ANNUAL REPORT 2003 List
ACTIVE MEMBERS
ABN AMRO Bank N.V. American Express Bank Ltd. S.A. Banca Nazionale del Lavoro S.A. Banco Bradesco Argentina S.A. Banco de la República Oriental del Uruguay Banco do Brasil S.A. Banco Europeo para América Latina (B.E.A.L.) S.A. Banco Itaú Buen Ayre S.A. Banco Río de la Plata S.A. Banco Société Générale S.A. Bank of America N.A. BankBoston N.A. BBVA Banco Francés S.A. BNP Paribas Citibank N.A. Deutsche Bank S.A. HSBC Bank Argentina S.A. ING Bank N.V. (Sucursal Argentina) JP Morgan Chase Bank, Sucursal Buenos Aires Lloyds TSB Bank plc The Bank of Tokyo-Mitsubishi, Ltd.
ANNUAL REPORT 2003 List
ASSOCIATED MEMBERS
Banco de la Naci贸n Argentina Banco de la Ciudad de Buenos Aires Banco de Inversi贸n y Comercio Exterior S.A. Banca di Roma Societ谩 per Azioni Banco BBA-Creditanstalt S.A. Banco Bilbao Vizcaya S.A. Banco Comercial S.A. Banco de Chile Banco de Finanzas e Inversiones S.A. Banco Dibens S.A. Banco Latinoamericano de Exportaciones Banco Santander Central Hispano S.A. Bank LEU AG Bayerische Hypo-und Vereinsbank AG BPD International Bank BSI Banca Della Svizzera Italiana Commerzbank AG Co枚peratieve Centrale Raiffeisen-Boerenleebank B.A. (Rabobank) Credit Agricole Indosuez Credit Lyonnais Credit Suisse Dresdner Bank AG Dresdner Bank Lateinamerika AG First Union National Bank Natexis Banques Populaires Sanpaolo IMI S.p.A. Standard Bank London Limited Standard Chartered Bank The Bank of New York The Bank of Nova Scotia Union Bancaire Privee CBI-TDB
ANNUAL REPORT 2003 List
BOARD OF DIRECTORS
President:
MARIO VICENS
1st Vicepresident:
BANKBOSTON N.A. Manuel R. Sacerdote
2nd Vicepresident:
CITIBANK N.A. Juan J. Bruchou
3rd Vicepresident:
BANCO RÍO DE LA PLATA S.A. Enrique Cristofani
4th Vicepresident:
BBVA BANCO FRANCÉS S.A. Jorge Bledel
Secretary:
HSBC BANK ARGENTINA S.A. Antonio Losada
Pro Secretary:
BANCA NAZIONALE DEL LAVORO S.A. Tullio Lanari
Secretary of Minutes:
BANCO SOCIÉTÉ GÉNÉRALE S.A. Marc Emmanuel Vives
Treasurer:
BANCO ITAÚ BUEN AYRE S.A. Rodolfo Corvi
Pro Treasurer:
DEUTSCHE BANK S.A. Luis Caputo
Members: BANK OF AMERICA N.A. Alejandro Ledesma ING BANK N.V. (Sucursal Argentina) Fernando Tedín Uriburu LLOYDS TSB Bank plc Nigel Hubbard JP MORGAN CHASE BANK, Sucursal Buenos Aires Marcelo Podestá
ANNUAL REPORT 2003 List
BANCO EUROPEO PARA AMÉRICA LATINA (B.E.A.L.) S.A. Jean - Pierre Smeets Alternate Members: BNP PARIBAS Philippe Joannier AMERICAN EXPRESS BANK Ltd. S.A. Oscar Girola ABN AMRO BANK N.V. José Oscar Fernández THE BANK OF TOKYO-MITSUBISHI, Ltd. Kazuhiro Miya Honorary President:
Julio J. Gómez
Audit of Accounts: Titular:
BANCO BRADESCO ARGENTINA S.A. Arnaldo Silva
ANNUAL REPORT 2003 List
SPECIAL COMMITTEES
FINANCIAL AFFAIRS AND CAPITAL MARKET Coordinating Secretary Gabriel E. Castelli - HSBC Bank Argentina S.A. Alternate Coordinating Secretary Daniel Passaro - BankBoston N.A. LEGAL AFFAIRS Coordinating Secretary Analía Schnaidman - Banca Nazionale del Lavoro S.A. Alternate Coordinating Secretaries Fabián Montiel - BBVA Banco Francés S.A. Guillermo Cristiani - Banco Río de la Plata S.A. BANK AUDITING Coordinating Secretaries Jesús López García - Banco Río de la Plata S.A. Sergio Ems - BankBoston N.A. Eduardo José Zerega - BBVA Banco Francés S.A. Ramón Romero - Citibank N.A. RETAIL BANKING Coordinating Secretary Guillermo Goldberg - Citibank N.A. Alternate Coordinating Secretary Luis Miguel García Morales - Banco Río de la Plata S.A. INSURANCE BANKING Coordinating Secretary Guillermo Bronenberg - Citibank N.A. Alternate Coordinating Secretary José Luis D'Alessio - BankBoston N.A. E-COMMERCE Coordinating Secretary Pending appointment
ANNUAL REPORT 2003 List
PROCUREMENT Coordinating Secretary Miguel A. Bellino - Banco Société Générale S.A. Alternate Coordinating Secretaries Susana Kearney - Lloyds TSB Bank plc Luis M. Embrioni - Banco de la Ciudad de Buenos Aires TRUST Coordinating Secretary Federico Kralj - BBVA Banco Francés S.A. Alternate Coordinating Secretaries Atilio Serenelli - HSBC Bank Argentina S.A. Eduardo Rodríguez Sapey - Banco Río de la Plata S.A. TAXATION Coordinating Secretary Luis Irigoyen - BBVA Banco Francés S.A. Alternate Coordinating Secretaries Carlos del Mauro - Banca Nazionale del Lavoro S.A. Fernando Alesón - Citibank N.A. Marcela B. de Lazzarini - BankBoston N.A. 1 Claudio Di Lello - HSBC Bank Argentina S.A. 2 ACCOUNTING AND REPORTING STANDARDS Coordinating Secretaries Juan José Pardo - Banca Nazionale del Lavoro S.A. Ana María Zorgno - Banco Itaú Buen Ayre S.A. Alternate Coordinating Secretary Guillermo Cisbani - Lloyds TSB Bank plc TRANSACTIONS Coordinating Secretary Hugo Vacca Núñez - BankBoston N.A. Alternate Coordinating Secretaries Manuel García Ojea - Banco Société Générale S.A. Luis Gonzato - BBVA Banco Francés S.A. José Busto Bran - Banca Nazionale del Lavoro S.A. 3
ANNUAL REPORT 2003 List
FOREIGN TRADE TRANSACTIONS Coordinating Secretaries Luis Martínez - HSBC Bank Argentina S.A. Juan Carlos Raschi - BankBoston N.A. 4 Alternate Coordinating Secretaries Hermine Espiñeira - Deutsche Bank S.A. Miguel A. Zarlenga - ABN AMRO Bank N.V. Renata Vittek - Deutsche Bank S.A.5 SECURITIES TRANSACTIONS Coordinating Secretary María Rosa Eiras - BankBoston N.A. Alternate Coordinating Secretary Claudia Po - Citibank N.A. PREVENTION OF MONEY LAUNDERING Coordinating Secretary Rubén J. Silvarredonda - Banca Nazionale del Lavoro S.A. Alternate Coordinating Secretary Graciela F. Rosich - BankBoston N.A. SMALL AND MEDIUM-SIZED COMPANIES Coordinating Secretary Alberto Díaz - BankBoston N.A. Alternate Coordinating Secretary Hernán Caballero - Banco Río de la Plata S.A. INTERNATIONAL BANKING RELATIONS Coordinating Secretary María Seljak - BBVA Banco Francés S.A. Alternate Coordinating Secretaries Mauro Mazzarelli - Banca Nazionale del Lavoro S.A. Sergio Lew - Banco Río de la Plata S.A. LABOR RELATIONS Coordinating Secretary Daniel Agudo - BBVA Banco Francés S.A. Alternate Coordinating Secretary Santiago Batlle - BankBoston N.A.
ANNUAL REPORT 2003 List
RELATIONS AND COMMUNICATIONS Coordinating Secretary Oscar Correa - Banco Río de la Plata S.A. Alternate Coordinating Secretary Carlos Martínez - Banca Nazionale del Lavoro S.A. CREDIT RISK Coordinating Secretary José Dávola - Lloyds TSB Bank plc Alternate Coordinating Secretary Silvia Tobin - HSBC Bank Argentina S.A. BANK SECURITY Coordinating Secretaries Roberto J. Veltri - Banco Río de la Plata S.A. Jorge D. Sande - BBVA Banco Francés S.A. Carlos Morán - Banca Nazionale del Lavoro S.A. Daniel Alí - Banco Itaú Buen Ayre S.A. TECHNOLOGY, ORGANIZATION AND SYSTEMS Coordinating Secretary Claudio Troccoli - Banco Río de la Plata S.A. Alternate Coordinating Secretary José Busto Bran - Banca Nazionale del Lavoro S.A.6
Until August 2003 Adriana Cargioli de Vaín - Banco Río de la Plata S.A. Until 2.24.03 Alejandro Romera - ABN AMRO Bank N.V. 3 Until 11.20.03. 4 Until 9.9.03. 5 Until 9.25.03. 6 Until 11.20.03 1 2
ANNUAL REPORT 2003 List
INSTITUTIONAL REPRESENTATIVES
NATIONAL CUSTOMS ADMINISTRATION Customs Consulting Board Luis Martínez - HSBC Bank Argentina S.A. (Alternate) CIVIL ASSOCIATION FOR THE PROMOTION OF DOWNTOWN BUENOS AIRES Norberto López Isnardi - Liberty College-UADE ARGENTINE BANK MARKETING ASSOCIATION Mario Vicens - ABA President CENTRAL BANK OF THE ARGENTINE REPUBLIC Interbank Commission for Means of Payment in the Argentine Republic Hugo Vacca Núñez - BankBoston N.A. (Alternate) BUENOS AIRES STOCK EXCHANGE Board Mario Vicens - ABA President ARGENTINE-JAPANESE ENTREPENEURIAL COMMITTEE Julio J. Gómez - ABA Honorary President STAF COMMITTEE - B.C.R.A. Claudio Troccoli - Banco Río de la Plata S.A. SOCIAL INCLUSION FAMILY LAW MANAGEMENT, ENFORCEMENT AND CONTROL NATIONAL COUNCIL Mario Vicens - ABA (Member) Rubén Mattone - ABA (Alternate) FELABAN Governor: Mario Vicens - ABA President Argentine Commission for Felaban María Elena Deligiannis - ABA Technical Manager
ANNUAL REPORT 2003 List
.
EXPORT AR FOUNDATION Mario Vicens - ABA President (Member) ARGENTINE FEDERAL POLICE FOUNDATION Board of Directors Mario Vicens - ABA President (Member) OTC MARKET President:
Marcelo Castro - Banco Río de la Plata S.A.
Directors:
Daniel Passaro - BankBoston N.A. Carlos Planas - Deutsche Bank S.A.
Alternate Directors:
Luis Castresana - Banco Itaú Buen Ayre S.A. Pablo Cousido - Banca Nazionale del Lavoro S.A. Jorge A. Caracoche - Banco de la Ciudad de Buenos Aires
Board of Supervision:
Esteban Benegas Lynch (JP Morgan Chase Bank, Sucursal Buenos Aires)
BUENOS AIRES SECURITIES AND EXCHANGE COMMISSION Vicepresident: Mario S. Rossi - BankBoston N.A. MERCOSUR Group of Mercosur Bank Associations María Elena Deligiannis - ABA Link to Mercosur Work Subgroup N° 4 “Financial Affairs” María Elena Deligiannis - ABA Mercosur Work Subgroup N° 10 “Labor Relations, Employment and Social Security” María Elena Deligiannis - ABA MINISTRY OF LABOR, EMPLOYMENT AND SOCIAL SECURITY Wages Agreement Negotiating Commission Julián de Diego - Labour Advisor María Elena Deligiannis - ABA ARGENTINE UNION OF SERVICE ENTITIES Mario Vicens - ABA (1st Vicepresident)
ANNUAL REPORT 2003
PRESIDENT’S LETTER
On May 25, 2003, when Dr. NĂŠstor Kirchner took office as President of Argentina, the process of political normalization of the country that had commenced with the call to presidential elections formulated several months before by Dr. Eduardo Duhalde was finally completed. Thus, the essential political bases were set to start up the reconstruction of institutions, which had been severely damaged by the crisis that devastated Argentina during the two previous years. In this context, ABA made public its satisfaction for this major step in the institutional life of the country and highlighted that local and international current economic circumstances constitute a big opportunity to consolidate the stabilization of the Argentine economy and to constitute the bases for a sustained economic growth. During the first months in office, President Kirchner has strengthened its political administration and has developed an intense support task in the social arena. At the same time, good results obtained both in the tax and monetary areas and an international context remarkably favorable for Argentine economy have boosted the recovery of production, consumption, employment and salaries, within a framework of exchange tranquility, stable prices and noticeably decreasing interest rates. Moreover, the situation of the banks has been improved throughout the year both regarding liquidity and equity. Deposits have increased again, banks have recomposed their liquidity reserve and, in the last quarter, some bank credit lines and the profitability of the business started to show signs of recovery. On the contrary, progress registered in the solution of problems affecting the banking sector has been partial and incomplete. To date, the completion of the compensation process for asymmetric pesification is still pending completion, exchange differences are still accumulating for payment of judicial injuctions and the implementation of acts passed by the Congress towards the end of 2003, which provide for the compensation for asymmetric indexation and restructuration of mortgage loans to purchase a unique household, are also still pending. Likewise, the evolution of main financial variables and the gradual recovery of credit demand have favored reversal of the loss situation that has characterized the business during most of the last two years. The decrease of interest rates within a context of lower capital output and stable prices has reduced the negative economic impact of widespread financial market gaps recorded in the system and has allowed the reduction of the cost of credit. On the other hand, the effect of promotions and the increase of consumers trust are reflected in the increase of consumption loans and in other occasional lines of credit, whose increase has started to outpace the net repayment of mortgage loans and of other loans dated before the crisis. The consolidation of these trends shall allow the banking situation to continue improving and the process of bank recap to get widespread. Even though during 2003 several foreign
ANNUAL REPORT 2003
capital institutions have capitalized existing debts and have incorporated new capital resources in an effort to accelerate institutions’ terms of recovery, there is still a long way to go to gain absolute normality in the system. In addition to the general economic behavior, among relevant topics for evolution of the banking sector in a near future, we can point out the judicial injunctions and the progress of the negotiation of the foreign debt, currently in default. In relation to the judicial injunctions, in order to solve the problem, Argentina requires the Supreme Court of Justice to issue a resolution on the constitutionality of deposit pesification, while the debt refinancing is an essential step in order that Argentina recovers the voluntary credit and the possibility to access international credit again. For such purpose, ABA has supported efforts made by the Government to renegotiate the debt both at the FMI meeting in Dubai and after a meeting convened by the Ministry of Economy together with other 17 entrepreneurial associations. As it was the case in 2002, throughout 2003 ABA has also maintained a total support and collaboration attitute towards all initatives contributing to lessen the impact of the crisis on the most unprotected population. In this framework and in several opportunities, foreclosures on unpaid mortgage loans were voluntarily suspended and best efforts were made to refinance debts, in order to contribute the solution of problems affecting debtors and to facilitate the recovery of institutions key to restablish the normal operation of the financial market and of the economy as a whole. Another relevant topic of the year was the decision made by a group of local private banks to be separated from ABA and ABAPPRA and create an entity representing exclusively this segment of banks, which was called ADEBA. This change, mandated a transformation of the structure and the marking out of the target ground plan of ABA, which not only has to continue promoting the development of Argentine private banks, but also must provide for maintenance, to the benefit of bank users, of the same rules of the game for all banks, whether local or foreign. December 2003.
Mario Vicens President Argentine Bankers Association
ANNUAL REPORT 2003
Index Page Chapter 1: Evolution of Argentine Economy ............................................................. 1 Introduction...................................................................................................................................... 1 The Macroeconomic Context....................................................................................................... 1 Exchange III..................................................................................................................................... 2 Compensation for the difference between CER and CVS.................................................... 3 Judicial Injunctions.......................................................................................................................... 5 Mortgage Loans Refinancing System.......................................................................................... 6 Partial VAT repayment for Credit Card purchases and Interest Rate reduction............. 6 Amendments to the Central Bank’s Charter and to the Financial Institutions’ Act ....... 7 Quasi-currencies’ Redemption ..................................................................................................... 8 Government’s Financial Policy.................................................................................................... 8
Chapter 2: Monetary Evolution and Amendments to the Central Bank’s Regulations ..................................................................................................................11 Monetary Evolution...................................................................................................................... 11 2004 Monetary Program .............................................................................................................. 12 Minimum Capital Requirements................................................................................................ 12
Chapter 3: Financial System ...................................................................................... 14 Profitability...................................................................................................................................... 14 Equity structure.............................................................................................................................. 17 Liquidity........................................................................................................................................... 19 Exposure to the Public Sector.................................................................................................... 20 Gaps.................................................................................................................................................. 21 Credit Market.................................................................................................................................. 24
Statistical Appendix: Tables 1 to 40........................................................................... 26 Appendix ..................................................................................................................... 66 Principal Measures of Banking, Exchange and Financing Policies ................................... 66 Introduction
Chapter 1: Evolution of Argentine Economy
The Macroeconomic Context
ANNUAL REPORT 2003 Chapter I: Evolution of Argentine Economy
Chapter 1: Evolution of Argentine Economy
Introduction During the year 2003, the improvement in the country’s general economic situation, unleashed during the last months of 2002, strengthened. The exchange rate of the peso versus the dollar stabilized at $3 per dollar, production started to recover and depositors once again started making deposits in the financial system. In a scenario characterized by the gradual stabilization of financial variables and by the strengthening of banks’ liquidity, the Government and financial institutions launched several initiatives aimed at anticipating the devolution of rescheduled deposits to savers. The social situation also improved during the first part of the year, while presidential elections carried out in April dominated the political scenario. In May, Nestor Kirchner took office as President of the Nation in replacement of Eduardo Duhalde. Roberto Lavagna remained as Minister of Economy and Production of the new president’s cabinet and Alfonso Prat Gay continued in his office as Central Bank’s president, responsibility assumed towards the end on 2002.
The Macroeconomic Context The GDP for the first quarter showed a 5.4% growth with respect to the same period of the previous year, putting an end to a consecutive cycle of seventeen quarters of decline. Even though the comparison was made with respect to a period in which the GDP was already depressed, this figure reflected a shift in the economic trend. This trend change was confirmed in subsequent quarters, which posted 7.7% and 9.8% increases, respectively, and an 8.4% rise for the year 2003 as a whole. The evolution of the macroeconomic situation was favored by a highly positive international context. Prices of major export products continued to increase the terms of trade as well as balance trade surplus, while capital outflows declined on account of international interest rate cuts and the stabilization of the major domestic financial variables. The fiscal situation also improved, strengthening the positive effect of the international situation on the balance of payments, despite the fact that primary expenditures posted a significant increase compared with the previous year. In this context, the exchange rate remained at about $3 per dollar, following a slight sliding trend at the beginning of the year. The appreciation of the Euro, on the other hand, helped to avoid the appreciation of the Peso with respect to the basket of currencies that compose its foreign trade.
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ANNUAL REPORT 2003 Chapter I: Evolution of Argentine Economy
The stability of the exchange rate and of domestic prices -the consumer price level rose over the year only by 3.7% on average, whereas wholesale prices registered a 2% increase favored the continued and consolidated dropping trend of domestic interest rates, whose absolute levels were slightly above international levels. In this sense, it should be noted that financial activity offered clear signs of having commenced a normalization process. Bank deposits continued to grow considerably in 2003, despite the substantial decline of yields, and, in August, credits started to reverse the systematic decline which had prevailed since almost mid 2001. The macroeconomic scenario provided the adequate framework for the progress of some major governmental initiatives for the development of the country’s financial activity.
Exchange III In this context, the Executive launched various initiatives related to the financial sector. Following the exchanges of deposits for bonds issued in 2002 by the government, a new initiative was launched in March 2003 aimed at the recovery of the contractual value of the rescheduled and pesified deposits by savers. Those who opted to adhere to the mechanism provided for by Decree 739/2003, recovered almost immediately the remaining original value of the deposit converted into Pesos and adjusted at $1.40 per dollar and by the Reference Stabilization Ratio (CER) and received a ten-year sovereign bond denominated in US dollars (BODEN 2013) for the exchange rate difference derived from the pesification. Likewise, this Decree laid down the anticipated release of Certificates of Rescheduled Deposits (CEDROS in Spanish) and a new treatment for rediscounts granted by the Central Bank. With respect to the early release of rescheduled deposits, it was decided that CEDROS below the amount of $42,000 could be redeemed in cash plus the relevant CER adjustment. Those ranging from $42,000 to $100,000 would constitute a 90-day deposit adjusted by CER, and with a 2% annual rate. CEDROS in excess of $100 thousand would constitute a new 120-day deposit under the same conditions as those set forth for the previous tranche. In all cases, BODEN 2013 denominated in dollars would be delivered for the difference between the CEDROS adjusted by CER and its valuation at the rate market. It should be taken into account that the successive release of rescheduled deposits, both driven by these measures as well as by fund withdrawals achieved through judicial injunctions, contributed to undermine financial institutions’ balances. The release of CEDROS started to allow the transformation of such deposits into freely available deposits at very short terms which are adjusted according to the market interest rates. Thus, banks’ assets are mostly composed of long-term public bonds denominated in dollars or adjusted by CER variations, whereas its sources are in great part subject to interest rate variations as well as to changes in pace of deposits renewal.
