1. | 2° S/Com. “A” 4754, 5149, 5945 y 6125.
2.3.3.1. | “A” 2482 “A” 2482 | 1.B)2. | 1° | 4°
2.3.3.2. | “A” 2482 | 1.B)2. | 2° S/Com. “A” 4754.
2.3.4. | “A” 2482 | 1.B)5.
2.3.5.1. | “A” 2482 | 1.B)7. a)
2.3.5.2. | “A” 2482 | 1.B)7. b)
2.4.1. | “A” 2482 | 1.C)1.
2.4.2.1. | “A” 2482 “A” 2482 | 1.C)2. | 1° | 4°
2.4.2.2. | “A” 2482 | 1.C)2. | 2° S/Com. “A” 4754.
2.4.3. | “A” 2482 | 1.C)5.
2.4.4. | “A” 2482 | 1.C)7.
2.5.1. | “A” 2482 | 1.D)1. S/Com. “A” 3043, 4234, 4612, 5945 y “C” 40024.
2.5.2.1. | “A” 2482 | 1.D)4.2. S/Com. “A” 2617 y 4612.
2.5.2.2. | “A” 2482 | 1.D)4.1.
2.5.3. | “A” 2482 | 1.D)5. S/Com. “A” 2617, 4234, 4612, 4742, 5671, 5740 y 6232.
2.5.4. | “A” 2617 | 2. S/Com. “A” 4612.
2.5.5.1. | “A” 2617 único | 1. S/Com. “A” 3043, 3185, 4234, 4612, 6091 y 6327.
2.5.5.2. | “A” 2617 único | 2. S/Com. “A” 4234.
2.5.5.3. | “A” 2617 único | 3. S/Com. “A” 3090, 3185 y 4234.
2.5.5.4. | “A” 2617 único | 4.
2.5.5.5. | “A” 2617 único | 6. S/Com. “A” 2961 (Anexo), 4234, 4612 y 5257.
2.5.5.6. | “A” 4612
2.5.5.7. | “A” 4612 S/Com. “A” 5945 y 6069.
2.6. | “A” 6069 | 2. S/Com. “A” 6170.
2.
2.7. | “A” 6069 | 2.
3.1. | “A” 3043
3.1.1. | “A” 2885 | 1.
3.1.2. | “A” 2885 | 2. 2.2.
3.1.3. | “A” 2885 | 2. 2.3.
3.1.4. | “A” 2885 | 2. 2.4.
3.1.5. | “A” 2885 | 2. 2.5. y 2.6.
3.1.6. | “A” 3043
3.
3.2. | “A” 1891 S/Com. “A” 1922, 3323 y 4875.

1. Attribute to Consider

1.1. Determination

The following will be taken into account:
1.1.1. The presentation of the Certificate of Accreditation of the micro, small or medium enterprise condition referred to in article 11 of Resolution No. 340‑E/2017 of the Secretariat of Entrepreneurs and of the Small and Medium Enterprise of the Ministry of Production; or
1.1.2. The average value of total annual sales, excluding Value‑Added Tax and internal taxes and deducting up to fifty percent (50 %) of the value of exports, obtained from the last three (3) commercial exercises or fiscal years, according to the information presented by the company through Form No. 1272 called “PYMES/ Request for categorization and/or benefits” – or any future replacement – available with tax key on the website of the Federal Administration of Public Revenues (AFIP).
Alternatively, the computation of the average value of total annual sales – and the consequent determination – may be carried out from:
  i) financial or accounting statements of the company, as appropriate, provided they have an external auditor’s opinion; or ii) sworn declaration of the referred net sales, certified by a public accountant. The information in items i) and ii) must be legalized by the Professional Council of Economic Sciences of the corresponding jurisdiction and may be complemented with any other information and/or documentation that the entity deems pertinent for evaluating such categorization and/or corroborating the information provided by the company. For companies whose age is less than required for the calculation established above, total annual sales will be determined by averaging the information of the closed commercial exercises or fiscal years. Failing that, the proportional accumulated sales corresponding to the monthly fiscal periods that have elapsed at the moment of the characterization as micro, small or medium enterprise (MiPyME) will be considered. MiPyMEs – including natural persons evaluated credit‑wise based on cash flow generated by their commercial activity, profession and/or professional exercise, without distinguishing the destination of the funds – are those whose total annual sales expressed in pesos do not exceed the following maximum amounts, according to the activity sector to which the company belongs, as defined by the “Economic Activities Classifier (CLAE) – Form No. 883”:

Sector	Micro	Small	Medium Tranche 1	Medium Tranche 2
Agro‑pecuary	$3,000,000	$19,000,000	$145,000,000	$230,000,000
Industry and mining	$10,500,000	$64,000,000	$520,000,000	$760,000,000
Commerce	$12,500,000	$75,000,000	$630,000,000	$900,000,000
Services	$3,500,000	$21,000,000	$175,000,000	$250,000,000
Construction	$4,700,000	$30,000,000	$240,000,000	$360,000,000

When a company records sales in more than one of those activity sectors, the sector with the highest sales will be taken into account. If in any activity sector the company exceeds the limits provided for that sector, it will not be considered a MiPyME. If the company’s main declared activity before AFIP is one of the activities provided in article 3° of Resolution No. 340/17 of the aforementioned Secretariat, it must also be verified that the value of its assets – computed according to the cited resolution or, alternatively, as provided in the preceding item i) – does not exceed the amount of $100,000,000. Companies that carry out any of the excluded activities detailed in Table B of Annex III of Resolution No. 340/17 of the cited Secretariat will not be considered MiPyMEs.

1.2. Linkage and Control

Companies that, while meeting the preceding requirements, control, are controlled by, or are linked to economic groups that do not meet those requirements, in accordance with the third paragraph of article 1° of Title I of Law 25.300, will not be considered MiPyMEs; the provisions on “Risk‑splitting credit” for groups or economic conglomerates do not apply for this purpose.

1.2.1. Control

A company is considered controlled by another when the latter participates, directly or through another company that is itself controlled, in more than 50 % of the capital of the former. In such cases – when a company is controlled by another or is controlling another – compliance with the previously established requirements must be analyzed jointly, taking into account the total annual sales derived from consolidated financial or accounting statements of the entire economic group, or, failing that, the sum of the total annual sales derived from the sworn declarations of each entity as indicated in point 1.1. For companies whose main declared activity before AFIP is one of the activities provided in article 3° of Resolution No. 340/17, the analysis must also be performed on assets.

B.C.R.A.

DETERMINATION OF THE MICRO, SMALL OR MEDIUM ENTERPRISE CONDITION

Version: 14a. COMMUNICATION “A” 6428
Effective: 01/01/2018

B.C.R.A.

ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “DETERMINATION OF THE MICRO, SMALL OR MEDIUM ENTERPRISE CONDITION”

Sec. | Punto | Párr. | Com. | Anexo | Cap. | Sec. | Punto | Párr. | OBSERVACIONES --- | --- | --- | --- | --- | --- | --- | --- | --- | ---
1.1. | “A” 3321 | Según Com. “A” 3793, 4266, 5116, 5419, 5529, 5770, 5934, 6025, 6216, 6326, 6327 y 6428. Disposición N° 147/06 de la Secretaría de la Pequeña y Mediana Empresa y Desarrollo Regional del Ministerio de Economía y Producción y Resoluciones N° 21/10, N°50/13, N°357/15 de la Secretaría de la Pequeña y Mediana Empresa y Desarrollo Regional del Ministerio de Industria y Resoluciones N° 11/16, 39/16, 103‑E/17 y 340‑E/17 de la Secretaría de Emprendedores y de la Pequeña y Mediana Empresa del Ministerio de Producción. Incluye aclaración interpretativa.
1.2. | “A” 5419 | Según Com. “A” 5529, 6326 y 6327.
1.3. | “A” 5419 | Según Com. “A” 5829, 5934 y 6025.

Entities not covered by some of the situations provided in Section 1 may distribute results up to the positive amount that arises from the off‑balance‑sheet calculation provided in this point, without exceeding the limits established in these rules. For that purpose, the sum of the balances at the close of the fiscal year that correspond must be computed, recorded in the “Unassigned Results” account, and the discretionary reserve for future result distributions, from which the amounts recorded on the same date for the legal and statutory reserves – whose constitution is enforceable – and the concepts detailed below must be deducted:

100 % of the debit balance of each item recorded in the “Other Comprehensive Income Accumulated” line.
The result arising from the revaluation of property, plant, equipment and intangibles and of investment properties.
The positive net difference resulting from the measurement at amortized cost and the fair market value that the financial entity records regarding public debt instruments and/or monetary regulation instruments of the Central Bank for those instruments valued at amortized cost.
Valuation adjustments of assets notified by the Superintendency of Financial and Currency Entities (SEFyC) – accepted or not by the entity – that are pending registration and/or those indicated by the external audit that have not been recorded in the books.
Individual valuation franchises granted by the SEFyC, including adjustments derived from not considering the agreed‑upon adjustment plans.
Additionally, financial entities may not distribute results with the profit that originates from the first‑time application of International Financial Reporting Standards (IFRS); they must constitute a special reserve that may only be released for capitalization or to absorb possible negative balances of the “Unassigned Results” line.

DISTRIBUTION OF RESULTS

Section 2. Determination of Distributable Result

Version: 12a. COMMUNICATION “A” 6428
Effective: 01/01/2018

The amount to be distributed according to the proposal presented to the SEFyC, which may not exceed the amount determined in Section 2, must not compromise the liquidity and solvency of the entity. This requirement is considered met when there is no defect of integration in the minimum capital position – both individual and consolidated – at the close of the fiscal year to which the considered unassigned results correspond or at the last closed position, according to information available at the date of such presentation, of the one that shows the lesser excess of integration relative to the requirement, recalculating them, also computing – for that sole purpose – the following effects based on the corresponding data for each of those dates:

The results of deducting the assets of the concepts mentioned in points 2.1 to 2.5, if applicable.
The non‑consideration of franchises granted by the SEFyC that affect the requirements, integrations or the minimum capital position.
The deduction of unassigned results of the amounts corresponding to the following concepts:
1. The amount to be distributed and, where applicable, the amount destined to constitute the reserve for the purpose of repaying representative debt instruments, which may be included in the computable patrimonial responsibility, according to the proposal presented to the SEFyC;
2. Balances in favor from the application of the presumed minimum profit tax – net of depreciation risk provisions – that have not been deducted from the basic net equity, as established in the rules on “Minimum capital of financial entities”;
3. Adjustments made according to points 2.1 to 2.5.
The non‑consideration of the limit provided in point 7.2 of the rules on “Minimum capital of financial entities”.
Without prejudice to the foregoing, distribution of results will only be admitted to the extent that none of the following conditions is verified:

The integration of minimum cash on average – in pesos, foreign currency or public securities – is lower than the corresponding requirement for the last closed position or the projected one considering the effect of result distribution; and/or
The entity has not complied with the additional capital margins applicable to it as provided in Section 4.
For financial entities that are branches of foreign entities, the SEFyC will also consider the liquidity and solvency situation of their parent houses and the markets in which they operate.

B.C.R.A.

Section 3. Verification of Liquidity and Solvency

Sec. | Punto | Párr. | Com. | Anexo | Cap. | Sec. | Punto | Párr. | OBSERVACIONES --- | --- | --- | --- | --- | --- | --- | --- | --- | --- “A” 4589 | 1. | Según Com. “A” 5827.
1.1. | “A” 4589 | 1.1.
1.2. | “A” 4589 | 1.2. Según Com. “A” 4591 (point 6.) and 5072.
1.3. | “A” 4589 | 1.3.

|
1.4. | “A” 4589 | 1.4. Según Com. “A” 5072.
1° and 2° | “A” 4589 | 2. Según Com. “A” 4591 (point 6.), 5273, 5827 and 6327.
2.1. | “A” 6327 | 12.
2.2. | “A” 6396 | 4.
2.3. | “A” 6327 | 12.
2.4. | “A” 4589 | 2.3.
2.5. | “A” 4589 | 2.4.
|
last | “A” 6327 | 26.
“A” 4589 | 3. Según Com. “A” 4591 (point 8.), 5072, 5273, 5827, 5985 and “B” 9104.
3.1. | “A” 4589 | 3.1. Según Com. “A” 4591 (point 8.) and 6428.
3.2. | “A” 4589 | 3.3. iv) Según Com. “A” 4591 (point 8.) and “B” 9104.
3.3. | “A” 4589 | 3.3. Según Com. “A” 4591 (point 8.) and 6428.
|
3.4. | “A” 5737 | 4.
| “A” 5827 |
|
“A” 4589 | 4. Según Com. “A” 5827 and 5985.
“A” 4591 | 1. Según Com. “A” 5282 and 5827.
6.1. | “A” 4591 | 1. Incorporates the interpretative criterion of Com. “C” 46841. According to Com. “A” 5393.
|
6.2. | “A” 4591 | 1. According to Com. “A” 4686, 4702, 5072, 5180, 5282, 5369, 5580, 5827, 6013 and “B” 9104.
|
“A” 5272 | 9. According to Com. “A” 5282, 5369, 5707, 5827, 5938, 5985 and 6013.

B.C.R.A.

ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “DISTRIBUTION OF RESULTS”

1.1.2.5. Cash sales to be settled and at term, linked or not to active passes.
1.1.2.6. Correspondent operations abroad.
1.1.2.7. Sight obligations for foreign transfers pending settlement, provided they do not exceed 72 business hours from the date of accreditation.
1.1.3. Computation.
The obligations covered will be computed by the balances of capital actually transacted, including, where applicable, quotation differences (positive or negative). Interest and premiums accrued – expired or to expire – for the covered obligations are excluded insofar as they have not been credited to an account or made available to third parties, and, in the case of fixed‑term deposits of Purchasing Power Units “UVA” and Housing Units “UVI”, the amount accrued from the increase in the value of those units.
1.2. Basis of application.
The minimum cash requirement will apply to the monthly average of daily balances of the covered obligations, recorded at the close of each day during each calendar month. Averages will be obtained by dividing the sum of daily balances by the total number of days in each month. Days with no movement must repeat the balance of the immediately preceding business day. The requirement will be observed separately for each currency and/or title and monetary regulation instrument in which the obligations are denominated. For fixed‑term deposits in national public securities or Central Bank monetary regulation instruments, including immobilized balances, the requirement must be determined in the same captured species, according to its market value. The requirement remains even if, after the imposition is established, the respective national public security or monetary regulation instrument ceases to have normal and habitual quotation for significant amounts in the country’s markets. If the deposits are in other securities, including immobilized balances, the requirement must be determined – considering the market value of the captured species – in:
  a) pesos or national public securities in that currency that have normal and habitual quotation for significant amounts in the country’s markets, when the captured species is denominated in that currency; or b) United States dollars or national public securities in that currency, which have normal and habitual quotation for significant amounts in the country’s markets, when the captured species is denominated in foreign currency.

B.C.R.A.

MINIMUM CASH B.C.R.A.

Section 1. Requirement

Version: 17a. COMMUNICATION “A” 6428
Effective: 01/01/2018

B.C.R.A.

ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “MINIMUM CASH”

Sec.	Punto	Párr.	Com.
1.1.	“A” 3274 II	1.	1.1.
1.1.1.	“A” 3274 II	1.	1.1.1. Según Com. “A” 3498.
1.1.2.	“A” 3274 II	1.	1.1.2. Según Com. “A” 3597, 4815 y “B” 9186.
1.1.3.	“A” 3274 II	1.	1.1.3. Según Com. “A” 3498, 3905, 4473, 5945 y 6069.
1.2.	“A” 3274 II	1.	1.2. Según Com. “A” 3304, 3498, 3597, 4449, 4716 (incluye aclaración interpretativa), 4815, 5471, 6288, 6327, 6349 y “B” 9186.
1.3.	“A” 3274 II	1.	1.3. Según Com. “A” 5356, 5980 y 6209.
1.3.1.	“A” 3274 II	1.	1.3.1. Según Com. “A” 3338, 3417, 3498, 3597, 3917, 3967, 4032, 4051, 4147, 4276, 4449, 4473, 4509, 4549, 4602, 4712, 5108, 5356, 5980 y 6195.
1.3.2.	“A” 3274 II	1.	1.3.2. Según Com. “A” 3338, 3417, 3498, 3597, 3917, 3967, 4032, 4051, 4147, 4179, 4276, 4449, 4473, 4509, 4549, 4602, 4809, 4851, 5164, 5356, 5534, 5555, 5569, 5873, 5893, 5980, 6148 y 6195.
1.3.3.	“A” 3274 II	1.	1.3.3. Según Com. “A” 3338, 3399, 3417, 3498, 3597, 3824, 3917, 3967, 4032, 4051, 4147, 4179, 4276, 4449, 4473, 4509, 4549, 4602, 4754, 4851, 5007, 5091, 5234, 5356, 5534, 5555, 5569, 5873, 5893, 5980, 6195 y 6341.
1.3.4.	“A” 3274 II	1.	1.3.4. Según Com. “A” 3338, 3417, 3498, 3597, 3917, 3967, 4032, 4051, 4147, 4179, 4276, 4449, 4473, 4509, 4549, 4602, 4851, 5356, 5534, 5555, 5569, 5873, 5893, 5980 y 6195.
1.3.5.	“A” 3274 II	1.	1.3.5. Según Com. “A” 3338, 3417, 3498, 3597, 3917, 3967, 4032, 4051, 4147, 4276, 4449, 4473, 4509, 4549, 5356, 5980 y 6195.
1.3.6.	“A” 3274 II	1.	1.3.7. Según Com. “A” 5356.

|
1.3.7. | “A” 3498 único | 1.
1.3.8. | “A” 3506 (pto. 2.), 3549, 3732, 3824, 3905, 3917, 3925, 3967, 4032, 4140, 4179, 4276, 4360 (pto. 3.), 4449, 4549, 4602, 4754, 4851, 5356, 5534, 5555, 5569, 5873, 5893, 5945, 5980 y 6195.

6.3.1.6. If the entity is already constituted, its financial statements for the last two closed economic exercises, audited and certified by the competent authority, and the list of board members must also be provided.
6.3.2. Amount of the investment to be made and percentages that would represent the participation in capital and votes.
6.3.3. Copy of the legal and regulatory provisions in force in the respective country for the establishment and operation of the entity that is the object of the foreign investment.
6.3.4. Purpose of the participation.
Requests for authorization that are not fully adjusted to the preceding requirements will not be processed, and the respective entities will be notified.
6.4. Resolution.
The SEFyC will weigh the characteristics of each project and consider the opportunity and convenience of granting or denying the authorization requests. Requests will be considered complete once 120 (one hundred twenty) days have elapsed since the conditions established in point 6.5 are verified, provided the SEFyC does not express opposition. However, this period may be extended if circumstances arise that prevent a resolution.
6.5. Conditions of the authorizations.
Authorizations to participate in foreign financial entities will be subject to the following conditions:
6.5.1. The liability of the local entity shall be limited to the capital participation provided for in the pertinent approving resolution. Consequently, it may not assume joint obligations nor additional commitments regarding the operations or activities carried out by the foreign entity that is the object of such incorporation. It may only grant guarantees for determined amounts.
6.5.2. The granted authorization will not imply any commitment to approve future requirements in the concept of capital increases or contributions to cover operating losses, which will be subject to a particular consideration within an updated analysis.
6.5.3. The local entity must commit, in the event that the foreign entity is subject to consolidated supervision, to provide:
  6.5.3.1. The information necessary for the exercise of consolidated supervision, in accordance with the pertinent rules.

