COVID - 19 - Operation of Financial Entities

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OPERATION OF FINANCIAL ENTITIES

On April 1, 2020, the Central Bank issued Communiqué “A” 6949, amending and supplementing certain measures set forth by Communiqué “A” 6942 (and supplementary regulations), which regulated certain aspects regarding the operation of financial entities during the health emergency.


            Customer service and general operation

The Communiqué extended until April 12 the following measures:

(i) Branches of financial and exchange entities shall remain closed for customer service. Notwithstanding, they must continue to provide the services that they usually provide remotely and adopt the necessary measures, including human resources, to guarantee the sufficient provision of funds at ATMs. The Central Bank will guarantee the provision of cash.

This provision shall not apply as from April 3, for customer service by the financial entities when the customers are beneficiaries of social security compensations and pensions under the Argentine Integrated Social Security System (SIPA in its Spanish Acronym) or under administrative entities belonging to provinces or the City of Buenos Aires, or beneficiaries of social security benefits, plans or help programs paid by the National Social Security Administration (ANSES, in its Spanish acronym) or another payment administration entity.

(ii) It shall be possible to continue operating in the exchange market remotely. The Central Bank shall guarantee the operation through the SIOPEL of the wholesale exchange operations and of bids for Liquidity Bills.

(iii) Electronic Clearing Houses, Electronic Payment System, ATM and electronic funds transfer networks, credit and debit card administrators, acquirers and processors of electronic payment methods, service payment providers, as well as its related providers, and all other market infrastructure necessary for the normal rendering of the services of financial entities and payment systems shall remain operational.

(iv) Remote operation of the stock exchanges and capital markets authorized by the National Securities Commission (CNV, in its Spanish acronym), the Caja de Valores (Securities Clearing House) and the capital market agents registered with the CNV shall continue.

 

            Expiration of Credit Assistance

Outstanding balances corresponding to the expiration of credit assistance granted by financial entities operating as from April 1 until June 30, 2020 shall only accrue compensatory interest according to the rate set forth in the contract.

For outstanding balances of financings granted by financial entities (excluding credit cards), the entity shall include such installment in the following month at the end of the credit life, taking into account the accrual of the compensatory interest rate.

For financings of financial entities under the credit card regime, the expiration of account statements that occur between April 1 and 12, 2020 may be cancelled by the clients on April 13 for the same amount of the statement and without any surcharge.

Credit assistance granted to the financial sector is exempted from this provision.

 

            Deposits and cash reception systems

Financial entities shall take the necessary measures to provide deposit boxes and a cash reception system for higher amounts in all their branches.

 

            Financial agents of government entities

Financial entities that are financial agents of provincial, municipal or the City of Buenos Aires governments shall devise the means to provide, as from this date, the cash that the aforementioned government entities require to extract from the pertinent accounts.

 

            Financings related to credit cards

As from this date, the compensatory interest arising from financings granted under the credit card regime by the financial entities shall not exceed the annual nominal rate of 49%.