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ANNUAL REPORT 2003 Chapter I: Evolution of Argentine Economy
In order to remedy this situation, the second part of Decree 739/2003 allowed financial institutions then financially assisted by the Central Bank to choose to extend the term thereof assimilating the cost thereof into the financial condition of assets held in their portfolios. Thus, these institutions were allowed to extend the term of rediscounts received up to a maximum 70-month term, adjusting the capital by CER index plus a 3.5% annual rate. As of the date of the execution of this exchange, the financial system has CEDROS for a total amount of $16,400 million, including the adjustment by CER. About 9 billion were released through this mechanism.
Compensation for the difference between CER and CVS Decree 905/02 provided that financial institutions should be compensated for the damage sustained by the asymmetric pesification, i.e., damages derived from the conversion of loans into pesos at an exchange rate equal to $1 per dollar, while deposits were converted at $1.40 per dollar plus CER adjustment, and while other liabilities such as commercial papers and foreign credit lines were maintained in foreign currency. By way of compensation, banks received public bonds denominated in Pesos adjusted by CER index and dollar-denominated bonds, in the latter case, for a maximum amount equal to net liabilities in foreign currency. Although considerable progress was made in the year 2003 in settling this compensation, by year-end various interpretation issues pending resolution had prevented most banks from disposing of the total amount of the relevant bonds. On the other hand, the successive measures adopted by the Government, ever since Decree 762/2002 was issued, released most debts pesified at $1 per dollar from being adjusted by CER. These changes were consolidated by Act 25,713, passed on November 28, 2002 and partially enacted on January 8, 2003, contemplating the exceptions to adjustments to CER, the cases in which debts had to be adjusted by CVS as well as the rate to be applied. The following chart shows such modifications:
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ANNUAL REPORT 2003 Chapter I: Evolution of Argentine Economy
PESIFIED LOANS EXEMPTED FROM ADJUSTMENT BY CER As provided by Act 25,713 (as amended by Act 25,796) Types of Loans
From From 2-2-2002 10-1-2002 To 9-30-2002 To 3-31-2004
1) a) Mortgage loans for single family housing of permanent use below US$250,000. b) Personal loans below US$12,000.
Maximum rate
c) Chattel mortgage loans below US$30,000.
2) Total financing below $100,000 as of 2-3-2002 3) Loans not comprised in the foregoing items
and with total financing as of 2-3-2002 below $400,000:
Com. "A" 3507 rate (1)
CVS + maximum rate
From 4-1-2004
Adjustment by CVS is eliminated
CER + Com. "A" 3507 rate (1)
The CER index is applied and one of the following options is chosen
Option 1
Capitalizes adjustment to CER and refinances
Reschedules term and installment rate as the original. Rate as per Com. "A" 3507, B.C.R.A.
Option 2
Accrued adjustment to CER is paid separately
CER + Com. "A" 3507 Rate. Adjustment to CER accrued until 9-30-2002 in 5 monthly installments or one payment at 120 days.
(1) Amended by Decree 44/2003.
Whereas certain loans pesified at the exchange rate of $1 per dollar were exempted from the adjustment to CER, the banks’ pesified liabilities were subject to such adjustments. Therefore, the application of different adjustment ratios for assets and liabilities resulted in major losses for the institutions. In September 2003, Act 25,796 was passed by Congress, which established a compensation mechanism for losses sustained due to the different treatment applied to the adjustment of assets and liabilities. The rule provided that the compensation be effected through the delivery of “2013 Argentine Government Bonds (BODEN) in Pesos at a variable rate” for a maximum amount of $2.8 billion. It also amended a section of Act 25,713, exempting loans from CVS adjustment as of April 1, 2004. However, on January 20, 2004 a Decree was published whereby the statutes above, the exemptions from the application of CER adjustments and the compensation for
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ANNUAL REPORT 2003 Chapter I: Evolution of Argentine Economy
asymmetric indexation were regulated. This decree provided that the compensation mechanism is optional for financial institutions. It is very important to bear in mind that compensations granted so far only cover losses derived from asymmetric pesification. Damages derived from asymmetric indexation might be partially compensated through the mechanism provided for by law, whereas those derived from the payment of judicial injunctions at the market exchange rate have not yet been contemplated.
Judicial Injunctions The amount paid through judicial injunctions in 2003 was lower than the amount paid in 2002, although it represents an important figure. Last year, 80,500 cases were registered, on account of which $4.4 billion were paid, which represented a difference of almost $1.4 billion with respect to the valuation of such deposits at $1.40 per dollar plus CER adjustment.
Output of Deposits from Judicial Injunctions (in millions of Pesos) 3,000
18,000 16,000
Exchange Difference
2,500
14,000 12,000
2,000
10,000 1,500 8,000 1,000
6,000
Deposits + CER
4,000 500 2,000 0 Until Apr. 2002
Jun.
Aug.
Oct.
Capital Exchange Difference (right axis)
( 1)
Dec.
Feb.
Apr.
CER Update Deposits + CER (right axis)
Jun.
Aug.
Oct.
Dec.
0
Exchange Difference
Pesified at $1.40 per US dollar.
Source: ABA, based on Central Bank’s data.
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ANNUAL REPORT 2003 Chapter I: Evolution of Argentine Economy
Since 2002, financial institutions have paid $16.6 billion on account of preliminary injunctions for deposits recorded at a value equal to $9.5 billion, as provided for in the regulation in force ($1.40 plus CER adjustment). The $7,100-billions Peso difference represents an equity loss of about 30% for financial institutions.
Mortgage Loans Refinancing System Act 25,798 passed in November established the creation of a Refinancing System for Mortgage Loans. This mechanism allows refinancing mortgage loans originally granted for a maximum amount of $100,000 and maturing between January 1, 2001 and September 11, 2003. Loans eligible for this transaction are those contracted by individuals or undivided estates for the purpose of household acquisition, improvement, building and/or housing improvement or for the settlement of loans originally taken out for any of the foregoing purposes, provided such household is a single family unit. The system is optional, and can be exercised by financial institutions, creditors and nonfinancial debtors. Submission shall be effected within a 60 calendar-day term as of the effective date of the regulation, which was provided for by Decree 1284/2003 (published in the Official Gazette on 12-22-2003). Banks choosing to transfer their outstanding debts to this fund shall lose the amounts owed by the debtor on account of compensatory and penalty interests, judicial costs and fees. This mechanism shall be implemented through the creation of a trust fund to which all loans shall be transferred. The trustee shall be responsible for settling outstanding principal installments by means of bonds, as hereinafter described: a) 60% with a peso-denominated bond issued by the trustor, with a 2-year-and-a-half maturity term and monthly amortizations, at a 2% annual rate; b) 40% with a peso-denominated ten-year bond with semi-annual amortizations (and a three-year grace period), at a 5% annual interest rate. On the other hand, the debtor’s debt shall be restructured in order to allow the debtor to pay fixed equal and consecutive monthly installments, applying the rates and adjustments in force. Besides, such installments shall be compatible with the family’s income and the real estate value. A one-year grace period shall be granted and the term to be applied shall be longer as the ratio between the amount due and the restated real estate value shall be higher.
Partial VAT repayment for Credit Card purchases and Interest Rate reduction In September, the Ministry of Economy and Production proceeded to generalize the repayment of the 3 percentual points corresponding to the VAT to all credit card purchases with a view to stimulating consumption. In this respect, it should be noted that
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ANNUAL REPORT 2003 Chapter I: Evolution of Argentine Economy
the major financial institutions have voluntarily agreed to reduce financing interest rates through credit cards to less than 50%, it being set at 35% rate on an annual basis. It is worth mentioning that currently financial institutions together with credit card managers allow to purchase items in 6 installments without interest. Likewise, the withholding rate applied to the settlement of credit, purchase and/or payment cards was reduced from 6 to 3%.
Amendments to the Central Bank’s Charter and to the Financial Institutions’ Act In September 2003 Act 25,780 was published, which introduced amendments to the Financial Institutions’ Act and to the Central Bank’s Charter. The Financial Institutions’ Act was amended in its section 35 bis, related to the restructuring of an institution for the sake of safeguarding both credits and deposits, introducing certain changes regarding the exclusion of the assets and liabilities of the relevant institution and the transfers thereof. On the other hand, section 35, third paragraph, was incorporated to provide for that the timing, merits and convenience of acts performed by the Central Bank and the Superintendence of Financial and Exchange Institutions (SEFyC) in restructuring processes shall only be revised in court in the event of manifest arbitrariness or irrationality. Besides, amendments were introduced with respect to judicial settlement provided for in section 48 and regarding the ranking of creditors for the collection of outstanding debts in the event of institutions’ liquidation or winding up (section 49). With respect to the Central Bank’s Charter, the Board of Directors was vested with the power to exempt, reduce or mitigate charges in certain exceptional cases, and introduced the Board’s obligation to submit to the Senate the budget required by item e) of article 15 of the Charter prior to September 30 of each year. Likewise, advance payments which the Central Bank was authorized to make to the Argentine Government were increased up to 12% of the monetary base, and, additionally, up to 10% of the cash resources obtained in the last 12 months, provided such advance payment is allocated to the settlement of obligations contracted with multilateral credit institutions. All these advance payments shall be reimbursed in the subsequent twelve-month term. Otherwise, this power shall not be exercised again until all outstanding amounts shall be paid. This limit reached the amount of about $11 billion at the end of 2003, of which 5 billion corresponded to 12% of the monetary base and 6 billion to the 10% limit in Government’s revenues. During the year 2003, transitional advance payments reached a total amount of almost $6.7 billion.
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ANNUAL REPORT 2003 Chapter I: Evolution of Argentine Economy
Quasi-currencies’ Redemption The Government, through Decree 743/20031, decided on the redemption of bonds issued by provincial governments for the payment of salaries and services to its providers. It should be noted that these bonds, referred to as quasi-currencies because of their countrywide circulation and use as a means of payment, would be progressively replaced by currency of legal tender, the redemption value of which would be determined through bids. In order to carry out the redemption of such bonds, the provinces had to voluntarily adhere to the program, entrusting this task to the Government. Over $7 billion were redeemed through this mechanism. Mostly, this redemption included LECOP. Although these bonds were drafts issued by the National Government, they served the same purpose as those issued by provincial governments.
Government’s Financial Policy In September, the Government sent a Memorandum of Economic and Financial Policies to the IMF, on which basis a Contingent Credit Program was agreed allowing refinancing of the debt’s principal payments with such body. The document describes the Government’s economic policies and lays down the key elements of the strategy to be followed with respect to the financial sector. According to this document, the Government proposes the following sector targets: Strengthening the institutional framework. Strengthening the banking system’s solvency. Identifying the public banks’ role and providing them with a sound financial basis. Besides, the document provides that no fiscal resources shall be used to restore solvency to the banking system beyond the funds already established to compensate banks for the losses derived from the asymmetric pesification and indexation of their assets and liabilities, and further states that compensations will be completed by the end of December 2003, which process is delayed, as previously mentioned. Such document also states that the Government does not intend to compensate the losses derived from the judicial injunctions and that it shall closely monitor the impact thereof and identify any measure that might be necessary to ensure the financial system’s strength for the benefit of depositors, debtors and banks. 1
Decree 957/2003 comprised LECOP. These decrees were ratified by Act 25,736.
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ANNUAL REPORT 2003 Chapter I: Evolution of Argentine Economy
Besides, it expresses a strong commitment to take all necessary steps to encourage the voluntary refinancing of debts held by banks, the gradual reduction of the financial transactions’ tax as well as the decrease of the high minimum cash requirements framed within a sound monetary policy. With respect to the temporary prudential regulations issued in the first half of the year 2003, it proposes the modification thereof in the coming years, both in relation to minimum cash requirements and to the valuation of bonds and loans granted to the public sector. On the other hand, it announces the flexibilization of the rules governing rating, provisioning and restructuring of loans granted to the private sectors by the end of 2003. On the other hand, it requests information to the banks about their business plans and cash flow projections, including the filing of plans to make institutions comply with the prudential regulations as a whole. Regarding public banks, it proposes to complete the assessment and strategic revision process of the future function thereof. In relation to mortgage foreclosures, it announces that alternative measures will be issued in order to assist debtors facing this situation within the fiscal restrictions and respecting creditors’ rights, thus rendering the new voluntary extension of foreclosures unnecessary. The memorandum further reflects the Government’s interest in the creation of a regulatory agency, separated from the Central Bank, which shall be in charge of supervising the financial system. In this respect, it is provided that the new institution shall be an independent institution reporting to the Congress. Regarding the exchange market, it proposes the progressive elimination of all kinds of controls during the effective term of the program, including the requirement of exports’ settlement (about July, 2004). On the other hand, at the annual meeting with the IMF held in Dubai, in September 2003, the Argentine Government filed a proposal for restructuring the public debt involving the swap of bonds in default for new public bonds. The eligible debt includes 152 bonds issued in 7 different currencies and subject to 8 different legislations. The total amount of the debt to be restructured is US$107 billion and represents 58% of the public debt. Thus, 43.5% of the debt is in the hands of retail investors, whereas the remaining 56.5% is in the hands of institutional investors. It should be noted that a considerable portion of this debt corresponds to bond holders residing in our country (38.4%), mainly composed of pension and retirement funds. Despite the fact that most public bonds held by banks were issued following the default and are being paid at maturity, it is clear that whatever happens with the restructuring of the part of the debt in default shall have a major impact on the country’s financial activities.
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ANNUAL REPORT 2003 Chapter I: Evolution of Argentine Economy
The Government’s proposal consists of a 75% reduction of the eligible debt and does not contemplate the accrual of interest from December 2001 to the date of the agreement. The new announced bonds may be classified into three categories: Discount Bonds, which would entail a reduction in the nominal value. Par Bonds, without nominal value reduction, or bonds with a slight reduction, but with comparatively lower coupons and longer terms. Capital Bonds. Moreover, the Government will offer options to the mentioned bonds, such as bonds with lower base coupon, but having an additional coupon component pegged to the GDP growth rate.
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ANNUAL REPORT 2003 Chapter II: Monetary Evolution and Amendments to the Central Bank’s Regulations
Chapter 2: Monetary Evolution and Amendments to the Central Bank’s Regulations
Monetary Evolution During the year 2003, the expanded monetary base (including quasi-currencies) registered almost a $10 billion increment. This behavior was mainly driven by the expansion needed for the purpose of absorbing the offer of foreign currencies derived from the trade balance surplus. The money supply that was necessary to accomplish such absorption amounted to more than $17 billion. A part of this expansion was set off through LEBAC issue in the market, through which $5 billion were absorbed.
EXPANDED MONETARY BASE EXPANSION FACTORS (In million pesos)
Factors
2002
2003
Private Foreign Sector
436
17,420
National Public Sector
1,840
-1,552
Financial Sector
7,925
-1,500
-2,698
-5,040
3,486
-445
Other
805
858
Total
11,794
9,741
LEBAC Quasi-currencies
By the end of 2003, the stock of LEBAC and NOBAC reached $10.3 billion, of which 8.15 billion correspond to placements in pesos, 250 million to placements in foreign currencies and 1.9 billion to placements in instruments adjusted to CER. In 2003, the interest rate paid on these instruments posted a considerable reduction. On the other hand, placement terms were extended, which enlarged the average effective maturity term of these bonds. With respect to financial system deposits, almost a 30% growth was registered in pesodenominated deposits. Most of the deposits released through Exchange III remained in the financial system, mainly as fixed-term placements. The increased liquidity of the system led to a significant drop in the interest rates paid on time deposits, which by year-end stood at about an annual nominal rate of 3.8% in pesos. It should be noted that, despite the low interest rates paid on time deposits, these placements rose significantly.
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ANNUAL REPORT 2003 Chapter II: Monetary Evolution and Amendments to the Central Bank’s Regulations
2004 Monetary Program The Central Bank’s monetary program for the year 2004 contemplates a real GDP growth of over 5%, estimating a 7 to 11% inflation rate, a primary result of the national public administration of 2.4% of GDP, the total redemption of quasi-currencies and an increasing monetary multiplier. In this scenario, a growth is expected in the expanded monetary base –including quasicurrencies- ranging from 11 to 22% for the year 2004 as a whole. This represents an expansion ranging from $5.2 to $10 billion.
Minimum Capital Requirements The Central Bank decided to introduce certain changes to the prudential regulations ruling the financial system, in particular to those referred to minimum capital requirements. The main modifications are as follows: Minimum Capital Requirement for Market Risk The minimum capital requirement was reduced from 11.5 to 8%, over the value of financing and of non-fixed assets. The 8% requirement shall also be applied to holdings in investment accounts and to financing granted to the non-financial public sector. The application of risk indicators based on loans’ interest rates was temporarily suspended. The introduction of a new item representing an increment on account of excesses with respect to fixed assets’ ratio, the limits of credit risk fractioning, financing to related clients, credit rating and the financial assistance limit to the non-financial public sector was provided for. The requirement calculation should take into account adjustments to CER and CVS. Minimum Capital Requirement for Interest Rate Risk Ratios on account of interest rates risk in pesos and in US dollars quintupled. The concept of market gap risk between the interest rate and CER was incorporated.
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ANNUAL REPORT 2003 Chapter II: Monetary Evolution and Amendments to the Central Bank’s Regulations
The current value of assets adjustable to CER and CVS, net of financial intermediation charges in pesos adjustable to CER, was also introduced. Minimum Capital Requirement for Market Risk The US dollar was introduced in the calculation of the market risk value as a new foreign currency position. The gold position was also incorporated. On the other hand, the temporary provisions related to the treatment contemplated for institutions that exchanged debt instruments issued by the Government for Secured Loans issued by Decree 1387/2001 were repealed. The figure thus obtained shall then be multiplied by an adjustment factor (alpha ratio) which will determine the difference to be complied. The convergence schedule is as follows:
Term
alfa1
alfa2
January/December 2004
0.05
0.20
January/December 2005
0.15
0.40
January/December 2006
0.30
0.70
January/December 2007
0.50
1.00
January/December 2008
0.75
1.00
As of January 2009
1.00
1.00
Alfa1 : applicable to holdings in investment accounts and financing granted to the national non-financial public sector until 5/31/03 and to instruments received on account of the compensation provided for in sections 28 and 29 of Decree 905/02 and to instruments issued by the Trust Fund for Provincial Development within the framework of Decree 1579/02. Alfa2 : applicable to temporarily reduce the interest-rate risk requirement.
Finally, it should be noted that, as specified in Communication "A" 3916, the Central Bank allows financial institutions to record, as of March 2003, the differences paid on account of judicial injunctions in the assets thereof. These differences should be amortized in a 60-month term as of the activation thereof.
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ANNUAL REPORT 2003 Chapter III: Financial System
Chapter 3: Financial System
The Argentine financial system was deeply affected by the crisis. The 2001 bank run notably reduced the system’s general liquidity, dramatically affecting certain institutions’ situation, whereas the measures adopted by the Government to overcome the crisis ended up affecting the system’s solvency in a deep and generalized manner and deteriorated the relationship of the banks with depositors and the public opinion in general. With respect to equity issues, the public debt default along with the currency devaluation and the mandatory asymmetric conversion of banks assets and liabilities originally denominated in US dollars resulted in the general decapitalization of institutions. Besides, the drop in the activity level, the credit portfolio deterioration and the market gaps left behind by the crisis have conditioned and will continue conditioning profit generation, thereby reducing the chances of recovering adequate capitalization levels in the short term.
Profitability Losses sustained in the years 2002 and 2003 -even if adjusted to the peso devaluation or to some inflation index- considerably exceeded profits accumulated from 1994 to 2001. The latter reached about 1.5 billion pesos/US dollars, while only in the year 2002, book losses exceeded $17 billion (equivalent to a 11% ROA and 79% ROE), in all cases adjusted to the monetary result and the amounts claimed by banks to the Government in compensation for the losses derived from the asymmetric pesification and indexation, and from the judicial injunctions being computed as income. According to the latest news published by the Central Bank, the annual loss dropped to $4.8 billion in the year 2003, which is equivalent to 2.6% of the net assets and to 20.5% of the equity.
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ANNUAL REPORT 2003 Chapter III: Financial System
PRIVATE BANKING PROFITABILITY Expressed as a percentage of Net Assets
2000
2001
2002
2003
Interest income
4.1
4.3
-0.2
0.0
Adjustment as to CER/CVS
…
…
1.1
0.9
Other financial income
0.7
1.0
4.3
-1.0
Service income
2.9
3.2
2.0
2.0
Asset return
1.4
1.2
2.5
1.3
Administrative expenses
-6.0
-6.4
-4.8
-4.6
Non-collectibility expenses
-2.5
-3.0
-5.0
-1.3
Tax burdens
-0.4
-0.5
-0.4
-0.3
Income tax
-0.4
-3.0
-0.2
-0.3
Miscellaneous
0.4
0.7
-3.0
0.7
Monetary adjustment
…
…
-7.5
0.0
ROA
0.1
0.2
-11.3
-2.5
ROE
0.8
-1.4
-79.2
-19.4
ROA before monetary adjustment
0.1
0.2
-3.8
-2.5
ROE before monetary adjustment
0.8
1.4
-26.4
-19.0
Operating ROA
0.6
0.6
-2.4
-2.0
Source: ABA, based on Central Bank's data.