EXPANSION OF FINANCIAL ENTITIES

Section 6. Participation in Foreign Financial Entities

Version: 4a. COMMUNICATION “A” 6428
Effective: 01/01/2018

EXPANSION OF FINANCIAL ENTITIES

ORDERED TEXT ORIGINAL REGULATION

Section	Point	Paragraph	Comm.	Annex
5.1.	1° “A”	2241 III 1.	1.1.
	último “A”	2241 III 1.	1.4.4.
5.2.	“A”	2241 III 1.	1.1. According to Comm. “A” 5485, 5785, 5803, 5882, 5983 and 6304.
5.3.	1° “A”	2241 III 1.	1.2. According to Comm. “A” 5983.
	último “A”	2241 III 1.	1.3.2.
5.4.	1° “A”	2241 III 1.	1.3.1. According to Comm. “A” 4771.
	último “A”	4771 6.
5.5.	1° “A”	2241 III 1.	1.4.1.
	último “A”	2241 III 1.	1.4.5.
5.6.	1° “A”	2241 III 1.	1.4.	1°
5.6.1.	“A”	2241 III 1.	1.4.2.
5.6.2.	“A”	2241 III 1.	1.4.3. According to Comm. “A” 5983.
5.6.3.	“A”	2241 III 1.	1.4.3.1. and 1.4.3.2. According to Comm. “A” 4771.
5.7.1.	“A”	2241 III 1.	1.5.2.
5.7.1.1.	“A”	5983 7.	7.7.1.1.
5.7.1.2.	“A”	2241 III 1.	1.5.2.1.
5.7.1.3.	“A”	2241 III 1.	1.5.2.2.
5.7.1.4.	“A”	2241 III 1.	1.5.2.3.
5.7.1.5.	“A”	2241 III 1.	1.5.2.4.
5.7.2.	“A”	2241 III 1.	1.4.2.
5.
5.8.	“A”	2241 III 1.	1.5.1.
6.1.	1° “A”	2241 IV 1.	1°
6.2.	“A”	2241 IV 1.	1.1. a 1.7. According to Comm. “A” 4052, 5485, 5785, 5803, 5882, 5983 and 6304.
6.3.	1° “A”	2241 IV 2.	1°
	último “A”	2241 IV 3.	3.2.
6.3.1.1.	“A”	2241 IV 2.	2.1.
6.3.1.2.	“A”	2241 IV 2.	2.2.
6.3.1.3.	“A”	2241 IV 2.	2.2. According to Comm. “A” 5983.
6.3.1.4.	“A”	2241 IV 2.	2.4. According to Comm. “A” 5006, 5133 and 5983.
6.3.1.5.	“A”	2241 IV 2.	2.8.
6.3.1.6.	“A”	2241 IV 2.	2.6. According to Comm. “A” 5983 and 6327.
6.3.3.	“A”	2241 IV 2.	2.5.
6.3.4.	“A”	2241 IV 2.	2.7.
6.4.	“A”	2241 IV 3.	3.1. and 3.3.
6.5.	1° “A”	5983 unique	8. 8.5.
6.5.1.	“A”	2241 IV 4.	4.1.
6.5.2.	“A”	2241 IV 4.	4.2.
6.5.3.1.	“A”	2241 IV 5.	5.2. 1°
6.5.3.2.	“A”	2822 3. According to Comm. “A” 5983.
6.5.4.	“A”	2241 IV 4.	4.3. According to Comm. “A” 5983.
6.5.4.1.	“A”	2241 IV 4.	4.3.1.
6.5.4.2.	“A”	2241 IV 4.	4.3.2.

3.1. Included Concepts

The following accounting items are covered:

Public and private securities.
Loans.
Other credits by financial intermediation.

Accrued amounts arising from settlement mismatches of spot, forward, repurchase, and securities‑backed repurchase operations will be counted even if, due to the registration method used, they are not reflected in the accounting balances.

Credits from financial leases.
Participations in other companies.
Various credits.
Off‑balance‑sheet items:
- Financial Entities – Re‑discounted documents.
- Agreed credits (current‑account advances, documentary credits and others).
- Guarantees granted on deferred‑payment checks and other guarantees.
- Liabilities from foreign‑trade operations.
Purchases and sales for future delivery, swaps, options and other derivatives, as established in Section 4 of the rules on “Credit Risk Segmentation”, without prejudice to the counting of accrued amounts from settlement mismatches that occur.

In addition, the following operations will be considered:

Financing, in all its modalities, granted by and/or through foreign banks over which the local entity exercises control under the terms provided in point 2.2.1 of the rules on “Credit Risk Segmentation” and that are not subject to consolidated supervision, when they correspond to financing lines assigned to them by the local financial entity.
Liabilities in favor of the entity arising from financial intermediation operations – such as acceptances, repurchases and forward sales.

PUBLIC NON‑FINANCIAL SECTOR FINANCING – B.C.R.A.

Section 3. Operations Covered

Version: 4a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

Financing, in all its modalities, granted by the parent company or foreign bank that controls the local financial entity under the terms provided in point 2.2.1 of the rules on “Credit Risk Segmentation”, or by its branches in other countries, when they correspond to financing lines assigned to them by the local financial entity.

3.2. Excluded Concepts

Holding of national public securities.
Opening of import documentary credits.
Guarantees for the payment of local taxes in foreign‑trade operations, provided they only represent a contingent liability.
Subscription of debt instruments issued by trusts created under Law 24.441 or public‑guarantee funds for infrastructure projects of the Wholesale Electricity Market (MEM), to the extent that:
- They have a public offering authorized according to Law 26.831.
- They were created to finance infrastructure works of the MEM, declared by the competent authority as of public interest and/or critical.
- The repayment of such debt instruments is guaranteed by the assignment or pledge of the receivable rights arising from electricity sale contracts in the forward supply market where the MEM administrator is obliged to pay, provided that:
  i) The works being financed are at least 75 % completed. ii) When condition (i) is met and the works to be completed are not yet authorized for commercial exploitation by the competent authority, a guarantee fund for repayment of the trust’s financial services must exist, funded with at least 120 % of the amount of the financial assistance services and/or the debt instruments issued by the financing trust or fiduciary fund for the construction of the works, until the works obtain commercial operation.
- The supply contracts have been subscribed as buyer by the MEM administrator.

ORDERED TEXT ORIGINAL REGULATION (Continued)

Section	Point	Paragraph	Comm.
1.1.	“A”	3054 unique	1.1. According to Comm. “A” 4798, 4838 (point 12.) and 4937.
1.2.	“A”	4527	According to Comm. “A” 4581, 5154, 5243, 5301, “C” 51182 and “B” 9745.
2.1.	“A”	3054 unique	2.1. According to Comm. “A” 4937, 5062, 5154 and “B” 9745.
2.2.	“A”	3054 unique	2.2.
3.1.	“A”	3054 unique	3.1. According to Comm. “A” 5067.
3.1.3.	“A”	3054 unique	3.1.3. According to Comm. “A” 5067 and 5520.
3.1.7.	“A”	3054 unique	3.1.7. and 3.1.8. According to Comm. “A” 5067, 5520 and 6327.
3.1.8.	“A”	4725 2.	According to Comm. “A” 5520 and 6327.
3.1.9.	“A”	3054 unique	3.1.9. According to Comm. “A” 5520.
3.1.10.	“A”	6396 5.
3.1.11.	“A”	3054 unique	3.1.10. According to Comm. “A” 5520.
3.2.	“A”	3054 unique	3.2. According to Comm. “A” 4838 (point 10.), 4932 (points 1., 3. and 4.), 4937 (points 2. and 3.), 4996 (point 1.), 5015 (annex), 5062, 5069, 5125, 5368, 5393, 5521, 5671, 5740, 5991 and “B” 9745.
3.2.4.8.	“A”	4932 1.	According to Comm. “A” 4937 (point 3.), 5520 and “B” 9745.
3.2.4.10.	“A”	4937 unique	6. and 7. According to Comm. “A” 4996 (point 1.), 5015 (annex), 5520 and “B” 9745.
3.2.5.1.	“A”	5069 1.	According to Comm. “A” 5125, 5991 and 6035.
3.2.8.	“A”	5771 8.	According to Comm. “A” 5874.
3.2.9.	“A”	6337
4.1.1.	“A”	3054 unique	According to Comm. “A” 3548, 3911 (point 9. subsection c) and 6270.
4.1.1.1.	“A”	3054 unique	According to Comm. “A” 3911 (point 9., subsection b), 4798, 6270 and “B” 9745.
4.1.1.2.	“A”	4798	According to Comm. “A” 4947.
4.1.1.3.	“A”	4798
4.1.2.	“A”	3054 unique	According to Comm. “A” 4718, 6270 and “B” 9745.
4.1.3.	“A”	3054 unique	According to Comm. “A” 3144 and 5062.
4.1.4.	“A”	6270
5.1.	“A”	4838 1.	According to Comm. “A” 4926, 4937, 5062, 5671, 5740 and “B” 9745.
5.1.1.	“A”	4838 1.1.	According to Comm. “A” 4926, 4937 (point 4.) and “B” 9745.
5.1.2.	“A”	4838 1.2.	According to Comm. “A” 4926, 4937 (point 4.), 5015 and “B” 9745.

ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “PUBLIC NON‑FINANCIAL SECTOR FINANCING”

1.1. National, provincial or City of Buenos Aires public guarantee funds, constituted primarily with public contributions and whose exclusive purpose is to grant guarantees to micro, small and medium enterprises (MiPyMEs) – for operations linked to their productive process and/or working capital – and/or to reciprocal guarantee societies (SGR) and/or to public‑character guarantee funds registered in the corresponding open registers of the Superintendency of Financial and Currency Entities (SEFyC), wishing that the guarantees they grant for financing by financial entities enjoy the status of preferred guarantee, must apply for registration with the Central Bank of the Argentine Republic (BCRA).

1.2. Registration shall be made in the appropriate Register enabled in the SEFyC. For the registration to be considered, public‑character guarantee funds must provide, at a minimum, the following documentation:

i) Regulation that established the creation of the fund.
ii) List of contributors or members, detailing percentage participation.
iii) List of members of the administration and control bodies.
iv) Latest financial or accounting statements –as applicable– certified by a public accountant.
v) Certified photocopy by a public notary of the fund’s statutes.
vi) Information on the available risk fund, detailing:
- a) Guarantees granted to MiPyMEs, indicating company name, tax ID (CUIT) and amount.
- b) Securities in which the fund is invested and the financial entities that hold the corresponding investments in custody.

1.3. Public‑character guarantee funds registered in the appropriate Register will be subject to BCRA supervision regarding compliance with these provisions, without prejudice to oversight of management and operation by the competent applying authority according to the scope and jurisdiction of their creation.

PUBLIC‑CHARACTER GUARANTEE FUNDS – B.C.R.A.

Section 1. Registration with the Central Bank

Version: 3a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

2.1.4. Determination of the Limit

For the purpose of determining the limits referred to in points 2.1.1 and 2.1.2, the guarantees granted to MiPyMEs, net of minimum provisions for uncollectibility risk, shall be counted. In addition, from the available risk fund the minimum provisions for uncollectibility risk and the investments that do not meet any of the requirements or maximum caps provided in point 2.2 shall be deducted.

Guarantees granted must be irrevocable and, in all cases, payable in cash for a fixed and determined sum.

2.2. Available Risk Fund

It is the amount allocated to cover the guarantees that are granted and must be invested according to the options and conditions set out in point 2.2.1.

2.2.1. Investment

The risk fund intended to cover the granted guarantees shall be invested in the following options and under the conditions detailed below:

i) Monetary regulation instruments of the BCRA that have normal and regular quotation for significant amounts in domestic markets, up to one hundred percent (100 %).
ii) National public securities, up to fifty percent (50 %).
iii) Provincial public securities and those of the City of Buenos Aires or letters issued for up to 180 days by those jurisdictions, up to thirty percent (30 %).
iv) Government‑guaranteed loans issued under Decree No. 1387/01, up to five percent (5 %).
v) Shares of national corporations whose public offering is authorized by the National Securities Commission and that have normal and regular quotation for significant amounts in domestic markets, up to ten percent (10 %).
vi) Fixed‑term deposits and term investments referred to in Sections 1 and 2 of the rules on “Deposits and Term Investments”, in pesos or foreign currency, up to one hundred percent (100 %), without exceeding twenty‑five percent (25 %) per financial entity.

2.2.2. Additional Investment Options (Section 2 – Requirements)

vii) Sight deposits, in pesos or foreign currency, in local financial entities, up to ten percent (10 %).
viii) Deposits in the brokerage account of securities agents registered with the National Securities Commission – for the purpose of conducting transactions, for up to five (5) business days – up to ten percent (10 %).
ix) Negotiable obligations, provided they are not issued to subjects whose debts are guaranteed by the public‑character guarantee fund, authorized for public offering by the National Securities Commission and debt‑representative securities (VRD) of financial trusts constituted under article 19 of Law 24.441 that aim to finance the execution of works and/or services linked to infrastructure projects referred to in Section 5 of the rules on “Financing of the public non‑financial sector”, up to five percent (5 %).
x) Units of mutual funds authorized by the National Securities Commission, whose portfolio consists of local assets and whose redemption occurs within 72 business hours, up to ten percent (10 %).

Sight and term deposits must be made in commercial banks that are custodians of securities representing investments of the Sustainability Guarantee Fund (FGS) of the Argentine Integrated Pension System or in financial entities controlled by the jurisdiction that holds the majority contribution in the public‑character guarantee fund and insofar as that jurisdiction explicitly guarantees the operations and/or liabilities of the financial entity.

Public securities and BCRA monetary regulation instruments, as well as government‑guaranteed loans and the shares that compose the available risk fund, shall be valued according to the “fair market value” criterion.

Instruments referred to in items ii) and iii) – except those issued as letters – and ix) – except VRD – must have a market value derived from daily quotations of relevant transactions and must not be significantly distorted by a possible liquidation of holdings.

Instruments issued by the same private issuer – without considering fixed‑term certificates – must not exceed ten percent (10 %) of the available risk fund.

Investments must be made ensuring adequate liquidity consistent with the maturity dates of the granted guarantees. Accordingly, on the last business day of each month, a minimum liquidity level equivalent to twenty‑five percent (25 %) of the maturities expected for the following month must be maintained.

PUBLIC‑CHARACTER GUARANTEE FUNDS – B.C.R.A.

Section 2. Requirements

Version: 4a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

2.2.2. Custody

Investments must be kept in custody at one of the banks authorized to perform that function for the investments of the Sustainability Guarantee Fund (FGS) of the Argentine Integrated Pension System or in financial entities that are financial agents of the jurisdictions controlling the public‑character guarantee fund. In the latter case, the jurisdiction must explicitly guarantee the liabilities of the financial entity.

2.3. Individual Limit

The total guarantees granted to each MiPyME may not exceed five percent (5 %) of the available risk fund at the time of granting, calculated according to point 2.1, or the equivalent of 3.3 times the reference amount established in point 2.9 – whichever is lower. This latter amount will be equivalent to 2.4 times the amount established in point 2.9 until the first special external auditor report and the informational regime – as provided in point 2.7 – verify compliance with the established conditions.

These amounts shall not apply when guarantees operate over issuances of debt instruments of companies offered to the market under the legal public offering regime.

For the purpose of determining the individual limit, economic groups shall be considered as a single client.

2.4. Prohibition

Guarantees may not be granted to contributors or members linked to the public‑character guarantee fund, taking into account the provisions of point 2.2 of the rules on “Credit Risk Segmentation”.

2.5. Encumbrances

The assets of the available risk fund may not be pledged or encumbered with real rights.

ORDERED TEXT ORIGINAL REGULATION (Further)

Section	Point	Paragraph	Comm.
1.1.	“A”	5275	According to Comm. “A” 6183.
1.2.	“A”	5275	According to Comm. “A” 6327.
1.3.	“A”	5275
2.1.	“A”	5275
2.1.1.	“A”	5275	According to Comm. “A” 6383
2.1.2.	“A”	5275	According to Comm. “A” 6383
2.1.3.	“A”	5275
2.1.4.	“A”	5275	According to Comm. “A” 6383
2.2.	“A”	5275	According to Comm. “A” 6327.
2.3.	“A”	5275	According to Comm. “A” 5637, 5998 and 6383.
2.4.	“A”	5275	According to Comm. “A” 5520.
2.5.	“A”	5275
2.6.	“A”	5275
2.7.	“A”	5275	According to Comm. “A” 5998 and 6383.
2.8.	“A”	5275
2.9.	“A”	5998 1.
3.	“A”	5275

INDEX

Section 1. Allocation of Financing

General criterion.
Financing covered by certain preferred guarantees “A”.
Financing guaranteed by reciprocal guarantee societies or public‑character guarantee funds and other credit exposures with those counterparties.
Financing covered by export‑credit insurance.
Financing with tax co‑participation guarantee.
Financing incorporated by transfer without liability.
Financing incorporated concerning related persons.
Financing guaranteed by persons other than the borrowers.
Accrued amounts concerning asset portfolios.

Section 2. Client Classes

General criterion.
Persons related to the financial entity.
Economic groups.
Non‑financial public sector of the country.
Financial entities.
Foreign banks.

Section 3. Financing Covered

Included concepts.
Exclusions.

Section 4. Computation of Financing

General criterion.
Public securities with normal and regular quotation for significant amounts in domestic markets.
Forward transactions, swaps, options and other derivatives.
Guarantees of financing.
Syndicated loans.
Financing to trusts or public fiduciary funds.
Granting of new financing.

Section 5. Credit Margins

Observance.
Scope of application.
Maximum limits.

ORDERED TEXT OF THE RULES ON “CREDIT RISK SEGMENTATION”

Version: 3a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

vii) Exceptionally, any company or person that has a relationship with the financial entity or its direct or indirect controller, which could result in patrimonial damage to the financial entity, from the effective date of the resolution determining so by the Board of the Central Bank of the Argentine Republic (BCRA), upon proposal of the Superintendent of Financial and Currency Entities.

2.2.1.2. Control Definition

Control by a company or person over another is deemed to exist if any of the following conditions is met:

i) The company or person, directly or indirectly, owns or controls 25 % or more of the total voting rights of any voting instrument in the other company.

ii) The company or person, directly or indirectly, has 50 % or more of the total votes of voting instruments in assemblies or meetings where directors or similar persons are elected in the other company.

iii) The company or person, directly or indirectly, holds participation in the other company by any title, even if its votes are below the threshold in (i), sufficient to obtain the votes needed to form the corporate will in shareholders’ meetings or to adopt decisions in board or similar meetings.

iv) The company or person, directly or indirectly, exerts controlling influence over the direction and/or policies of the other company, from the effective date of the resolution determining so by the BCRA Board, upon proposal of the Superintendent of Financial and Currency Entities.

Guidelines that may indicate controlling influence include, among others:

a) Ownership of a percentage of the company’s capital that provides the votes necessary to influence the approval of financial statements and the distribution of profits, taking into account the distribution of the remaining capital.

b) Representation on the board or senior administrative bodies of the company, also considering any agreements, circumstances or situations that could grant direction to a minority group.

c) Participation in setting the company’s corporate policies.

d) Existence of significant operations with the company.

e) Exchange of senior personnel with the company.

CREDIT RISK SEGMENTATION – B.C.R.A.

Section 2. Client Classes

Version: 2a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

3.1. Included Concepts

The operations listed in the accounting items indicated later are subject to the maximum limits established in Section 5, even if future accounting standard changes cause them to be presented differently. These operations will be counted regardless of the source of funds to which they may be attributed, as well as regardless of compliance with the "Credit Policy" rules or other applicable provisions, and, unless expressly excluded, even when they are deducted to determine computable patrimonial responsibility.

Operations that are part of asset portfolios (mutual funds, financial or ordinary trusts, etc.) for which receivables are recorded (quota‑parts, debt securities, participation certificates, etc.) are also included, and will be attributed according to the criteria set out in point 1.9. Assets of guarantee trusts, where the entity is the beneficiary as coverage for financing granted by it, are excluded.

3.1.1. Cash and bank deposits:

3.1.1.1. Current accounts in local financial entities and foreign banks.
3.1.1.2. Correspondent accounts and other sight‑deposit accounts in local financial entities and foreign banks.

3.1.2. Public and private securities.

3.1.3. Loans.

3.1.4. Other credits by financial intermediation.

Receivables arising from settlement mismatches of spot, term, repurchase and securities repo operations will be counted even if, due to the registration method used, they are not reflected in the accounting balances.

3.1.5. Credits from financial leasing.

3.1.6. Participations in other companies.

3.1.7. Various credits:

3.1.7.1. Advance fees to directors and auditors.
3.1.7.2. Advances and loans to staff.
3.1.7.3. Credits from the sale of goods.
3.1.7.4. Various debtors.

FRACCIONAMIENTO DEL RIESGO CREDITICIO B.C.R.A. Section 3. Financing Included. Version: 2a. COMMUNICATION “A” 6428 Effective Date: 01/01/2018

3.1.8. Off‑balance‑sheet items:

3.1.8.1. Financial entities – Re‑discounted documents.
3.1.8.2. Received guarantees. Only preferred guarantees covered in point 1.8.2.
3.1.8.3. Credits to customers classified as “unrecoverable”.
3.1.8.4. Advances on current accounts agreed, credits agreed to local entities, documentary credits and other agreed credits.
3.1.8.5. Commitments for financing and correspondent lines.
3.1.8.6. Guarantees granted on deferred‑payment checks and other guarantees granted.
3.1.8.7. Liabilities for foreign‑trade operations.

3.1.9. Purchases and sales on term, swaps, options and other derivatives, as established in point 4.3., without prejudice to the counting of receivables from settlement mismatches that occur.

In addition, the following operations will be counted:

3.1.10. Financing, in all its modalities, granted by foreign banks controlled by the local financial entity, up to the amount of resources provided to them by the local entity through financing, placements or other modalities, in addition to capital participation.
3.1.11. Financing, in all its modalities, granted by the parent company or the controlling foreign bank of the local financial entity, or by its branches or subsidiary financial entities, up to the amount of resources provided to them by the local entity through financing, placements or other modalities.
3.1.12. Liabilities in favor of the entity for financial intermediation operations – such as acceptances, repos and forward sales.

3.2. Exclusions

3.2.1. General.

3.2.1.1. Accounts counted for the integration of minimum cash.
3.2.1.2. Balances in sight‑deposit accounts in foreign banks that, on a temporary and circumstantial basis, arise from client operations (for example, those linked to the settlement of foreign‑trade operations or other types of credits ordered by third parties, without patrimonial responsibility for the entity).

