Subsidized Rate Loans for Companies, Zero Rate Culture Loans, Minimum Cash, Time Deposits and Foreign Exchange Adjustments

2020 - YEAR OF GENERAL MANUEL BELGRANO

COMMUNICATION “A” 7082
06/08/2020

TO FINANCIAL INSTITUTIONS,
TO FOREIGN EXCHANGE OPERATORS:

Ref.: Circular
LISOL 1 - 905
RUNOR 1 - 1590
OPASI 2 - 611
OPRAC 1 - 1052
CAMEX 1 - 858
REMON 1 - 1024

Subsidized Rate Loans for Companies. Zero Rate Culture Loans. Decree No. 332/2020. Financial services within the framework of the health emergency declared by Decree No. 260/2020 Coronavirus (COVID-19). Minimum cash. Time deposits and investments. Foreign and exchange. Adjustments . ____________________________________________________________

We address you to inform you that this Institution adopted the resolution that, in its pertinent part, establishes:

“1. Financial institutions must grant the “Subsidized Rate Loans for Companies” provided for in Decree No. 332/2020 (and amendments) to all companies that request them, provided they are included in the list of beneficiaries to be published by the Federal Administration of Public Revenue (AFIP).

These financings shall be in pesos and must be credited to the payroll accounts –Section 2. of the rules on “Savings deposits, payroll account and special accounts”– of their workers. If the worker does not hold any payroll account, the financial institution must proceed to open one.

From the moment the request is received, the financial institution shall have up to 5 business days to proceed with the crediting of the financing.

The interest rate shall be determined based on the positive year-on-year nominal variation in the company's billing with respect to the same period of the previous year based on the aforementioned list:

positive year-on-year nominal variation in billing	interest rate –nominal annual–
from 0 % to 10 %	0 %
more than 10 % up to 20 %	7,5 %
more than 20 % up to 30 %	15 %

The financing shall have a grace period of 3 months from its crediting. From the fourth month, it shall be repaid in at least 12 equal and consecutive monthly installments.

The interest rate that FONDEP will recognize to financial institutions shall be the difference between 15 % nominal annual and the interest rate that, in accordance with the provisions of the preceding table, the debtor will pay, and shall apply to the balances of the disbursed financings.

2. Financial institutions must grant the “Zero Rate Culture Loans” provided for in Decree No. 332/2020 (and amendments) to clients who request them, provided they have not accessed the “Zero Rate Loans” and are included in the list of beneficiaries to be published by AFIP, which they must consult in order to verify who is eligible, for up to what amount and at which institution.

From the moment the request is received, the financial institution shall have up to 2 business days to proceed with the crediting of the financing.

These financings shall be in pesos and must be credited to the credit card –issued by the institution– of the applicant for the financing; all financial institutions must allow these clients to request the “Zero Rate Culture Loans” through Internet banking –“homebanking”–. If the applicant does not have a credit card, the financial institution listed by AFIP must:

• issue a credit card with a purchase limit at least equal to the financing credited to them, with no charge being allowed for the issuance of that card or for its maintenance, except in the latter case where the client makes purchases for amounts greater than the credited amount or, once the financing is canceled, wishes to keep the card; or

• proceed to open a “Demand account for purchases in stores” –point 3.9. of the rules on “Savings deposits, payroll account and special accounts”–;

• keep the product active –credit card or demand account for purchases in stores– until the total cancellation of the “Zero Rate Culture Loan”, unless the client expressly requests cancellation;

• allow these clients to process this request entirely through the use of electronic communication mechanisms.

When the institution must issue the card to the client, it must arrange the means to prioritize its delivery in the shortest possible time.

The financing must be disbursed in three equal and consecutive monthly credits; the available credit limit shall be increased by the amount of each credit. From the moment of the first credit and until the total cancellation of the “Zero Rate Culture Loan”, the possibility of obtaining cash advances with the card shall be prohibited.

In each of those credits, the amount equivalent to the payment of the total sums that must be paid for the resulting monthly periods as integrated tax and pension contributions payable by taxpayers adhering to the Simplified Regime for Small Taxpayers or mandatory pension contributions of the self-employed workers regime shall be added. The referred amount shall be withheld and deposited by the financial institution with AFIP.

The financing shall have a nominal annual interest rate of 0 % and shall have a grace period of 12 months from its first credit. From the thirteenth month, it shall be repaid in at least 12 equal and consecutive monthly installments.

The interest rate that FONDEP will recognize to financial institutions shall be 15 % nominal annual on the balances of the disbursed financings.

3. Reduce the minimum cash requirement in pesos by an amount equivalent to 60 % of the sum of the financings granted in accordance with points 1. and 2. of this communication. The monthly average of daily balances of the period prior to the computation of the requirement shall be considered.

4. Exclude from the minimum passive rate regime provided for in point 1.11.1. of the rules on "Deposits and time investments" those clients that are debtors of the financings regulated in point 1. of this communication. For this purpose, financial institutions must request a sworn statement from depositors when the deposited capital exceeds $ 1 million.

5. Establish that persons who access the financings provided for in points 1. and 2. above may not, until their total cancellation:

5.1. access the foreign exchange market to carry out operations corresponding to the formation of external assets by residents, remittance of family assistance and derivatives, under the terms of point 3.8. of the rules on "Foreign exchange and exchanges";

5.2. arrange in the country sales of securities with settlement in foreign currency or transfer them to depository institutions abroad."

Subsequently we will send you the sheets that, in replacement of those timely provided, must be incorporated into the referenced rules.

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications

María D. Bossio
General Deputy Manager of Financial Regulation