In the year 2002, results were strongly determined by the crisis’ impact, the measures adopted by the Government and the worsening of the general situation, which in turn affected non-performing loans. Besides, price increments affected the monetary items, accounting for a great part of the losses registered over the year. In 2003, a certain recovery was registered in the intermediation margin as a consequence of the interest rate decline, the recovery of the economy in general and price stability. Most of this improvement strengthened in the last quarter of the year, period during which most of the institutions registered positive results.
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ANNUAL REPORT 2003 Chapter III: Financial System
Financing to Private Sector Billions of Pesos
%
70
50 45
60 40 50
35 30
40
25 30
20 15
20
10 10 5 0
0 Dec. 2001
June 2002
Sep. Performing
Dec.
Mar. 2003
Non-Performing
June
Sep.
Dec.
Non-Performing / Total (right axis)
However, it should be noted that the financial intermediation margin (defined as the interest difference plus adjustment to CER and CVS) remains at considerably low levels compared to those in force in the past and in comparable countries. In fact, in 2003 it represented 0.9% of net assets, which is equivalent to one-fourth of the margin registered in the whole financial system in the 2000/2001 term. A structural factor which turns out to be conclusive for this situation is the public debt remuneration, which represents almost half the monetary assets of the financial system and does not generate enough income to cover the financial cost of the lending capacity derived from deposits. This situation brings about numerous differences among the institutions, since the incidence depends on the amount of public debt held by each bank (most of which was acquired unwillingly) and on the proportion thereof that is mismatched in its terms and financial condition with the Central Bank’s financial aid. Non-performing loans is another factor which had a significant impact on the sector’s profitability. The crisis affected almost all sectors of the economy, altering the payment capacity of most companies and individuals to such an extent that the irregular private portfolio, which at the end of 2000 represented 15.9% of the financing granted to the mentioned sector, reached 18% in 2001, and continued increasing during great part of 2002. The problems generated in the payment chain due to the credit market collapse, along with the drop of economic activity and a certain speculative attitude on the part of some debtors, were more important than the benefits obtained by debtors as a result of the pesification of their debts at clearly subsidized parities and the liquidity need faced by | 16 |
ANNUAL REPORT 2003 Chapter III: Financial System
banks. In 2003, this situation improved to such extent that charges for bad debts in the last year were four times lower as compared to the previous year. On the other hand, operating costs were affected by three major factors: the sharp financial income downfall, which served as a containment factor, the need to finance restructuring expenses and to handle, at the same time, the enormous operating pressure faced by banks since the end of 2001 and most part of 2002 and 2003, which acted as expansive factors. It should be noted that, upon the establishment of the restrictions to the withdrawal of funds in cash from bank accounts, the volume of transactions multiplied several times to such extent that 2.9 million savings accounts were opened, which represented 20% of the total number of such accounts, in just one month. It is important to bear in mind that the costs of the majority of these accounts had to be absorbed by financial institutions and that, at the same time, the task was extremely complicated due to the ongoing regulations’ modifications. Once the available funds had been withdrawn and the term during which these accounts were exempted from the payment of charges had expired, many of these accounts were closed and by mid 2003 represented a 65% compared to the number of existing accounts in 2001 before the “corralito” (regulation restricting funds withdrawal from banks by depositors) was implemented. The public’s presence at banks was also notably reduced, which forced banks to undertake restructuring processes. In 2002 and the first half of 2003, branches were closed, banks’ staff was redistributed, voluntary retirement programs were launched, and expenses were reduced based on the new income structure. By mid 2003, the financial system had 3,900 branches -11% below the number of branches operating in December 2000- and 86,000 employees, 17% below the number of staff employed by the end of 2000. In 2003, system administration costs were 11% higher than the average costs registered in 1994/2001, following an almost 50% increase in 2002 with respect to average above.
Equity structure In December 2001, the consolidated financial system’s equity amounted to $/US$17,342 billion, showing practically no difference with the one recorded the previous year. Two years later, towards the end of 2003, the book equity amounted to over $23 billion, including compensations claimed by banks, about 80% of the exchange rate differences generated by the judicial injunctions and the public debt valued as provided for by the accounting rules issued by the Central Bank. The total equity amount entered in the accounting records in compliance with the current rules rose from $/US$163 billion in December 2000 to $185 billion in December 2003. On the other hand, liabilities reached $163 billion as of December 2003, whereas they stood at $/US$146 billion four years before.
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ANNUAL REPORT 2003 Chapter III: Financial System
Assets Structure – Private Banks
Total Funding Structure – Private Banks
At the same time, banks’ balance structure was completely modified by the crisis and the measures adopted by the Government. In order to provide an idea of the changes, it should be noted that at the end of 2002, the public sector accounted for 50% of total equity, whereas at the end of 2001 and 2002, it accounted for 17 and 23%, respectively. On the other hand, credits granted to the private sector, which represented 37% of the assets at the end of 2001, dropped to below 14% in 2003. As regards liabilities, deposits accounted for 53% of total liabilities in 2003, after accounting for 62% at the end of 2001 and following a 46%-drop in December 2002. Rediscounts, which at the end of 2000 did not constitute a part of the financing sources and represented 4% of the liabilities at the end of 2001, represented 18% of total liabilities in 2003. Besides, foreign financing, which accounted for 14% of liabilities at the end of 2000, reached 27% two years later and stands at 18% today.
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ANNUAL REPORT 2003 Chapter III: Financial System
Liquidity In 2001, banks’ liquidity resources dropped from a level close to 30% of deposits to a minimum 12.3% at the end of November 2001, one day before cash withdrawal restrictions were imposed at the beginning of December 2001. By mid 2002, the situation of severe illiquidity started to reverse as a result of the recovery of credit settlements by the private sector in the first half of the year and of the deposit increase registered from mid-year onwards. In December 2003, liquid resources grew again to 24% of deposits.
Deposits and Liquidity In Billions of Pesos
%
95
30
90
28
85 26 80 24
75 70
22
65
20
60 18
55 50
Dec. 2002
Jan. 2003
Feb.
Mar.
Apr.
Deposits
May
June
Jul.
Aug.
Sep.
Oct.
Nov.
Dec.
16
Liquidity / Deposits (right axis)
Liquidity requirements varied during the period as a result of the modification in the deposits’ structure and of the changes introduced by the Central Bank with respect to regulating requirements. As regards the former factor, the requirements increase derived from the replacement of rescheduled funds for freely available short-term deposits through judicial injunctions or de-scheduling mechanisms should be noted. In order to set off this situation, the Central Bank reduced the requirements within the framework of the monetary program for the purpose of preserving and stimulating bank credit offer, and thus, the aggregated demand. Even though requirements diminished in the course of the year, surplus reserves continued to grow, partly on account of the difficulties faced in increasing the credit, and also, as a means of alleviating the maturities gap prevailing in the system as a consequence of the crisis.
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ANNUAL REPORT 2003 Chapter III: Financial System
Exposure to Public Sector A significant portion of this gap was caused by the measures adopted during the crisis. In 2001, the Government decided to resort exclusively to the financial market to satisfy its financial needs. The debt Megaswap launched in the second quarter of the year was followed by some quasi-mandatory bond placements, and by the conversion of public bonds held by banks into secured loans in November. The situation changed dramatically as of the year 2002. The asymmetric devaluation and pesification completely changed the structure of banks’ assets and liabilities.
Exposure to Public Sector As a % of Assets 60
50
40
30
20
10
0 Jan. 2001
Apr.
July
Oct.
Jan. 2002
Apr.
Jul.
Financing to Public Sector Net of Compensation
Oct.
Jan. 2003
Apr.
July
Oct.
Compensation
It should be noted that loans granted to the public sector, as well as the public debt contracted in foreign currency under the country’s legislation, were converted into pesos at $1 and $1.40 parities, respectively. On the other hand, deposits were converted at $1.40-per-dollar parities, whereas other obligations that were also subject to local legislation were converted at other parities. The rest of the assets and liabilities subject to foreign legislation maintained the currency denominations as originally contracted.
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ANNUAL REPORT 2003 Chapter III: Financial System
The national currency devaluation combined with the conversion into pesos of assets and liabilities subject to local legislation at different parities resulted in the generalized gap thereof and the loss of most part of the system’s equity. Banks became heavily indebted in foreign currency because liabilities assumed under foreign legal jurisdictions broadly exceeded the assets in such currency. At the same time, pesification of assets at parities well below the ones in force in the exchange market, and below those used to convert deposits and other liabilities, caused the generalized and almost-complete decapitalization of the Argentine financial system. Later, the Government decided to compensate banks for the losses derived from the asymmetric conversion of assets and liabilities. In fact, these losses and those sustained by depositors whose deposits were pesified and rescheduled derived from a governmental decision made for the benefit of the debtors whose debts had been pesified. To such end, the Government provided for that affected banks would receive, in compensation thereof, public bonds denominated in pesos and adjustable to inflation, which could be converted into dollar-denominated public bonds for up to the amounts corresponding to two items, the net obligations which remained denominated in foreign currency and the rescheduled deposits whose holders shall have decided to opt for any of the exchanges available to such effect. Even though this compensation reduces the gap between assets in foreign currency with respect to liabilities of the same kind – the maturity gap still prevails – and has simplified the repayment of deposits in the original currency to those who opted to recover the same in bonds, such compensation is clearly insufficient and partial with respect to the global impact of the pesification decided by the Government during the crisis. In fact, banks’ equity adjusted by the compensation to be received was reduced to one half if compared to bank’s equity in December 2001 measured in foreign currency. In this scenario, financial system credits to the public sector became the bank’s major asset. At the end of 2003, they accounted for 50% of total assets, almost tripling public debt share in the investment portfolio maintained by banks towards the end on the year 2000 on a fully voluntary basis. Today, public debt has become the financial system’s major investment by decision of the Government itself and it significantly conditions the activity’s financial and economic situation.
Gaps Maturity and account unit gaps –currency, adjustment mechanisms, among othersassociated to public debt holdings by banks and other governmental actions constitute one of the factors that impact the most on the sector’s profitability trends and financial situation.
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ANNUAL REPORT 2003 Chapter III: Financial System
System’s Consolidated Financial Statement December 31, 2003 (In millions of Pesos) Item
In Pesos Not Remunerated or at Low Rates
In Pesos at Market Rate
Adjusted as to CER or CVS
In Foreign Currency
Total
Assets
42,800
28,800
70,500
47,500
189,600
Cash and Due from banks
19,800
…
…
5,500
25,300
Credit to the Public Sector
…
5,300
60,200
28,500
94,000
2,100
23,300
9,700
5,500
40,600
…
200
8,000
8,200
Other Assets
20,900
…
600
…
21,500
Liabilities
72,400
34,800
33,400
36,000
176,600
Deposits (including CEDROS)
48,600
34,800
5,100
5,900
94,400
…
…
…
8,200
8,200
Other liabilities to non-residents
200
…
…
19,600
19,800
Obligations to the Central Bank
…
…
28,300
100
28,400
23,600
…
…
2,200
25,800
-29,600
-6,000
37,100
11,500
13,000
Credit to the Private Sector Assets with residents abroad
Negotiable obligations
Other liabilities Financial Equity Fixed assets, miscellaneous, intangible assets and non-financial assets abroad and Other assets
…
…
…
…
9,800
Equity
…
…
…
…
22,800
Notes:
Estimated amounts. It is supposed that all obligations to the Central Bank are adjusted to the provisions of Decree 739/03, Chapter II. "Public Bonds" includes the compensation for asymmetric pesification pending payment. Loans or deposits between financial institutions residing in the country are not included. Loans are not net of provisions. Central Bank's obligations include principal and interest. Source: ABA, based on Central Bank’s data.
Some background on this issue should be mentioned. Assets and liabilities originally denominated in US dollars and subject to local legislation were rescheduled, converted into pesos, and henceforth adjusted to CER or CVS, which are indexes reflecting the behavior of consumer prices and salaries.
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ANNUAL REPORT 2003 Chapter III: Financial System
On the other hand, banks were allowed to use such compensation to subscribe bonds issued in US dollars for the purpose of covering the financial system’s obligations in foreign currency that were not pesified for having been contracted under a foreign legal jurisdiction. Since these banks lack the minimum conditions that are necessary to reduce the maturity and currency gaps derived from the crisis, this measure intended to bridge such gaps, though partially, because they constitute risk factors that, on account of their magnitude, condition the financial system’s liquidity and solvency, and, consequently, the control of the monetary policy and the possibility of stabilizing the economy. These targets are still far from being met due to the incidence of several facts. Banks’ balances reflect that assets in pesos subject to indexation are considerably higher than liabilities of the same kind, that net borrowing in foreign currency has diminished, but that the gap is not suitably matched, and that rescheduled deposits have been massively replaced by market interest rate deposits at extremely short terms compared to the terms and liquidity of the assets financed by these deposits. This situation has resulted from the combination of the difficulties faced in the resolution of the problems posed by any crisis with governmental decisions that ended up worsening the situation. In this respect, we should note the accelerated de-scheduling of deposits caused by the judicial injunctions, the delays incurred in the banks’ compensation process, and the difficulties faced in the arrangements of private sector’s debts with banks derived from the measures implemented by the government, such as the suspension of mortgage foreclosures, or from the lack of a final regulatory framework for the debtor’s activity. Total net assets subject to CER or CVS adjustment amounted to $36 billion in mid 2003. These assets are mainly composed of loans granted to the government and public debt bonds restated according to the changes in the wholesale price index reflected in the CER. On the other hand, certain loans granted to the private sector, which were originally granted in US dollars, are currently subject to CVS or CER adjustments. The main financing source of these assets are time deposits at relatively short terms and at market interest rates or funds deposited in current or savings accounts, payable at sight. Regarding the foreign currency segment, balances show a more balanced situation. However, it is difficult to make an accurate assessment since banks cannot freely dispose of the compensation bonds which make up the foreign currency assets, while, at the same time, an important part of their foreign obligations is still under a restructuring process. The available gap-bridging alternatives are extremely limited. Long-term deposits are scarce and very costly, and the offer of adjustable deposits is also insufficient, at least for the time being. Besides, banks find it difficult to reduce their public debt holdings because a part thereof is not available and the securities’ market is not currently capable of absorbing, at reasonable prices, the debt volume to be reduced by banks in order to bridge their positions’ gap.
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ANNUAL REPORT 2003 Chapter III: Financial System
Decree 739/2003 offered a partial solution to this problem by allowing the conversion of obligations with the Central Bank into assets adjustable to CER. This is not a comprehensive solution because it only favored those financial institutions that had received rediscounts from the Central Bank during the liquidity crisis and later recovered lost deposits. Credit Market As previously mentioned, the financial system shows high liquidity surpluses which need to be reduced in order to strengthen the banks’ profitability. The major obstacle to reducing liquidity surpluses, while recovering bank deposits, is based on the weakness evidenced by the credit market. Both the domestic and foreign experience has shown that crises tend to seriously affect the decisions of both borrowers and lenders, extending the full credit restoration sometimes to various years. Argentina has not been an exception to this rule. Besides, certain particular features of this crisis have affected credit-related decisions even deeper than in other cases.
Loans to Private Sector (in millions of Pesos) 0 -500
Mortgage + Pledge Loans
-1,000 -1,500 -2,000 -2,500 -3,000
Rest
-3,500 -4,000 Total
-4,500 -5,000
Dec. 2002
Jan. 2003
Feb.
Mar.
Abr.
May
Mortgage and Pledge Loans
June
July
Rest
Aug.
Sep.
Oct.
Nov.
Dec.
Total
Firstly, attention should be drawn to the enormous benefit obtained by debtors due to the governmental measures deciding the asymmetric pesification and indexation, the suspension of mortgage foreclosures, the amendment to the bankruptcy act, and others. These decisions have reduced producers’ need to resort to third-parties’ funds and may
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ANNUAL REPORT 2003 Chapter III: Financial System
have produced certain speculative attitude that hinders the prompt regularization of debts, and, consequently, the demand for new credits. On the other hand, the suspension of mortgage foreclosures along with the legal insecurity affecting contracts deprived borrowers from an instrument that, over the last years, had allowed them access to bank loans despite the information asymmetry problems and informality usually prevailing among Small and Medium-Sized Companies (PyMEs). Finally, it is clear that the crisis has affected most economic sectors, generating uncertainty and fears that were mainly reflected in production investment. The drop in production and the reduced investment level have probably allowed that financing needs be adequately satisfied out of the resources that were left in the hands of producers, at least for the time being. With respect to supply-related issues, a special note should be made to the legal uncertainty caused by the compulsory amendment of contracts voluntarily subscribed between private parties, which was introduced at the end of the year 2001 and the beginning of 2002. The situation above and the strained liquidity available to banks are the major factors leading to the resilience shown thereby to grant loans during 2002 and part of 2003. Secondly, the complete absence of demand for medium and long-term saving instruments and the scarcity of foreign credit lines have prevented banks form offering financing at more attractive terms. In this respect, it is evident that ever since the convertibility system of the national currency was abandoned, a great gap was generated between long-term savers and borrowers. Thus, the former are prone to save in foreign currency or in inflation-adjusted instruments, whereas, the latter refrain from doing so under such conditions. In August 2003, statistics started to show a certain change in this trend. As of such month, the new loans granted within the framework of aggressive promotional campaigns undertaken by numerous banks at the beginning of the second quarter, through credit cards and personal loans, started first to balance and then to overcome the systematic payment of the private debt, mainly mortgage and pledge loans, outstanding during the crisis.
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ANNUAL REPORT 2003 Statistical Appendix
STATISTICAL APPENDIX
TABLE 1: Deposits in Domestic Currency
Monthly average of daily balances (in millions of Pesos) Period
Current Accounts
Savings Accounts
Time Deposits
Total
2,955 5,998 8,903 9,622 7,343 8,756 12,057 13,577 12,791 12,024 5,872
8,064 13,665 19,770 21,858 19,042 25,207 31,836 34,432 33,719 31,900 18,681
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
December December December December December December December December December December December
3,129 4,909 6,214 6,993 7,011 10,514 12,178 12,648 12,580 11,951 8,309
1,980 2,758 4,653 5,242 4,688 5,936 7,601 8,206 8,347 7,924 4,499
2002
January February March April May June July August September October November December
12,180 16,245 16,616 16,813 17,626 17,361 19,568 22,123 22,018 21,577 22,298 23,305
5,594 11,157 15,907 14,017 12,270 11,068 10,283 9,808 9,493 9,458 9,216 9,144
3,436 4,206 32,593(1) 36,037 35,218 34,996 32,093 30,036 31,164 32,624 33,598 33,435
21,209 31,608 65,116 66,868 65,115 63,426 61,944 61,967 62,675 63,659 65,112 65,885
2003
January February March April May June July August September October November December
22,051 21,211 21,617 21,428 22,253 23,780 24,066 25,464 25,938 27,433 29,646 30,830
9,226 9,126 8,884 8,684 9,263 9,730 11,184 12,472 13,211 13,397 13,907 14,544
34,964 36,584 37,516 38,642 40,255 41,625 41,760 40,336 39,692 39,962 39,371 38,470
66,241 66,922 68,017 68,753 71,772 75,135 77,010 78,272 78,841 80,792 82,924 83,843
( 1) Starting on March 2002, it includes rescheduled deposits. Source: ABA based on "Statistical Bulletin", "Daily Information on Deposits, Loans and Cash in National Currency" and "Main Financial System Liabilities", Central Bank.
| 26 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 2: Deposits in Foreign Currency
Monthly average of daily balances (in millions of US Dollars) Period
Current Accounts
Demand Deposits
Savings Accounts
Time Deposits
Deposits on Behalf of Central Bank
Total
… … … … … … … … 292 351 441 472 646 684 829 781 2,442
40 11 12 16 42 597 782 839 392 482 493 1,092 1,528 2,119 1,695 1,162 2,385
… … … … … … 1,137 1,866 3,698 4,032 3,445 4,529 5,330 5,304 6,146 5,602 9,772
… … … … … 1,063 2,069 4,641 8,037 13,711 18,122 18,321 22,273 29,666 34,435 38,475 44,155 33,116
553 820 994 1,487 538 177 … … … … … … … … … … …
593 831 1,006 1,503 1,644 2,843 6,560 10,742 18,093 22,986 22,699 28,366 37,169 42,542 47,145 51,700 47,715
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
December December December December December December December December December December December December December December December December December
2002
January February March April May June July August September October November December
2,774 1,070 181 61 55 58 53 45 24 26 27 26
8,931 16,177 3,333 1,398 420 327 273 311 308 326 332 327
14,868 10,565 2,007 494 125 38 15 19 19 22 38 83
17,307 7,167 2,639 723 395 362 317 330 386 398 407 427
… … … … … … … … … … … …
43,880 34,979 8,160 2,676 995 785 659 705 737 772 804 863
2003
January February March April May June July August September October November December
26 26 26 33 35 37 46 51 50 52 48 52
298 314 369 352 349 359 344 344 332 349 361 349
62 86 104 141 196 221 267 316 370 404 427 457
456 491 514 536 598 684 729 786 838 876 906 1,041
… … … … … … … … … … … …
842 917 1,014 1,062 1,178 1,302 1,386 1,496 1,590 1,681 1,742 1,899
Source: ABA based on "Statistical Bulletin", "Daily Information on Deposits, Loans and Cash in National Currency" and "Main Financial System Liabilities", Central Bank.