FRACCIONAMIENTO DEL RIESGO CREDITICIO B.C.R.A. Section 3. Financing Included. Version: 2a. COMMUNICATION “A” 6428 Effective Date: 01/01/2018

In cases of securities‑backed loans, the quotation of the corresponding security at the close of the day of financing grant shall be applied.

4.2. Public securities that have normal and regular quotation for significant amounts in domestic markets.

Regardless of the form of their accounting registration/valuation, they will be counted by their joint net position, resulting from the algebraic sum of the following assets and liabilities (signs are shown in parentheses):

holdings (+)
spot purchases to be settled and term purchases (linked or not to repos) (+)
valuation differences for term purchases due to repos of holdings valued at cost plus yield (+)
spot sales to be settled and term sales (linked or not to repos) (-)
loans (+)
deposits (-)
inter‑financial obligations (-)

Spot sales to be settled and term sales (linked or not to repos) and deposits are countable up to the amount of assets recorded in the books at market value, so any excess cannot affect the net position of the public securities valued according to other criteria.

Sales to be settled and term sales (not linked to repos) arranged with foreign banks that are the parent company or controller of the local entity, or their branches and subsidiaries, or controlled by the local entity, or with other related natural or legal persons, as well as with foreign branches of the local entity, are not countable.

Consequently, new operations with the indicated public securities may only be carried out if, when daily net position is computed, the corresponding maximum limits are not exceeded or, where applicable, the admitted excesses are not increased.

FRACCIONAMIENTO DEL RIESGO CREDITICIO B.C.R.A. Section 4. Computation of Financing. Version: 3a. COMMUNICATION “A” 6428 Effective Date: 01/01/2018

In cases of term and futures operations, swaps and options, the notional value of the following underlying assets will be:

a) Foreign currency: its amount, converted to pesos on the valuation date.

b) Securities: the market value of the respective security, converted to pesos as appropriate, on the valuation date.

c) Interest rates or CER: the contract reference capital, converted to pesos as appropriate, on the valuation date.

For amortizable underlying assets during the contract’s life, the notional value must be reduced on amortization dates in proportion to the amount amortized.

G: Guarantees.
Guarantees may be counted for each operation according to the rules governing the respective domestic or foreign market with a central counter‑party, and/or those deposited in domestic financial entities and/or registered or custodial by agents admitted under point 8.4.1.3 of the "Minimum Capital of Financial Entities" regulations. The concept must not be used for repo operations.

4.3.2. Value at Risk.

4.3.2.1. For term (forwards) and futures operations, and purchase or sale options, of the following assets:

i) Shares that have normal and regular quotation for significant amounts in domestic markets and indices on those shares.

ii) Monetary regulation instruments of the BCRA and public securities that have normal and regular quotation for significant amounts in domestic markets.

iii) US dollars, euros, British pounds, yen and Brazilian reais.

iv) Basic commodities with regular quotation in the markets, arising daily from relevant transactions whose amount is such that the eventual liquidation of the assets involved cannot significantly distort their market value.

The requirement of having normal and regular quotation for significant amounts in domestic markets must be met at the time the operation is concluded.

VaR for forwards and futures:

```
VaR = max (5%; 2.32 × σ × t)
```

FRACCIONAMIENTO DEL RIESGO CREDITICIO B.C.R.A. Section 4. Computation of Financing. Version: 2a. COMMUNICATION “A” 6428 Effective Date: 01/01/2018

VaR for purchase or sale options:

```
VaR = max [5%; 2.32 × σ × t × |delta| + gamma × (2.32 × σ × t)^2 × VN / 2] ``` where

σ: daily volatility, equal to the standard deviation of the return of the last 504 daily quotations, or, in its absence, of the existing quotations. Values must be updated at the beginning of each calendar month.
t: number of business days between the computation date and the valuation date based on market prices of the derivative contract and settlement of differences in favor of either counter‑party, in order to bring the contract value to zero. If this mechanism is not foreseen, it coincides with the time to contract maturity.
delta: coefficient expressing the change in the option price for a one‑peso change in the underlying asset price.
gamma: coefficient expressing the change in the delta coefficient for a one‑peso change in the underlying asset price.

4.3.2.2. For forwards and futures of BADLAR (private banks), other rates published by the BCRA, LIBOR and CER:

```
VaR = max [3%; A × (T2 - T1) × t]
``` where

A: weighting factor that depends on the daily volatility of the reference indicator, according to the following table:

Rate or Index	A (in %)
BADLAR (private banks)	0.0035
Other rates published by the BCRA	0.0060
LIBOR	0.0010
CER	0.0005

The period must be at least 30 days.

T1: waiting period, in business days.

FRACCIONAMIENTO DEL RIESGO CREDITICIO B.C.R.A. Section 4. Computation of Financing. Version: 3a. COMMUNICATION “A” 6428 Effective Date: 01/01/2018

T2: period until contract maturity, in business days.
t: number of business days between the computation date and the valuation date based on market prices of the derivative contract and settlement of differences in favor of either counter‑party, in order to bring the contract value to zero. If this mechanism is not foreseen, it coincides with T1.

4.3.2.3. For interest‑rate, currency and CER swaps:

```
VaR = max [5%; B × t]
``` where

B: weighting factor that depends on the daily volatility of the underlying asset, according to the following table:

Currency / Rate / Index	B (in %)
US dollar – peso, with principal exchange	0.60
US dollar – peso, without principal exchange	0.20
Fixed rate – BADLAR (private banks)	0.40
Fixed rate – LIBOR	0.07
Fixed rate – CER	0.01
Other	0.80

"Other" includes only the combination of rates published by the BCRA (for term deposits, BADLAR and BAIBAR) or any combination of them with those listed above, and US dollars, euros, British pounds, yen and reais.

The rates must correspond to a period of at least 30 days.

t: number of business days between the computation date and the valuation date based on market prices of the derivative contract and settlement of differences in favor of either counter‑party, in order to bring the contract value to zero. If this mechanism is not foreseen, it coincides with the time to contract maturity.

4.3.2.4. For other derivatives on assets that have normal and regular quotation for significant amounts in domestic markets, rates published by the Institution (for term deposits, BADLAR and BAIBAR) and US dollars, euros, British pounds, yen and reais:

