It is important to note that the BCRA’s decision does not exempt financial institutions from the obligation to comply with the provisions on the fractionation of credit risk provided for in current regulations.
Financial institutions must still comply with the provisions on credit risk fractionation.
Ignacio Petunchi
Through Communication “A” 8064/2024 of the Central Bank (BCRA) The agency announced the decision not to raise objections to financial institutions acquiring Treasury Bills issued by the province of Black river for a total nominal value of up to $11 billion.
This authorization is framed within the “Treasury Bills Program for the year 2024 of the Province of Río Negro“, established by Provincial Law 5,663 and in accordance with the conditions set by the Treasury Department of the Ministry of Economy of the Nation.
It is important to note that the BCRA’s decision does not exempt financial institutions from the obligation to comply with the provisions on the fractionation of credit risk provided for in current regulations.
Thus, financial institutions receive the green light to participate in the financing of the non-financial public sector through the acquisition of Treasury Bills issued by the province of Río Negro.
Key points of the standard
- The authorization applies specifically to Treasury Bills issued by the province of Río Negro.
- The total amount authorized for the acquisition of Treasury Bills is $11,000,000,000.
- The authorization is based on Provincial Law 5,663 and the conditions established by the Treasury Department of the Ministry of Economy of the Nation.
- Financial institutions must still comply with the provisions on credit risk fractionation.
Treasury bills of the province of Buenos Aires
Likewise, in the Communication “A” 8065/2024 communicates that financial institutions may acquire Treasury Bills of the province of Buenos Aires for a total amount of up to USD 300 million or its equivalent in pesos ($89,662,000,000).
This resolution is part of the Provincial Treasury Bill Issuance Program for the year 2024 and is subject to the following conditions:
- Financial institutions will not be able to make comments on the purchase of these Treasury Bills.
- Treasury Bills do not include the transfer of any of the eligible guarantees provided for by the BCRA regulations.
- Acquiring financial institutions must comply with applicable provisions regarding the fractionation of credit risk, minimum capital and financing of the non-financial public sector.
Details of the operation
- Maximum amount: USD 300 million or its equivalent in pesos ($89,662,000,000).
- Legal framework: Provincial Treasury Bill Issuance Program for the 2024 fiscal year, Provincial Laws 13,767 and 15,480, Note NO-2024-70981582-APN-SH#MEC of the Treasury Secretariat of the Ministry of Economy of the Nation.
- Conditions: No comments, absence of eligible guarantees, compliance with provisions on credit risk fractionation, minimum capital and financing of the non-financial public sector.
Source: Ambito
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