| 27 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 3: Judicial Injunctions Number of Lawsuits
Principal (1)
Update according to CER
Exchange rate difference
Total Amount Paid
In millions of Pesos
Average amount per lawsuit In Pesos
Until April May June July August September October November December
35,699 13,462 16,769 18,614 7,962 15,137 17,270 15,600 23,762
1,474 449 469 522 234 443 474 402 789
62 63 102 136 73 154 179 156 313
1,225 547 614 662 288 540 565 441 831
2,761 1,059 1,185 1,320 595 1,137 1,218 999 1,933
77 79 71 71 75 75 71 64 81
Total 2002
164,275
5,256
1,238
5,713
12,207
74
January February March April May June July August September October November December
4,368 8,200 9,372 8,451 7,706 6,751 5,747 5,212 6,094 5,727 5,495 7,381
126 193 228 215 215 185 154 129 174 148 164 205
51 80 97 93 95 80 65 54 73 61 69 86
115 161 174 134 123 101 83 80 106 82 95 125
292 434 499 442 433 366 302 263 353 291 328 416
67 53 53 52 56 54 53 50 58 51 60 56
Total 2003
80,504
2,136
904
1,379
4,419
55
244,779
7,392
2,142
7,092
16,626
68
Total
( 1) Pesified at $1.40 per US Dollar. Source: ABA based on Central Bank’s data.
| 28 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 4: SERIES OF CEDROS On August 29, 2003 Series
Amounts (a)
Structure
In millions of Pesos
%
A2 B1 B2 B3 B4 C1 C2 D1 D2 E1 E2 E3 F1 F2 F3 F4
… … 6.4 11.7 11.7 … 52.0 … 147.1 151.4 371.8 430.6 639.8 746.2 878.4 962.3
… … 0.1 0.3 0.3 … 1.2 … 3.3 3.4 8.4 9.8 14.5 16.9 19.9 21.8
Total
4,409.5
100.0
(a) It does not include deposits with judicial injunctions for which a partial decision has been made. It does not include adjustments or accrued interest. Source: ABA based on Central Bank’s data.
| 29 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 5: Monetary Aggregates
(in millions of Pesos of December 2003) Period
M1
M2
M1 + Foreign Currency Demand Deposits
M2 + Total Deposits in Foreign Currency
1994 1995 1996 1997 1998 1999 2000 2001
December December December December December December December December
31,552 30,102 37,308 43,416 46,191 45,484 42,153 30,738
58,530 51,058 62,582 77,396 85,231 83,370 77,506 49,846
32,385 31,035 38,872 45,590 48,994 48,008 44,096 35,566
81,517 73,758 90,948 114,566 127,772 130,514 129,206 97,562
2002
January February March April May June July August September October November December
37,590 43,424 42,781 37,972 37,200 34,512 35,949 37,256 36,130 35,589 36,913 39,819
53,479 68,359 115,178 102,681 93,893 86,346 81,836 78,872 77,812 78,580 80,898 83,609
53,222 73,513 51,312 42,236 38,768 35,904 37,124 38,544 37,342 36,875 38,182 41,051
112,080 129,385 134,989 110,501 97,177 89,189 84,208 81,424 80,499 81,403 83,734 86,621
2003
January February March April May June July August September October November December
39,202 38,308 39,223 39,937 41,499 44,198 46,282 48,410 49,717 51,278 53,579 56,249
84,257 84,690 86,330 88,421 92,520 97,140 100,752 102,363 103,801 105,531 107,403 109,275
40,258 39,384 40,442 41,054 42,589 45,312 47,371 49,566 50,832 52,424 54,760 57,437
87,008 87,594 89,452 91,501 95,864 100,800 104,630 106,746 108,442 110,332 112,431 114,897
Note: Monetary aggregates include public sector's deposits. Source: ABA based on "Statistical Bulletin", "Daily Information on Deposits, Loans and Cash in National and Foreign Currency" and "Main Financial System Liabilities", Central Bank and INDEC.
| 30 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 6: Monetary Aggregates
(annual averages, as a percentage of the GDP) Period
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
M1
M2
M1 + Foreign Currency Demand Deposits
M2 + Total Deposits in Foreign Currency
3.7 5.0 3.9 2.6 2.6 2.2 2.9 4.3 5.7 6.4 6.4 7.3 8.0 8.5 8.8 8.3 7.6 10.2 12.2
9.3 13.8 12.3 10.8 8.3 4.2 5.2 7.5 10.7 12.0 11.0 12.5 14.3 15.7 16.4 15.8 13.9 22.6 25.8
3.7 5.0 3.9 2.6 2.9 2.4 3.3 4.7 5.9 6.6 6.7 7.8 8.6 9.2 9.6 8.9 8.5 12.0 12.5
9.4 13.8 12.4 10.8 14.9 5.2 7.8 11.4 16.9 20.2 19.3 22.3 25.4 29.1 32.7 33.2 32.7 27.1 26.9
Source: ABA based on "Statistical Bulletin", "Daily Information on Deposits, Loans and Cash in National and Foreign Currency", "Main Financial System Liabilities" and "Annual Estimates of Global Supply and Demand. Period 1980-1992", Central Bank and "Economic Report", Ministry of Economy.
| 31 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 7: Monetary Aggregates in Real Terms (1)
Monthly averages of daily balances (in millions of Pesos of December 2003) Period
Cash held by the public
Current Accounts
M1
Savings Accounts
Time Deposits
M2
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
December December December December December December December December December December December December December December December December December
8,892 10,175 8,495 7,407 6,010 6,525 10,105 13,276 17,363 18,859 17,890 19,221 22,365 23,523 22,938 20,973 15,428
11,457 10,120 6,626 5,185 6,162 3,841 6,698 9,636 11,849 12,693 12,212 18,087 21,052 22,668 22,546 21,180 15,310
20,349 20,295 15,121 12,592 12,171 10,365 16,802 22,912 29,212 31,552 30,102 37,308 43,416 46,191 45,484 42,153 30,738
6,902 6,913 5,997 4,395 1,815 5,423 4,239 5,413 8,873 9,515 8,166 10,211 13,139 14,707 14,960 14,043 8,289
21,578 30,746 27,203 34,452 14,237 4,972 6,326 11,773 16,975 17,464 12,790 15,063 20,841 24,333 22,925 21,310 10,819
48,830 57,953 48,321 51,439 28,224 20,760 27,367 40,098 55,060 58,530 51,058 62,582 77,396 85,231 83,370 77,506 49,846
2002
January February March April May June July August September October November December
16,160 17,057 17,977 16,236 16,157 14,976 14,760 14,148 13,557 13,546 14,005 15,851
21,430 26,367 24,803 21,736 21,043 19,536 21,189 23,108 22,574 22,043 22,908 23,968
37,590 43,424 42,781 37,972 37,200 34,512 35,949 37,256 36,130 35,589 36,913 39,819
9,843 18,109 23,744 18,121 14,649 12,454 11,135 10,244 9,732 9,662 9,468 9,404
6,045 6,826 48,653 46,588 42,044 39,380 34,752 31,372 31,950 33,329 34,517 34,385
53,479 68,359 115,178 102,681 93,893 86,346 81,836 78,872 77,812 78,580 80,898 83,609
2003
January February March April May June July August September October November December
16,719 16,784 17,277 17,984 18,605 19,682 21,522 22,394 23,199 23,329 23,650 25,424
22,483 21,523 21,946 21,952 22,915 24,515 24,760 26,016 26,518 27,890 29,946 30,830
39,202 38,307 39,223 39,937 41,520 44,197 46,282 48,410 49,717 51,218 53,596 56,254
9,406 9,260 9,020 8,896 9,539 10,030 11,506 12,742 13,506 13,620 14,047 14,544
35,649 37,122 38,088 39,587 41,453 42,912 42,964 41,210 40,579 40,627 39,770 38,470
84,257 84,690 86,330 88,420 92,512 97,139 100,752 102,363 103,801 105,466 107,414 109,268
( 1) Deflated by the combined price index. Source: ABA based on the "Statistical Bulletin" and "Daily Information on Deposits, Loans and Cash in National Currency", Central Bank and INDEC.
| 32 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 8: Central Bank’s Monetary and Financial Liabilities Monthly average of daily balances (in millions) Period
Currency
Financial Institutions Deposits in the Central Bank
Monetary Liabilities
Net Position of Repos
Financial Liabilities
Government Deposits in the Central Bank
1994
December
12,346
3,872
16,218
…
…
…
1995 1996 1997 1998 1999 2000 2001
December December December December December December December
12,025 13,131 15,174 15,520 15,048 14,205 10,173
716 27 47 31 91 88 5,642
12,741 13,158 15,221 15,551 15,139 14,293 15,816
1,494 4,961 6,315 9,347 9,662 9,248 -4,773
15,010 18,137 21,536 24,898 24,802 23,541 11,049
456 1,049 478 1,620 1,827 1,016 171
2002
January February March April May June July August September October November December
10,808 12,213 13,700 14,166 15,149 15,018 15,280 15,161 15,035 15,257 15,774 17,766
5,751 1,680 210 45 61 85 120 170 223 370 808 1,050
16,559 13,893 13,910 14,210 15,210 15,104 15,400 15,331 15,258 15,627 16,582 18,815
-6,446 -7,501 -7,390 -6,321 -5,519 -5,284 -4,527 -4,178 -1,522 -311 -285 -233
10,113 6,392 6,520 7,889 9,691 9,819 10,873 11,153 13,736 15,315 16,296 18,582
199 238 99 355 66 43 69 202 675 239 125 79
2003
January February March April May June July August September October November
18,755 18,818 19,280 19,947 20,425 21,671 23,656 24,711 25,560 25,797 26,331
1,009 1,158 1,455 1,531 1,993 2,257 2,413 2,764 3,011 3,223 3,260
19,764 19,975 20,735 21,479 22,418 23,928 26,069 27,475 28,571 29,020 29,591
-199 -215 -204 -201 -127 -58 -58 -56 -48 -48 -45
19,565 19,761 20,531 21,277 22,291 23,870 26,011 27,419 28,523 28,972 29,546
165 820 936 345 429 660 1,149 2,221 2,870 584 540
December
28,717
3,734
32,450
-46
32,404
559
Source: ABA based on "Statistical Bulletin" and "Central Bank's Monetary Liabilities", Central Bank.
| 33 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 9: Central Bank’s Reserves (1) Monthly average of daily balances Period
Liquid Reserves (2)
Government Securities (3)
Total
Monetary Liabilities
In millions of US Dollars
Financial Liabilities
In millions of Pesos
1996 1997 1998 1999 2000 2001
December December December December December December
17,503 20,871 24,975 24,910 24,077 14,815
1,793 1,746 1,683 1,456 1,314 4,534
19,296 22,618 26,658 26,366 25,391 19,349
14,059 14,190 15,551 15,139 14,293 16,876
18,169 20,090 24,898 24,802 23,541 12,103
2002
January February March April May June July August September October November December
14,538 13,748 13,328 12,462 11,112 9,911 9,224 9,012 9,373 9,558 9,884 10,265
... ... ... ... ... ... ... ... ... ... ... ...
14,538 13,748 13,328 12,462 11,112 9,911 9,224 9,012 9,373 9,558 9,884 10,265
19,594 21,424 21,413 20,825 21,579 20,487 20,443 21,187 22,507 23,868 26,205 28,719
13,148 13,924 14,023 14,504 16,060 15,203 15,917 17,008 20,985 23,557 25,919 28,486
2003
January February March April May June July August September October November December
9,933 9,652 10,373 10,588 11,087 11,763 12,774 13,402 12,454 13,258 13,285 13,820
... ... ... ... ... ... ... ... ... ... ... ...
9,933 9,652 10,373 10,588 11,087 11,763 12,774 13,402 12,454 13,258 13,285 13,820
30,604 30,578 31,842 32,402 35,098 38,417 40,390 41,738 42,737 44,912 46,758 49,112
30,405 30,364 31,639 32,201 34,971 38,359 40,333 41,682 42,689 44,864 46,713 49,066
( 1) Market values. ( 2) Bills, deposits in current accounts, demand and time deposits, gold and ALADI. ( 3) It includes bonds used as collateral for repos transactions. Source: ABA based on " Reserves and Monetary Base" and "Foreign Currency Assets and Money Liabilities", Central Bank.
| 34 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 10: Central Bank’s Bills (LEBAC) Data at end of period
Stock
In Pesos
In Foreign Currency
Average Rates
In Pesos Indexed to CER
Total
In millions of Pesos
In Pesos
Weighted Average Term
In In Pesos Foreign Indexed Currency to CER
In Pesos
As annual percentage
In In Pesos Foreign Indexed Currency to CER In days
2002 March
180
131
...
311
55
42
...
8
19
...
April
195
125
...
320
84
30
...
2
7
...
May
458
424
...
882
65
20
...
6
6
...
June
474
816
...
1,290
67
10
...
7
7
...
July
923
725
...
1,648
108
1
...
5
5
...
August
1,732
782
38
2,552
67
3
18
12
8
83
September
1,750
867
42
2,659
46
0
18
13
6
54
October
2,580
654
42
3,277
50
...
18
41
10
23
November
2,617
687
4
3,308
41
-0
18
65
13
9
December
3,049
647
...
3,696
42
-0
...
103
8
...
January
4,138
710
...
4,848
40
...
...
136
11
...
February
4,159
646
63
4,868
41
-0
14
122
8
46
March
4,231
557
192
4,981
42
-0
13
127
10
304
April
4,311
459
450
5,220
39
...
13
128
5
367
May
4,610
539
713
5,862
34
...
12
122
17
408
June
5,447
352
729
6,528
27
...
12
202
21
380
July
6,777
340
891
8,008
20
...
11
189
15
371
August
6,925
439
1,010
8,374
19
...
11
173
16
350
September
7,250
399
1,127
8,776
18
-0
11
205
10
330
October
8,064
282
1,211
9,557
16
-0
10
238
12
303
November
8,080
245
1,557
9,882
16
-0
9
238
47
305
December
8,151
242
1,897
10,291
16
-0
9
220
18
348
2003
Note: It includes Central Bank's Notes (NOBAC). Source: ABA based on Central Bank's data.
| 35 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 11: Redemption of Quasi-currencies Year 2003
Quasi-currencies
Province
Par Value
Redemption Value
Ratio
In millions of Pesos
Share
As %
BOCADE
Tucumán
167
155
93
2
BOCANFOR
Formosa
85
70
82
1
BONOSCAT
Catamarca
56
56
100
1
CECACOR
Corrientes
249
185
74
3
FEDERALES
Entre Ríos
255
193
76
3
3,187
3,187
100
44
649
620
96
9
2,644
2,644
100
37
99
88
89
1
7,391
7,198
97
100
LECOP
Gobierno Nacional
LECOR
Córdoba
PATACÓN QUEBRACHOS
Buenos Aires Chaco
Total Source: ABA based on Central Bank's data.
| 36 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 12: Interest Rates
(annual nominal, as a percentage) On Deposits In Domestic Currency Period
1995 1996 1997 1998 1999 2000 2001
Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated
2002
January February March April May June July August September October November December
2003
On Loans
In Foreign Currency
Domestic Prime Rate
Savings Time Savings Time In Domestic In Foreign Account Deposit Account Deposit Currency Currency (1) (1) 30 30 90 Days Days Days
Interbank Rate
3.7 3.5 3.3 3.0 2.9 2.8 3.2
12.5 7.6 7.2 7.8 8.5 8.7 17.4
2.7 2.6 2.5 2.4 2.5 2.7 3.4
8.4 6.3 6.0 6.5 6.5 7.2 9.9
19.1 10.9 9.5 11.0 11.4 11.5 32.4
14.6 9.4 8.0 9.2 9.3 10.0 18.9
16.0 10.1 8.6 10.1 10.2 10.6 19.8
9.7 6.3 6.8 6.9 7.1 8.4 29.9
1.4 1.3 1.9 4.7 9.6 10.9 15.0 13.9 7.7 4.8 2.8 2.2
4.8 6.7 14.9 52.7 67.2 71.4 76.0 65.0 44.9 33.9 19.4 21.2
1.4 1.3 1.2 2.2 2.3 2.3 2.4 2.4 2.4 2.4 2.3 1.7
4.0 3.8 3.8 4.0 6.9 5.1 4.6 4.1 3.4 2.6 2.1 1.8
29.1 31.8 ... ... ... ... ... 103.2 79.0 55.4 39.9 33.4
21.7 19.7 ... ... ... ... ... ... ... ... ... ...
24.7 23.7 ... ... ... ... ... ... ... ... ... ...
24.2 28.6 37.9 92.0 69.8 46.6 69.5 55.3 27.9 19.9 7.1 6.3
Accumulated
6.4
46.9
2.0
3.9
66.6
22.4
26.7
47.7
January February March April May June July August September October November December
1.9 1.9 1.8 1.8 1.7 1.4 1.1 0.8 0.9 1.0 0.9 0.8
17.4 17.7 20.5 19.8 13.1 9.8 5.8 4.3 4.3 4.4 4.3 3.8
2.3 2.3 2.2 2.1 1.2 0.3 0.3 0.2 0.2 0.2 0.2 0.2
1.6 1.1 0.9 1.0 0.9 0.8 0.7 0.7 0.6 0.6 0.6 0.6
27.9 27.4 27.9 28.1 24.7 20.3 16.8 13.1 11.9 11.3 10.8 10.3
... ... ... ... ... ... ... ... ... ... ... ...
... ... ... ... ... ... ... ... ... ... ... ...
5.7 6.5 8.4 6.5 4.7 4.0 2.4 1.5 1.5 1.6 1.7 1.7
Accumulated
1.3
10.8
0.9
0.8
20.7
...
...
3.9
( 1) Corresponds to average term. Source: ABA based on “Survey on Interest Rates on Deposits”, “Domestic Prime Rate” and “Statistical Information on Interest Rates”, Central Bank.
| 37 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 13: Lending Rates
(annual nominal, as a percentage) In Domestic Currency Period
Current Promissory Mortgage Accounts Notes Loans Overdrafts
Pledge Loans
In Foreign Currency Consumer Current Promissory Mortgage Loans Accounts Notes Loans Overdrafts
Pledge Consumer Loans Loans
1994 1995 1996 1997 1998 1999 2000 2001
Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated
40.1 49.7 37.5 31.7 32.4 31.4 33.9 47.8
21.1 21.6 14.0 11.6 12.0 11.4 12.8 30.4
17.4 16.3 12.9 13.8 15.0 13.8 15.8 16.7
26.6 29.3 24.3 20.3 22.2 20.3 23.2 22.6
43.3 54.4 48.4 44.9 40.2 33.9 38.0 39.2
20.6 24.0 14.0 14.1 13.6 10.3 9.9 22.1
14.1 18.5 12.5 11.3 11.5 11.4 12.9 21.0
15.9 17.8 14.7 13.1 12.7 12.5 13.3 12.9
18.4 20.4 17.3 16.1 14.8 14.0 16.4 18.0
21.5 26.3 24.6 23.8 23.1 22.9 26.5 29.8
2002
January February March April May June July August September October November December
40.2 40.0 44.7 68.8 72.6 77.5 80.2 75.1 66.9 57.8 54.6 46.9
24.1 18.9 33.2 71.7 49.7 45.2 44.6 55.5 32.6 36.5 25.9 27.8
11.6 12.6 14.3 37.3 30.6 25.5 50.9 51.1 42.1 31.7 23.8 22.1
20.4 22.4 20.9 20.5 22.0 19.5 17.9 14.2 13.5 19.5 17.9 36.0
38.8 38.0 38.4 40.7 44.0 53.1 56.1 55.3 59.7 59.3 63.6 63.5
26.3 25.1 24.0 23.5 21.5 27.0 23.2 21.5 21.6 19.1 12.6 17.8
18.5 17.0 7.9 12.1 5.9 23.9 8.0 12.6 8.6 11.4 19.7 12.3
13.9 13.7 ... ... 16.5 16.5 16.5 16.5 12.7 14.3 15.0 10.3
25.2 19.8 ... 13.1 ... ... ... ... ... 13.7 17.0 ...
32.4 30.4 30.1 29.9 28.9 32.0 32.8 31.8 31.2 31.7 32.8 32.3
Accumulated
78.8
45.7
33.2
22.0
63.5
23.9
13.8
15.4
19.0
35.7
January February March April May June July August September October November December
48.0 45.6 47.8 49.9 47.0 42.2 35.7 31.4 25.7 24.2 24.0 24.7
23.9 30.1 29.1 24.0 23.2 18.5 16.1 13.4 12.1 12.8 10.7 13.5
21.7 23.5 22.3 22.2 20.6 16.4 13.3 17.5 14.6 16.2 15.7 13.8
18.9 18.7 14.6 17.7 19.1 17.2 13.2 17.6 18.3 17.7 16.1 ...
63.6 64.3 66.2 64.7 65.8 62.3 59.7 52.5 45.6 36.8 34.7 35.0
17.5 12.5 13.2 12.2 12.2 9.8 13.1 10.3 9.4 10.0 7.4 7.4
7.7 5.9 10.5 12.4 12.3 8.8 7.5 6.7 6.9 6.0 6.1 4.4
18.0 ... ... ... 6.8 ... 6.8 ... ... 8.9 4.8 ...
16.0 16.0 16.0 15.9 16.0 16.0 15.1 16.0 16.0 15.8 15.7 ...