```
VaR = 7% + C × t
```

FRACCIONAMIENTO DEL RIESGO CREDITICIO B.C.R.A. Section 4. Computation of Financing. Version: 2a. COMMUNICATION “A” 6428 Effective Date: 01/01/2018

7.3.3.2. Limitations on Deposit Growth.

When the sum of the increases in minimum capital requirement due to credit‑risk exposure, resulting from breaches of the technical relationships that generate that consequence, exceeds 5 % of that requirement (excluding the increases) and while this situation persists, the total balance of deposits in national and foreign currency at the end of each month may not exceed the balance recorded at the end of the month in which the percentage was surpassed.

7.3.4. Accounting Exposure.

Breaches must be disclosed in the notes to the financial statements according to the criteria established in the respective standards.

7.3.5. Initiation of Summary Proceedings.

Summary proceedings will be initiated in accordance with the rules on the "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments".

7.4. Regularization and Sanitation Plans.

7.4.1. Presentation Requirement.

7.4.1.1. An entity that incurs breaches of the individual maximum limits for the same client or of the aggregate limits for three consecutive months or four alternating months within a twelve‑month period must submit a regularization and sanitation plan – unless previously required by the Superintendency of Financial and Currency Entities – within 30 calendar days after the month in which the breach that triggers the obligation occurred, based on the increase of computable patrimonial responsibility or on the elimination of recorded excesses.
7.4.1.2. If the Superintendency formulates observations on the submitted plan, the entity must adjust it in accordance with those observations within ten calendar days of notification.
7.4.1.3. Failure to submit the plan within the stipulated terms, its rejection, or non‑compliance will give rise to the application of the provisions foreseen in the rules on the "Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments".

7.4.2. Limitations.

Dividends and other cash remunerations to capital, profit remittances, or payments of fees, participations or bonuses derived from the distribution of the entity’s results may not be distributed while the regularization and sanitation plan is pending presentation or, having been presented, has not been approved by the Superintendency of Financial and Currency Entities or is being breached.

FRACCIONAMIENTO DEL RIESGO CREDITICIO B.C.R.A. Section 7. Breaches. Version: 3a. COMMUNICATION “A” 6428 Effective Date: 01/01/2018

8.1. General Collection.

Financial entities must ensure that their credit portfolio, across the various financing modalities used, is diversified among as many persons or companies as possible and among different economic activities, in order to avoid concentration risk arising from operations with a limited set of persons or companies or that refer to a specific sector, which could significantly jeopardize the entities’ patrimony.

8.2. Financing Portfolio to the Non‑Financial Public Sector of the Country.

The monthly average of daily balances of the financing portfolio covered in Section 3, granted to holders of the non‑financial public sector of the country (national, provincial, Autonomous City of Buenos Aires and municipal), excluding the BCRA, may not exceed 35 % of the total asset balance on the last day of the previous month.

Public securities that have normal and regular quotation for significant amounts in domestic markets and financing to public trusts or fiduciary funds will be counted according to the criteria established in points 4.2 and 4.6, respectively.

Financing will be counted by capital, interest, premiums, adjustments for the Reference Stabilization Coefficient ("CER") and quotation differences, as appropriate, net of provisions for uncollectibility risk, devaluation, valuation fluctuation and other accounting regularizations.

Excesses over this maximum limit will be subject to the treatment established in Section 7.

FRACCIONAMIENTO DEL RIESGO CREDITICIO B.C.R.A. Section 8. Distribution of the Credit Portfolio. Version: 2a. COMMUNICATION “A” 6428 Effective Date: 01/01/2018

11.1. Accepted Breaches Regarding the Public Sector.

Excesses over the maximum limits applicable to non‑financial public sector holders, both individual and concerning risk concentration, will be considered accepted in the following cases:

11.1.1. Excesses corresponding to operations existing before 31‑03‑2003, including bonds issued pursuant to Decree No 1735/04 received in exchange for pre‑existing securities eligible within the Argentine debt restructuring, provided they were generated exclusively by the application of the caps and computation conditions governing financing since April 2003. To determine the status of relationships as of 31‑03‑2003, financing must be counted at nominal values or the amounts actually disbursed, adjusted, where appropriate, by the "Reference Stabilization Coefficient" ("CER") or exchange‑rate variation. National public securities with normal and regular quotation for significant amounts in domestic markets will be counted according to point 4.2.
11.1.2. Excesses determined or increased by the receipt of:
- 11.1.2.1. Bonds or promissory notes as compensation, pursuant to Articles 28 and 29 of Decree 905/02 and Chapter II of Law 25.796 (Annex II to Decree 117/04), or those eventually received under other specific provisions after 31‑03‑2003, derived from Law 25.561 of Public Emergency and Exchange‑Rate Regime Reform.
- 11.1.2.2. Bonds issued within the Mortgage Refinancing System established by Law 25.798.
11.1.3. When prior breaches covered in 11.1.1 or 11.1.2 are recorded, excesses corresponding exclusively to new financing granted with funds originating from the perception of capital‑amortization services, including, where applicable, adjustments for the "Reference Stabilization Coefficient" ("CER") or foreign‑exchange quotation differences, without prejudice to the observance of the procedure established for granting financing to non‑financial public sector holders.

Amounts applied to the primary subscription of national government debt securities up to 180 calendar days before the amortization‑service due date are included, provided they correspond to amounts to be received.

This period extends to 180 days, up to 360 days after the subscription date of debt instruments received by exchange, payment in kind or swap, for operations arranged from 01‑01‑2009 under the specific provisions of the competent authority.

FRACCIONAMIENTO DEL RIESGO CREDITICIO B.C.R.A. Section 11. Transitional Provisions. Version: 2a. COMMUNICATION “A” 6428 Effective Date: 01/01/2018

In such case, new financing operations to the non‑financial public sector arising from the cited provisions that may be granted within 180 days after the subscription date of those instruments may not exceed the amount of capital‑amortization services whose maturity would have occurred during the 360 days following that same date, provided the pre‑existing debt instruments exchanged, paid in kind or swapped were maintained, or the amount of amortizations collected and not reinvested corresponding to all public debt instruments covered during the additional 180 days resulting from the extension, whichever is lower.

To determine the amount of amortization due, for obligations adjusted by the "Reference Stabilization Coefficient" ("CER"), the latest announced value shall be applied without exceeding the value of the day to be used according to the conditions set for those obligations. For foreign‑currency obligations, for eventual application to the subscription of peso‑denominated securities, the reference exchange rate for US dollars published by the BCRA on the day prior to the subscription offer formulation will be used.

The application of funds originating from capital‑amortization services performed within 180 calendar days after the due date is also included, with inclusion of primary subscription and secondary‑market acquisitions of securities and other financing. When services are paid in foreign currency and applied to peso operations, conversion will use the reference US‑dollar exchange rate of the day prior to the operation date.

Regarding compensation‑service bonds pursuant to Articles 28 and 29 of Decree 905/02, whose accreditation is pending or was made after maturity, the period may be computed from the effective cash collection date.

However, if limits are exceeded due to a reduction of computable patrimonial responsibility relative to that recorded on 31‑03‑2003, financing may not be agreed until the situation is restored at least to that date, counting, where appropriate, the effect of the "Reference Stabilization Coefficient" ("CER") or exchange‑rate variation.

11.1.4. When prior breaches covered in points 11.1.1, 11.1.2 or 11.1.3 are recorded, excesses corresponding to purchase or intermediation operations of national public securities that have normal and regular quotation for significant amounts in domestic markets, carried out with allocation to the margin determined according to the following provisions:
- 11.1.4.1. Margin Generation.
  The margin will be constituted on any day of each month with the total or partial indistinct affectation of the following amounts:

FRACCIONAMIENTO DEL RIESGO CREDITICIO
B.C.R.A.
Section 11. Transitional Provisions.
Version: 3a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

Credit Risk Segmentation

Section 11. Transitional Provisions

Version: 2a. COMMUNICATION “A” 6428

Effective date: 01/01/2018

i) Realization value of non‑financial public‑sector assets included according to Section 3. Amounts not included in the pertinent margin information may not be used later.

ii) Fair market value of holdings of national public securities that have normal and regular quotation for significant amounts in the country's markets, according to their closing price on the day prior to the margin allocation. Holdings not included in the pertinent margin information may not be allocated later.

iii) Collections of amortisation services referred to in point 11.1.3. The amount of each service may be allocated within 180 days from its due date.

11.1.4.2. Magnitude of the margin

The margin shall be constituted as a proportion of the computable patrimonial responsibility of the last day of the month preceding the applicable month, in the percentage chosen by the entity, not exceeding 25 %.

The margin shall not be limited when holdings of national public securities in pesos, with a term equal to or greater than 5 years, fixed‑rate – without adjustment for the “Reference Stabilisation Coefficient” ("CER") – and issued from 1 June 2007 onward are allocated, provided this does not generate an increase of the admitted excesses.

11.1.4.3. Use of the margin

The constituted margin may be used in whole or in part without the latter case implying its reduction.

Holdings of national public securities allocated to the margin shall be computed at their market value and the total balance at the close of operations each day shall be compared with the amount resulting from applying the margin percentage constituted to the computable patrimonial responsibility of the previous month, in order to verify compliance with the limit.

11.1.4.4. Computation of the margin

For the purpose of determining the state of the relationships on credit‑risk segmentation and the consequent observance of the admitted excesses, the amount of the declared margin – used or not – shall be taken into account together with the other computable assets.

11.1.4.5. Non‑observance of the margin

Non‑observance of the margin shall be treated as provided in Section 7 for excesses over the maximum limits on credit‑risk segmentation.

Credit Risk Segmentation – B.C.R.A.

Section 11. Transitional Provisions

Ordered Text Source Norm

Sec.	Point	Para.	Comm.
1° “A”	2140 I	1.2.	1° According to Comm. “A” 5472.
i) “A”	2140 I	1.2.1.
ii) “A”	2140 I	1.2.2. According to Comm. “A” 5472.
iii) “A”	2140 I	1.2.3.
iv), a) f) “A”	2140 I	1.2.4. Includes interpretative clarification. According to Comm. “A” 5472 and 6327.
iv), g) “A”	5472
2° “A”	5472
2.2.1.2.
last “A”	5472
2.2.1.3. “A”	5472
2.2.1.4. “A”	2140 I	3.3. According to Comm. “A” 2829 (point 2.) and 5472.
2.2.2. “A”	49 OPRAC‑1 I 4.2. According to Comm. “A” 5472.
1° “A”	49 OPRAC‑1 I 4.2.1. 1° According to Comm. “A” 5472.
i) “A”	49 OPRAC‑1 I 4.2.1. 1°
ii) “A”	5472
iii) “A”	5472
iv) “A”	49 OPRAC‑1 I 4.2.1. 1° According to Comm. “A” 5472.
v) “A”	49 OPRAC‑1 I 4.2.1. 1°
2° “A”	615 4. According to Comm. “A” 5472.
2.2.2.1. last Includes criterion not disclosed generally beforehand. According to Comm. “A” 5472 and 5996.
1° “A”	49 OPRAC‑1 I 4.2.2. According to Comm. “A” 5472.
i) “A”	5472
ii) “A”	49 OPRAC‑1 I 4.2.2.2. According to Comm. “A” 5472.
2.2.2.2.
iii) “A”	49 OPRAC‑1 I 4.2.2.1. According to Comm. “A” 5472.
2.2.3. “A”	49 OPRAC‑1 I 4.2.1. 2°
2.2.4. “A”	2573 1. 9°y 11° According to Comm. “A” 5472.
2.3.1. 1° “A”	2140 I 1.4. last R.F. 1373 unique 5.
1° “A”	2140 I 2.3. According to Comm. “A” 3129.
“A”	2140 II 3.7.
2° R.F.	1373 unique 1. According to Comm. “A” 5472.
2.
2.3.2. last “A”	3129

Credit Risk Segmentation – Ordered Text Source Norm (continued)

Sec.	Point	Para.	Comm.	Annex	Cap.	Sec.	Point	Para.
1° “A”	3054 unique 1.1. According to Comm. “A” 3911 (point 7.) and 4230 (point 2.).
2° “A”	4798 1. According to Comm. “A” 4838 (point 12.) and 4937 (point 1.).
2.4. last “A”	4527 According to Comm. “A” 4581, “B” 9745, “A” 5243, 5301 and 5472.
2.5. 1° “A”	2140 II 3.5. 1° last “A” 2150 5.
2.
2.6. “A”	5472 Includes normative interpretation of 14.1.99.
1° “A”	2140 I 1.3. 1° “A” 2140 II 1. 1° Includes clarification. According to Comm. “A” 5472.
2° “A”	5472
3.1. last “A”	5472
3.1.1. “A”	2140 II 3.5. and 3.6. 1° According to Comm. “A” 6327.
3.1.1.1. “A”	2140 II 3.5. and 3.6. 1°
3.1.1.2. “A”	2140 II 3.5. and 3.6. 1°
3.1.2. “A”	2150 1. According to Comm. “A” 3911 (point 6.), 4084 (point 6.) and 5472. Includes interpretative clarification.
3.1.3. “A”	2140 I 1.3.1. “A” 2140 II 1.1.
1° “A”	2140 I 1.3.2. “A” 2140 II 1.2.
3.1.4. last “A”	2140 12. 1° and 2° According to Comm. “A” 5472.
3.1.5. “A”	2140 I 1.3.3. “A” 2140 II 1.3. According to Comm. “A” 5472.
3.1.6. “A”	2140 I 1.3.4. “A” 2140 II 1.4.
3.1.7.1. “A”	2140 I 1.3.5. “A” 2140 II 1.5. According to Comm. “A” 5472.
3.1.7.2. “A”	2140 I 1.3.5. “A” 2140 II 1.5. According to Comm. “A” 5472.
3.1.7.3. “A”	2140 I 1.3.5. “A” 2140 II 1.5. According to Comm. “A” 5472.
3.1.7.4. “A”	2140 I 1.3.5. “A” 2140 II 1.5. According to Comm. “A” 5472.
3.1.8. “A”	2140 I 1.3.6. “A” 2140 II 1.6. According to Comm. “A” 5472 and 6327.
3.1.8.1. “A”	2140 I 1.3.6. “A” 2140 II 1.6. According to Comm. “A” 5472.
3.1.8.2. “A”	2140 II 3.2. 2° According to Comm. “A” 5472.
3.
3.1.8.3. “A”	2357 antepenultimate According to Comm. “A” 5472.

Credit Risk Segmentation – Ordered Text Source Norm (continued)

Sec.	Point	Para.	Comm.	Annex	Cap.	Sec.	Point	Para.
3.1.8.4. “A”	2140 I 1.3.6. “A” 2140 II 1.6. According to Comm. “A” 5472.
3.1.8.5. “A”	2140 I 1.3.6. “A” 2140 II 1.6. According to Comm. “A” 5472.
3.1.8.6. “A”	2140 I 1.3.6. "A" 2140 II 1.6. According to Comm. “A” 5472.
3.1.8.7. “A”	2140 I 1.3.6. "A" 2140 II 1.6. According to Comm. “A” 5472.
3.1.9. “A”	4725 2. Includes interpretative clarification. According to Comm. “A” 5472 and 6327.
3.1.10. “A”	2140 I 1.3.7. "A" 2140 II 1.7. Includes interpretative clarification. According to Comm. “A” 5472.
3.1.11. "A"	2140 I 1.3.8. "A" 2140 II 1.8. Includes interpretative clarification. According to Comm. “A” 5472.
3.1.12. "A"	6396 6.
3.2.1.1. "A"	2140 II 3.5. and 3.6. 1°
3.2.1.2. "A"	2140 II 3.6. last According to Comm. “A” 5472.
3.2.1.3. "A"	2140 II 4.5. According to Comm. “A” 2150 (point 1.), 3911 (point 6.), 4084 (point 6.), "B" 9186 and "A" 5472.
3.2.1.4. "A"	2140 II 4.3. last According to Comm. “A” 2829 (point 5.) and 5472. Includes interpretative clarification.
3.2.1.5. "A"	2140 II 4.3. According to Comm. “A” 2829 (point 5.), 5472, 5671 and 5740. Includes interpretative clarification.
3.2.1.6. "A"	5472
3.2.1.7. "A"	5472
3.2.1.8. "A"	2140 II 4.1. According to Comm. “A” 5472.
3.2.1.9. "A"	5472
3.2.1.10. "A"	2140 12. 3° According to Comm. “A” 4725 (point 2.) and 5472.
3.2.1.11. "A"	3314 10.
3.2.1.12. "A"	5472
3.2.1.13. "A"	3068 According to Comm. “A” 5472.
3.2.1.14. "A"	5472
3.2.1.15. "A"	5472
3.2.1.16. "A"	5472
3.2.1.17. "A"	2736 2. According to Comm. “A” 5472 and 6149.
3.
3.2.1.18. "A"	5472

Credit Risk Segmentation – Ordered Text Source Norm (continued)

Sec.	Point	Para.	Comm.	Annex	Cap.	Sec.	Point	Para.
3.2.1.19. "A"	2412 According to Comm. “A” 3959, 5369 (Annex I, point 3.2.3.), 5671 and 5740. Includes interpretative clarification.
3.2.1.20. "A"	5496 According to Comm. “A” 5995.
4.1. "A"	414 LISOL‑1 II 4.
4.1.1. "A"	414 LISOL‑1 II 4.1. 1° and 2° Includes interpretative clarifications. According to Comm. “A” 5472.
4.1.2. "A"	414 LISOL‑1 II 4.2. Includes interpretative clarifications. According to Comm. “A” 5472.
4.1.3. "A"	5472
4.1.4. "A"	414 LISOL‑1 II 4.4. According to Comm. “A” 5472.
4.1.5. "A"	5472
4.1.6. "A"	414 LISOL‑1 II 4.3.
4.1.7. "A"	414 LISOL‑1 II 4.6.
4.1.8. "A"	5472
4.1.9. "A"	5472
4.2. "A"	4230 2. Includes interpretative clarification. According to Comm. “A” 5472, 6091 and 6327.
4.3.1. "A"	4725 2. According to Comm. “C” 50385 (point 1. a) and point 2.) and 50828 (point 1.) and "A" 5472. Includes interpretative clarification.
4.3.2. "A"	4725 2. According to Comm. “A” 5472.
4.3.2.1. "A"	4725 2. a), b) and ante‑last paragraph According to Comm. “A” 5472, 6091 and 6327.
4.3.2.2. "A"	4725 2. c) According to Comm. “B” 10185 and "A" 5472.
4.3.2.3. "A"	4725 2. d) According to Comm. “B” 10185 and "A" 5472.
4.3.2.4. "A"	4725 2. e) According to Comm. “A” 6327 and "B" 10185.
4.3.2.5. "A"	4725 2. f)
4.4. "A"	2140 II 3.2. 2°
4.5. "B"	5902 10. According to Comm. “A” 5013 and 5472.
4.
4.6. "A"	4937 unique 4. last According to Comm. “A” 4996 (point 1.), 5015 (Annex, point 4.) and 5472.

Credit Risk Segmentation – Ordered Text Source Norm (continued)

Sec.	Point	Para.	Comm.	Annex	Cap.	Sec.	Point	Para.
4.7.1. "A"	414 LISOL‑1 II 4.1. last According to Comm. “A” 5472.
4.7.2. "A"	414 LISOL‑1 II 4.1. last Includes interpretative clarification. According to Comm. “A” 5472.
5.1. "A"	2140 II 3. 1° According to Comm. “A” 5472.
5.2.1. "A"	2140 II 3. 1° According to Comm. “A” 5472.
5.2.2. "A"	2227 unique 5.2.2. According to Comm. “A” 5472.
i) "A"	3911 7. According to Comm. “A” 4230 (point 2.).
5.3.1.1.
ii) "A"	4838 4. According to Comm. “A” 4926 (point 1.), 4932 (point 3.), 4937 (Annex, point 4.), 4996 (point 1.) and 5015 (Annex, point 4.).
i) "A"	2140 II 3.1. and 3.2. According to Comm. “A” 5472.
ii) "A"	2410 3. According to Comm. “A” 5275 (point 10.) and 5472.
5.3.1.2.
iii) "A"	3314 10. According to Comm. “C” 32071.
i) "A"	2140 II 3.5. According to Comm. “A” 4972 (point 5.), 4975 (point 6.), 5193 and 5472.
ii) "A"	2140 II 3.5. According to Comm. “A” 4972 (point 5.), 4975 (point 6.), 5193 and 5472.
iii) "A"	2140 II 3.5. According to Comm. “A” 5193 and 5472.
iv) "A"	2140 II 3.5. According to Comm. “A” 5193 and 5472.
5.3.1.3.
v) "A"	4972 5. According to Comm. “A” 4975 (point 6.), 5193, 5472 and "B" 9763. Includes interpretative clarification.
i) "A"	2140 II 3.6.1. According to Comm. “A” 5472, 5671 and 5740.
5.3.1.4.
ii) "A"	2140 II 3.6.2. According to Comm. “A” 5671 and 5740.
i), a) "A"	3129 According to Comm. “A” 4972 (point 3.) and 5472.
i), b) "A"	3129 According to Comm. “A” 4817 (point 5.), 4972 (point 3.) and 5472.
i), c) "A"	3129 According to Comm. “A” 4972 (point 3.) and 5472.
i), d) "A"	3129 5.
5.3.2.1.
ii) "A"	2800 1. According to Comm. “A” 2829 (point 1.).

Credit Risk Segmentation – Ordered Text Source Norm (continued)

Sec.	Point	Para.	Comm.	Annex	Cap.	Sec.	Point	Para.
5.3.2.1. iii) "A"	4972 3. According to Comm. “A” 4975 (point 4.).
i), a) "A"	3129 According to Comm. “A” 4972 (point 4.) and 5700.
i), b) "A"	3129 According to Comm. “A” 4972 (point 4.) and 5472.
i), c) "A"	3129
ii), a) "A"	3129 According to Comm. “A” 4972 (point 4.), 5472 and 5700.
ii), b) "A"	3129 According to Comm. “A” 4972 (point 4.) and 5472.
ii), c) "A"	3129
iii), a) "A"	3129 According to Comm. “A” 4972 (point 4.) and 5472.
iii), b) "A"	3129
iv), a) "A"	2800 2.1. According to Comm. “A” 2829 (point 3.) and 3129.
iv), b) "A"	2800 1. According to Comm. “A” 2829 (point 1.).
5.3.2.2.
v) "A"	4972 4. According to Comm. “A” 4975 (point 5.).
i) "A"	3129 According to Comm. “B” 6725 and "A" 5472.
ii), a) "A"	2800 2.1. According to Comm. “A” 2829 (point 3.), 3129 and "B" 6725.
5.3.2.3.
ii), b) "A"	2800 1. According to Comm. “A” 2829 (point 1.).
i) "A"	3129 According to Comm. “B” 6725, "A" 5472, 5671 and 5740.
ii), a) "A"	2800 2.1. According to Comm. “A” 2829 (point 3.), 3129, 5671, 5740 and "B" 6725.
ii), b) "A"	2800 2.1. According to Comm. “A” 2829 (point 3.), 3129, 5671 and 5740.
5.3.2.4.
ii), c) "A"	2800 1. According to Comm. “A” 2829 (point 1.).
i) "A"	3129 According to Comm. “B” 6725 and "A" 5472.
ii), a) "A"	2800 2.1. According to Comm. “A” 2829 (point 3.) and 3129.
5.3.2.5.
ii), b) "A"	2800 1. According to Comm. “A” 2829 (point 1.).
i) "A"	2140 2. 1° According to Comm. “A” 2853, 5996 and 6106.
ii) "A"	5996 According to Comm. “A” 6106.
iii), a) "A"	2800 2.2. According to Comm. “A” 5996.
5.
5.3.3.
iii), b) "A"	2800 1. According to Comm. “A” 2829 (point 1.).

Credit Risk Segmentation – Ordered Text Source Norm (continued)

Sec.	Point	Para.	Comm.	Annex	Cap.	Sec.	Point	Para.
i), 1° "A"	2140 II 2.1. According to Comm. “A” 5472.
i), 2° "A"	2252 3. last According to Comm. “A” 5472.
ii), 1° "A"	2140 II 2.2. 1° According to Comm. “A” 5472.
ii), 2° "A"	2252 3. 1°
5.3.4.1.
iii) "A"	4838 5. According to Comm. “A” 4932 (point 3.), 4996 (point 1.), 5015 (Annex, point 5.) and 5472.
i) "A"	3911 7. According to Comm. “A” 4230 (point 2.).
ii) "A"	6270
iii) "A"	3911 7. According to Comm. “A” 4230 (point 2.).
5.3.4.2.
iv) "A"	4838 4. According to Comm. “A” 4926 (point 1.), 4932 (point 3.), 4937 (Annex, point 4.), 4996 (point 1.), 5015 (Annex, point 4.) and 5472.
5.3.4.3. "A"	3129 According to Comm. “A” 5472.
i) "A"	2140 II 3.3. According to Comm. “A” 2435 (point 2.), 2461 (point 6.), 5472 and 5496.
5.3.4.4.
ii) "A"	2140 II 3.4. According to Comm. “A” 5472, 5496, 5671 and 5740. Includes interpretative clarification.
5.3.4.5. "A"	4742 1. e)
5.3.5. "A"	2140 I 5. According to Comm. “A” 5472.
5.3.5.1. "A"	2140 I 5. According to Comm. “A” 5472 and 5671.
5.3.5.2. "A"	3901 II 1.1.
5.
5.3.6. "A"	5193 According to Comm. “A” 5472.
6.1. 1° "A"	2140 I 4. 1° "A" 2140 II 5. 1° According to Comm. “A” 2932 (points 9. and 11.).
6.1.1.1. "A"	5472
6.1.1.2. "A"	5472
6.1.1.3. "A"	2140 I 4.1. "A" 2140 II 5.1. According to Comm. “A” 2932 (points 9. and 11.).
6.1.1.4. "A"	2140 I 4.1. "A" 2140 II 5.1. According to Comm. “A” 2932 (points 9. and 11.).
6.1.1.5. "A"	2140 I 4.1. "A" 2140 II 5.1. According to Comm. “A” 2932 (points 9. and 11.).
