2010 - YEAR OF THE BICENTENNIAL OF THE MAY REVOLUTION

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION “A” 5125
17/09/2010

TO THE FINANCIAL INSTITUTIONS:

Ref.: Circular
OPRAC 1 - 648

Temporary advances to the non-financial public sector.

---

We address you to inform you that this Institution has adopted the following resolution:

“- Replace point 3.2.5. of Section 3. of the rules on “Financing to the non-financial public sector”, with the following:

“3.2.5. Temporary advances to the non-financial public sector, in accordance with the concept defined in point 1.1. of Section 1., to the extent that the following is verified previously and concurrently:

3.2.5.1. They are granted no earlier than the first business day of each month -except when there is a different instruction issued by the competent application authority and/or arises from agreements in force as of 31.07.10-, for a maximum term of 5 business days, whose purpose is the payment of personnel salaries and do not exceed, considering each paying entity individually, the total net amount to be credited for that reason, foreseen for each month.

3.2.5.2. The intervening financial institution has the character of paying agent for those salaries and obtains prior to the disbursement of each advance, a certificate issued by the paying entity informing -with the character of sworn statement- the existence of the corresponding payment order issued by the public dependency that corresponds in its favor, with said purpose and for its payment through that financial institution.

3.2.5.3. It is verified that in the 12 months prior to the date of each disbursement, the temporary advances granted to that entity have not been in force, in no case, for more than 5 business days and that said advances are fully cancelled.”

We send you the pages that, in replacement of those previously provided, should be incorporated into the ordered text of the rules on “Financing to the non-financial public sector”. In that sense, it is recalled that on the page of this Institution www.bcra.gov.ar, accessing “regulations” (“ordered texts”), you will find the modifications made with texts highlighted in special characters (strikethrough and bold).

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Issuance Manager of Rules

Alfredo A. Besio
Deputy General Manager of Rules

ANNEX

FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR
B.C.R.A.
Section 3. Operations covered.

Financial institutions that grant financial assistance to trusts or fiduciary funds for the financing of the construction of the aforementioned infrastructure works and/or that subscribe the debt instruments or participation certificates they issue, must report any of those operations to the Superintendency of Financial and Exchange Entities within 2 business days following the date on which said assistance and/or subscription is made effective.

3.2.5. Temporary advances to the non-financial public sector, in accordance with the concept defined in point 1.1. of Section 1., to the extent that the following is verified previously and concurrently:

3.2.5.1. They are granted no earlier than the first business day of each month -except when there is a different instruction issued by the competent application authority and/or arises from agreements in force as of 31.07.10-, for a maximum term of 5 business days, whose purpose is the payment of personnel salaries and do not exceed, considering each paying entity individually, the total net amount to be credited for that reason, foreseen for each month.

3.2.5.2. The intervening financial institution has the character of paying agent for those salaries and obtains prior to the disbursement of each advance, a certificate issued by the paying entity informing -with the character of sworn statement- the existence of the corresponding payment order issued by the public dependency that corresponds in its favor, with said purpose and for its payment through that financial institution.

3.2.5.3. It is verified that in the 12 months prior to the date of each disbursement, the temporary advances granted to that entity have not been in force, in no case, for more than 5 business days and that said advances are fully cancelled.

Version: 3rd. COMMUNICATION “A” 5125
Validity:
17/09/2010
Page 5

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON “FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR”

CENTRAL BANK OF THE ARGENTINE REPUBLIC

ORDERED TEXT			SOURCE RULE				Observations
Section	Point	Paragraph	Com.	Annex	Point	Paragraph
1.	1.1.		“A” 3054	sole	1.1.		According to Com. “A” 4798, 4838 (point 12.) and 4937.
	1.2.		“A” 3054
	1.3.		“A” 4527				According to Com. “A” 4581, “C” 51182 and “B” 9745.
2.	2.1.		“A” 3054	sole	2.1.		According to Com. “A” 4937, 5062 and “B” 9745.
	2.2.		“A” 3054	sole	2.2.
3.	3.1.		“A” 3054	sole	3.1.		According to Com. “A” 5067.
	3.2.		“A” 3054	sole	3.2.		According to Com. “A” 4838 (point 10.), 4932 (points 1. 3. and 4.), 4937 (points 2 and 3.), 4996 (point 1.), 5015 (annex), 5062, 5069, 5125 and “B” 9745.
4.	4.1.1.		“A” 3054	sole			According to Com. “A” 3548 and 3911 -point 9. subsection c)-.
	4.1.1.1.		“A” 3054	sole			According to Com. “A” 3911 -point 9., subsection b)-, 4798 and “B” 9745.
	4.1.1.2.		“A” 4798				According to Com. “A” 4947.
	4.1.1.3.		“A” 4798
	4.1.2.		“A” 3054	sole			According to Com. “A” 4718 and “B” 9745.
	4.1.3.		“A” 3054	sole			According to Com. “A” 3144 and 5062.
5.	5.1.		“A” 4838		1.		According to Com. “A” 4926, 4937, 5062 and “B” 9745.
	5.1.1.		“A” 4838		1.1.		According to Com. “A” 4926, 4937 (point 4.) and “B” 9745.
	5.1.2.		“A” 4838		1.2.		According to Com. “A” 4926, 4937 (point 4.), 5015 and “B” 9745.
	5.1.3.		"A" 4838		1.3.		According to Com. "A" 4926, 4937 (point 4.).
	5.1.4.		"A" 4838		1.4.		According to Com. "A" 4926, 4937 (point 4.) and 5036.
	5.1.5.		"A" 4838		1.6.		According to Com. "A" 4937 (point 4.) and 5062.
	5.1.6.		“A” 4838		6. and 10.		According to Com. “A” 4926, 4937 (point 4.), 4996 (point 1.), 5015 (annex), 5062 and “B” 9745 and normative interpretation.
	5.1.7.		“A” 4838		1.5.		According to Com. “A” 4926, 4937 (point 4.), 5062 and “B” 9745.
	5.1.8.		“A” 4937		4.		According to Com. “B” 9745 and “A” 5062.