32.5 32.9 32.6 32.3 32.6 32.6 30.4 27.7 23.6 23.0 21.0 22.0
Accumulated
43.5
20.3
19.4
16.7
68.7
11.7
8.1
9.3
16.8
32.2
2003
It corresponds to weighted averages of loans granted within the month of the report. Source: ABA based on the "Statistical Bulletin", Central Bank.
| 38 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 14: Bank Loans (in millions of Pesos)
To Public Sector End of:
In In Domestic Foreign Currency Currency
To Private Sector Total
In Domestic Currency
In Foreign Currency
Total
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
December December December December December December December December December December December December December
233 5,291 6,548 5,076 6,541 5,734 5,426 6,289 6,098 4,797 5,481 3,715 3,392
756 1,647 3,736 5,545 6,652 5,898 10,622 12,647 15,075 18,862 22,790 25,063 26,722
989 6,938 10,284 10,621 13,193 11,631 16,048 18,936 21,172 23,659 28,272 28,778 30,114
605 7,238 13,180 19,055 21,766 23,931 21,819 21,980 24,745 27,420 26,659 25,688 15,626
684 3,515 9,573 15,933 21,477 28,282 29,686 32,958 39,489 44,786 43,919 42,221 40,353
1,288 10,753 22,753 34,988 43,244 52,212 51,506 54,939 64,234 72,206 70,578 67,910 55,979
2002
January February March April May June July August September October November December
30,315 38,360 44,853 46,119 51,067 54,995 56,493 58,760 60,519 59,830 59,376 57,744
25,223 20,048 27,338 27,365 34,204 41,117 40,494 39,794 40,815 38,940 39,949 37,538
55,538 58,408 72,191 73,484 85,271 96,113 96,987 98,554 101,334 98,771 99,325 95,282
43,760 45,681 46,073 44,858 46,303 45,610 44,556 44,062 43,510 42,629 42,082 41,175
9,474 6,805 7,236 6,677 7,599 8,034 8,052 7,849 7,689 7,170 7,151 6,749
53,234 52,486 53,309 51,535 53,902 53,644 52,607 51,911 51,199 49,800 49,233 47,924
2003
January February March April May June July August September October November December
58,355 58,713 58,924 59,609 60,637 62,481 63,681 63,272 65,596 65,270 66,095 67,702
35,660 36,099 31,778 29,621 29,607 29,716 30,880 30,859 29,944 28,804 29,148 28,516
94,015 94,812 90,702 89,230 90,243 92,197 94,561 94,131 95,540 94,074 95,243 96,218
40,138 39,577 38,619 38,310 37,845 36,696 35,924 35,972 35,035 35,047 35,198 35,064
6,451 6,481 5,873 5,662 5,611 5,460 5,575 5,558 5,489 5,525 5,818 5,488
46,588 46,058 44,492 43,972 43,456 42,156 41,499 41,530 40,524 40,572 41,016 40,552
Source: ABA based on the "Statistical Bulletin", Central Bank.
| 39 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 15: Nominal Bank Loan by Currency (in millions of Pesos)
In Domestic Currency End of:
Loan
Resources Earned on Loans
In Foreign Currency
Total
Loan
Resources Earned on Loans
Total
Total Financing
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
December December December December December December December December December December December December December
426 5,822 12,179 18,729 23,693 25,824 24,402 26,916 29,479 31,540 31,541 28,848 18,560
412 6,707 7,549 5,402 4,614 3,840 2,844 1,353 1,364 677 599 556 459
838 12,529 19,728 24,131 28,307 29,664 27,246 28,269 30,843 32,217 32,141 29,404 19,018
1,330 4,768 12,548 20,642 27,338 33,202 39,147 44,575 53,485 62,542 65,574 66,073 65,730
109 394 761 835 791 977 1,161 1,030 1,079 1,106 1,135 1,212 1,344
1,439 5,162 13,309 21,478 28,129 34,179 40,308 45,605 54,564 63,647 66,710 67,285 67,075
2,277 17,691 33,036 45,609 56,436 63,844 67,554 73,874 85,406 95,865 98,850 96,688 86,093
2002
January February March April May June July August September October November December
72,508 81,834 87,661 86,599 89,912 90,538 89,785 89,331 89,180 88,217 87,162 84,510
1,567 2,207 3,266 4,378 7,458 10,067 11,264 13,491 14,849 14,243 14,297 14,409
74,075 84,042 90,926 90,977 97,370 100,605 101,048 102,822 104,029 102,460 101,458 98,919
34,297 26,581 34,406 33,851 41,604 48,942 48,324 47,420 48,260 45,883 46,876 44,080
400 272 168 191 199 210 221 223 244 228 223 207
34,697 26,853 34,574 34,042 41,803 49,151 48,546 47,643 48,504 46,111 47,100 44,287
108,772 110,895 125,500 125,019 139,173 149,756 149,594 150,465 152,533 148,571 148,558 143,206
2003
January February March April May June July August September October November December
84,038 83,558 83,675 83,832 84,042 84,775 85,646 85,904 87,571 87,387 89,540 90,653
14,455 14,731 13,867 14,087 14,440 14,402 13,959 13,340 13,060 12,930 11,753 12,113
98,493 98,289 97,543 97,919 98,482 99,176 99,606 99,244 100,631 100,317 101,293 102,766
41,916 42,385 37,477 35,119 35,056 35,019 36,308 36,275 35,304 34,198 34,832 33,899
195 195 174 164 161 157 147 142 129 131 134 105
42,111 42,581 37,651 35,283 35,218 35,176 36,455 36,417 35,433 34,330 34,966 34,004
140,603 140,870 135,194 133,202 133,699 134,352 136,061 135,662 136,064 134,647 136,259 136,770
Source: ABA based on the "Statistical Bulletin", Central Bank and INDEC.
| 40 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 16: Bank Loan in Real Terms(1) (in millions of Pesos of December 2003)
In Domestic Currency End of:
In Foreign Currency
Loan
Resources Earned on Loans
Total
Loan
Resources Earned on Loans
Total
Total Financing
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
December December December December December December December December December December December December December
17,873 21,031 26,072 36,762 45,177 46,870 42,505 46,302 50,957 56,524 56,528 51,124 34,195
17,256 24,227 16,159 10,604 8,798 6,970 4,954 2,328 2,358 1,214 1,074 985 845
35,130 45,258 42,231 47,366 53,975 53,840 47,458 48,630 53,315 57,738 57,603 52,110 35,040
55,758 17,225 26,861 40,519 52,128 60,261 68,188 76,679 92,455 112,085 117,523 117,096 121,104
4,581 1,424 1,629 1,640 1,507 1,773 2,023 1,773 1,865 1,982 2,035 2,147 2,477
60,339 18,649 28,490 42,159 53,635 62,034 70,211 78,452 94,319 114,067 119,558 119,243 123,581
95,469 63,907 70,721 89,525 107,610 115,873 117,669 127,082 147,635 171,805 177,160 171,353 158,621
2002
January February March April May June July August September October November December
127,580 132,824 130,853 111,953 107,340 101,878 97,223 93,305 91,429 90,121 89,546 86,912
2,758 3,582 4,874 5,659 8,903 11,329 12,197 14,091 15,223 14,550 14,688 14,819
130,338 136,406 135,728 117,613 116,243 113,207 109,420 107,396 106,652 104,672 104,234 101,731
60,347 43,143 51,358 43,762 49,668 55,072 52,327 49,529 49,477 46,873 48,159 45,333
703 442 251 247 238 236 240 233 250 233 229 213
61,050 43,585 51,609 44,009 49,906 55,308 52,567 49,763 49,727 47,106 48,388 45,546
191,388 179,991 187,337 161,621 166,149 168,515 161,987 157,159 156,379 151,778 152,622 147,276
2003
January February March April May June July August September October November December
85,683 84,787 84,951 85,884 86,543 87,395 88,116 87,766 89,528 88,841 90,446 90,653
14,738 14,948 14,079 14,432 14,869 14,847 14,362 13,629 13,352 13,145 11,872 12,113
100,421 99,735 99,029 100,316 101,413 102,241 102,478 101,395 102,880 101,987 102,318 102,766
42,736 43,009 38,049 35,979 36,100 36,101 37,355 37,061 36,093 34,767 35,185 33,899
199 198 176 168 166 162 151 145 132 134 135 105
42,935 43,207 38,225 36,147 36,266 36,263 37,506 37,207 36,225 34,901 35,320 34,004
143,356 142,942 137,255 136,462 137,678 138,505 139,984 138,602 139,104 136,888 137,638 136,770
( 1) Deflated by the combined price index. Source: ABA based on the "Statistical Bulletin", Central Bank and INDEC.
| 41 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 17: Number of Institutions End of:
December December December December December December December December December December December December December December December December December December November
Public Banks
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
37 37 36 36 36 36 35 36 34 33 31 24 19 16 16 14 13 16 15
Private Banks
161 154 142 139 141 134 134 131 133 135 96 96 95 86 76 75 72 62 61
Non-Banking Financial Institutions
Total Financial System
117 105 89 69 59 51 50 44 39 37 30 26 25 23 24 24 22 21 21
315 296 267 244 236 221 219 211 206 205 157 146 139 125 116 113 107 99 97
Source: ABA based on Central Bank's data.
| 42 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 18: Employees Period
Public Banks
1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 (1)
79,714 78,973 78,346 79,409 80,710 81,200 80,380 80,581 81,680 82,666 75,710 67,706 58,984 56,169 56,127 53,483 48,434 40,696 40,041 40,042 39,986 38,302 44,288 41,968
Private Banks 66,426 63,106 62,543 65,496 67,877 63,788 60,741 57,880 61,171 64,365 57,876 54,375 58,464 62,660 65,126 56,331 57,384 62,557 63,571 61,976 60,597 57,971 60,318 41,162
Total 146,140 142,079 140,889 144,905 148,587 144,988 141,121 138,461 142,851 147,031 133,586 122,081 117,448 118,829 121,253 109,814 105,818 103,253 103,612 102,018 100,583 96,273 104,606 83,130
( 1) It corresponds to September. Source: ABA based on Central Bank's data.
| 43 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 19: Number of Accounts Period
Time Deposits
Savings Accounts
Current Accounts
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
December December December December December December December December December December December
914,703 821,084 786,613 1,064,878 1,176,916 1,318,297 1,304,517 1,521,687 1,643,408 1,848,985 1,928,096
4,590,900 5,550,187 4,530,047 4,191,733 4,861,662 5,931,610 6,059,221 6,712,506 8,742,034 12,084,360 13,196,919
1,567,078 1,507,362 1,536,493 1,755,346 1,744,156 1,861,979 1,703,932 1,881,238 2,286,945 2,908,606 3,221,887
2000
January February March April May June July August September December
1,987,476 2,045,397 2,085,972 2,072,864 2,104,440 2,096,682 2,120,157 2,078,196 2,185,508 2,080,318
13,279,593 13,402,482 13,560,055 13,375,758 13,297,456 13,457,859 13,687,007 13,834,316 13,869,520 13,790,783
3,123,083 3,144,236 2,985,086 2,993,834 3,006,814 3,036,235 3,055,902 3,079,223 3,093,634 3,204,233
2001
March June September December
2,152,510 2,160,467 2,067,024 1,636,181
14,337,212 13,979,224 14,918,087 17,151,520
3,214,171 3,363,541 2,977,100 3,338,259
2002
March June September December
3,442,344 4,453,567 2,060,757 1,253,993
16,681,975 17,924,286 6,751,591 11,329,351
3,181,262 2,895,839 1,922,837 2,638,476
2003
March June September
833,051 954,878 895,663
10,519,489 10,299,398 9,473,421
2,615,374 2,526,378 2,607,634
Source: ABA based on "Financial System Indicators", "Statistical Bulletin" and "Information on Financial Institutions", Central Bank.
| 44 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 20: Number of Branches (1) End of:
December December December December December June December December December December December December December December December October
1987 1988 1989 1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
Public Banks
Private Banks
Non-banking Financial Institutions
Total Financial System
2,005 2,026 2,039 1,970 1,905 1,776 1,710 1,621 1,455 1,461 1,391 1,358 1,377 1,391 1,733 1,735
2,553 2,597 2,622 2,471 2,345 2,481 2,535 2,397 2,563 2,659 2,946 2,967 2,862 2,809 2,155 2,085
227 160 107 87 75 60 59 51 45 45 42 56 63 73 58 58
4,785 4,783 4,768 4,528 4,325 4,317 4,304 4,069 4,063 4,165 4,379 4,381 4,302 4,273 3,946 3,878
( 1) Including head offices. Source: ABA based on Central Bank's data.
| 45 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 21: Branches Geographical Distribution (1) As of October 31, 2003 Provinces
Public Banks
Private Banks
Total Banking System
Federal Capital Provinces Buenos Aires Catamarca Córdoba Corrientes Chaco Chubut Entre Ríos Formosa Jujuy La Pampa La Rioja Mendoza Misiones Neuquén Río Negro Salta San Juan San Luis Santa Cruz Santa Fe Santiago del Estero Tierra del Fuego Tucumán
165 1,570 537 14 295 45 45 48 93 5 5 96 12 45 18 31 19 9 7 7 11 203 8 5 12
604 1,481 645 6 91 15 15 26 24 12 22 10 12 82 38 17 35 37 24 29 26 223 32 9 51
769 3,051 1,182 20 386 60 60 74 117 17 27 106 24 127 56 48 54 46 31 36 37 426 40 14 63
16 42 20 0 4 0 1 0 1 0 1 0 0 4 1 0 0 2 2 2 0 3 1 0 0
785 3,093 1,202 20 390 60 61 74 118 17 28 106 24 131 57 48 54 48 33 38 37 429 41 14 63
Total
1,735
2,085
3,820
58
3,878
Non-Banking Total Financial Financial System Institutions
( 1) Including head offices. Source: ABA based on "Information on Financial Institutions", Central Bank.
| 46 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 22: ATM’s Geographical Distribution As of October 31, 2003 Provinces
Public Banks
Private Banks
Total Banking System
Non-Banking Financial Institutions
Total Financial System
Federal Capital Provinces Buenos Aires Catamarca Córdoba Corrientes Chaco Chubut Entre Ríos Formosa Jujuy La Pampa La Rioja Mendoza Misiones Neuquén Río Negro Salta San Juan San Luis Santa Cruz Santa Fe Santiago del Estero Tierra del Fuego Tucumán
301 1,647 801 34 218 40 33 26 84 4 4 34 5 49 15 50 17 10 9 7 8 164 3 23 9
1,213 2,592 1,308 8 154 19 19 39 37 25 62 12 14 142 54 36 59 66 66 43 35 262 26 10 96
1,514 4,239 2,109 42 372 59 52 65 121 29 66 46 19 191 69 86 76 76 75 50 43 426 29 33 105
4 18 3 0 0 0 0 0 0 0 1 0 0 0 0 0 0 14 0 0 0 0 0 0 0
1,518 4,257 2,112 42 372 59 52 65 121 29 67 46 19 191 69 86 76 90 75 50 43 426 29 33 105
Total
1,948
3,805
5,753
22
5,775
Source: ABA based on "Information on Financial Institutions", Central Bank.
| 47 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 23: Assets and Liabilities Structure December 2001
December 2002
November 2003
In millions
As a %
In millions
As a %
In millions
As a %
123,981
100.0
187,542
100.0
190,770
100.0
9,865 6,337 70,176 51,994 2,617 22,689 -7,125
8.0 5.1 56.6 41.9 2.1 18.3 -5.7
15,914 31,750 72,840 38,470 1,985 44,337 -11,952
8.5 16.9 38.8 20.5 1.1 23.6 -6.4
27,054 45,827 58,073 33,504 1,759 32,304 -9,494
14.2 24.0 30.4 17.6 0.9 16.9 -5.0
22,996 3,740 10,868
18.5 3.0 8.8
40,313 6,915 19,812
21.5 3.7 10.6
30,625 6,476 22,715
16.1 3.4 11.9
107,698
86.9
161,451
86.1
168,111
88.1
Deposits Other obligations through financial intermediation Others
66,447
53.6
75,001
40.0
94,755
49.7
36,458 4,792
29.4 3.9
75,742 10,709
40.4 5.7
64,620 8,736
33.9 4.6
- Stockholders’ Equity
16,283
13.1
26,091
13.9
22,659
11.9
Item - Assets Cash and due from banks Public bonds Loans Non-financial private sector Financial sector Public sector Provisions Other loans through financial intermediation Fixed Assets Others - Liabilities
Source: ABA based on "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.
| 48 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 24: Terms for Assets and Liabilities As of November 30, 2003 (In millions of Pesos) Liabilities
1 Month
3 Months
Deposits
72,089
9,082
2,290
2,494
3,240
5,560
94,755
Other financial intermed. obligations
28,475
2,831
1,801
1,514
4,170
22,549
61,340
11,049
45
108
383
1,390
14,816
27,792
Central Bank International Banks and Institutions
6 Months
12 24 Months Months
More Than 24 Months
Total
484
85
37
133
62
305
1,107
2,771
1,053
1,047
21
1,153
2,046
8,091
8,506 5,666 156
1,484 165 290
387 222 8
711 265 283
1,351 214 679
4,576 805 1,749
17,014 7,337 3,166
100,720
12,203
4,099
4,291
8,089
29,858
159,262
Due Portfolio
1 Month
3 Months
6 Months
More Than 24 Months
Total
Non-financial public sector
1,518
987
896
533
861
2,509
32,554
39,858
Financial sector Non-financial private sector and Foreign Residents
611
2,129
97
59
155
380
774
4,205
17,425
12,226
2,816
2,126
2,591
3,585
14,209
54,978
Total
19,554
15,342
3,808
2,718
3,607
6,474
47,537
99,041
Unsubordinated Notes Financ. Received by Local Fin. Institutions Others Subordinated notes Total Financing per Sector
12 24 Months Months
Source: ABA based on "Information on Financial Institutions", Central Bank.
| 49 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 25: Terms of Assets and Liabilities As of November 30, 2003 (As a % of liabilities) Liabilities
1 Month
3 Months
Deposits
45.3
5.7
Other financial intermed. obligations
6 Months 1.4
12 24 Months Months 1.6
More Than 24 Months
Total
2.0
3.5
59.5
17.9
1.8
1.1
1.0
2.6
14.2
38.5
Central Bank
6.9
0.0
0.1
0.2
0.9
9.3
17.5
International Banks and Institutions
0.3
0.1
0.0
0.1
0.0
0.2
0.7
Unsubordinated Notes
1.7
0.7
0.7
0.0
0.7
1.3
5.1
5.3 3.6 0.1
0.9 0.1 0.2
0.2 0.1 0.0
0.4 0.2 0.2
0.8 0.1 0.4
2.9 0.5 1.1
10.7 4.6 2.0
63.2
7.7
2.6
2.7
5.1
18.7
100.0
1 Month
3 Months
6 Months
More Than 24 Months
Total
Financ. Received by Local Fin. Institutions Others Subordinated notes Total Financing per Sector
Due Portfolio
12 24 Months Months
Non-financial public sector
1.0
0.6
0.6
0.3
0.5
1.6
20.4
25.0
Financial sector Non-financial private sector and Foreign Residents
0.4
1.3
0.1
0.0
0.1
0.2
0.5
2.6
10.9
7.7
1.8
1.3
1.6
2.3
8.9
34.5
Total
12.3
9.6
2.4
1.7
2.3
4.1
29.8
62.2
Source: ABA based on "Information on Financial Institutions", Central Bank.
| 50 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 26: Loans and Deposits (in millions of Pesos)
Loans Period
Public Banks
Private Banks
Deposits
Non-banking Financial Institutions
Total Financial System
Public Banks
Private Banks
Non-banking Financial Institutions
Total Financial System
1990
December
9,557
4,984
86
14,627
7,462
3,414
60
1991
December
19,952
11,415
279
31,646
6,793
9,300
223
10,936 16,316
1992
December
18,409
21,713
599
40,721
10,547
16,013
451
27,011
1993
December
21,543
25,433
722
47,698
17,324
23,347
490
41,162
1994
December
23,286
32,614
860
56,759
18,562
28,521
588
47,670
1995
December
23,580
31,702
666
55,948
17,730
27,178
324
45,233
1996
December
22,255
38,312
781
61,347
19,789
34,631
371
54,791
1997
December
23,379
45,590
1,022
69,991
24,023
46,169
336
70,527
1998
December
25,153
50,402
1,524
77,080
27,254
50,676
390
78,320
1999
December
22,060
53,732
1,907
77,699
26,946
54,275
352
81,573
2000
December
21,700
52,707
1,745
76,152
28,498
57,679
393
86,570
2001
December
20,388
48,293
1,495
70,176
21,454
44,767
226
66,447
2002
December
28,429
43,958
453
72,840
32,851
41,954
196
75,001
2003
November
17,208
40,334
532
58,073
45,141
49,409
206
94,755
Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.
| 51 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 27: Loans and Deposits Share (as a percentage)
Loans Periods
Public Banks
Private Banks
Deposits
Non-banking Financial Institutions
Total Financial System
Public Banks
Private Banks
Non-banking Financial Institutions
Total Financial System
1990
December
65.34
34.08
0.59
100.0
68.23
31.22
0.55
100.0
1991
December
63.05
36.07
0.88
100.0
41.63
57.00
1.37
100.0
1992
December
45.21
53.32
1.47
100.0
39.05
59.28
1.67
100.0
1993
December
45.17
53.32
1.51
100.0
42.09
56.72
1.19
100.0
1994
December
41.03
57.46
1.51
100.0
38.94
59.83
1.23
100.0
1995
December
42.15
56.66
1.19
100.0
39.20
60.09
0.72
100.0
1996
December
36.28
62.45
1.27
100.0
36.12
63.20
0.68
100.0
1997
December
33.40
65.14
1.46
100.0
34.06
65.46
0.48
100.0
1998
December
32.63
65.39
1.98
100.0
34.80
64.70
0.50
100.0
1999
December
28.39
69.15
2.45
100.0
33.03
66.54
0.43
100.0
2000
December
28.50
69.21
2.29
100.0
32.92
66.63
0.45
100.0
2001
December
29.05
68.82
2.13
100.0
32.29
67.37
0.34
100.0
2002
December
39.03
60.35
0.62
100.0
43.80
55.94
0.26
100.0
2003
November
29.63
69.45
0.92
100.0
47.64
52.14
0.22
100.0
Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.