6.1.1.6. "A"	2140 I 4.1. "A" 2140 II 5.1. According to Comm. “A” 2932 (points 9. and 11.).
6.1.1.7. "A"	5472
6.1.2. "A"	2140 I 4.2. "A" 2140 II 5.2. According to Comm. “A” 2932 (points 9. and 11.) and 5472.
6.1.2.1. "A"	5472
6.1.2.2. "A"	5472
6.
6.1.2.3. "A"	5472
6.1.2.4. "A"	5472
6.1.2.5. "A"	5472
6.2.1. "A"	2140 I 4.2. 1° According to Comm. “A” 2932 (point 9.).
6.2.2. "A"	2140 I 4.2. 1° According to Comm. “A” 2932 (point 9.), 3918 (point 3.), 5472 and 6162.
6.2.3. "A"	5472
6.3. "A"	2140 I 4. "A" 2140 II 5. According to Comm. “A” 2932 (points 9. and 11.) and 3911 (point 11.).
6.
6.4. "A"	4725 2. last
1° "A"	2140 I 6.1. "A" 2140 II 6.1. According to Comm. “A” 5472. "A" 2019 6.
"A"	2140 I 6.2.
7.1.1. last "A"	2140 II 6.2. According to Comm. “A” 5472.
7.1.2. 1° "A"	2140 II 6.3. last "A" 5472
7.1.3. "A"	2140 I 6.4. According to Comm. “A” 5472.
7.2.1. "A"	3183 2. According to Comm. “A” 5472.
7.2.2. "A"	4817 4. According to Comm. “A” 4876 (point 28.) and 5472.
7.2.3. "A"	5472
7.3.1.1. "A"	3161 unique 2. 2.1.1.
7.3.1.2. "A"	3161 unique 2. 2.1.2. According to Comm. “A” 3171 (point 2.).
7.3.1.3. i) "A"	3161 unique 2. 2.1.3.1. According to Comm. “A” 5472.
ii) "A"	3161 unique 2. 2.1.3.2. According to Comm. “A” 5472.
7.3.2.1. "A"	3161 unique 2. 2.2.1.
7.3.2.2. i) "A"	3161 unique 2. 2.2.2.1.
ii) "A"	3161 unique 2. 2.2.2.2.
7.3.2.3. "A"	3161 unique 2. 2.2.3. According to Comm. “A” 3171 (point 3.).
7.3.3.1. "A"	2241 CREFI‑2 I 3.2.3. According to Comm. “A” 5983.
7.3.3.2. "A"	3161 unique 2. 2.3. According to Comm. “A” 3171 (point 4.).
7.3.4. "A"	3161 unique 2. 2.4. According to Comm. “A” 5472 and 6327.
7.3.5. "A"	3161 unique 2. 2.5. According to Comm. “A” 6167.
7.4. "A"	414 LISOL‑1 V 4. 4. According to Comm. “A” 817, 4093 (penultimate paragraph), 5472 and 6167. Includes interpretative clarifications.
7.5.1. "A"	2800 4. According to Comm. “A” 5472 and 6167.
7.
7.5.2. "A"	2826 3.

Credit Risk Segmentation – Ordered Text Source Norm (continued)

Sec.	Point	Para.
8.1. "A"	2140 II 7. 1° "A"	3911 12. According to Comm. “A” 4455 (point 3.), 4546 (point 3.) and 5472.
2° "A"	4455 3. last According to Comm. “A” 4546 (point 3.), 5472 and 6327.
3° "A"	5472
8.
8.2. last "A"	3911 12. last According to Comm. “A” 4546 (point 3.) and 5472.
9.1. "A"	49 OPRAC‑1 I 4.4.1. Includes interpretative clarifications. According to Comm. “A” 5472.
9.2. "A"	49 OPRAC‑1 I 4.4.2.
9.3.1. "A"	2573 1. According to Comm. “A” 3051 (Annex, point 1.4.1.).
9.3.2. "A"	5472
9.
9.3.3. "A"	5472
10.1. "A"	2649 1.
10.
10.2. "A"	2227 unique 5.1.2., 5.1.3., 5.2.1. and 5.2.2. According to Comm. “A” 2649 (point 1.).
11.1. "A"	3911 8. 1° According to Comm. “A” 4155 (point 3.), 4455 (point 2.), 4546 (point 2.), 4676 (point 2.) and "B" 9627 (Annex).
1° "A"	3911 8. 1° "A" 4343 1. According to Comm. “A” 4155 (point 3.), 4455 (point 2.), 4546 (point 2.), 4676 (point 2.) and "B" 9627 (Annex).
2° "A"	3911 8. last According to Comm. “A” 4455 (point 2.), 4546 (point 2.), 4676 (point 2.) and "B" 9627 (Annex).
11.1.1. last "A"	4230 2. According to Comm. “A” 5472 and 6327. "A" 3911 8. 1° According to Comm. “A” 4155 (point 3.), 4455 (point 2.), 4546 (point 2.), 4676 (point 2.) and "B" 9627 (Annex).
11.1.2.1. "A"	4114 5.
11.
11.1.2.2. "A"	4155 3. According to Comm. “A” 4455 (point 2.), 4546 (point 2.), 4676 (point 2.) and "B" 9627 (Annex).

Credit Risk Segmentation – Ordered Text Source Norm (final observations)

Sec.	Point	Para.
1° "A"	3911 8. 2°
2° "A"	4343 2. 1° According to Comm. “A” 4455 (point 2.), 4546 (point 2.), 4676 (point 2.) and "B" 9627 (Annex).
3° "A"	4898 5. According to Comm. “B” 9627 (Annex).
4° "A"	4898 5. According to Comm. “B” 9627 (Annex).
5° "A"	4343 2. 2° and 3° According to Comm. “A” 4455 (point 2.), 4546 (point 2.), 4676 (point 2.) and "B" 9627 (Annex).
6° "A"	4343 2. last
7° "A"	4455 2. According to Comm. “A” 4546 (point 2.), 4676 (point 2.) and "B" 9627 (Annex).
11.1.3. 8° "A"	3911 8. 3° According to Comm. “A” 4455 (point 2.), 4546 (point 2.), 4676 (point 2.), "B" 9627 (Annex) and "A" 5472. "A" 4455 1. 1° According to Comm. “A” 4825, 6091 and 6327.
11.1.4. "A"	4455 2. According to Comm. “A” 4546 (point 2.), 4676 (point 2.) and "B" 9627 (Annex). "A" 4455 1. 2° and 4° According to Comm. “A” 4825.
i) "A"	4455 1. 2° and 6° According to Comm. “A” 4825.
ii) "A"	4455 1. 2° and 6° According to Comm. “A” 4825 and 6327.
11.1.4.1. iii) "A"	4455 1. 2° and 6° According to Comm. “A” 4825.
11.1.4.2. 1° "A"	4455 1. 2° and 4° According to Comm. “A” 4825. last "A"	4676 1. According to Comm. “A” 4825.
11.1.4.3. 1° "A"	4455 1. 8° According to Comm. “A” 4825. last "A"	4455 1. 5° According to Comm. “A” 4825.
11.1.4.4. "A"	4455 1. 9° According to Comm. “A” 4825.
11.1.4.5. "A"	4455 1. 7° According to Comm. “A” 4825.
11.1.5. "A"	4932 1. According to Comm. “A” 4937 (point 3.) and "B" 9627.
11.1.6. "A"	4996 1. According to Comm. “A” 5015 (Annex, point 4.).
11.1.7. "A"	6035 1. According to Comm. “A” 6066.
11.2. "A"	5472
11
11.3. "A"	5480 According to Comm. “A” 5496.

Preferred “A” Guarantees

They consist of the assignment or pledge of rights regarding securities or documents of any nature that, once duly instrumented, ensure that the entity may dispose of the funds for the purpose of cancelling the obligation contracted by the client, without needing to require prior payment to the debtor because the enforcement depends on solvent third parties or on the existence of markets in which the mentioned securities or documents, or the effects they represent, can be liquidated directly, whether their maturity coincides with or is later than the loan or periodic payments, or whether the proceeds are applied to debt cancellation or transferred directly to the entity for that purpose.

The following are included, in a taxative enumeration:

1.1.1. Guarantees constituted in cash, in pesos, or in the following foreign currencies: United States dollars, Swiss francs, British pounds, Japanese yen and euros, permanently taking into account their quotation value.

1.1.2. Guarantees constituted in gold, permanently taking into account its quotation value.

1.1.3. Pledges of fixed‑term deposit certificates issued by the financial entity itself, constituted in the currencies referred to in point 1.1.1.

1.1.4. Automatic reimbursements of export operations, at the expense of the Central Bank of the Argentine Republic (BCRA), in accordance with the respective bilateral or multilateral agreement regimes, regardless of the operation’s term.

1.1.5. Guarantees or pledges of national public‑value securities or BCRA monetary‑regulation instruments that have normal and regular quotation for significant amounts in the country’s markets.

1.1.6. Guarantees and letters of credit issued by foreign banks or multilateral development banks that comply with the provisions of point 3.1 of the “Credit Evaluations” rules – requiring an international risk rating of “A” or higher – that are not the head office or controlling entity and its subsidiaries and branches, or controlled or branch entities of the local entity, or that maintain other forms of linkage, regardless of the operation’s term, provided they are unrestricted and that the crediting of funds is effected immediately upon simple request of the beneficiary entity.

Guarantees – B.C.R.A.

Section 1. Classes

Version: 10a. COMMUNICATION “A” 6428

Effective date: 01/01/2018

Ordered Text Source Norm (Guarantees)

Sec.	Point	Para.	Comm.	Annex	Cap.	Sec.	Point	Para.
1.1. "A"	2932 unique 1.1. According to Comm. “A” 4242 and 6374.
1.1.1. "A"	2216 I 1. 3°, a) According to Comm. “A” 2443, 2932, 3918, 4242 and 6374.
1.1.2. "A"	2216 I 1. 3°, a) According to Comm. “A” 2443, 2932 and 3918.
1.1.3. "A"	2216 I 1. 3°, b) According to Comm. “A” 2932, 3918, 4242 and 6374.
1.1.4. "A"	2216 I 1. 3°, c) According to Comm. “A” 2932 and 4242.
1.1.5. "A"	2216 I 1. 3°, d) According to Comm. “A” 2932, 4741, 6091 and 6327.
1.1.6. "A"	2216 I 1. 3°, e) According to Comm. “A” 2932, 3918, 4242, 5671, 5740, 6328 and 6374.
1.1.7. "A"	2216 I 1. 3°, g) According to Comm. “A” 2932.
1.1.8. "A"	2216 I 1. 3°, h) According to Comm. “A” 2932.
1.1.9. "A"	2216 I 1. 3°, i) According to Comm. “A” 2932.
1.1.10. "A"	2932 unique 1.1.11. According to Comm. “A” 3104, 4242, 4522, 4957 and 5998.
1.1.11. "A"	2932 unique 1.1.12. According to Comm. “A” 4141, 5671, 5740 and 6374.
1.1.12. "A"	2932 unique 1.1.13. According to Comm. “A” 4242 and 6374.
1.1.13. "A"	2932 unique 1.1.14. According to Comm. “A” 3918, 5671 and 5740. Includes interpretative clarification.
1.1.14. "A"	3114 1.
1.1.14.1. 1° "A"	3114 According to Comm. “A” 3918, 4055, 5671, 5740 and 5998. Includes interpretative clarification.
1.1.14.2. "A"	3114 1. According to Comm. “A” 3918, 4055, 5671, 5740 and 5998.
1.1.15. "A"	3141 According to Comm. “A” 3307, 3918, 4465 and 5275.
1.1.16. "A"	3314 According to Comm. “A” 4529, 5671 and 5740.
1.2. "A"	2932 unique 1.2. According to Comm. “A” 3104 and 6374.
1.2.1. "A"	2419 1. 1° According to Comm. “A” 2563 (points 1. and 2.), 2932, 3314, 6250 and 6297.
1.2.2. "A"	2448 State of debtor situation (point 6.1.2.2.2.). According to Comm. “A” 2932, 3918 and 6162.
1.2.3. "A"	6162 4. "A" 2448 State of debtor situation (point 6.1.2.2.2.). According to Comm. “A” 2932, 3918 and 5275.
1.2.4. "A"	2410 7. According to Comm. “A” 3141.
1.2.5. "A"	3259 1. According to Comm. “A” 3314, 5067 and 6250.
1.2.6. "A"	3314 According to Comm. “A” 4529.

Origin of the provisions contained in the “Guarantees” regulations

Reference: Circular LISOL 1‑773, OPRAC 1‑929, REMON 1‑939, RUNOR 1‑1370, CREFI 2‑104, OPASI 2‑538, CONAU 1‑1260, SECYC 1‑4, Communications “A” 6306, 6327 and 6396. Ordered Texts Update

When, according to the rules on “Debtor Classification”, it is not appropriate to evaluate the debtor’s repayment capacity because the debt is covered by preferred guarantees “A”, it will not be mandatory to incorporate into the client file the cash‑flow, the financial or accounting statements –as appropriate– nor any other information necessary to perform that analysis.

The evaluations that must be carried out pursuant to the rules on “Debtor Classification” and “Credit Grading” shall be recorded, and they must also contain data that allow verification of compliance with the credit‑related regulations.

Regarding consumption‑portfolio clients whose lending entity credits their respective earnings to an account, the entity may use that information as demonstrative evidence of their payment capacity.

Additionally, where applicable, the requirements referred to in points 1.2 to 1.5 shall be included.

1.1.3.2. Specific Aspects

i) In matters of the evaluations provided for by the “Debtor Classification” rules, which require recording the reviews performed and the classification assigned, it will be permissible for the classification to be kept in separate spreadsheets, provided that the adopted procedure –which must be described in the “Classification and Provisioning Procedures Manual”– allows precise identification of the classification assigned to each client from the spreadsheet to the file and vice‑versa.
ii) The file must contain information about the total credit margin assigned to the client and any contingent responsibilities assumed with respect to it, regardless of the concept or credit line.

Furthermore, the updated balance of the total financings granted –which will include facilities assigned by all subsidiaries and operational units of the entity– must be available, broken down by concept, according to the accounting information system used by the entity, at the location where the client’s file is kept or at the head office, if a copy must be kept there, in accordance with the relevant rules.

The file must contain information about the global maximum credit margin for which the client qualifies according to each entity’s credit policy, as well as the margin that has actually been granted, including the financed amounts and any contingent responsibilities, regardless of the concept or credit line.

Moreover, the file must contain the updated balance of the total financings granted, which will include facilities assigned by all subsidiaries and operational units of the entity.

When it is the financial entity’s policy to discriminate the global margin and/or the actually granted margin –by type or loan line–, that information must appear in each client’s credit file, which must be located at the account’s place of filing or at the head office, in accordance with the relevant rules.

CREDIT MANAGEMENT

B.C.R.A.

Section 1. Requirements for Granting Financings

Version: 8a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

vi) Classification of the client and information to the Central Debtors Registry of the Financial System.

The debtor’s classification shall be carried out according to the periodicity and other conditions established for the consumption or housing portfolio, as set out in Section 7 of the “Debtor Classification” rules.
vii) In cases where the assessment of payment capacity is performed directly on the basis of supporting documentation of the borrower’s income, even when the methods indicated in this point are used complementarily, the provisions on file content established in point 1.1.3.1 must be observed.

b) Financings to Micro‑Credit Institutions

i) Borrowers

Legal persons not linked to the financial entity (except those companies in which the financial entity holds participation in capital under the terms provided in point 2.2.20 of the “Complementary Services of Financial Activity and Permitted Activities” rules), whose corporate purpose and main activity is the execution of micro‑credit activities, as defined in sub‑paragraph a) of this point, destined for the natural persons referred to in that sub‑paragraph i).

Their service may also include the provision of technical assistance, monitoring and training services to credit borrowers for the development of their entrepreneurial capacity, provided they meet the following requirements:

Have authorization to operate from the competent authority according to their type and, where applicable, be registered in the pertinent public register.
Possess financial or accounting statements –as appropriate– in accordance with the applicable professional accounting standards.

ii) Regarding file content, the provisions of point 1.1.3.1 shall be observed.

1.1.4. Filing Location

The debtor’s file shall be kept at the location where the account is filed.

It will be permissible for the client’s file to be kept at a location different from the account filing location (for example: head office or a branch that serves as a regional management seat), when this has been determined for operational reasons –linked to the evaluation, granting and monitoring of credits– and such circumstance is included in the “Classification and Provisioning Procedures Manual”.

In addition, a copy of each client’s file whose indebtedness (including all financings) is equal to or exceeds 1 % of the computable net worth must be maintained at the entity’s head office.

ORDERED TEXT – SOURCE REGULATION

Section	Point	Paragraph	Comm.	Annex	Chapter	Observation
1.1.1.	“A”	3051
1.1.2.	“A”	2729	3.	3.4.1.	S/Comm. “A”	2950, 4972 (point 2.), 5093 and 5520.
1°	“A”	49	I.	3.1.	S/Comm. “A”	5387.
2°	“A”	5482
3°	“A”	5387	S/Comm. “A”	5728.
4°	“A”	2729	3.	3.4.2.	2° S/Comm. “A”	2950 and 6327.
5°	“A”	2729	3.	3.4.2.	8° S/Comm. “A”	2950 and 3051.
6°	“A”	4972	2.
1.1.3.1.
7°	“A”	3051	i) “A”	2729	3.	3.4.2. 3° S/Comm. “A”	2950 and 3051.
			ii) “A”	2729	3.	3.4.2. 4° and 5° S/Comm. “A”	2950 and 5093.
			iii) “A”	2729	3.	3.4.2. 7° S/Comm. “A”	2950.
			iv) “A”	2729	3.	3.4.3. S/Comm. “A”	2950.
1.1.3.2.			v) “A”	5482	S/Comm. “A”	6091.
a)	“A”	3142	1.	S/Comm. “A”	3182, 4325 (point 3.), 4556, 4559, 4891, 4972, 5557, 5995 and 6221.
1.1.3.3.		b)	“A”	4325	3.	S/Comm. “A”	4559, 4572, 4637, 4891, 4972, 5557, 5637, 5998 and 6221.
a)	“A”	4891	2.	S/Comm. “A”	5226, 5533, 5884 and 6221.
1.1.3.4.		b)	“A”	4891	2.	S/Comm. “A”	5700 and 6327.
1.1.4.	“A”	2729	3.	3.4.4.	S/Comm. “A”	2950.
1.1.5.	“A”	2729	3.	3.4.5.	S/Comm. “A”	2950 and 6068.
1.2.1.	“A”	3051
1.2.1.1.	“B”	5464
1.2.1.2.	“B”	5464
1.2.2.	“B”	5464	Últ.	S/Comm. “A”	6167.
1.2.3.	“B”	5664	S/Comm. “A”	3051.
1.2.4.	“C”	18820	S/Comm. “B”	8833 and 9063.
1.2.5.	“C”	18820	S/Comm. “B”	9063.
1.3.	“A”	2860	1.	1.1.1.	S/Comm. “A”	3051.
1°	“A”	2573	1.	1° S/Comm. “A”	3051.
2°	“A”	2573	1.	5°
1.4.1.	3°	“A”	2573	1.	6°
1.4.2.	“A”	2573	1.	2° S/Comm. “A”	3051, 4522, 5557 and 5998.
1.4.3.	1°	“A”	2573	1.	3° S/Comm. “A”	3051.
2°	“A”	2573	1.	4°
1.4.4.	“A”	2573	1.	7°
1°	“A”	2573	1.	8° S/Comm. “A”	6329.
2°	“A”	4972	2.	S/Comm. “A”	6329.
1.
1.4.5.	3°	“A”	4972	2.	S/Comm. “A”	6329.
B.C.R.A.
SOURCE OF THE PROVISIONS CONTAINED IN THE RULES ON “CREDIT MANAGEMENT”

5.1. Net Worth Responsibility

5.1.1. Clients Keeping Accounting in Accordance with Legal Requirements

Capital, reserves and accumulated results shall be taken into account, according to financial or accounting statements –as appropriate– that meet the following minimum requirements:

5.1.1.1. Professional Intervention

i) Corporations (Sociedades anónimas).
Audited financial statements with an external auditor’s report, in accordance with generally accepted auditing standards, and legalization by the corresponding Professional Council. The requirement for Professional Council intervention does not exclude other safeguards that must be observed according to the laws and regulations in force in the respective jurisdictions.
ii) Other legal entities and natural persons.
Financial or accounting statements certified by a public accountant.

5.1.1.2. Date of the Financial or Accounting Statements

The statements shall correspond to the close of the last fiscal year, although statements referring to dates closer to the credit request may be considered, provided they meet the previously stated requirements. In all cases, data that allow the cleaning of information corresponding to the last fiscal‑year close must be required.

CREDIT GRADING – B.C.R.A.

Section 5. Computable Net Worth of the Client

Version: 2a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

The calculation of the “apartamiento” (set‑aside) shall be made by considering the highest excess amount recorded in the mentioned periods and in the subsequent ones, as long as the breach persists, even if the information for the subsequent periods is entered in time and form.

This calculation shall be performed by considering the highest daily excess amount, with respect to the clients who originated it, recorded in such periods.

6.5. Other Consequences

6.5.1. Prohibition of the transformation of financial entities.
6.5.2. Limitations on deposit growth.

The provisions established in point 2.3 of the rules on “Minimum Capital Breaches and Technical Ratios – Applicable Criteria” shall apply.

6.6. Accounting Exposure

Breaches must be disclosed in notes to the financial statements according to the criteria established by the Superintendency of Financial and Currency Entities (SEFyC).

6.7. Accepted Excesses

6.7.1. Refinancings that meet the following conditions:

The financing was originally granted within the limits of point 3.1.
It is granted to borrowers not linked to the financial entity that, at the time of refinancing, are included in categories 3 to 5 according to the “Debtor Classification” rules, or
It is granted to companies whose corporate purpose is the development of the activities enumerated in points 2.2.6 and 2.2.8 of the “Complementary Services of Financial Activity and Permitted Activities” rules, in which the entity holds direct or indirect shareholdings exceeding 50 % of the capital stock and 50 % of the total votes.
No disbursement of funds is involved.

CREDIT GRADING – B.C.R.A.

Section 6. Breaches

Version: 3a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

CREDIT GRADING

ORDERED TEXT – SOURCE REGULATION

Section	Point	Paragraph	Comm.	Chapter	Observation
4.	4.1.	“A”	467	unique	5. According to Comm. “A” 5520.
5.1.1.	except	“A”	467	unique	6.1. 1° According to Comm. “A” 6327.
5.1.1.1.i)	2°	“B”	1460	2°
5.1.1.2.	“A”	490	unique	9. According to Comm. “A” 6327.
5.1.2.	“A”	467	unique	6.1. 1°
5.2.1.1.	“A”	467	unique	6.1. last
“A”	2373	2.
5.2.1.2.	“A”	490	unique	8.
5.2.2.	“A”	467	unique	6.1. last
5.2.3.	“A”	3002	Incorporates interpretative criterion.
5.2.4.	“B”	5902	7.
5.
5.2.5.	“A”	4725	5.
6.1.	“A”	3002	6.1.1. 2°
1°	“A”	3161	1. and 2. According to Comm. “A” 3171 and 4093 (penultimate paragraph).
6.2.	2°	“A”	2019	6. According to Comm. “A” 3161, 3171 and 5520.
6.3.1.	“A”	3161	1. According to Comm. “A” 4093 (penultimate paragraph).
6.3.2.	“A”	3161	1. According to Comm. “A” 3171 (pt. 2.) and 4093 (penultimate paragraph).
6.3.3.	“A”	3161	1. According to Comm. “A” 4093 (penultimate paragraph).
6.4.	“A”	3161	1. According to Comm. “A” 4093 (penultimate paragraph).
6.4.1.	“A”	3161	1. According to Comm. “A” 4093 (penultimate paragraph).
6.4.2.	“A”	3161	1. According to Comm. “A” 4093 (penultimate paragraph).
6.4.3.	“A”	3161	1. According to Comm. “A” 3171 (pt. 3.) and 4093 (penultimate paragraph).
6.5.	“A”	2019	5. last
6.5.1.	“A”	2019	5. last According to Comm. “A” 5983.
6.5.2.	“A”	3161	1. According to Comm. “A” 3171 (pt. 4.) and 4093 (penultimate paragraph).
6.6.	“A”	3161	1. According to Comm. “A” 6327.
6.
6.7.	“A”	3183	1. According to Comm. “A” 4093 (pt. 5.). Includes interpretative criterion.
7.1.	“A”	2227	unique	5.1. According to Comm. “A” 2649. and 5.2.1. last
7.2.1.	“A”	2227	unique	5.1.4. According to Comm. “A” 2649.
“A”	2227	unique	5.2.2.
7.
7.2.2.	“B”	5902	5. According to Comm. “A” 6023. Includes interpretative clarification.
8.1.	“A”	467	unique	1. last According to Comm. “A” 2373.
8.	8.2.	“A”	467	3°
8.3.	“A”	490	unique	17.

MINIMUM CAPITAL BREACHES AND TECHNICAL RATIOS – B.C.R.A. APPLICABLE CRITERIA

Section 2. Excesses to Technical Ratios and Uncovered Derivative Positions

2.3.2.2. If the dismissal filed is rejected –in whole or in part– by the Superintendency of Financial and Currency Entities (SEFyC), the breach shall be considered final on the date of notification of the adopted decision.

2.3.3. Treatment of the determined breach.

It will trigger an increase of the minimum capital requirement for credit risk by an amount equivalent to 150 % of the excess to the ratio from the month in which it becomes final, while the breach persists, and additionally, once regularized, for a number of months equal to the number of periods during which the breach detected by SEFyC was verified.

The calculation of the “apartamiento” shall be made by considering the highest excess amount recorded in the mentioned periods and in the subsequent ones, as long as the breach persists, even if the information for the subsequent periods is entered in time and form.

In the case of credit relationships, this calculation shall be performed by considering the highest daily excess amount, with respect to the clients who originated it, recorded in such periods.

2.4. Limitations on Deposit Growth.

When the sum of the increases in the minimum capital requirement for credit risk resulting from the breaches of the technical ratios covered in this section exceeds the equivalent of 5 % of that requirement –without considering the increases– and while this situation persists, the total amount of deposits –in national and foreign currency– may not exceed the level reached during the month in which that fact is recorded.

That limit and its observance shall be computed based on the balances recorded on the last day of each of the months covered.

2.5. Accounting Exposure.

Breaches must be disclosed in notes to the financial statements according to the criteria established by SEFyC.

2.6. Application of Article 41 of the Financial Entities Law.

Summarial proceedings shall be initiated in accordance with the guidelines defined by SEFyC.

Version: 7a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

SOURCE OF THE PROVISIONS CONTAINED IN THE RULES ON “MINIMUM CAPITAL BREACHES AND TECHNICAL RATIOS – APPLICABLE CRITERIA”

Section	Point	Paragraph	Comm.
1°	“A”	3161	1.1.
2°	“A”	3161	1.1. According to Comm. “A” 3171 (point 1.) and 6091.
1.1.
3°	“A”	3171	1.
1.2.	“A”	3161	1.2.
1.2.1.	“A”	3161	1.2.1.
1.2.2.	“A”	3161	1.2.2.
1.2.2.1.	“A”	3161	1.2.2.1.
1.2.2.2.	“A”	3161	1.2.2.2.
1.3.	“A”	3161	1.3.
1.3.1.	“A”	3161	1.3.1. According to Comm. “A” 5272 and 6091.
1.3.2.	“A”	3161	1.3.2.
1.3.2.1.	“A”	3161	1.3.2.1.
1.3.2.2.	“A”	3161	1.3.2.2.
1.
1.4.	“A”	3161	1.4.
2.1.	“A”	3161	According to Comm. “A” 4546, 4742, 4838, 4861, 4926 (point 1.), 4937 (point 4.), 4961, 4996, 5180, 5520 and “B” 9745.
2.2.1.	“A”	3161	2.1.1.
2.2.2.	“A”	3161	2.1.2. According to Comm. “A” 3171 (point 2.).
2.3.	“A”	3161	2.2.
2.3.1.	“A”	3161	2.2.1.
2.3.2.	“A”	3161	2.2.2.
2.3.2.1.	“A”	3161	2.2.2.1. According to Comm. “B” 9745.
2.3.2.2.	“A”	3161	2.2.2.2.
2.3.3.	“A”	3161	2.2.3. According to Comm. “A” 3171 (point 3.).
2.4.	“A”	3161	2.3. According to Comm. “A” 3171 (point 4.).
2.5.	“A”	3161	2.4. According to Comm. “A” 6327.
2.6.	“A”	3161	2.5.
3.1.	“A”	3161	3.1.
3.	“A”	3161	3.2.

5.1. Internal and External Audits

5.1.1. Internal Audit

To improve the effectiveness of internal audit in identifying problems in risk‑management systems and internal control, it is necessary –according to good practices– that the Board of Directors and senior management of the entity:

5.1.1.1. Recognize the importance of audit and internal‑control processes and communicate this throughout the financial entity.
5.1.1.2. Use the conclusions of internal audit in a timely and effective manner and require management to promptly correct problems.
5.1.1.3. Foster the independence of the internal auditor with respect to the areas and processes controlled by internal audit.
5.1.1.4. Task internal auditors with evaluating the effectiveness of key internal controls.

5.1.2. External Audit

To improve the effectiveness of external audit in its task of obtaining a reasonable conclusion that the financial statements fairly represent the financial position and results of the financial entity, it is essential –according to good practices– that the Board, through the Audit Committee and senior management:

5.1.2.1. Monitor that external auditors comply with professional standards for external audit.
5.1.2.2. Provide mechanisms so that reports presented by external auditors of financial entities do not contain scope limitations as a consequence of part of the work having been performed by another external auditor.
5.1.2.3. Instruct external auditors to evaluate internal‑control processes related to the information in the financial statements.
5.1.2.4. Ensure that external auditors understand that they have a duty to exercise professional due diligence in conducting the audit.

5.1.3. Independence

The Board shall ensure that the professional performing internal audit in the financial entity is not the same professional –or part of the same professional team– that performs external audit, so as not to affect the independence and objectivity of both functions.

GUIDELINES FOR CORPORATE GOVERNANCE – B.C.R.A. IN FINANCIAL ENTITIES

Section 5. Internal and External Audits – Internal Controls

Version: 2a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

7.1. Transparency Policy

To ensure that the financial entity is managed transparently, appropriate disclosure of information to depositors, investors, shareholders and the general public is recommended, promoting market discipline and, therefore, good corporate governance.

The objective of the transparency policy in corporate governance is to provide the aforementioned parties with the information necessary to evaluate the effectiveness of the Board and senior management.

Publication of reports on corporate‑governance aspects can assist market participants and other interested parties in monitoring the entity’s strength and solvency.

It is advisable to include on the public websites of financial entities (Internet pages) and in notes, memoranda to the financial statements or other periodic information, as appropriate, the following information, according to the entity’s size, complexity, ownership structure, economic importance and risk profile, and also depending on whether the entity is listed on a stock exchange:

7.1.1. Board structure (composition according to the bylaws, size, members, selection process, qualifications, independence criteria, particular interests in transactions or matters affecting the financial entity) and senior‑management structure (responsibilities, reporting lines, qualifications and experience) and committee members (mission, objectives and responsibilities).
7.1.2. Basic ownership structure (principal shareholders, their share in capital and voting rights and representation on the Board and senior management).
7.1.3. Organizational structure (general organigram, business lines, subsidiaries, branches, committees).
7.1.4. Information relating to economic incentive practices for staff: information on the decision‑making process used to determine the incentive policy, the most important design features of the system and aggregated quantitative information on the amount of incentives, etc.
7.1.5. Business‑conduct policy and/or code of ethics, as well as the applicable governance policy or structure.
7.1.6. Its role as a financial agent of the non‑financial public sector, if applicable.
7.1.7. In public financial entities, the definition of the policy according to its legal nature pursuant to its organic charter and/or statutes.
7.1.8. Policies relating to conflicts of interest, the nature and extent of transactions with subsidiaries and related parties, including matters related to the entity in which Board members and/or senior management have direct, indirect or third‑party interests distinct from the entity.

GUIDELINES FOR CORPORATE GOVERNANCE – B.C.R.A. IN FINANCIAL ENTITIES

Section 7. Other Organizational Policies

Version: 2a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

Guidelines for Corporate Governance in Financial Entities

Section 7. Other Organizational Policies

Version: 2a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

7.1.9.

In cases where complex structures (such as trusts) are used, and whose exposure in the financial statements does not provide sufficient data on business and risk matters: provide adequate information on the purpose, strategies, risks and controls regarding such activities.

7.1.10.

In addition to corporate‑governance reports, it is recommended that the Board’s report and the complete financial statements, with their notes, annexes and reports of the trustee and external auditor, be made available to depositors and the general public, either on the financial entity’s website or by another means, in order to provide clear and exhaustive information on the entity’s economic‑financial situation.

7.2. “Know Your Organizational Structure” Policy

In line with good practices, the Board and Senior Management must understand the entity’s operational structure, including the structures referred to in point 7.1.9 (the “know your organizational structure” principle).

The Board must establish policies and limits for operating with particular foreign jurisdictions and for using complex or less‑transparent structures, whether for proprietary operations or on behalf of third parties. It must also ensure that Senior Management complies with the policies concerning the identification and management of risks – including legal and reputational risks – associated with such operations, activities or structures. Senior Management, under the supervision of the Board, must document this evaluation, authorization and risk‑management process to provide greater transparency for auditors and supervisors.

The Board must adopt measures and ensure that the risks of these activities are understood and managed appropriately, such as:

7.2.1. Verify that Senior Management follows clear policies that avoid carrying out activities through corporate structures or foreign jurisdictions that could hinder transparency.
7.2.2. Verify that the entity’s audit committee supervises internal‑audit work on the controls performed with respect to these structures and activities, informing the Board of its conclusions on an annual basis or when significant events or deficiencies are identified.
7.2.3. Define appropriate policies, procedures and strategies to approve complex structures or financial instruments used or sold by the financial entity, and that allow periodic evaluation of the use and/or sale of those structures, products or instruments as part of the regular management review.

Financial entities that employ such structures, products or instruments must adequately evaluate and manage the risks arising from their use and commercialization, including legal and reputational risks.

CORPORATE GOVERNANCE GUIDELINES

B.C.R.A. IN FINANCIAL ENTITIES

1. Scope of the Guidelines

Financial entities must have an integrated risk‑management process that includes Board and Senior Management oversight to identify, assess, monitor, control and mitigate all material risks. The process must be proportionate to the entity’s size, economic importance, and the nature and complexity of its operations, taking into account the guidelines contained in this provision.

The integrated risk‑management process must be adequate, sufficiently tested, properly documented and periodically reviewed in light of changes in the entity’s risk profile and the market. The results of that review must be used in assessing the adequacy of capital referred to in point 1.3.

2. General Considerations

These guidelines constitute good practices in risk management and are not a substitute for the specific requirements contained in the regulations issued by the Central Bank of the Argentine Republic, which must be implemented in accordance with the powers conferred on the Board by the Shareholders’ Assembly or equivalent governing body and within the context of the applicable legal provisions.

Information on the integrated risk‑management process implemented by the entity must be made available to the Superintendency of Financial and Currency Entities (SEFyC).

Risks arising from the negotiation of foreign‑exchange operations involving two cash‑flow streams up to final settlement must be managed in accordance with the rules on “Risk Management Associated with the Settlement of Foreign‑Exchange Operations”.

For the purposes of these rules, the following definitions apply:

Board: organ or authority that performs administration functions according to the applicable corporate form.
Senior Management: General Management and those managers who have decision‑making power and report directly to it or to the Board Chair.
Off‑Balance‑Sheet Operations: operations not recorded in the balance sheet but that constitute a potential source of risk exposure for the entities.
Counterparty: the party obliged to make an economically valuable consideration to the financial entity, even when the relationship does not arise from a direct credit facility (e.g., settlement of a securities transaction or a contingent guarantee).

RISK‑MANAGEMENT GUIDELINES

B.C.R.A. IN FINANCIAL ENTITIES

Section 1. Risk‑Management Process

Version: 4a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

The Board must ensure that policies, practices and procedures for risk management are developed, appropriate limits are set, and Senior Management adopts the necessary measures to monitor and control all material risks consistently with the strategy and policy approved by the Board.

Policies, practices and procedures must provide specific guidance for implementing business strategies and establish internal limits for the various types of risk to which the entity may be exposed. These limits must consider the entity’s role in the financial system and be defined based on the entity’s capital, total assets, results, or – when it can be measured adequately – its overall risk level.

Strategies, policies, practices, procedures and limits must be properly documented, reviewed, updated, communicated to all areas of the entity directly or indirectly involved, and implemented. Exceptions to established policies, practices, procedures and limits must receive immediate attention and authorization from the functional level with decision‑making authority on the matter, and must be documented.

In addition, policies, procedures and limits must:

Provide, in an adequate and timely manner, identification, assessment, monitoring, control and mitigation of risks generated by loan, investment, trading and off‑balance‑sheet activities – such as those arising from securitizations – as well as risks from other significant line‑of‑business activities and the entity as a whole.
Ensure that the economic reality of risk exposures – including reputational risk and valuation uncertainty – is fully recognized and incorporated into the entity’s risk‑management processes.
Be consistent with the objectives set by the financial entity and its overall financial strength.
Clearly delineate responsibility and authority lines in the various business activities and ensure a clear separation between business lines and the risk‑assessment function.
Include mechanisms for reporting breaches of internally set limits to senior bodies and for their remediation.
Analyze new lines of business and products to ensure, before the activity starts, that the financial entity is capable of managing the associated risks.
Include a timetable and processes for reviewing and updating policies, procedures and limits according to needs.

1.4.3.4.

Consider future capital requirements based on the risk profile and, accordingly, introduce the relevant adjustments into the strategic plan.

The Management Information System (MIS) for risk management must provide the Board and Senior Management, in a clear, concise and timely manner, relevant information on the risk profile and capital needs of the entity. This information must include exposures to all risks, including those arising from off‑balance‑sheet operations. Management must also understand the assumptions and limitations inherent in specific risk measures.

The MIS must allow multiple perspectives on exposures to reflect changes in assumptions and incorporate uncertainty about risk measures. It must also be flexible enough to generate comprehensive forward‑looking scenarios that capture management’s view of market‑condition evolution and stress situations. Data entered and third‑party tools – such as risk measures and models – must be subject to initial and ongoing validation.

The elements required for risk aggregation are an appropriate infrastructure and an MIS that enable:

(i) aggregation of exposures and risk measures across different business lines, and
(ii) identification of concentrations and emerging risks based on flexible criteria and specifications determined for each occasion.

The MIS must also allow evaluation of the effect of various adverse economic and financial scenarios and be sufficiently flexible to incorporate risk coverages employed by the entity, including basis risk associated with such coverages.

The MIS must detect breaches of established limits. To that end, among other measures, it must aggregate exposures with similar characteristics across business areas – whether belonging to the investment or trading portfolio – to identify concentrations or breaches of internal position limits. The entity must also establish procedures for immediate reporting of such breaches to Senior Management and ensure appropriate follow‑up.

1.4.4. Internal‑Control Examinations

The internal‑control structure is essential in the capital‑evaluation process. Effective control includes an independent examination and, where appropriate, the performance of internal or external audits.

The purpose of controls is to ensure that the information on which decisions are based is accurate, so that processes fully reflect management policies and that periodic reporting – including reports on limit breaches and other exceptions – is effective.

Financial entities must conduct periodic examinations of their risk‑management process to guarantee its integrity, accuracy and reasonableness. The aspects that must be examined are:

Credit requests must be carefully analyzed by qualified credit analysts with experience commensurate with the significance and complexity of the operation, using the necessary support tools.
Approval must be carried out according to written guidelines approved by the relevant managerial level. Entities may create specialist groups to analyze and approve credits related to specific facilities, industrial sectors or geographically significant zones.
A clear audit trail must exist documenting compliance with the approval process and identifying the persons and/or committees involved in granting credit.
The credit‑review function must verify that the respective files are complete, that the approved process has been followed and that all required documentation has been obtained.

2.3.1.2. Limits

Entities must establish credit‑assistance limits – taking stress‑test results into account – at the borrower and economic‑group or linked‑client level and monitor exposures against those limits.

Procedures must be in place to increase the frequency of monitoring and to take appropriate measures when exposures approach the established limits.

These limits, required across all lines of business, must:

Consider the different types of exposures, regardless of their accounting registration.
Avoid concentrations by activity, economic sector, geographic region, product, etc.
Contribute to a properly diversified credit portfolio.
Be proportional to borrower risk, taking guarantees into account; for example, higher limits may be granted to borrowers with lower risk.

2.3.1.3. Credit Assistance to Related Persons or Companies

Credit assistance to related persons or companies may only be authorized exceptionally and subject to strict limits.

2.6.5.2. Observation Base

Country exposure must be measured both on an individual basis and on a consolidated basis; in the latter case, cross‑border transactions within the group are eliminated during consolidation.

2.6.5.3. Criteria for Determining Country, Block or Region Exposure

All operations, whether recorded on the balance sheet or not, that represent rights against non‑residents, in any currency, must be computed.
Credits granted by foreign branches and subsidiaries must be identified in the local currency.
The maturity of operations and the type of exposure must be taken into account.
Considering the propagation of economic situations among neighboring countries or those with strong commercial links, the Board and Senior Management should also consider aggregated exposures on a broader basis, e.g., by block or region.
In case of concrete problems, financial entities must reassess the nature and magnitude of the exposure and estimate its effect on the country‑risk provision.

The Board and Senior Management must also monitor the evolution of risks arising from services contracted with foreign providers and from credits to residents whose solvency – or that of their guarantors – depends significantly on circumstances occurring in a foreign country, even if such exposures are not part of the cross‑border credit‑exposure consolidation process mentioned above.

SECTION 7. Securitisation‑Risk Management

Version: 3a. COMMUNICATION “A” 6428
Effective Date: 01/01/2018

7.1. General Considerations

1.1. Securitisations constitute an alternative source of financing and a mechanism for transferring risk to investors. However, securitisation activities and the rapid innovation of techniques and instruments also generate new risks, including:

Credit, market, liquidity, concentration, legal and reputational risks from retained or invested securitisation positions, including liquidity facilities and credit enhancements granted; and
Credit risk of the underlying exposures to the securitisation.
Consequently, risk management must consider the totality of securitisation positions – including those not recorded on the balance sheet – for the approval of new products, monitoring of limits to avoid concentrations, and estimation of market, credit and operational risks.

1.2. Because the risks arising from securitisation activities and the rapid innovation of techniques and instruments may render regulatory capital insufficient, financial entities must evaluate the economic fundamentals of their securitisation positions and, for the calculation of economic capital, consider, among other aspects:

Mismatches between the maturities of underlying exposures and retained securitisation positions, avoiding structuring operations with the artificial aim of reducing capital needs; and
The correlation between the securitised‑portfolio assets and its effect on the economic‑capital calculation.
If deemed necessary, SEFyC may deny or reduce the capital‑requirement reduction – in the case of assets originated by the entity – or, for acquired securitisation positions, may require an increase in the capital requirement.

1.3. Securitisation transactions can be used for purposes other than credit‑risk transfer, such as funding. In such cases, if SEFyC considers that risk transfer is insufficient or nonexistent, it may require additional capital beyond that arising from the “Minimum Capital of Financial Entities” rules or deny the reduction of the capital requirement obtained from securitisations.

The retention or repurchase of securitisation positions may, depending on the proportion of risk retained by the originating financial entity, limit the credit‑risk transfer typically sought in a securitisation. Therefore, at least a significant portion of the credit risk and nominal value of the total exposures must be transferred to an independent third party. Positions purchased to create a market must be resold within an appropriate period to respect the original objective of risk transfer.

ORIGIN OF THE PROVISIONS CONTAINED IN THE STANDARDS ON “GUIDELINES FOR CORPORATE GOVERNANCE IN FINANCIAL ENTITIES”

B.C.R.A.