| 52 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 28: Concentration of Deposits (as a percentage) End of:
The 5 Major
The 10 Major
1988 December
37.11
50.72
1989 December
35.96
1990 December
The 15 Major
The 20 Major
Others
Number of Banks
…
65.34
34.66
175
49.76
…
67.46
32.54
176
36.17
49.39
…
65.63
34.37
170
1991 December
35.63
49.78
…
67.68
32.32
166
1992 December
34.96
48.62
…
66.25
33.75
167
1993 December
38.68
51.69
60.56
66.77
33.23
167
1994 December
36.85
50.18
58.73
65.14
34.86
168
1995 December
42.61
58.21
68.13
74.34
25.66
127
1996 December
42.33
58.40
68.76
75.25
24.75
120
1997 December
45.18
61.62
71.43
78.30
21.70
113
1998 December
48.91
70.51
79.54
84.46
15.54
104
1999 December
50.26
71.74
80.37
85.87
14.13
92
2000 December
52.33
73.18
82.77
88.55
11.45
89
2001 December
49.92
73.42
83.66
89.51
10.49
85
2002 December
54.16
77.04
85.31
90.25
9.75
78
2003 November
55.13
74.34
84.23
89.95
10.05
76
Source: ABA based on "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.
| 53 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 29: Asset Concentration (as a percentage) End of:
The 5 Major
The 10 Major
The 15 Major
The 20 Major
Others
Number of Banks
1993 December
38.19
51.28
59.73
65.71
34.29
167
1994 December
36.43
50.57
58.83
64.89
35.11
168
1995 December
39.88
55.18
64.00
69.29
30.71
127
1996 December
38.71
55.67
66.37
72.38
27.62
120
1997 December
40.89
57.73
67.64
74.05
25.95
113
1998 December
42.82
64.03
73.56
80.03
19.97
104
1999 December
45.64
68.20
77.44
83.23
16.77
92
2000 December
45.63
69.35
79.00
85.09
14.91
89
2001 December
48.71
70.90
80.97
87.01
12.99
85
2002 December
57.16
77.72
86.10
90.38
9.62
78
2003 November
56.72
75.43
84.07
89.41
10.59
76
Source: ABA based on "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.
| 54 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 30: Tranches of Deposits As of November 30, 2003 Tranches From
Individuals To
Number
Amount
Legal Persons Number
In Millions of Pesos 0 300 10,540,008 301 500 644,815 501 1,000 840,905 1,001 2,500 1,051,882 2,501 5,000 618,916 5,001 10,000 511,361 10,001 25,000 399,726 25,001 50,000 155,875 50,001 100,000 68,700 100,001 250,000 29,840 250,001 500,000 7,627 500,001 1,000,000 1,989 1,000,001 2,500,000 603 2,500,001 5,000,000 237 5,000,001 10,000,000 164 10,000,001 25,000,000 169 25,000,001 50,000,000 175 50,000,001 100,000,000 208 100,000,001 ‌ 15 Total
14,873,215
Amount
Total Number
In Millions of Pesos
Amount In Millions of Pesos
546 375 905 2,215 2,824 3,903 6,357 5,562 5,541 4,494 2,406 1,767 1,252 846 774 1,273 519 430 102
403,888 63,360 85,730 121,100 77,022 80,517 103,277 43,055 30,487 20,987 8,426 5,151 3,478 1,257 712 381 77 42 19
284 322 369 514 496 777 1,542 1,795 2,430 3,781 3,611 4,014 5,490 4,332 4,507 6,116 3,936 3,349 5,001
10,943,896 708,175 926,635 1,172,982 695,938 591,878 503,003 198,930 99,187 50,827 16,053 7,140 4,081 1,494 876 550 252 250 34
829 697 1,274 2,729 3,320 4,679 7,900 7,357 7,971 8,275 6,017 5,782 6,742 5,178 5,280 7,389 4,455 3,779 5,103
42,090
1,048,966
52,664
15,922,181
94,755
Source: ABA based on "Information on Financial Institutions", Central Bank.
| 55 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 31: Loans by Type December 2001 Type of Loan
December 2002
November 2003
Millions of Pesos
% Composition
Millions of Pesos
22,689
32.3
44,337
60.9
32,304
55.6
2,617
3.7
1,985
2.7
1,759
3.0
51,994
74.1
38,470
52.8
33,504
57.7
6,410
9.1
4,535
6.2
4,578
7.9
Promissory Notes
11,221
16.0
7,268
10.0
6,143
10.6
Mortgage Loans
16,037
22.9
11,411
15.7
9,438
16.3
Pledge Loans
3,666
5.2
1,953
2.7
1,331
2.3
Consumer Loans
4,530
6.5
2,410
3.3
2,151
3.7
Others
8,679
12.4
7,856
10.8
7,363
12.7
1,451
2.1
3,038
4.2
2,500
4.3
Provisions
-7,125
-10.2
-11,952
-16.4
-9,494
-16.3
Total
70,176
100.0
72,840
100.0
58,073
100.0
Non-financial Public Sector Financial Sector Non-financial Private Sector (1) Overdraft
Interest and difference of receivable accrued quotes
( 1)
% Millions of % Composition Pesos Composition
It includes loans to foreign residents.
Source: ABA based on "Financial Statements of Financial Institutions" and "Information on Financial Institutions", Central Bank.
| 56 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 32: Financing by Activity Percentual distribution Economic Activity
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
9.0
11.1
12.6
12.4
10.8
10.3
9.2
9.1
9.1
8.1
8.9
8.2
5.5
13.0
23.9
20.8
20.6
19.5
18.0
18.5
19.4
18.1
16.5
14.6
11.5
9.3
7.7
10.0
Electricity, gas and water
7.4
3.0
1.3
2.5
2.0
2.1
2.1
2.0
2.2
1.8
1.6
1.5
2.2
1.1
Construction
5.9
6.4
5.1
4.2
4.2
4.3
4.1
3.5
3.6
3.7
3.5
3.0
2.5
1.8
Commerce
6.6
11.4
15.1
17.0
15.7
13.9
12.3
11.6
10.5
9.8
8.7
6.3
4.3
3.8
Services
23.3
21.5
20.1
21.5
23.6
25.0
26.8
27.1
26.5
28.0
37.7
42.2
54.8
44.4
Individual employees
21.7
22.6
20.7
18.1
20.2
20.2
21.7
23.9
24.9
28.3
24.8
24.1
16.6
14.8
2.2
3.2
4.5
4.8
5.5
5.7
4.5
4.7
6.8
5.7
3.2
5.4
6.4
11.1
Primary Production Manufacturing industry
Non-identified Total
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Source: ABA based on “Statistical Bulletin�, Central Bank
| 57 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 33: Non-Performing Loans by Activity % on total financing of each activity Economic Activity
1990
1991
1992
1993
1994
1995
1996
Primary Production
27.0
24.4
23.4
22.1
30.5
33.0
Manufacturing industry
23.1
17.7
18.4
21.1
23.7
3.3
62.8
7.4
3.3
Construction
13.6
10.7
13.4
Commerce
19.7
18.1
Services
17.8
1998
1999
2000
2001
2002
2003
24.6
21.7 17.4
23.4
27.2
30.6
49.5
21.1
21.4
15.9
14.7 14.6
15.7
20.7
29.0
48.4
37.8
4.1
1.3
1.8
1.2
1.3
2.1
2.7
58.9
71.8
16.5
19.7
23.8
15.9
14.0 11.5
12.1
22.3
24.9
58.1
65.6
16.8
18.0
23.9
31.9
25.5
22.8 20.0
22.4
28.1
30.0
49.6
40.9
26.9
16.2
13.1
10.0
10.8
6.9
4.7
4.7
6.9
10.3
11.5
8.9
2.8
7.6
7.2
9.1
12.5
29.9
22.7
15.0 14.7
15.0
21.8
25.8
37.8
24.0
Non-identified
45.9
26.6
15.8
17.5
17.6
21.4
20.5
18.4 11.2
18.3
25.3
30.8
38.5
47.3
Total
16.0
19.4
15.5
15.8
18.0
22.7
16.8
13.9
13.4
16.9
20.1
26.4
22.8
Electricity, gas and water
Individual employees
1997
0.8
6.2
12.1
Source: ABA based on “Statistical Bulletin�, Central Bank
| 58 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 34: Financing by Tranches As of November 30, 2003 Tranches
From
Individuals
To
Number
Legal Persons
Amount
Number
In Millions of Pesos
Individuals
Legal Persons
Amount
Number
Amount
Number
Amount
In Millions of Pesos
%
%
%
%
0
300
935,370
180.5
17,267
2.4
21.2
0.8
20.5
0.0
301
500
467,351
208.8
2,516
1.1
10.6
0.9
3.0
0.0
501
1,000
767,372
599.1
4,175
3.3
17.4
2.6
5.0
0.0
1,001
2,500
926,911
1,530.7
6,728
11.5
21.0
6.7
8.0
0.0
2,501
5,000
492,704
1,765.7
6,312
23.5
11.2
7.8
7.5
0.0
5,001
10,000
324,554
2,289.8
7,370
53.7
7.4
10.1
8.7
0.1
10,001
25,000
284,638
4,613.2
10,136
165.5
6.5
20.3
12.0
0.2
25,001
50,000
140,448
4,873.6
7,524
271.3
3.2
21.5
8.9
0.4
50,001
100,000
49,591
3,310.7
6,933
494.4
1.1
14.6
8.2
0.6
100,001
200,000
13,052
1,744.8
5,640
800.1
0.3
7.7
6.7
1.0
200,001
500,000
3,777
1,068.7
4,880
1,524.8
0.1
4.7
5.8
2.0
500,001
1,000,000
475
308.3
2,008
1,406.8
0.0
1.4
2.4
1.8
1,000,001
2,500,000
98
144.0
1,421
2,203.8
0.0
0.6
1.7
2.9
2,500,001
5,000,000
12
38.0
538
1,902.8
0.0
0.2
0.6
2.5
5,000,001
10,000,000
3
19.2
330
2,279.5
0.0
0.1
0.4
3.0
10,000,001
25,000,000
...
...
252
3,845.6
...
...
0.3
5.0
25,000,001
50,000,000
...
...
104
3,580.1
...
...
0.1
4.7
50,000,001 100,000,000
...
...
62
4,415.0
...
...
0.1
5.8
...
...
91
53,360.5
...
...
0.1
69.9
4,406,356
22,695.0
84,287
76,345.9
100.0
100.0
100.0
100.0
100,000,001 Total
...
Source: ABA based on "Information on Financial Institutions", Central Bank.
| 59 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 35: Financing by Tranche and Situation (as a percentage) As of November 30, 2003 Loan Tranche
Normal Situation (1)
From
To
Number of Debtors
0 301 501 1,001 2,501 5,001 10,001 25,001 50,001 100,001 200,001 500,001 1,000,001 2,500,001 5,000,001 10,000,001 25,000,001 50,000,001
300 500 1,000 2,500 5,000 10,000 25,000 50,000 100,000 200,000 500,000 1,000,000 2,500,000 5,000,000 10,000,000 25,000,000 50,000,000 100,000,000
77.7 74.2 69.7 65.4 58.9 50.2 52.2 59.4 48.1 34.5 31.6 40.8 51.5 55.6 61.2 70.9 70.4 72.6
100,000,001
...
Total
Debt Amount
Non-Performing (2)
Non-collectible (3)
Number of Debtors
Debt Amount
Number of Debtors
Debt Amount
77.3 74.2 69.7 65.1 58.5 49.7 53.7 59.4 47.0 33.9 32.2 41.4 52.3 55.5 60.4 71.4 70.0 73.3
4.3 3.7 3.6 3.4 3.6 3.7 4.5 5.3 6.3 8.0 13.4 15.4 15.3 18.4 23.1 18.1 25.4 20.5
4.1 3.7 3.5 3.4 3.6 3.8 4.6 5.3 6.4 8.2 13.8 15.5 15.2 18.7 23.6 18.3 26.0 19.5
18.0 22.1 26.7 31.2 37.5 46.1 43.3 35.2 45.6 57.4 54.9 43.8 33.2 26.0 15.7 11.1 4.2 6.8
18.6 22.1 26.8 31.4 38.0 46.6 41.8 35.3 46.6 57.9 54.0 43.1 32.5 25.7 16.0 10.4 4.0 7.2
87.3
96.8
12.7
3.2
...
...
67.7
75.6
3.9
8.5
28.4
15.8
( 1) Including situations 1 and 2. ( 2) Including situations 3 and 4. ( 3) Including situations 5 and 6. Source: ABA based on "Information on Financial Institutions", Central Bank.
| 60 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 36: Concentration of Credit Assistance As of November 30, 2003
Individuals Number of Institutions
Number
Amount
Legal Persons Number
In Millions of Pesos
Individuals
Legal Persons
Amount
Number
Amount
Number
Amount
In Millions of Pesos
%
%
%
%
1
3,275,945
10,992.2
63,772
12,454.1
74.3
48.4
75.7
16.3
2
847,662
7,014.1
12,983
7,596.2
19.2
30.9
15.4
9.9
3
212,898
2,941.7
4,044
6,163.0
4.8
13.0
4.8
8.1
4
51,850
1,070.6
1,641
6,871.2
1.2
4.7
1.9
9.0
5 or more
18,001
676.4
1,847
43,261.3
0.4
3.0
2.2
56.7
4,406,356
22,695.0
84,287
76,345.9
100.0
100.0
100.0
100.0
Total
Source: ABA based on "Information on Financial Institutions", Central Bank.
| 61 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 37: Minimum Cash Requirements (expressed as a percentage)
As of: Item
January and February 2003
1. Deposits in current accounts.
22
2. Deposits in savings accounts.
22
3. Custody loans, special accounts for closed savings groups, special accounts for cash deposits, "Unemployment fund for construction workers", "Payment of compensation", special current accounts for legal persons and pension savings accounts.
22
4. Other demand deposits and obligations, pension payments granted by ANSES outstanding payment and fixed balances corresponding to obligations comprised in these rules.
22
5. Unused balances on account of checking account advance payments.
22
6. Demand deposits -whichever the type of deposit, which, at least, must constitute the amount of mutual funds (as provided for in the Securities Exchange Commission rules and regulations).
100
7. Deposits in current accounts made by non-banking financial institutions computable for payment of their minimum cash requirements.
100
8. Fixed term deposits, obligations under "acceptances" -including liabilities for credit sale or assignment to persons other than financial institutions-, repos, stock-related collaterals and repos, constant term investments, with advance settlement option or with renewal term for a fixed term and with variable compensation.
14
9. Deposits comprised in the "Deposit rescheduling regime".
0
10. Obligations under foreign lines of credit, including obligations with correspondent banks, whichever their instrumentation.
0
11. Notes.
0
12. Rescheduled deposits assigned by other financial institutions, maintained under rescheduling conditions, based on the transaction provided for in item 5 of the "Deposit rescheduling regime".
100
13. Time deposits in US Dollars, which may be settled in pesos.
0
14. Obligations to the Trust Fund for Assistance to Financial Institutions and Insurance.
0
15. Demand and time deposits made under Court order with funds originating in lawsuits, and their fixed balances.
10
16. Special accounts in US Dollars intended for deposit of collateral required in future transactions and options carried out in self-regulated markets subject to the control of the National Securities and Exchange Commission.
100
17. Special demand accounts denominated in foreign currency.
100
18. Time deposits with "CER" clause.
0
| 62 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 38: Minimum Cash Requirements (expressed as a percentage)
As of: Item 1. Deposits in current accounts. 2. Deposits in savings accounts. 3. Custody loans, special accounts for closed savings groups, "Unemployment fund for construction workers", "Payment of compensation", special checking accounts for legal persons and pension savings accounts. 4. Other demand deposits and obligations, pension payments granted by ANSES outstanding payment and fixed balances corresponding to obligations comprised in these rules. 5. Unused balances on account current account advance payments. 6. Demand deposits -whichever the type of deposit, which, at least, must constitute the amount of mutual funds (as provided for in the Securities Exchange Commission rules and regulations). 7. Deposits in current accounts made by non-banking financial institutions computable for payment of their minimum cash requirements. 8. Time deposits (including "CEDROS" with "CER" clause), "acceptance" obligations -including liabilities for credit sale or assignment to persons other than financial institutions-, repos, stock-related collaterals and repos, constant term investments, with advance settlement option or with renewal term for a fixed term and with variable compensation, and other term obligations, except for deposits comprised in items 1.3.11. and 1.3.13., according to their remaining term: (2) i) Up to 29 days. ii) From 30 to 59 days. iii) From 60 to 89 days. iv) From 90 to 179 days. v) From 180 to 365 days. vi) More than 365 days. Also included in this item are deposits with "CER" clause and deposits comprised in the "Deposit rescheduling regime" -not excluding those included in item 6.5., in whole or in part, if applicable according to the nature of the court order-. (1) 9. Obligations under foreign lines of credit, whichever their instrumentation. 10. Debt securities (including notes). a) Debt issued as of 01.01.02, including debts arising from restructured obligations, according to their remaining term: i) Up to 29 days. ii) From 30 to 59 days. iii) From 60 to 89 days. iv) From 90 to 179 days. v) From 180 to 365 days. vi) More than 365 days. b) Others. 11. Time deposits in US Dollars that may be settled in Pesos. 12. Obligations towards the Trust Fund for Assistance to Financial Institutions and Insurance. 13. Demand and time deposits made under Court order with funds originating in lawsuits, and their fixed balances. 14. Special accounts in US Dollars intended for deposit of collateral required in future transactions and options carried out in self-regulated markets subject to the control of the National Securities and Exchange Commission. 15. Special demand accounts denominated in foreign currency.
March April July November December 2003 2003 2003 2003 2003 22 22
18 18
13 13
23 23
20 20
22
18
13
23
20
22 22
18 18
13 13
23 23
20 20
100
100
80
80
80
100
100
100
100
100
12 9 8 6 4 0
11 8 7 5 3 0
9 7 5 5 3 0
18 14 10 5 3 0
18 14 10 5 3 0
0
0
0
0
0
12 9 8 6 4 0 0 0
11 8 7 5 3 0 0 0
9 7 5 5 3 0 0 0
18 14 10 5 3 0 0 0
18 14 10 5 3 0 0 0
0
0
0
0
0
10
10
10
10
10
100 100
100 100
100 100
100 100
100 100
(1) This paragraph shall be in force as of 04.01.03 (2) As of 11.01.03 "including CEDROS and with CER clause" is deleted.
| 63 |
ANNUAL REPORT 2003 Statistical Appendix
TABLE 39: Minimum Resource Application (expressed as a percentage)
As of: Item
January and February 2003
1. Deposits in current accounts.
18
2. Deposits in savings accounts.
18
3. Custody loans, special accounts for closed savings groups, special accounts for cash deposits, "Unemployment fund for construction workers", "Payment of compensation", special current accounts for legal persons and pension savings accounts.
18
4. Other demand deposits and obligations, pension payments granted by ANSES outstanding payment and fixed balances corresponding to obligations comprised in these rules.
18
5. Unused balances on account of current account advance payments.
18
6. Demand deposits whichever the type of deposit, which, at least, must constitute the amount of mutual funds (as provided for in the Securities Exchange Commission rules and regulations).
0
7. Deposits in current accounts made by non-banking financial institutions computable for payment of their minimum cash requirements.
0
8. Obligations under foreign lines of credit, whichever their instrumentation.
0
9. Demand and time deposits made under Court order with funds originating in lawsuits, and their fixed balances.
0
10. Time deposits with "CER" clause. 11. Time deposits, obligations under "acceptances" -including liabilities for credit sale or assignment to persons other than financial institutions-, repos, stock-related collaterals and repos, constant term investments, with advance settlement option or with renewal term for a time deposits and with variable compensation, and other term obligations, except for rescheduled deposits.
100
12
12. Deposits comprised in the "Deposits rescheduling regime" ("CEDROS").
0
13. Notes.
0
14. Obligations to the Trust Fund for Assistance to Financial Institutions and Insurance.
0
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TABLE 40: Minimum Resource Application (expressed as a percentage)
As of: Item
March April July November 2003 2003 2003 2003 (4)
1. Deposits in current accounts. 2. Deposits in savings accounts. 3. Custody loans, special accounts for closed savings groups, "Unemployment fund for construction workers", "Payment of compensation", special current accounts for legal persons and pension savings account. 4. Other demand deposits and obligations, pension payments granted by ANSES outstanding payment and fixed balances corresponding to obligations comprised in these rules. 5. Unused balances on account of current account advance payments. 6. Demand deposits whichever the type of deposit, which, at least, must constitute the amount of mutual funds (as provided for in the Securities Exchange Commission rules and regulations). 7. Deposits in current accounts made by non-banking financial institutions computable for payment of their minimum cash requirements. 8.Time deposits (including "CEDROS" and deposits with "CER" clause), "acceptance" obligations -including liabilities on account of sale or assignment of loans to persons other than financial institutions-, repos, stock-related collaterals and stock-related repos, constant term investments, with advance settlement option or with renewal option for a fixed term and with variable compensation, and other term obligations, according to their remaining term: (2) i) Up to 29 days. ii) From 30 to 59 days. iii) From 60 to 89 days. iv) From 90 to 179 days. v) From 180 to 365 days. vi) More than 365 days. Also included in this item are deposits with "CER" clause and deposits comprised in the "Deposit rescheduling regime" -not excluding those included in item 6.5., in whole or in part, if applicable according to the nature of the court order-. (1) 9. Obligations under foreign lines of credit, whichever their instrumentation. 10. Demand and time deposits made under Court order with funds originating in lawsuits, and their fixed balances. 11. Debt securities (including notes) (3) a) Debt issued as of 01.01.02, including debts arising from restructured obligations, according to their remaining term: i) Up to 29 days. ii) From 30 to 59 days. iii) From 60 to 89 days. iv) From 90 to 179 days. v) From 180 to 365 days. vi) More than 365 days. b) Others. 12. Obligations towards the Trust Fund for Assistance to Financial Institutions and Insurance.