```
Sección Punto Párrafo Com. Cap. Punto Párrafo OBSERVACIONES
1.1. “A” 5201
1.2. “A” 5201
1.3. “A” 5201
1.4. “A” 5201
1.5. “A” 5201
2.1. “A” 5201
2.2. “A” 5201 Según Com. “A” 5520.
2.2.1. “A” 5201 Según Com. “A” 5520.
2.3. “A” 5201
2.3.2.2. “A” 5201 Según Com. “A” 5520.
2.4. “A” 5201
3.1. “A” 5201
3.2. “A” 5201
4.1. “A” 5201
4.2. “A” 5201 Según Com. “A” 5218.
5.1. “A” 5201 Según Com. “A” 6327.
5.2. “A” 5201
6.1. “A” 5201 Según Com. “A” 5542.
6.2. “A” 5201 Según Com. “A” 5542.
7.1. “A” 5201 Según Com. “A” 6327.
7.2. “A” 5201
7.3. “A” 5201
```

ORIGIN OF THE PROVISIONS CONTAINED IN THE STANDARDS ON “GUIDELINES FOR RISK MANAGEMENT IN FINANCIAL ENTITIES”

B.C.R.A.

```
Sección Punto Párrafo Com. Cap. Punto Párrafo OBSERVACIONES
1.1. “A” 5203 Según Com. “A” 5398.
1.2. “A” 5203 Según Com. “A” 5867, 6327 y 6131.
1.3. “A” 5398
1.4. “A” 5203 Según Com. “A” 5398 y 6327.
1.5. “A” 5203 Según Com. “A” 5398.
2.1. “A” 5203 Según Com. “A” 5398.
2.2. “A” 5203 Según Com. “A” 5398.
2.3. "A" 5203 Según Com. “A” 5398 y 6327.
2.4. "A" 5398
2.4.1. "A" 5398
2.4.2. "A" 5398
2.4.3. "A" 5398
2.4.4. "A" 5821
2.4.5. "A" 5398 Según Com. “A” 5821.
2.4.6. "A" 5398
2.5. "A" 5398 Según Com. “A” 5831.
2.6. "A" 5398 Según Com. “A” 6327.
2.7. "A" 5203 Según Com. “A” 5398.
3.1. "A" 5203 Según Com. “A” 6107.
3.2. "A" 5203 Según Com. “A” 5398.
3.3. "A" 5203 Según Com. “A” 5398 y 6107.
3.4. "A" 5203
4.1. "A" 5203 Según Com. “A” 5398.
4.2. "A" 5203
4.3. "A" 5203 Según Com. “A” 5398.
4.4. "A" 5203 Según Com. “A” 5398.
5.1. "A" 5203 Según Com. “A” 5398.
5.2. "A" 5203 Según Com. “A” 5398.
5.3. "A" 5203 Según Com. “A” 5398.
5.4. "A" 5203
1° "A" 4793 Según Com. “A” 5203 y 5398.
6.1.1. "A" 4793 Según Com. “A” 5203 y 5398.
6.1.2. "A" 4793 Según Com. “A” 5203 y 5398.
6.1.3. "A" 4793
6.2. 1° "A" 4793
2° "A" 4793 Según Com. “A” 4854, 5203 y 5398.
6.2.1. "A" 4793 Según Com. “A” 5203 y 5398.
6.2.2. "A" 4793 Según Com. “A” 4854 y 5203.
6.2.3. "A" 4793 Según Com. “A” 5203 y 5398.
6.2.4. "A" 4793 Según Com. “A” 4854 y 5203.
6.3. 1° "A" 4793 Según Com. “A” 5203 y 5398.
6.3.1. "A" 4793 Según Com. “A” 5398.
6.3.2. "A" 4793 Según Com. “A” 4854, 5203 y 5398.
```

GUIDELINES FOR RISK MANAGEMENT IN FINANCIAL INSTITUTIONS

ORDERED TEXT – ORIGINAL REGULATION

Section	Point	Paragraph	Com.	Observations
6.	6.3.3.	“A”	4793	According to Com. “A” 4854, 5203 and 5398.
7.1.	“A”	5398		According to Com. “A” 6327.
7.2.	“A”	5398
7.3.	“A”	5398
7.4.	“A”	5398
7.5.	“A”	5398
8.1.	“A”	5398
8.2.	“A”	5398
8.3.	“A”	5398
8.4.	“A”	5398
8.5.	“A”	5398
8.6.	“A”	5398
9.1.	“A”	5398
9.2.	“A”	5398
9.3.	“A”	5398
10.1.	“A”	5398
10.2.	“A”	5398
10.3.	“A”	5398
10.4.	“A”	5398
11.1.	“A”	5203
11.2.	“A”	5203		According to Com. “A” 5398.

Explanation of the “A” Communications reference: The thematic grouping to which the provision belongs is indicated, followed by two numbers; the first refers to the version and the second indicates the number of modifications that version has undergone.

1.2. Ordered Texts

To facilitate the tracking of regulations related to specific topics, ordered texts were created. They are structured in a manual format, divided into sections, and include a correlation table that details the communications that originated and modified them. The cited texts may include regulations from different groupings. For example, the regulations on “Cooperative Credit Unions (Law 26.173)” – which regulate those entities – comprise provisions from the groupings CREFI, LISOL, OPRAC, OPASI, REMON and RUNOR.

Conversely, several ordered texts of regulations can be included in the same grouping. For instance, within the LISOL grouping the following subjects are covered:

Asset impairment in guarantee.
Minimum capital of financial entities.
Assignment of credit portfolios.
Classification of debtors.
Guarantees.
Credit grading.
Non‑compliance with minimum capital and technical ratios – applicable criteria.
Segmentation of credit risk.
Minimum provisions for uncollectible risk.
Ratio for immobilized assets and other concepts.
Consolidated supervision.

1.3. Communications

Communications are the means by which regulations are disseminated. Their types are:

1.3.1. Communications “A”

They address topics inherent to permanent normative aspects or that, due to circumstantial reasons, justify their inclusion. If they announce a new ordered text or modify one, the replaced pages will be attached as an annex.

1.3.2. Communications “B”

They refer to regulatory, interpretative, transitional or occasional normative aspects.

ORDERING, ISSUANCE AND DISSEMINATION OF COMMUNICATIONS AND B.C.R.A. PRESS RELEASES

Section 1. Basic Guidelines for Ordering

Version: 3a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

ORDERED TEXT – ORIGINAL REGULATION

Section	Point	Paragraph	Com.	Annex	Observations
1.1.	“A”	1	4.1.		According to Com. “A” 4751 and 6034.
1.2.	“A”	4751			According to Com. “A” 6034 and 6327.
1.3.	“A”	1 I	1.3.		According to Com. “A” 4751.
1.3.1.	“A”	1 I	1.3.1.		According to Com. “A” 4751.
1.3.2.	“A”	1 I	1.3.2.		According to Com. “A” 4751.
1.3.3.	“A”	1 I	1.3.3.		According to Com. “A” 4751.
1.3.4.	“A”	3617			According to Com. “A” 4751, 6034 and “B” 8359.
1.4.	“A”	4751
1.5.	“A”	4409	1.		According to Com. “A” 4751, 6034, 6094 and “B” 9469.
1.6.	“A”	1 III a V			According to Com. “A” 4751 and 6034.
1.7.	“A”	4751
2.1.1.	“A”	1893	único 1.	3°	According to Com. “A” 4751 and 6034.
2.1.2.	“A”	4409	3.	3°	According to Com. “A” 6034.
2.2.	“A”	1893
2.3.	“A”	1893	único 7.		According to Com. “A” 4409 and 6034.
2.4.	“A”	3593	único 6.
2.5.	“A”	1893	único 5.		According to Com. “A” 4751.
2.6.	“A”	1893	único 9.		According to Com. “A” 3593.
2.7.	“A”	1893	único 12.		According to Com. “A” 3593 and 4751.
2.8.	“A”	4409			According to Com. “A” 4751, 6034 and “B” 9180.
3.1.	“A”	334	único		According to Com. “A” 4751.
3.2.	“A”	4751	1° “A” 4751		According to Com. “A” 6034.
4.	4.1.	“A”	4751
4.2.	“A”	4751			According to Com. “A” 6034.

ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS ON “ORDERING, ISSUANCE AND DISSEMINATION OF COMMUNICATIONS AND PRESS RELEASES”

Index

Section 1. General Credit Policy
1.1. General criterion.
1.2. Financing covered.
1.3. Credit management.
1.4. Financing in foreign currency.
Section 2. Application of loan capacity of foreign‑currency deposits
2.1. Destinations.
2.2. Conditions.
2.3. Allocation of incorporated financing.
2.4. Financing to debtors classified as “unrecoverable” that are not recorded in the asset.
2.5. Loan capacity.
2.6. Application defects.
Section 3. Application of liquid own resources
3.1. Liquid own resources.
3.2. Application.
Section 4. Financing to the non‑financial public sector of the country
4.1. Applicable rules.
Section 5. Financing to residents abroad
5.1. General criterion.
5.2. Placements in foreign banks.
5.3. Holding of foreign securities.
5.4. Guarantees for credit lines and derivative products abroad.
Section 6. Loans of Purchasing Power Units and Housing Units
6.1. Loans of Purchasing Power Units indexed by “CER” – Law 25.827 (UVA).
6.2. Loans of Housing Units indexed by “ICC” – Law 27.271 (UVI).
6.3. Publication of Purchasing Power Units and Housing Units.
Section 7. Observation bases
7.1. Individual basis.
7.2. Consolidated basis.
Correlation table

SECTION 2 – APPLICATION OF LOAN CAPACITY OF FOREIGN‑CURRENCY DEPOSITS

Version: 8a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

2.1. Destinations

The loan capacity of foreign‑currency deposits must be applied, in the corresponding funding currency, indiscriminately to the following destinations:

Pre‑financing and financing of exports carried out directly or through agents, consignees or other intermediaries acting on behalf of the owner of the goods. This also includes operations whose purpose is to finance directly exported services (e.g., software, call‑center services), provided that the future foreign‑currency income flow from the export operations shows sufficient periodicity and magnitude to cover the financing and that, in the year prior to granting the financing, foreign‑currency invoicing to foreign clients amounts to a reasonable proportion of that activity and its financing.
Other financing to exporters that have future foreign‑currency income flows and, in the year prior to granting the financing, foreign‑currency invoicing amounts to a reasonable proportion of the financing.
Financing to producers, processors or gatherers of goods, provided that:
- 3.1 They have firm sales contracts for the goods with an exporter, with price fixed or to be fixed in foreign currency – regardless of the settlement currency – and the goods are fungible commodities quoted in foreign currency, normally and habitually traded in local or foreign markets, widely disseminated and publicly known.
- In the case of forward sales contracts with price to be fixed, the price must be directly linked to the price in the local markets of those products; or
- 3.2 Their main activity is the production, processing and/or gathering of fungible commodities quoted in foreign currency, normally and habitually traded in foreign markets, widely disseminated and publicly known, and in the year prior to granting the financing the total invoicing of those commodities amounts to a reasonable proportion of that activity and its financing.
  This also includes operations whose purpose is to finance service providers directly used in the export process (e.g., port terminal services, international loading and unloading services, container leasing or port storage, international freight). In all cases, the future income flow must be verified.

2.2. Conditions

For the granting of such financing, regardless of the source of resources applied, financial entities must verify that clients have sufficient repayment capacity. At least two scenarios must be considered, reflecting significant exchange‑rate variations of different magnitudes over a period of up to one year. The financing agreed and the maturities set must correspond to the projected income flow in the currency in which the loans are granted, except for the cases indicated in points 2.1.7., 2.1.15. and 2.1.17. If the destination is that described in point 2.1.14., tax revenues related to foreign trade – earnings tax and value‑added tax retained by the General Directorate of Customs and import‑export duties – must be considered when determining repayment capacity.

2.3. Allocation of incorporated financing

Financing for the destinations set out in point 2.1. may be allocated to the loan capacity of foreign‑currency deposits when transferred by other financial entities, provided that the assignors have complied with the requirements set out in point 2.2.

2.4. Financing to debtors classified as “unrecoverable” that are not recorded in the asset

Financing to debtors classified as “unrecoverable” and not recorded in the asset because they are fully provisioned, according to the rules on “Minimum Provisions for Uncollectible Risk”, may not be allocated to the loan capacity of foreign‑currency deposits.

2.5. Loan capacity

The loan capacity is determined for each foreign‑currency funding source and results from the sum of deposits and inter‑financial loans received, which have been reported by the granting financial entity as originating from its foreign‑currency loan capacity, net of the minimum cash requirement on deposits.

SECTION 2 – APPLICATION OF LOAN CAPACITY OF FOREIGN‑CURRENCY DEPOSITS (VERSION 9a)

Version: 9a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

ORDERED TEXT – ORIGINAL REGULATION

Section	Point	Paragraph	Com.	Annex	Cap.	Section
1.1.	“A”	49	OPRAC‑1	I	1.1.	According to Com. “A” 6031.
1.2.	“A”	4311	Includes concept according to points 6. and 7.5. of Com. “A” 2736. According to Com. “C” 50798, “A” 4851 and 5067.
1.3.	“A”	49	OPRAC‑1	I	1.2.
1.4.	“A”	5909	unique	According to Com. “A” 5916 and 6231.
2.1.	“A”	3528	1.	According to Com. “A” 4147, Annex.
2.1.1.	1° “A”	3528	1.1.	According to Com. “A” 4015, 4311, 4423, 4851, 5908, 6363 and 6428 – includes interpretative clarification –.
2.1.2.	“A”	5908	According to Com. “A” 6428, includes interpretative clarification.
2.1.3.	“A”	4015	1.2. Includes interpretative clarification. According to Com. “A” 4851 and 5908.
2.1.4.	“A”	4015	1.3. According to Com. “A” 5908 and 6105.
2.1.5.	“A”	6105	2.
2.1.6.	“A”	4423	According to Com. “A” 5908.
2.1.7.	“A”	4453	According to Com. “A” 4577 and 5908.
2.1.8.	“A”	4011	1.4. 1° According to Com. “A” 4015, 4311, 4851, 5908, 6031 and 6305.
2.1.9.	“A”	4015	1.4. last According to Com. “A” 4311, 4851 and 5908.
2.1.10.	“A”	3528	1.2. According to Com. “A” 4140 and 4311.
2.1.11.	“A”	5534	2. According to Com. “A” 5859.
2.1.12.	“A”	6031	2.
2.1.13.	“A”	6031	2.
2.1.14.	“A”	6105	2.
2.1.15.	“A”	6162	1.
2.1.16.	“A”	6231	1.
2.1.17.	“A”	6245	1. According to Com. “A” 6328.
2.1.	“A”	4851	4.
2.2.	“A”	4015	1. 2° According to Com. “A” 4311, 4453, 4577, 5908, 6105, 6162 and 6305 (includes interpretative clarification).
2.3.	“A”	4311	2.
2.4.	“A”	4311	According to Com. “A” 6327.

ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS ON “CREDIT POLICY”

1.1. Included concepts

The global foreign‑currency position will consider the totality of assets, liabilities, commitments and other instruments and operations involving foreign‑currency intermediation or linked to exchange‑rate movements, including spot, forward and other derivative contracts, foreign‑currency deposits held in accounts at the Central Bank of the Argentine Republic (BCRA), gold holdings, BCRA monetary‑regulation instruments in foreign currency, subordinated foreign‑currency debt and foreign‑currency debt securities. It also includes forward contracts concluded within a framework agreement in markets authorized by the National Securities Commission (CNV) with cash‑settlement (no delivery of the underlying asset). Certificates of participation or debt securities issued by financial trusts and credit rights on ordinary trusts are also counted, proportionally, when their underlying assets are in foreign currency. The value of the position in currencies other than the U.S. dollar will be expressed in that currency, applying the corresponding exchange rate published by this Institution.

1.2. Exclusions

1.2.1. Assets deductible for determining the computable patrimonial responsibility.
1.2.2. Concepts recorded by the financial entity in its overseas branches.

GLOBAL NET FOREIGN‑CURRENCY POSITION – B.C.R.A.

Section 1. Determination

Version: 4a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

ORDERED TEXT – ORIGINAL REGULATION

Section	Point	Paragraph	Com.	Annex
1.1.	“A”	3889	1.	According to Com. “A” 4135, 4140, 4150, 4577 and 6396.
1.2.	“A”	4350	2.	According to Com. “A” 5834, 5847 and 5851.
1.2.1.	“A”	4350	2.
1.2.2.	“A”	5847	1.	According to Com. “A” 5851.
2.1.	“A”	3889	1.	According to Com. “A” 4577, 4598, 5834, 5851, 6128 and 6233. Includes interpretative clarification.
2.2.	“A”	3889	1.	According to Com. “A” 4350, 4598, 5536, 5611, 5627, 5834, 5851, 5891, 5917, 5935, 5997, 6128 and 6233.
3.1.	“A”	3889	1.	According to Com. “A” 4350, 3. 5356, 5550 and 6091.
3.2.	“A”	5550	2.

2.3. Provisions above the minimum

Entities may make provisions for amounts exceeding the minimum established if deemed reasonable. In such cases, applying percentages corresponding to higher levels will automatically re‑classify the client to the quality grade associated with the minimum provision, except where point 2.2.2. applies or for debtors in the consumer, housing or commercial portfolios as defined in point 7.1. of the regulations on “Debtor Classification”.

2.4. Nature of the provisions

The provision on the normal portfolio is global, while those for other categories are allocated individually, including any excess over the minimum requirements set by this Institution.

2.5. Fully provisioned debts of debtors classified as “unrecoverable”

Debts of clients classified as “unrecoverable” and fully provisioned for uncollectible risk must be removed from the asset starting from the seventh month after those circumstances are verified. This also applies to debts of clients classified as “unrecoverable by technical disposition” when they are placed in the “unrecoverable” category and are fully provisioned.

2.6. Requirements of the Superintendency of Financial and Currency Entities (SEFyC)

Upon request by the SEFyC, financial entities must create provisions for uncollectible risk at the percentages established when:

2.6.1. Credit‑portfolio analyses reveal, in the view of the Superintendency, that the provisions constituted are insufficient, according to the procedure set out in point 2.7.; or
2.6.2. Information provided to inspectors shows that the entities’ accounting records do not accurately reflect the economic and legal reality of the operations, or that actions have been taken to disguise or conceal the true nature or scope of the operations, effective as of the date indicated in each case.

MINIMUM PROVISIONS FOR UNCOLLECTIBLE RISK – B.C.R.A.

Section 2. Minimum Guidelines

Version: 8a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

ORDERED TEXT – ORIGINAL REGULATION

Section	Point	Paragraph	Com.	Annex
1.1.	“A”	2216	2.	1°
1.2.1.	“A”	2216	2.	1°
1.2.2.	“A”	2216	II	2° Includes interpretative clarification.
1.2.3.	“A”	2216	II	2°
1.2.4.	“A”	2216	II	3° According to Com. “A” 3040 (point 3.) and “B” 9074.
1.2.5.	“A”	3040	1.
1.2.6.	“A”	3064
2.1.1.	1° and	table	“A” 2216 II 1° According to Com. “A” 2440, 3339 and “B” 9074.
2.1.2.1.	“B”	6331	6. According to Com. “A” 6303.
2.1.2.2.	“A”	2826	2°
2.1.2.3.
2.1.2.4.	“A”	2932	7° Includes interpretative clarification.
2.1.2.5.	“A”	3314
2.2.1.	“A”	2216 II	6° According to Com. “A” 2932 (point 15.).
2.2.2.	“A”	2216 II	9° and last According to Com. “A” 3040 (point 5.), includes interpretative clarification. According to “A” 3339, 3955 and “B” 9074.
2.2.3.1.	“A”	2216 II	8° According to Com. “A” 2442, 3091 and “B” 9074.
2.2.3.2.	“A”	3091
2.2.3.3.	“A”	3091
2.2.3.4.	“A”	2216 II	8° According to Com. “A” 2442 and 3091.
2.2.4.	“A”	2440	2.	1° According to Com. “A” 2890 (point 2.), 3157 (point 1.) and 3339.
2.2.5.	“A”	3157	2. According to Com. “A” 3918 and 4055.
2.2.6.	“A”	4060	6.
2.2.7.	“A”	4467
2.2.8.	“A”	5398
2.2.9.	“A”	6032	2.
2.3.	“A”	2216 II	7° According to Com. “A” 4683 (point 5.).
2.4.	“A”	2216 II	4° According to Com. “A” 4738.
2.5.	1° “A”	2357	1. According to Com. “A” 6327.
2.6.	“A”	2287	4. According to Com. “A” 2893 (point 2.).
2.6.1.	“A”	2287	4. According to Com. “A” 2893 (point 2.).
2.6.2.	“A”	2287	4. According to Com. “A” 2893 (point 2.).
	“A”	2607	1.
2.7.	“A”	2893	3.
2.8.	“A”	2893	3. According to Com. “A” 6167.
	1° “A”	2373	8. and 3. Includes interpretative clarification.
3.	2° “A”	2373	8.
3.1.	last “B”	5902	3. Includes interpretative clarification.

2.2.5. Securities issued or guaranteed by the Bank for International Settlements, the International Monetary Fund, the European Central Bank, the European Union or Multilateral Development Banks (MDBs) that meet all of the following conditions:

Receive a risk weighting of 0 % under the Basel II Standard Method for computing credit‑risk capital requirements.
Trade in deep, liquid spot or forward markets that are broad, active and not concentrated.
Have a proven track record as a reliable source of liquidity in those markets (spot or forward), even during market stress.
Do not represent a liability of a financial entity – nor of any branch or subsidiary of a financial entity.

2.2.6. Debt securities issued by other sovereigns (or their central banks) in their respective currencies when the entity, through its subsidiaries or branches, assumes liquidity risk in those jurisdictions and currencies, and the securities meet the conditions set out in points ii) to iv) of 2.2.5. They will be counted up to the amount of net cash outflows in those currencies and jurisdictions.

2.2.7. Debt securities issued by other sovereigns (or their central banks) in a foreign currency – i.e., different from the sovereign’s own currency – when the entity, through its subsidiaries or branches, assumes liquidity risk in those jurisdictions and foreign currencies, and the securities meet the conditions set out in points ii) to iv) of 2.2.5. They will be counted up to the amount of net cash outflows in the respective foreign currency and jurisdiction.

The assets listed in points 2.2.3. to 2.2.7. will be measured at their fair market value, subtracting the following risk‑weight percentages:

Asset	Risk Weight
National public‑debt securities in pesos and foreign currency (points 2.2.3. and 2.2.4.)	20 %
Monetary‑regulation instruments of the Central Bank of the Argentine Republic, in pesos and foreign currency (points 2.2.3. and 2.2.4.)	20 %
Securities issued by the BIS, IMF, ECB, EU or MDBs (point 2.2.5.)	0 %
Debt securities issued by other sovereigns or their central banks (points 2.2.6. and 2.2.7.)	20 %

LIQUIDITY COVERAGE RATIO – B.C.R.A.

Section 2. High‑Quality Liquid Asset Fund

Version: 2a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

(The remainder of the original document contains additional tables and sections that were not legible in the source and therefore are omitted.)

Origin of the Provisions Contained in the Rules on “Liquidity Coverage Ratio”

Ordered Text – Source Norm

Section	Point	Paragraph	Com.	Cap./ Annex	Point
1.1.	“A”	5693	3.	According to Com. “A” 6209.
1.2.	“A”	5693	unique	1.1.
1.3.	“A”	5693	unique	1.2.
1.4.	“A”	5693	unique	1.3.
1.5.	“A”	5693	unique	1.4.
1.6.	“A”	5693	unique	1.5.
1.7.	“A”	5693	unique	1.6.
1°y 2°	“A”	5693	unique	1°y 2°
2.1.	“A”	5693	unique	2.1.
2.2.	“A”	5693	unique	2.2.	According to Com. “A” 6241 and 6327.
3.1.	“A”	5693	unique	3.1.
3.2.	“A”	5693	unique	3.2.
3.3.	“A”	5693	unique	3.3.
4.1.	“A”	5693	unique	4.1.
4.1.1.	“A”	5693	unique	According to Com. “A” 6004.
4.2.	“A”	5693	unique	4.2.
4.2.4.	“A”	5693	unique	According to Com. “A” 6004.
4.3.	“A”	5693	unique	4.3.
4.4.	“A”	5693	unique	4.5.
4.4.2.1.	“A”	5693	unique	4.5.	According to Com. “A” 6004.
4.4.5.	“A”	5693	unique	4.5.	According to Com. “A” 6004.
4.4.6.1.	“A”	5693	unique	4.5.	According to Com. “A” 6004.
4.4.6.2.	“A”	5693	unique	4.5.
4.4.6.3.	“A”	5693	unique	4.5.	According to Com. “A” 6004.
5.1.	“A”	5693	unique	5.1.
5.2.	“A”	5693	unique	5.2.
6.1.	“A”	5693	unique	6.1.
6.1.4.2.	“A”	5693	unique	6.1.	According to Com. “A” 6008.
6.1.4.11.	“A”	5693	unique	6.1.	According to Com. “A” 6004 and 6008.
6.2.	“A”	5693	unique	6.2.
7.1.	“A”	5693	unique	7.1.
7.2.	“A”	5693	unique	7.2.
8.1.	“A”	5693	unique	8.1.
8.2.	“A”	5693	unique	8.2.
9.	unique	“A”	5693	unique	unique

Index
- Section 1. Fixed assets.
  - 1.1. Included concepts.
  - 1.2. Exclusions.
- Section 2. Other concepts.
  - 2.1. Included concepts.
  - 2.2. Exclusions.
- Section 3. Computation of the concepts.
  - 3.1. Fixed assets.
  - 3.2. Other concepts.
  - 3.3. Exclusions.
- Section 4. Ratio.
  - 4.1. Maximum limit.
- Section 5. Non‑compliance.
  - 5.1. Non‑compliance reported by entities.
  - 5.2. Non‑compliance detected by the Superintendency of Financial and Currency Entities (SEFyC).
  - 5.3. Other consequences.
  - 5.4. Accounting exposure.
  - 5.5. Regularisation and remediation plans.
- Section 6. Observation bases of the rules.
  - 6.1. Individual basis.
  - 6.2. Consolidated basis.
- Correlation table

Ordered Text of the Rules on “Ratio for Fixed Assets and Other Concepts”

Version: 9a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

3.1. Fixed assets.

3.1.1. Basic amounts.

Fixed assets shall be computed on the basis of the balances at the end of each month (principal, interest and updates by the Reference Stabilisation Coefficient or the Salary Variation Coefficient – “CER” or “CVS” – where applicable), net of accumulated depreciations and amortisations and of provisions for uncollectibility and devaluation attributable to them, without deducting provisions for uncollectibility on the portfolio corresponding to debtors classified as “in normal situation” (points 6.5.1 and 7.2.1 of the rules on “Debtor Classification”) and the financings that are covered with preferred “A” guarantees, which have been computed to determine the complementary net equity in accordance with point 8.2.3.3 of the rules on “Minimum capital of financial entities”.

3.1.2. Deductions

3.1.2.1.

Debts arising from the acquisition of fixed assets, contracted with the sellers or corresponding to loans obtained with specific and proven allocation of funds, without exceeding the residual value of the respective asset.

3.1.2.2.

Advances received for the sale of those assets, without exceeding the residual value of the respective asset.

3.1.2.3.

Liabilities assumed with the National Treasury for the deferral of tax payments made due to tax incentives granted by regional or sectoral promotion regimes, through the acquisition of equity participations, up to one year after the legal impediments to the free availability of the participations have expired.

3.1.2.4.

Deferred tax liabilities arising from the revaluation of assets recorded under the heading “Property, plant and equipment”.

Ratio for Fixed Assets and Other Concepts

Section 3. Computation of the concepts.

Version: 7a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

4.1. Maximum limit.

Fixed assets and other concepts, computed in accordance with Section 3, must not exceed – when calculated jointly – either:

i) 100 % of the computable equity of the financial entity for the relevant month; or
ii) 150 % of the computable equity of the financial entity for the relevant month.