18 18
17 17
12 12
0 0
18
17
12
0
18 18
17 17
12 12
0 0
0
0
0
0
0
0
0
0
12 12 12 0 0 0
11 11 11 0 0 0
9 7 5 0 0 0
0 0 0 0 0 0
0
0
0
0
0
0
0
0
12 12 12 0 0 0 0
11 11 11 0 0 0 0
9 7 5 0 0 0 0
0 0 0 0 0 0 0
0
0
0
0
(1) This paragraph will be effective as of 04.01.03 (2) New opening of terms as of 07.01.03. Before i) Up to 89 days, ii) More than 89 days. (3) New opening of terms as of 07.01.03. Before i) Up to 89 days, ii) More than 89 days. (4) As of 11.01.03 rules governing "Minimum application of resources from demand and term obligations in Pesos" are left without effect.
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APPENDIX Principal Measures of Banking, Exchange and Financing Policies
Communication "A" 3856. REMON - 1 - 771. (01.03.03) The Central Bank set forth interest rates applicable to financial assistance provided for in article 17 of the Central Bank’s Charter, as of 01.02.03. In addition, as of 01.03.03, the Central Bank rendered ineffective the facility that allowed financial institutions comprised within the provisions of sections 34 and 35 of the Financial Institutions Act to choose, for a one-year term, as of 04.01.02, to capitalize 100% of the interest amount corresponding to transactions, already granted and to be granted in the future, as provided for in article 17 of the Charter. Communication "A" 3857. OPRAC - 1 - 546, LISOL - 1 - 391 and CONAU - 1 548. (01.07.03) The Central Bank limited the possibility to register public bonds representing country debts subject to the market risk capital requirement incorporated until 12.31.03 into investment accounts, except for those received by financial institutions on account of the set-off set forth in sections 28 and 29 of Decree 905/02. Communication "A" 3859. CAMEX - 1 - 425. (01.07.03) The Central Bank introduced amendments to the Single Free Exchange Market, eliminating restrictions to payments of imports and authorizing the transfer of profits and dividends abroad from companies and subsidiaries based in Argentina. Likewise, it increased the amount of foreign currency released from settlement by the Central Bank from US$ 200,000 to US$ 1 million. Communication "A" 3865. CAMEX - 1 - 427. (01.15.03) Effective as of 01.16.03, the Central Bank provided for that its exchange rate for the purchase of foreign currency entering the country on account of collections of exports corresponding to officialized shipment permits complied with, higher than the equivalent to US$ 1 million, which had to be settled and assigned to the Central Bank, should be fixed thereby according to purchase quotations in force in the free exchange market.
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Communication "A" 3866. CAMEX - 1 - 428. (01.16.03) The conditions to be complied with in order that transfers abroad on account of debt’s principal payments of financial past-due debts held by non-financial private sector owners and of interest services are excluded from the prior consent requirement by the Central Bank were modified. Communication "A" 3867. RUNOR - 1 - 611. (01.17.03) In relation to the Information Regime on "Prevention of Money Laundering and of Other Illegal Activities", the Central Bank amended certain aspects relating to the creation of a database and its filing, at the Central Bank’s request. The currency thereof was set forth upon submission of reports corresponding to the first quarter of 2003. However, it was set forth that registry designs shall be optional as regards data corresponding to the last quarter of 2002, although, in this case, validations incorporated into this Communication would not be effective. Communication "A" 3871. CAMEX - 1 - 429. (01.27.03) The maximum threshold for the General Exchange Position was increased from 6% to 8% of the Computable Equity -CE- recorded at the end of November, 2001, using exchange rates effective on such date, and keeping the minimum limit in an amount equivalent to US$ 1 million for financial institutions. Communication "A" 3872. CAMEX - 1 - 430. (01.27.03) The Central Bank introduced amendments to the Single Free Exchange Market, listing the conditions to allow the access of individuals and non-financial private sector legal persons to the market for a 60-calendar day term counted as of 01.27.03, for a maximum amount equivalent to 3% of the due and payable capital debt on account of securities and financial loans granted abroad, with original or refinance maturity dates up to 12.31.02, corresponding to original debts dated before 02.10.02, outstanding payment or refinance on the date of this Communication. Communication "A" 3875. OPASI - 2 - 333. (01.30.03) Rules governing the "Deposit rescheduling regime" were amended, and it was set forth that entities maintaining debts on account of financing granted by the Central Bank could also agree upon improvements, provided that they have the authorization by the Superintendence of Financial and Exchange Institutions and provided further that they settle capital from such financing, after obtaining the authorization and before the public offering of improvements, for an amount equivalent to the minimum expenditure represented thereby.
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Communication "A" 3877. OPASI - 2 - 334. (02.06.03) The Central Bank adapted the conditions to make improvement offers for early repayment of certificates of rescheduled deposits (CEDROS in Spanish) and it provided that entities maintaining debts on account of financing granted by the Central Bank and early repaying CEDROS, with the prior authorization of the Superintendence of Financial and Exchange Institutions, reduce, on a weekly basis, their obligations towards such Institution for an amount equivalent to the amount of CEDROS settled through improvements made in the previous calendar week. Communication "A" 3878. CAMEX - 1 - 431. (02.07.03) It was provided for that transfers abroad originating in the non-financial private sector, in the financial sector and in state-owned companies which budget does not depend on their respective Administration, would require the prior agreement of the Central Bank, whichever the terms of payment, corresponding to financial debt’s principal payments abroad rendered until 08.08.03. Communication "A" 3879. CONAU - 1 - 555. (02.12.03) Special procedures were introduced to internal audit tasks of institutions, in relation to the Information Regime on Rejected Checks and to the verification of the Compensatory Bond calculation. Communication "A" 3880. CAMEX - 1 - 432. (02.13.03) The Central Bank increased the maximum threshold of the General Exchange Position for financial institutions from 8% to 10% of the Computable Equity (CE) and increased the limit of the amount of the due and payable capital debt from 3% to 5%, whereby access is allowed to the single free exchange market for the creation of trust funds intended to settle debts under restructuring. Communication "A" 3881. OPASI - 2 - 335. (02.21.03) Advance repayment of CEDROS corresponding to deposits originally constituted in Pesos was allowed, provided a report is previously filed with the Superintendence of Financial and Exchange Institutions and, in the event of financial institutions having financing granted by the Central Bank on account of rediscounts and advance payments or on account of repos pending settlement, it was determined that it is mandatory to weekly reduce bonds towards such Institution in an amount equivalent to deposits settled during the previous week due to the offered improvement.
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Communication "A" 3883. OPRAC - 1 - 549 and REMON - 1 - 772. (02.21.03) The Central Bank amended the rules governing "Minimum application of resources from sight and term bonds in Pesos" and "Minimum cash". In such respect, the minimum cash requirement was increased from 0% to 14% and the minimum application of bonds in Pesos on fixed term deposits with CER clause was reduced from 100% to 12%, thus equaling their treatment to that of the remaining fixed term deposits. Communication "A" 3888. RUNOR - 1 - 616. (03.05.03) In relation to the Financial System Debtors’ Database, the Central Bank communicated that it would be temporarily published on the Web Site starting on 03.05.03, with the status of each individual or legal person informed on a per-entity basis, indicating "not available" on the debt field. Communication "A" 3889. LISOL - 1 - 392. (03.07.03) Through this Communication, the Central Bank provided that, starting on 05.01.03, the absolute value of the foreign currency net global position could not be higher than 30% of the computable equity on the month before the applicable one. Likewise, it determined that, whenever the foreign currency net global position is positive, the amount cannot be higher than such ratio nor than own cash resources, whichever is less. Own cash resources were defined as the computable equity minus fixed assets and financing to related customers. The foreign currency global position would then comprise total assets and liabilities for financial intermediation in foreign currency and in foreign bonds. Any excess to these ratios should be subject to a certain charge. However, it was accepted that institutions could file focusing schedules with the Superintendence of Financial and Exchange Institutions in the cases where the impossibility to comply with applicable thresholds could be foreseen. Communication "A" 3891. CAMEX - 1 - 435. (03.07.03) The Central Bank authorized entities to conduct exchange operations, to make exchanges with diplomatic and consular representatives, international bodies, special missions, commissions or bilateral bodies created under treaties to which Argentina is a signatory and diplomatic personnel licensed in Argentina, provided that the exchange transaction between foreign currency and notes or vice versa corresponds to a transaction conducted in the exercise of their respective functions in the country.
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Communication "A" 3893. CAMEX - 1 - 436. (03.13.03) Starting on 03.13.03, the Central Bank authorized local financial institutions to access the exchange market to settle debts due and payable on such date under exchange rate future contracts, provided that the creditor is a foreign financial institution other than its head office or any branches thereof. Communication "A" 3894. CAMEX - 1 - 437. (03.13.03) The maximum threshold to purchase foreign currency for certain purposes not subject to approval of the Central Bank was increased from US$ 150,000 to US$ 200,000 per calendar month considering all institutions authorized to operate with exchange transactions. Communication "A" 3895. CAMEX - 1 - 438. (03.13.03) Effective as of 03.13.03, the maximum monthly amount of debt’s principal payments abroad for due and payable financial debts held by non-financial private sector holders was increased, excluded from the prior agreement requirement by the Central Bank. In such respect, it was provided for that companies could settle debt’s principal payments of non-refinanced due and payable financial debts through monthly payments amounting to US$ 1 million, or else make a lump sum payment, provided that the debt on account of debt’s principal payments due on or before 12.31.01 was not above the equivalent to US$ 3 million. Communication "A" 3896. CAMEX - 1 - 439. (03.13.03) Starting on 03.13.03 up to and including 04.15.03, the Central Bank authorized the payment in advance, without restrictions, of foreign debts on account of imports of goods, regardless of the maturity date agreed upon. Communication "A" 3898. OPASI - 2 - 337. (03.14.03) The Central Bank amended provisions relating to Exchange II of Financial System Deposits, Resolution 146/03 of the Ministry of Economy, extending until 07.24.03 the term to exchange CEDROS and BODEN for Fixed Term Drafts with option for conversion into foreign currency and CEDROS for US$ BODEN 2013 with sales option, as well as adding this latter option to the BODEN. Communication "A" 3901. REMON - 1 - 774. (03.19.03) The Central Bank released a new version of the rules governing granting of financial assistance from such Institution as provided for in Article 17 of its Charter, which should | 70 |
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apply with regard to transactions implying new disbursements of funds effective as of 03.10.03. Communication "A" 3905. OPRAC - 1 - 551 and REMON - 1 - 775. (03.21.03) Effective as of 03.01.03, the Central Bank amended the rules governing "Minimum Cash" and "Minimum application of resources from sight and term bonds in Pesos." In such respect, minimum cash ratios were modified for the case of fixed term deposits, and they were fixed according to their remaining term: Up to 29 day s Fr om 30 to 59 day s Fr om 60 to 89 day s Fr om 90 to 179 day s Fr om 180 to 365 day s Mor e than 365 day s
12% 9% 8% 6% 4% 0%
CEDROS and deposits with CER (adjustment clause) were included in the item corresponding to fixed term deposits. With regard to Minimum Application of fixed term deposits, CEDROS and deposits with CER where included and they were fixed as follows, according to their remaining term: Up to 89 day s Mor e than 89 day s
12% 0%
Communication "A" 3908. CAMEX - 1 - 440. (03.27.03) Effective as of 03.27.03, amendments were introduced to rules governing the transactions of the Single Free Exchange Market. In such respect, terms for the effective settlement of foreign currency from exports were extended to 30 additional days, and, for the proof of market dispatch of imported goods with advance payment, to 180 days. Due and payable financial debt’s principal payments that could be settled abroad and not refinanced with a single payment were also increased, provided that the debt on 12.31.01 was not above US$ 5 million, or its equivalent amount, computing all due installments and all installments pending maturity on account of capital.
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Communication "A" 3909. CAMEX - 1 - 441. (03.27.03) Effective as of 03.27.03, the maximum threshold for the purchase of foreign currency for certain purposes not subject to the prior agreement by the Central Bank was increased to US$ 300,000 or to the total amount in Pesos entering the Federal Administration of Public Revenues (AFIP) on account of tax on debits and credits from bank current accounts and export duties, per calendar month, for the total number of institutions authorized to make exchange transactions. Communication "A" 3911. LISOL - 1 - 393, OPRAC - 1 - 552 and CONAU - 1 564. (03.28.03) The Central Bank set forth, through Decree 1387/01, the valuation method for Secured Loans granted by the State Government; for public bonds not listed and not subject to the minimum capital requirement for market risk; for promissory notes issued by the Trust Fund for the Provincial Development, Decree 1579/02, Resolution 539/02 of the Ministry of Economy and supplementary rules, and for other loans granted to the nonfinancial public sector that institutions may have on their portfolios or that they may incorporate in the future, providing for that they should be registered at their present value or at their "technical value" (updated amount if applicable) according to the Reference Stabilization Ratio plus interest accrued according to contractual terms and conditions, whichever is less. It also instrumented thresholds for this type of financing as regards Credit Risk Fractioning. Communication "A" 3914. CAMEX - 1 - 442. (03.28.03) Follow-up of income from collection of exports and the recording of exchange transactions in the event of foreign discount of export loans on account of shipment permits authorized for consumption as of 12.06.01 was regulated. Communication "A" 3915. OPRAC - 1 - 553. (04.03.03) The Central Bank amended the applicable threshold in relation to the admitted increase of financing for institutions using financial assistance granted by the Central Bank due to lack of liquidity. Likewise, rules governing "Credit Management" were updated.
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Communication "A" 3916. LISOL - 1 - 394 and CONAU - 1 - 567. (04.03.03) The Central Bank provided for that financial entities execute differences resulting from compliance with court rules originating in suits where the rules in force applicable to financial system deposits were at stake, within the framework of Act Number 25,561, Decree 214/02, and complementary provisions. Likewise, it was allowed that the fixed amount be registered in the account opened to such effect and that it be amortized from April 2003, at a maximum, in 60 equal monthly consecutive installments. This does not constitute a deductible account to the effects of calculation of Computable Equity. Communication "A" 3917. OPRAC - 1 - 554 and REMON - 1 - 776. (04.03.03) Effective as of 04.01.03, Minimum Cash ratios for sight deposits were reduced from 22% to 18%, and a one point reduction was applied to term deposits. Also with the same effective date, rules governing "Minimum application of resources from sight and term bonds in Pesos" were amended, and rates applicable to sight and term deposits were reduced by one point. Communication "A" 3918. LISOL - 1 - 395 and OPRAC - 1 - 555. (04.04.03) The Central Bank amended the rules governing "Classification of Debtors"; "Minimum provisions for non-collectibility risk"; "Guaranties"; "Credit Rating"; "Credit management"; "Ratio applicable to fixed assets and other items" and "Minimum capital requirement for financial entities." One of the main provisions sets forth that, effective as of 03.31.03 until 12.31.03, customers whose level of indebtedness to the financial system was equal to or less than 5 million should receive the treatment provided for the consumer or household portfolio. Notwithstanding the foregoing, the debtor could be rated on levels below the one resulting from applying objective guidelines, provided the institution deemed it reasonable. On the other hand and to the effects of classifying debtors mentioned in the precedent paragraph, the Central Bank set forth a procedure to determine the delay in payment incurred by each customer for the period 12.01.01 - 03.31.03, computing 1 day of delay in payment per every 3 days of delay effectively lapsed. For previous or subsequent periods, 1 day of delay in payment shall be computed per 1 day of delay, and fractions less than one shall not be computed. Communication "A" 3919. OPASI - 2 - 339. (04.04.03) The Central Bank issued rules governing the procedure for the release of rescheduled deposits set forth by Decree 739/03 and by Resolution 236/03 of the Ministry of | 73 |
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Economy, delivering, on 04.01.03, US$ BODEN 2013 for the difference between the adjusted remaining par value of such deposits and the amount resulting from reconverting such value to foreign currency and from applying the reference exchange rate. Communication "A" 3921. CONAU - 1 - 569. (04.08.03) As a consequence of the provisions of Decree 664/03, the Central Bank discontinued the application of the accounting information restatement approach in single currency as of 03.01.03. Communication "A" 3923. CONAU - 1 - 570. (04.11.03) The Central Bank provided for that internal audits of financial institutions should implement proceedings towards verification of the correct accounting method application and adequate valuation of Securities, as well as of the reasonableness of constituted provisions on account of devaluation, according to the respective rules of the Central Bank. Communication "A" 3924. CONAU - 1 - 571. (04.11.03) The Central Bank communicated the accounting statement of differences arising from payment of preliminary injunctions with regard to deposits, determining that amounts be registered as "Intangible Goods - Differences on account of court resolutions - Nondeductible for determination of Computable Equity - Origin Value" and that amortizations of these balances be accounted for as "Intangible Goods - Differences on account of court resolutions - Non-deductible for determination of Computable Equity - (Accrued Amortization)", having its counterpart in "Miscellaneous losses – Amortization of differences on account of court resolutions." Communication "A" 3925. LISOL - 1 - 396, OPRAC - 1 - 556 and REMON - 1 777. (04.15.03) The Central Bank included the provisions released through Communications "A" 3911 and "A" 3917 in rules governing Minimum Capital Requirements, Minimum Cash Requirements and Minimum application of resources from sight and term obligations in Pesos. Communication "A" 3926. OPASI - 2 - 340. (04.15.03) The Central Bank updated the ordered text entitled "Deposit rescheduling regime", released through Communication "A" 3919.
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Communication "A" 3927. CONAU - 1 - 572. (04.15.03) The Central Bank released a new one-time information requirement referring to asset averages exposed to credit risk, asset and liability flows exposed to exchange rate risk and composition of Computable Equity on 02.28.03. Communication "A" 3930. RUNOR - 1 - 621. (04.16.03) In relation to the Information Regime of "Prevention of Money Laundering and other Illegal Activities", the Central Bank stated that application of instructions contained in Communication "A" 3867 and herein would be optional for the issuing of information corresponding to the fourth quarter of 2002 and beyond. If not applied, the instructions of Communication "A" 3073 should apply, taking into account validations included in the Annex hereto. Communication "A" 3933. OPASI - 2 - 341. (04.24.03) According to Resolution 290/03 of the Ministry of Economy, the Central Bank adjusted its rules regulating release of rescheduled deposits and extended terms applicable to Exchange II of deposits in the financial system until 05.23.03. Communication "A" 3935. OPRAC - 1 - 557. (04.25.03) The Central Bank rendered ineffective, effective as of 05.01.03, the possibility to pay the requirement of Minimum application of resources from sight and term obligations in Pesos through the investment in Central Bank bonds in pesos adjusted according to the Reference Stabilization Ratio (CER). In such respect, it was made clear that, as rules governing lending transactions with CER had not been passed, no new credit transactions containing such clause could be carried out, save those expressly authorized. Communication "A" 3940. CAMEX - 1 - 444. (04.30.03) The Central Bank informed the treatment for settlement of the financial debt subject to the Central Bank’s prior agreement requirement, due and payable by financial institutions electing the refinancing mechanism of liabilities with the Central Bank set forth in Chapter II of Decree 739/03. Communication "A" 3941. REMON - 1 - 778. (04.30.03) The Central Bank released the settlement procedure for assistance granted within the framework of Article 17 of the Charter until 03.28.03, set forth in Chapter II. -Treatment of rediscounts- of Decree 739/03. | 75 |
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Communication "A" 3944. CAMEX - 1 - 445. (05.06.03) The Central Bank provided for flexibilization measures in exchange rules, including more freedom in commercial exchange transactions: The term for settlement of collections of exports of goods and services was extended from 30 to 90 business days. The system requiring entities to assign to the Central Bank part of the settlement of foreign currency from collection of exports was eliminated. Advance payment of foreign debts on account of imports of goods was allowed, regardless of the maturity date agreed upon. The prior agreement requirement for settlement of debt’s principal payments of any financial debt was repealed. Maximum thresholds for access to the exchange market for the formation of foreign assets by residents were increased, and the monthly threshold per individual or legal person was increased from US$ 300,000 to US$ 500,000. Likewise, it was admitted that this threshold could also be surpassed to the extent the amount in Pesos paid for purchases on other accounts does not surpass the total in Pesos resulting from summing up payment of export duties plus three times the amount of the banking credit and debit tax paid by the taxpayer to the AFIP within the calendar month preceding the immediate precedent month. Communication "A" 3952. RUNOR - 1 - 630. (05.22.03) The Central Bank published the new ordered text including court resolutions originating in lawsuits brought by the Federal Administration of Public Revenues (AFIP), whereby information is requested or general attachments are ordered or released on funds and securities or other preliminary injunctions, or whereby the transfer of attached funds is ordered. On this particular point, it was communicated that AFIP authorized a new modality for service of process through the System of Court Written Communications (Sistema de Oficios Judiciales - SOJ), which became effective as general and mandatory provision for all institutions as of 06.02.03. Communication "A" 3954. LISOL - 1 - 397 and CONAU - 1 - 584. (05.23.03) The Central Bank set forth that, until 09.30.03, the asset amount on account of differences resulting from compliance with court orders originating in lawsuits where the rules in force applicable to deposits and to other financing-intermediation obligations in the financial system were at stake, originally agreed upon in foreign currency within the framework of Act Number 25,561, Decree 214/02, as amended, was not to be computed for the purposes of determining liquid own resources and compliance with the maximum threshold contemplated in rules governing the "Applicable ratio for fixed assets and other items".
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Likewise, through this Communication, institutions were authorized to afford the treatment provided for in Communication "A" 3916 to any differences arising from compliance with court rules originating in lawsuits where the rules in force governing other financing-intermediation obligations in the financial system were at stake -other than deposits- originally agreed upon in foreign currency within the framework of Act Number 25,561, Decree 214/02, as amended. Communication "A" 3955. OPRAC - 1 - 558 and LISOL - 1 - 398. (05.23.03) A series of changes was introduced governing "Debtors Rating" and "Minimum requirements for non-collectibility risk". In such respect, it was provided for that, as for debts of debtors rated 2) b), 3, 4 or 5, provisions should be made for 100% of interest and similar accessories -including updates on account of application of the Salary Variation Ratio (Coeficiente de Variación Salarial -CVS-) and Reference Stabilization Ratio (Coeficiente de Estabilización de Referencia -CER-) and quoting differences-, accrued from the time of their rating into any of the categories above. Communication "A" 3956. CONAU - 1 - 585. (05.27.03) New provisions were released relating to the Information Regime on Court Resolutions. In such respect, the obligation to determine court resolutions paid whose depositors subsequently gave up and accepted options presented through the Exchange of rescheduled deposits for Bonds, Improvements Offered, Release of rescheduled deposits, or other alternative, was provided for. In addition, the field "Final Judgment" was included in order to inform those court resolutions having such feature. Communication "A" 3959. LISOL - 1 - 399. (05.30.03) The Central Bank released the new Minimum Capital regime, and provided for that, in order to determine the capital requirement, a correction factor -“alpha” ratio- lower than the unit was to be fixed with regard to components set forth, as well as a convergence schedule towards the unit. In relation to the Credit Risk Minimum Capital Requirement, the minimum capital requirement was decreased from 11.5% to 8% on the risk value of financing and nonfixed assets; an 8%-requirement was set forth for investment account holdings, including the position for term purchases of securities transacted in admitted repos and financing to the national non-financial public sector, and the application of risk indexes (Ri) was temporarily suspended according to the loan interest rate.
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On the other hand, the interest rate risk in pesos was increased from 0.018 to 0.10, and an increase was verified on the interest rate risk in US Dollars, from 0.006 to 0.03. The concept of market gap risk between the discount rate and the CER, in a certain amount per unit, to be fixed by the Central Bank, was also included. It would initially be equivalent to 3%. Finally, the US Dollar was included in the calculation of the market risk value as a new foreign currency position. Communication "A" 3962. CONAU - 1 - 587. (06.09.03) The Central Bank issued the new Updated Text of the Information Regime on Minimum Capital Requirement and Payment as well as amendments to the Information Regime on the Relationship for Fixed Assets and Other Items. Communication "A" 3965. OPASI - 2 - 342 and LISOL - 1 - 400. (06.18.03) The Central Bank provided for that, starting on 04.28.03 and for a 180-day term counted as of 05.20.03 -enactment date of Act Number 25,735-, that is, until 11.16.03, rejected checks should not be included in the "Rejected Checks Center" (due to insufficient available funds or due to lack of authorization to overdraw funds, due to lack of registration or due to formal defects), corresponding to regular and deferred checks drawn before 04.28.03 against accounts whose holders (individuals or legal persons) were domiciled at the disaster area as provided for in Act Number 25,735. In addition, it was admitted that, during the term above mentioned, in order to verify compliance with obligations without resorting to new direct or indirect financing or to refinancing for the purposes of the relevant rating, those obligations granted upon damaged parties located within the disaster area under Act Number 25,735 should not be considered, provided they pertained to business sectors other than those comprised in the Agricultural Emergency Act. Communication "A" 3967. REMON - 1 - 779 and OPRAC - 1 - 559. (06.20.03) In relation to rules governing "Minimum cash requirement" and "Minimum application of resources from sight and term obligations in Pesos", the Central Bank reported the new requirement rates for payment, effective as of 07.01.03:
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Reserve requirements percentages – July 2003 Item Sight Deposits FCI Sight Dep. Court Dep. PF + CEDROS Up to 29 days 30 to 59 days 60 to 89 days 90 to 179 days 180 to 365 days 365 days
Current Regime AMR EM Total
New Regime AMR EM Total
Difference Total (pp)
17% 0% 0%
18% 100% 10%
35% 100% 10%
12% 0% 0%
13% 80% 10%
25% 80% 10%
-10 -20 0
11% 11% 11% 0% 0% 0%
11% 8% 7% 5% 3% 0%
22% 19% 18% 5% 3% 0%
9% 7% 5% 0% 0% 0%
9% 7% 5% 5% 3% 0%
18% 14% 10% 5% 3% 0%
-4 -5 -8 0 0 0
Likewise, it rendered ineffective, as of 07.01.03, the provision contained in rules governing "Minimum application of resources from sight and term obligations in Pesos", relating to the decrease -as of August 2002- of the requirement related to the amount of "9% National Government Bonds due 2002" computed for compliance with the minimum application corresponding to the mean of June 2002, for 12 consecutive months. Communication "A" 3969. CAMEX - 1 - 446. (06.26.03) The Central Bank increased the maximum limit for computing the General Exchange Position to 10% of the Computable Equity -RPC- registered at the end of November 2001 at exchange rates in force on such date, with a minimum equivalent to US$ 1.5 million. Likewise, the second cap increases were raised whenever the financial institution operates in exchange transactions with 15 or more branches and foreign currency holdings other than US Dollars and Euros. Communication "A" 3970. RUNOR - 1 - 637. (06.30.03) In relation to court provisions originating in lawsuits brought by the Federal Administration of Public Revenues (AFIP), through which information is requested or attachments or other preliminary injunctions are ordered or released on funds and securities or the transfer of attached funds is ordered, the Central Bank stated that AFIP introduced certain amendments with regard to the procedure set forth for answering written communications through the Clearing House.
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Communication "A" 3971. CAMEX - 1 - 447. (06.30.03) With regard to the follow-up mechanism of the export collection currency negotiation obligation, the Central Bank provided for that, for shipment permits officialized for consumption corresponding to exports of mining goods that had obtained the exchange rate stability under the terms of Section 8 of Act Number 24,196 during the currency of Decree 530/91, excepted from the obligation of currency entry under Decree 417/2003, the entities in charge of such follow-up should grant compliance for the FOB amount of the shipment permit, to the extent the exporting company shows that exported goods pertain to the mining business for which the tax stability was obtained. Communication "A" 3972. CAMEX - 1 - 448. (06.30.03) Regulatory rules were issued for Decree 285/03 on the minimum term of permanence in the local market of currency transferred from abroad -180 calendar days- and noncompliance with these rules was subject to the exchange criminal regime, and the minimum term of financial indebtedness incurred by private financial and non-financial sector holders was extended to such term. Communication "A" 3973. CAMEX - 1 - 449. (06.30.03) The Central Bank regulated the payment of debt capital fees of the non-financial private sector for financial loans, bond issues and other debt instruments owed to residents abroad. Communication "A" 3974. CONAU - 1 - 590. (07.07.03) As a consequence of the provisions of Act Number 25,738, it was provided for that foreign-capital local financial institutions and branches of foreign financial institutions authorized by the Central Bank made known to the general public the events where their head offices or foreign capital majority group are liable for banking transactions made in Argentina and the scope thereof. In the event such liability is not applicable, such entities should mandatorily set forth that their banking transactions do not have the support of their head offices or foreign capital majority groups, notwithstanding laws and regulations in force applicable to such matter. To such effect, affected institutions shall comply with the provisions made through advertisements placed on each of their premises, in places readily accessible, on their respective Web Sites and in any advertising made through any communication means or delivered at their premises in order to promote their services.
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Communication "A" 3977. CAMEX - 1 - 450. (07.14.03) The Central Bank amended the rules governing the follow up of the obligation to settle foreign currency obtained from collections of exports of goods. Communication "A" 3978. CAMEX - 1 - 451. (07.14.03) The Central Bank reported such amendments to the follow-up mechanism of export collection foreign currency negotiation obligation of exports of goods comprised in section 1 of Decree 2703/2002 -hydrocarbons exports-. Communication "A" 3979. CAMEX - 1 - 452. (07.14.03) The Central Bank admitted that entry and settlement of export collections was to be carried out during a term longer than that set forth by the Secretariat of Industry, Commerce and Mining, for some goods and under certain conditions. Communication "A" 3981. CONAU - 1 - 593. (07.15.03) The Central Bank communicated mean accounting registration values on 10.30.02, which should be applied for the valuation of assets assigned to guarantees corresponding to sections 10 to 18 of Decree 1836/02, or in their Direct Exchange as provided for in section 13 of Decree 905/02. These values, which should be used in the process of acquisition of National Government Bonds 2013, 2006 and 2005 as set forth by Chapters II and III of Decree 1836/02 as amended, were expressed in Pesos and in units of residual value for each type. Communication "A" 3984. CONAU - 1 - 595. (07.24.03) The Central Bank communicated the treatment given to the negative key registered in acquisitions of interests for a cost lower than their Pro Rata Equity Value. In such respect, it was set forth that the negative key was to be imposed on the individual balance of the purchaser, thus regularizing the investment, while in the group consolidated balance sheet or in the individual balance sheet of the combined entity (in the event of merger between purchaser and seller) it should be assigned to Liabilities Provision.
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Communication "A" 3986. LISOL - 1 - 402. (07.25.03) The Central Bank set forth that, starting in January 2004, compliance with rules governing "Minimum capital requirements for financial institutions" should be verified, notwithstanding compliance with the corresponding information regime. Likewise, it set forth two alpha ratios applicable from such date. In this sense, decreasing reduction ratios of credit risk and applicable interest rate requirements were fixed until 2008 for the former, and until 2006, for the latter. Communication "A" 3987. OPRAC - 1 - 560 and LISOL - 1 - 403. (07.25.03) The Central Bank admitted financing transactions in Pesos with application clause of the Reference Stabilization Ratio (CER), to other financial institutions or, to at least one-year term to non-financial sector holders, offering the option to extend the term in order to attenuate service increase in the event of loans granted to individual and legal persons for amounts less than $250,000. Communication "A" 3989. CONAU - 1 - 597. (07.31.03) The Central Bank amended mean accounting registration values on 10.30.03, corresponding to SISCEN 3014, 3026 and 3029, informed through the provisions of Communication "A" 3981. Communication "A" 3993. CONAU - 1 - 599. (08.11.03) The Central Bank informed that those financial institutions which should file rectification rules related to the information requirement for application of sections 28 and 29 of Decree 905/02, requested by the Superintendence of Financial and Exchange Institutions, upon termination of the review process of data provided from time to time, should only send that information referring to paragraph A of Communication "A" 3825, excluding the Report and data corresponding to paragraph B, referring to the External Auditor. Communication "A" 3998. CAMEX - 1 - 455. (08.15.03) Effective as of 15.08.03 and until 03.31.04, the Central Bank authorized the sale of foreign currency to non-financial private sector persons, for portfolio investments abroad, conditioned upon its further application to repurchase and/or settlement of debt services abroad on 03.31.03 restructured herefrom, on account of bonds, syndicated financial loans and financial loans with foreign banks, and to the extent certain conditions were met.
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Communication "A" 3999. CAMEX - 1 - 456. (08.15.03) Effective as of 08.15.03, the Central Bank authorized access to the exchange market of non-residents for the purchase of foreign currency to be transferred to accounts held in banks abroad, on account of repatriation of portfolio investments held in the country, on account of funds collected in Argentina, of national public bonds’ principal installments denominated in foreign currency. Communication "A" 4003. OPRAC - 1 - 561. (08.22.03) The definition of base rate was modified to determine the maximum applicable rate to financing related to credit cards, and it was fixed to be the mean interest rate weighed per amount applied during the month immediately before in personal loans without tangible collateral. Communication "A" 4006. RUNOR - 1 - 645. (08.26.03) The Central Bank amended the payment facilities regime for debtors of penalties imposed under summary proceedings (Section 41 of Financial Institutions Act). Communication "A" 4009. RUNOR - 1 - 646. (09.05.03) The maximum threshold was set on 10% of the Risk Fund of Mutual Guarantee Companies, which could be deposited on fixed-term deposits in a financial institution. Communication "A" 4010. OPASI - 2 - 343 and RUNOR - 1 - 647. (09.05.03) The Central Bank updated rules governing "Rules for bank checking account" and "Financial Secret", based on stock exchange negotiation of deferred checks (Decree 386 dated 07.10.03). Communication "A" 4011. OPRAC - 1 - 562. (09.11.03) Destinations for application of the loan capacity of foreign currency deposits were increased through the inclusion of debt instruments or financial trust share certificates whose underlying asset consisted of loans originated by financial institutions for export prefinancing and financing. Communication "A" 4015. OPRAC - 1 - 563. (09.19.03) The Central Bank increased destinations for application of the loan capacity from deposits constituted in foreign currency through the inclusion of financing to producers or processors of listed fungible goods, provided they have valid sales agreements on the | 83 |
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goods to be produced for an exporter, and to producers of goods intended for export, whether under the same status or as part of other goods, by third-party purchasers. Communication "A" 4016. REMON - 1 - 780. (09.19.03) The Central Bank introduced amendments to rules governing "Minimum Cash Requirements", including special current accounts as an admitted item held with the Central Bank related to payment of pension benefits in charge of the National Administration of Social Welfare. Communication "A" 4017. CONAU - 1 - 606. (09.22.03) The Central Bank introduced amendments to minimum rules governing external audits, directly related to the liability of professional associations, their partners and their associates in developing their relevant tasks. Communication "A" 4018. CONAU - 1 - 607. (09.22.03) The Central Bank updated the ordered text of minimum rules governing external audits, directly related to the liability of professional associations in developing their relevant tasks. Communication "A" 4020. LISOL - 1 - 404. (09.24.03) The Central Bank extended until 04.30.04 the exclusion of the calculation of the asset amount of differences resulting from compliance with court orders originating in lawsuits where the rules in force applicable to deposits and to other financial intermediary obligations in the financial system were at stake, originally agreed upon in foreign currency within the framework of Act Number 25,561, Decree 214/02 and supplementary provisions, of compliance with the maximum threshold provided for in rules governing the "Ratio for fixed assets and other items". Communication "A" 4022. OPASI - 2 - 344. (09.30.03) Rules governing "Rules for bank current accounts" related to data on transfers to be provided by financial institutions to the customers, were adapted through the relevant current account, savings account and special current accounts statements of account for legal persons. Communication "A" 4023. CAMEX - 1 - 458. (10.02.03) The Central Bank communicated the procedures to be applied to restore to the Central Bank foreign currency and fees collected for the sale of notes to customers, carried out | 84 |
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without complying with conditions set forth for purchase and sale transactions of foreign currency in the place, name and stead of the Central Bank. Communication "A" 4026. CAMEX - 1 - 460. (10.06.03) As of 10.06.03, the prior agreement requirement from the Central Bank for exchange and arbitration transactions carried out by institutions authorized to operate in exchange transactions with foreign banks wholly or majoritarily owned by foreign countries. Communication "A" 4027. CONAU - 1 - 610. (10.06.03) The Central Bank issued an information requirement related to the Business and Projection Plan of financial institutions. The Business Plan shall contain at least the following: Strategy and main business/product lines. Risk management and internal controls. Assistance to shareholders. In relation to Projections, the point of departure was on 09.30.03, and it comprised 12 monthly terms following such commencement. Information should not only be filed with the head office and with any branches in the country, but also at the consolidated level with affiliates abroad and other entities in the country and abroad. Communication "A" 4032. REMON - 1 - 781, OPRAC - 1 - 564, OPASI - 2 - 345 and LISOL - 1 - 405. (10.10.03) Effective as of 11.01.03, minimum cash requirements for certain items were amended. Thus, the rate to constitute minimum cash on current account and savings account deposits was increased 10 points (from 13 to 23%). The rate to constitute minimum cash on fixed term deposits and debt securities of up to 89 days was also increased 50%. On the other hand, as of 11.01.03, rules governing "Minimum application of resources from sight and term obligations in Pesos" were repealed. Finally, the possibility to constitute fixed term deposits for terms shorter than 30 days was eliminated.
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Communication "A" 4040. OPASI - 2 - 346. (10.30.03) The Central Bank amended the value of the correction index to be used for the purposes of determining the additional contribution to the Deposit Reserve Fund, effective as of the contribution corresponding to September 2003 until the contribution corresponding to March 2004. In such respect, it was provided for that eventual differences arising with regard to contributions already made would be set off in the following monthly settlement of the contribution and in subsequent settlements until their total payment. This latter criterion should be applied where readjustments render a positive balance for institutions. Communication "A" 4043. RUNOR - 1 - 657. (11.10.03) A mechanism was provided for determining the reimbursement on account of conversion and adjustment of non-converted balances in checking accounts denominated in foreign currency, held with the Central Bank, and in "Liquidity requirements" accounts held with Deutsche Bank N.Y. Likewise, it was set forth that the positive amount obtained from applying such mechanism would originate a debt in Pesos against the Central Bank, equivalent to the difference between the closing quote of the US Dollar in the free exchange market on 02.01.02 and the exchange rate applied for the pesification ($2.05 and $1.40 per each US Dollar, respectively) calculated on such amount. When a negative amount is determined, the mechanism would operate conversely and the institution should reimburse the Central Bank the relevant amounts plus interest. Communication "A" 4044. CONAU - 1 - 617. (11.12.03) In order to reinforce the independence of Auditing Committees, General Provisions governing the foregoing rules were amended, and it was provided for that the creation of such Committees should include, at a minimum, one director not performing any executive functions in the financial institution. In the event of branches of foreign institutions, the Head Office should appoint a first level officer as member of the Committee, someone not performing any executive functions. One of the first tier directors or officers, member of the said Committee, could stay as member of such Committee for an unlimited term. Communication "A" 4049. CAMEX - 1 - 464. (11.25.03) The Central Bank set forth a reordering of rules applicable to conciliations and settlements of future transactions and foreign currency forwards, and other derivatives abroad carried out by the private sector, and it provided for that it would not be necessary to comply with the Central Bank’s prior agreement requirement for a series of transactions itemized in this Communication.
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Communication "A" 4050. CONAU - 1 - 619. (11.26.03) The Central Bank amended the release of STD (Standard) category in the Financial System Debtors’ Database, by means of opening by qualified debtors in status 1 and 2, grouping status 2a and 2b in this second category. Communication "A" 4051. REMON - 1 - 782. (11.27.03) Effective as of 12.01.03, the Central Bank decreased Minimum Cash Requirements for sight deposits in three percentual points, from 23% to 20%. Communication "A" 4053. REMON - 1 - 783. (12.01.03) Rates were reduced to determine charges on account of defects in the compliance with Minimum Cash Requirements and Minimum Liquidity Requirements, in daily and monthly positions registered by the institutions in the period July 2001-January 2003. Communication "A" 4055. OPRAC - 1 - 565 and LISOL - 1 - 406. (12.02.03) The Central Bank issued a series of amendments to rules governing "Guarantees", "Minimum provisions of non-collectibility risk" and "Credit rating": The Central Bank allowed considering commercial papers (deferred checks, promissory notes, drafts and credit invoices) issued by companies with debts above $2 million and rated in category 1 by at least two financial institutions as preferred "A" guarantees. New financing amounts that the banks could grant to companies with low ratings were increased. The possibility for institutions to receive shares or interests of stock in companies in payment for credits was extended until 12.31.04, up to 20% of the corporate stock, without surpassing 20% of votes, with regard to companies not rendering services supplementary to the financial business. The term for considering mortgages as preferred guarantees was extended to 18 months. Communication "A" 4058. CONAU - 1 - 621. (12.12.03) The information requirement relating to the conversion to Pesos of current account balances denominated in foreign currency held with the Central Bank and of "Liquidity Requirements" accounts held with the Deutsche Bank N.Y was released.
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Communication "A" 4060. LISOL - 1 - 407. (12.22.03) The Central Bank amended the rules governing "Credit rating", "Classification of debtors" and "Minimum provisions for non-collectibility risk": Institutions were allowed to grant credit assistance implying new fund disbursements until 06.30.05 (provided that total disbursements do not surpass the 15% cap of the institution’s Computable Equity -RPC-) above the 300% threshold for the customer’s RPC. In turn, the assistance granted to each customer could not surpass 2.5% of the institution’s RPC. It was admitted that debtors who, during the period 06.30.02/12.31.04, had entered into payment agreements under validated judicial or extrajudicial agreements or under private agreements entered into jointly with creditor institutions, or under private agreements, could be reclassified into a normal status. Changes were introduced regarding guidelines to reclassify debtors in status 3, 4 and 5 to superior levels, by decreasing settlement percentages for refinanced obligations. Communication "A" 4061. CREFI - 2 - 39. (12.23.03) The Central Bank amended rules governing "Ability and experience to be complied with by promoters, founders, directors, counselors and managers of financial institutions". In such respect, the minimum number of promoters, founders, directors and counselors of financial institutions that must furnish evidence of ability and experience in relation to the financial activity was decreased. Communication "A" 4063. OPASI - 2 - 348 and RUNOR - 1 - 662. (12.31.03) Rules governing "Rules for bank current account" and "Financial institutions checking accounts at the Central Bank" were amended in order to apply fines for rejected checks as of 08.01.04, according to Act Number 25,730 and Decree 1085/03. In such sense, the Central Bank provided for that penalties -fine and disqualificationreferred to in Act Number 25,730, would be applicable -as provided for in Section 6 of Decree 1085/03- with regard to rejected checks comprised therein and registered as of 01.08.04, included.
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