The increase of 50 percentage points relative to item i) shall apply to the extent that the immobilisation of the asset originates from the holding of national public securities – which have normal and regular quotation for significant amounts in domestic markets – and/or monetary regulation instruments of the Central Bank of the Argentine Republic that are pledged as guarantees by financial entities in favour of that Institution, as required normatively for operations instrumented through the Reciprocal Payments and Credits Agreement – ALADI, insofar as they are linked to infrastructure works or equipment – which, in both cases, constitute capital investments – contemplated in point 5.1 of the rules on “Financing to the non‑financial public sector” with respect to the type of work and/or equipment, regardless of the form in which their execution or acquisition and financing are instrumented.

Ratio for Fixed Assets and Other Concepts

Section 4. Ratio

Version: 4a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

5.2.2.2.

If the statement submitted is dismissed – wholly or partially – by the Superintendency of Financial and Currency Entities (SEFyC), the non‑compliance shall be considered firm on the date of notification of the adopted decision.

5.2.3. Treatment of the determined non‑compliance

It shall trigger an increase of the minimum capital requirement for credit risk by an amount equivalent to 150 % of the excess over the ratio from the month in which it becomes firm, while the non‑compliance persists, and additionally, once regularised, for a number of months equal to the number of periods during which the non‑compliance detected by the SEFyC was verified.

The calculation of the capital charge shall be performed considering the highest excess amount recorded in the mentioned periods and in the subsequent ones, as long as the non‑compliance remains and even if the information for the subsequent periods is entered in time and form.

5.3. Other consequences.

5.3.1.

Prohibition for the transformation of financial entities.

5.3.2.

Limitations on deposit growth.

The provisions established in point 2.3 of the rules on “Minimum capital and technical ratios. Applicable criteria” shall apply.

5.4. Accounting exposure.

Non‑compliances must be disclosed in notes to the financial statements according to the criteria established by the SEFyC.

5.5. Regularisation and remediation plans.

5.5.1.

An entity that incurs non‑compliances for three consecutive months or four alternating months within a twelve‑month consecutive period shall present a regularisation and remediation plan – unless previously required by the SEFyC – within 30 calendar days following the month in which the capital charge that determines that obligation occurs, based on the increase of the computable equity or on the elimination of the recorded excesses.

5.5.2.

If the SEFyC formulates observations on the submitted plan, the entity shall adjust it in accordance with those observations within ten calendar days from the date of notification.

Ordered Text of the Source Norm on “Representatives of Foreign Financial Entities Not Authorized to Operate in the Country”

Version: 3a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

2.1. Prior authorisation requirement.

To act as a representative of foreign financial entities – both as principal and as substitute – prior authorisation from the Central Bank of the Argentine Republic (BCRA) – Superintendency of Financial and Currency Entities (SEFyC) – is required. The SEFyC shall especially weigh, in each case, both the granting and the maintenance of authorisation to representatives of foreign financial entities when the latter, their controlling parties or any of their subsidiaries participate in the capital of a local financial entity; or when their controlling parties and/or subsidiaries have an enabled branch in the Argentine Republic.

2.2. Application requirements.

The authorisation request must be filed by the entity to be represented, through the corresponding application with the submissions of the proposed principal and substitute representatives, complying with the provisions of Section 6. The request, as well as the information and documentation subsequently required concerning the entity to be represented, must be signed by the authority established in its statutes (and its signature and position certified by a public notary or equivalent in the country of origin), while the information and documentation relating to the representatives must be signed by them, with the corresponding legalisation.

2.2.1. Regarding the entity to be represented.

2.2.1.1. Name, foreign domicile and special domicile in the Autonomous City of Buenos Aires for all procedures before the SEFyC, where notifications from the SEFyC shall be valid.
2.2.1.2. Legalised copy of the original statutes and subsequent amendments, contracts, laws, decrees or organic letters relating to its operation.
2.2.1.3. Fiscal year‑end date and deadline for the submission of financial statements and memory or similar statements before the competent authority of the country of origin.
2.2.1.4. Memory and financial statements for the two most recent fiscal years, indicating the relative participation in the markets in which it operates.
2.2.1.5. Date from which the representative is intended to commence activity.
2.2.1.6. Certified copy of the power of attorney or letter of attorney granting authority to the natural persons designated as principal and substitute representatives.

Representatives of Foreign Financial Entities Not Authorized to Operate in the Country

Section 5. Accounting Regime.

5.1. Accounting regime.

5.1.1. Special ledger.

The foreign financial entity’s representative shall record its representation activities in a special ledger that the represented entity must have stamped before the Public Registry of the corresponding jurisdiction, complying with the requirements of that Registry for the inscription of a representation office as provided in art. 118 inc. 3 of the General Companies Law, while indicating the terms and limits of the authorisation granted by the BCRA. The ledger must comply with the formalities established in article 323 of the Civil and Commercial Code of the Nation, and respect the modalities provided in article 324 of that code, in which each management carried out on behalf of the represented entity shall be recorded chronologically and in detail, regardless of whether they generate movements in asset, liability or result accounts in the financial statements corresponding to its activity in the country. The special ledger shall note the dates on which the substitute representative assumes duties (detailing name, document number and both real and special addresses updated) as well as when the principal resumes duties; it must also synthetically record each assignment received and each management performed, irrespective of the medium through which they were carried out (paper, email, telephone, fax, meetings, etc.), with the sole exception of exchanges completely unrelated to such managements.

5.1.2. Documentation, records and books.

The representative shall keep documented evidence of all managements associated with its function.
The pertinent accounting records shall be adjusted to the provisions of the Civil and Commercial Code of the Nation and to the rules issued by the BCRA – SEFyC – on the matter. The Special Ledger and all other records – accounting or otherwise – related to the representative’s activity shall be kept in Spanish and permanently updated.

5.2. Information regime.

The representative shall submit to the SEFyC, with the frequency indicated for each case, the following documentation:

5.2.1. Annual financial statements of the represented entity, with external auditor report, within 30 calendar days after the deadline for submission to the supervisory body in its country of origin. This requirement shall not apply when the represented entity publishes its audited financial statements on its Internet page.

5.2.2. Annual Activity Plan and Projections and Annual Cash‑Flow Statement – or equivalent – detailing the activities and organisational structure planned for each period of representation; the material must be submitted no later than 30 April of each year, supported by evidence of its approval by the competent authority of the represented entity, according to its statutes.

5.2.3. Annual financial statements of the representative, signed by the principal or substitute acting in function and with external auditor report within 30 calendar days after the date of submission to the respective local corporate control body.

5.2.4. Information on operations that the foreign represented entity carries out with residents in the country, with or without the local representative’s intervention and also through its branches and subsidiaries in other countries, with the scope, form and periodicity established by the SEFyC.

Ordered Text of the Source Norm on “Consolidated Supervision”

Version: 3a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

1.1. Exercise of consolidated supervision.

Financial entities shall submit their financial statements and other information adjusted to the consolidation provisions so that the Superintendency of Financial and Currency Entities (SEFyC) can exercise supervision of the entities on a consolidated basis.

1.2. Aspects to consider.

For the assessment of solvency and compliance with technical ratios in credit assistance matters, the financings granted directly by the entity and/or through its subsidiaries shall be considered. Therefore, the deposit portfolio and its holders shall not be subject to verification.

1.3. Information from foreign subsidiaries.

Entities that own or acquire participations in foreign subsidiaries shall give consent to provide the information required by the SEFyC for the purpose of exercising supervision based on the consolidated financial situation. For the determination of informational requirements, the SEFyC shall take into account the legislation of the country where the subsidiary is located and the agreements concluded with the local supervisory body. Financial entities incorporated in the country may not maintain participations in foreign banks or companies, subject to consolidation as significant subsidiaries, in cases where the SEFyC cannot obtain the information it deems necessary to evaluate the consolidated financial situation of the entity. The SEFyC shall communicate to the financial entity when it considers such a situation to exist. Upon the Superintendency’s suggestion, the Central Bank of the Argentine Republic (BCRA) shall consequently set the deadline for the sale of the participations.

Consolidated Supervision

Section 1. Scope.

Version: 2a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

2.1.2. Significant subsidiaries.

A subsidiary of a local financial entity shall be considered significant when any of the following circumstances occurs:

2.1.2.1. Its assets, contingent commitments and other operations (options, etc.) represent 10 % or more of the computable equity of the local financial entity, including its foreign subsidiaries.
2.1.2.2. Its results for the current fiscal year represent 10 % or more of the results for the current fiscal year, calculated on homogeneous time bases, of the local financial entity, including its foreign subsidiaries.

2.1.3. Complementary interests.

When the local financial entity’s participation in a subsidiary entity or company is less than 100 % of the total capital, complementary interests shall be the participations corresponding to third parties unrelated to the local financial entity, i.e., the portion it does not own or control.

2.2. Classes of entities and companies covered.

The preceding definitions shall apply to entities and companies of the following classes:

2.2.1. Financial entities of the country and abroad.
2.2.2. Companies that provide complementary services to the financial activity, according to BCRA rules, of the country or abroad.

Section 2. Entities and Companies Covered

Version: 2a. COMMUNICATION “A” 6428
Effective date: 01/01/2018

3.1. Monthly Consolidation

Financial entities must submit monthly financial statements and other information that reflect in consolidated form the operations of:

3.1.1. Their head office or parent and its subsidiaries in the country and abroad.
3.1.2. Their significant subsidiaries in the country and abroad.

3.2. Quarterly Consolidation

In addition to the monthly consolidated information, financial entities must submit quarterly and annual financial statements and other information that reflect in consolidated form the operations of:

3.2.1. Their head office or parent and its subsidiaries in the country and abroad.
3.2.2. Their subsidiaries in the country and abroad.
3.2.3. Entities or companies in the country and abroad in which they hold or control more than 12.5 % of the total votes, in cases determined by the Superintendent of Financial and Currency Entities by resolution.
3.2.4. Entities or companies not subject to consolidated supervision but that the entity chooses to include, with prior authorization from the SEFyC.

3.3. Nature of Consolidated Financial Statements

Consolidated financial statements shall have the character of complementary information.

For quarterly and annual closures, an external audit report on their reasonableness will be required, taking into account the consolidation guidelines defined in these regulations.

CONSOLIDATED SUPERVISION

B.C.R.A.

Section 3. Information

Version: 2a. COMMUNICATION “A” 6428

Effective: 01/01/2018

3.4. Branches and Subsidiaries of Foreign Banks

Local branches or local financial entities that are subsidiaries of foreign banks must send to the SEFyC the consolidated financial statements that their head office or the bank that directly or indirectly controls them presents to the banking supervisory authority of the country where they are located, with the frequency and on the terms that such authority has established.

Those financial statements must be translated into Spanish if they are expressed in another language. The translation must be performed by a registered public translator and its signature legalized by the corresponding professional college.

This information must be sent within 30 calendar days after the deadline for its presentation to the corresponding supervisory authority.

The entities covered must also communicate the deadline required by the supervisory authority for the presentation of the consolidated financial statements in the country of origin and assume the commitment to inform of any change that may occur in that respect, by a note signed by the legal representative of the foreign entity, with the character of a sworn statement.

CONSOLIDATED SUPERVISION

B.C.R.A.

Section 3. Information

Version: 3a. COMMUNICATION “A” 6428

Effective: 01/01/2018

4.1. Applicable Criteria

Consolidation shall be carried out in accordance with the technical accounting criteria and procedural standards established by the SEFyC.

4.2. Consolidation by Levels

If subsidiaries of subsidiaries exist, consolidation must meet the following requirements:

4.2.1. Each subsidiary must consolidate its financial statements with those of its subsidiaries.
4.2.2. Each subsidiary consolidated with its subsidiaries will be considered a subsidiary for the purpose of determining, according to the definitions established, whether it must be consolidated with the immediate higher level of consolidation.
4.2.3. Each subsidiary consolidated with its subsidiaries will be considered, for the purpose of determining whether it constitutes a significant subsidiary, according to any of the guidelines mentioned in points 2.1.2.1 and 2.1.2.2.

4.3. Complementary Interests

Complementary interests shall be presented in the liability side of the consolidated statement of financial position of the entity, in an item called “third‑party participation.” A separate disclosure must provide the detail of those complementary interests.

Third‑party participation will be part of basic equity, for the purpose of establishing the computable patrimonial responsibility in consolidation cases.

Results corresponding to complementary interests will be included in the items “diverse profits” or “diverse losses” of the consolidated income statement, as appropriate.

4.4. Fiscal Year Closing

The annual closing dates of subsidiaries subject to consolidation must coincide with that of the local financial entity. Consequently, in case of discrepancy, the closing dates of the subsidiaries must be aligned with that of the entity.

If this is not possible – for duly justified reasons – consolidation will be allowed by preparing special financial statements duly audited with the same date as the closing of the local financial entity.

CONSOLIDATED SUPERVISION

B.C.R.A.

Section 4. Consolidation Procedure

Version: 2a. COMMUNICATION “A” 6428

Effective: 01/01/2018

CONSOLIDATED SUPERVISION

B.C.R.A.

Section 4. Consolidation Procedure

4.5. External Audit

The rules on external audits shall apply to the consolidated financial statements that must be prepared on a quarterly and annual basis.

Version: 2a. COMMUNICATION “A” 6428

Effective: 01/01/2018

5.1. Individual Basis

Unless otherwise provided, financial entities (including their branches in the country and abroad) shall individually observe the rules applicable to them.

In the case of the minimum cash requirement, as well as the liquidity coverage ratio and the stable net funding ratio, in the latter cases when the entities are subject to the rules on “Liquidity Coverage Ratio” and “Stable Net Funding Ratio,” the individual basis shall not include foreign branches.

5.2. Consolidated Basis

Without prejudice to individual compliance, controlling financial entities subject to consolidated supervision shall, on a consolidated basis, observe the following rules:

5.2.1. Monthly Consolidated Basis

5.2.1.1. Minimum capital.
5.2.1.2. Classification of debtors and minimum provisions for uncollectible risk.
5.2.1.3. Segmentation of credit risk.
5.2.1.4. Credit grading.
- i) Maximum limit for holding participations in companies that do not provide complementary financial‑activity services.
- ii) Maximum limit of 2.5 % and 5 % of the computable patrimonial responsibility of the entity of the second month preceding the granting of the corresponding financing, which reaches a complementary margin of 200 % and 300 %, respectively, of the client’s computable patrimonial responsibility.
5.2.1.5. Maximum limit applicable to financings, except those destined to other financial entities, for which the granting does not require the intervention of credit‑area officials and the general manager and the approval of the lending entity’s directors, set at 2.5 % of the computable patrimonial responsibility of the second month preceding the granting.
5.2.1.6. Global maximum limits, according to the rules on “Credit Management,” for:
- a) Small‑amount loans.
- b) Loans for micro‑entrepreneurs.
- c) Loans for micro, small and medium enterprises –as per sub‑point iii) of clause b) of point 1.1.3.3.
5.2.1.7. Ratio for fixed assets and other concepts.
5.2.1.8. Liquidity coverage ratio – when it concerns financial entities covered by those rules – according to the scope established in point 8.2. of the rules on “Liquidity Coverage Ratio.”

5.2.2. Quarterly Consolidated Basis

Without prejudice to individual compliance, and additionally and independently of the monthly consolidated basis, controlling financial entities subject to consolidated supervision shall, on a quarterly consolidated basis, observe the following rules:

5.2.2.1. Minimum capital.
5.2.2.2. Classification of debtors and minimum provisions for uncollectible risk.
5.2.2.3. Segmentation of credit risk.
5.2.2.4. Maximum limit for holding participations in companies that do not provide complementary financial‑activity services.
5.2.2.5. Ratio for fixed assets and other concepts.
5.2.2.6. Stable net funding ratio – when it concerns financial entities covered – according to the provisions of point 6.2. of the rules on “Stable Net Funding Ratio.”

5.2.3. Compliance with the Rules on “Prevention of Money Laundering, Terrorist Financing and Other Illicit Activities”

Financial entities must ensure that the branches and subsidiaries covered by this regime consider within their internal control framework the following:

5.2.3.1. Existence of written policies and procedures for the prevention of money laundering and terrorist financing framed within international standards, adapted to the specific characteristics of the different activities and consistent with those of the head office and/or controlling entity.

CONSOLIDATED SUPERVISION

B.C.R.A.

Section 5. Observance of Rules

Version: 10a. COMMUNICATION “A” 6428

Effective: 01/01/2018

Origin of the Provisions Contained in the Rules on “Consolidated Supervision”

Section	Point	Paragraph	Comm.	Annex	Point	Paragraph	Observations
1.1.	“A”	2227	1.	1st	According to Comm. “A” 6327.
1.2.	“A”	2227	1.	last
1.	1st and 2nd	“A”	2227	5.
1.3.	3rd and last	“A”	2227	6.
2.1.	“A”	2227	unique	1.	According to Comm. “A” 2649, 2988 and 6327.
2.2.	“A”	2227	unique	1.
2.3.	“A”	2619	1st and last	According to Comm. “A” 2988, 5700 and 6304.
2.4.	“A”	2227	unique	3.
3.1.	“A”	2227	unique	2.2.	According to Comm. “A” 6327.
3.2.	“A”	2227	unique	2.3.	According to Comm. “A” 2988 and 6327.
3.3.	“A”	2227	unique	2.4.	According to Comm. “A” 6327.
“A”	2227	10.	1st	3.
3.4.	“A”	2732	2nd and 4th	According to Comm. “A” 5115 and 6327.
4.1.	“A”	2227	unique	4.1.
4.2.	“A”	2227	unique	4.2.	According to Comm. “A” 6327.
4.3.	“A”	2227	1st	4.3.
4.3.	2nd	“A”	2227	11.
last	“A”	2227	unique	4.3.	last
4.4.	“A”	2227	unique	4.4.	According to Comm. “A” 6327.
4.5.	“A”	2227	unique	5.4.	According to Comm. “A” 6327.
5.1.	“A”	2227	unique	5.2.1.	last	According to Comm. “A” 2649, 3274, 3558, 5693 and 6306.
5.2.	“A”	2227	unique	5.1. and	5.2.1.	last	According to Comm. “A” 2649.
5.2.1.1.	“A”	2227	unique	5.1.1. and	5.1.7.	According to Comm. “A” 2649.
5.2.1.2.	“A”	2227	unique	5.1.5.	According to Comm. “A” 2649.
5.2.1.3.	“A”	2227	unique	5.1.2. and	5.1.3.	According to Comm. “A” 2649.
1st	“A”	2227	unique	5.1.4.	According to Comm. “A” 2649 and 3558.
5.2.1.4.i)	“A”	2227	13.
5.2.1.4.ii)	“B”	5902	5.	According to Comm. “A” 2649 and 6023.
5.2.1.5.	“B”	5902	5.	According to Comm. “A” 2649.
5.2.1.6.	“A”	4891	8.	According to Comm. “A” 5557.
5.2.1.7.	“A”	2227	unique	5.1.8.	According to Comm. “A” 2736.
5.2.1.8.	“A”	5693		According to Comm. “A” 5724 (interpretative clarification).
5.2.2.	“A”	2227	unique	5.1.	According to Comm. “A” 2649, 2461, 2736, 2839, 5180, 5272, 5369, 6306, 6327 and “B” 5902.
5.2.3.	“A”	4835	4.	According to Comm. “A” 5223.
5.2.4.	“A”	5093
5.3.1.	“A”	2227	unique	5.2.1.	According to Comm. “A” 2649 and 5520.
5.3.2.	“A”	2227	unique	5.2.2.	According to Comm. “A” 5520.
5.4.1.	“B”	6566	1.
5.5.	“A”	2227	unique	5.3.	According to Comm. “A” 2649.

1. Scope

The Central Bank of the Argentine Republic (BCRA) considers it of fundamental importance that the accounting records made by entities accurately reflect the economic and legal reality of the operations.

2. Verification

2.1. Assets

It must always be possible to verify their real existence (cash – balances with correspondents –, securities, loans and other financings, regardless of the custodian, issuer or debtor), and it is not permissible for the respective accounting to generate doubts about the legitimacy or validity of the instruments that back them or about the genuineness of the operation, or that they are not effectively owned by the entity and available for settlement at maturity; that is, they must not be assets that are ultimately used as guarantees for transactions with other entities.

2.2. Liabilities

They must reflect the true nature and existence of the obligation, and it is inadmissible to carry out tricks or actions that distort them, for example by performing operations or acts that involve the creation of hidden guarantees; likewise, capital contributions must represent the shareholders’ commitment to the result of the company’s management.

3. Non‑Compliance

In case of breach of these provisions, the provisions of the regulations on the “Disciplinary Regime under the Central Bank of the Argentine Republic, Laws 21.526 and 25.065 and their amendments” shall apply.

4. Prohibition

Financial entities may not carry out operations – of any type, including those recorded off‑balance‑sheet – on their own account or on behalf of third parties, with natural or legal persons who have participated in operations with other financial entities – including the subscription of shares or capital contributions – in which tricks or actions have been carried out to conceal the true scope or nature of those operations, according to the information supplied by the Superintendent of Financial and Currency Entities (SEFyC).

B.C.R.A. TRUTHFULNESS OF ACCOUNTING RECORDS

Version: 3a. COMMUNICATION “A” 6428

Effective: 01/01/2018

Origin of the Provisions Contained in the Rules on “Truthfulness of Accounting Records”

Point	Paragraph	Communication	Point	Paragraph	Observations
1.	“A”	2607	1.	1st
2.1.	“A”	2607	1.	3rd
2.2.	“A”	2607	1.	4th
3.	“A”	2607	1.	2nd	According to Comm. “A” 6167.
4.	“A”	2607	3.		According to Comm. “A” 6327.