Frequent questions

Generalities

What the BICE is?

We are a second floor public bank, with only one shareholder: the Argentine Republic. Our goal is to finance the productive investment, the infrastructure and foreign trade of Argentine companies. Since 1992 we have granted the private sector over $6,453 million.

What a second-floor bank is?

According to the regulations of the Central Bank of the Argentine Republic, second-floor banks “may carry out all the active, passive and service transactions set by the laws and regulations for first-floor banks, but they may only receive deposits from the financial sector of the country and from foreign banks. They will also be subject to the division of credit risk especifically provided for in such regulations”. Likewise, as a public bank oriented to medium and long-term financing destined to the productive investment and to foreign trade, the BICE is also authorized to receive deposits from international credit institutions and investors who make time deposits and investments for amounts of over $ 2,000,000 or $ 1,000,000 (or their equivalent in other currencies) individually considered for each operation and for a term of over 180 days or 365 days, respectively.

How the BICE distributes its products?

The credit lines available are directly placed on companies, through the retail banking.

The BICE’s rating

The bank has a national rating of: short-term deb A1+(arg) – long-term debt AAA(arg), according to FitchRatings. This rating is based on the quality of our assets, our excellent capital basis and the low level of indebtedness.

How the BICE is financed?

We finance ourselves with our own assets, with placements on the capital market, through credit lines of multilaterial credit and development banks and organs and attracting term deposits and investments allowed by the Central Bank of the Argentine Republic for second-floor banks. We do not receive any contribution from the national budget.

Sectors the BICE may finance?

Our bank’s articles of association define it is authorized to finance goods and services companies and the public sector. So as to meet the demand for credit from such areas, we have created credit lines for investment and foreign trade and we finance those infrastructure works that allow an improvement to the Argentine companies productivity.

How to file a claim?

Should you need to file a claim, you will be able to do so personally, at this phone number 0800-444-2423, by e-mail at consultasyreclamos@bice.com.ar or via mail to 25 de Mayo 526 (C1002ABL), City of Buenos Aires.

BICE’s service hours?

Our service hours: Monday thru Friday 9:30 am to 6:00 pm.

About funding lines requested through Financial Institutions and Leasing Companies

Where to process the BICE’s funding lines?

They are directly processed at the bank’s branches and leasing companies. Applications are analyzed, approved and implemented by them.

Who sets the conditions of the lines?

The BICE sets the financial conditions and the characteristics of the different lines (objectives, terms, possible repayment schemes, etc.) and agrees with Financial Institutions and Leasing Companies on the channeling mechanisms and signature of contracts/agreements.

Are the Financial Institutions and Leasing Companies obliged to provide funding services?

The Financial Institutions are not forced to grant funding; they may accept or reject operations according to their internal risk criteria. When an institution rejects an application, the client may apply at another institution.

Who takes these operations risk on?

The operation risk is taken on by the Financial Institution.

Who defines the guarantees to be asked for in each operation?

Each Financial Institution defines the guarantees to be asked for in each operation, since it takes on the risk of the Financing granted to its clients.

About Trust

What a trust is?

The Argentine law defines there is a trust “when an individual or legal person (trustor) transfers trust ownership of one or more assets to another person (trustee), who commits to run it for the benefit of the person appointed in the corresponding agreeement (beneficiary), and to transfer it, once the term is due or a condition fulfilled, to the trustor or to the beneficiary or trust beneficiary”.

This recycled institution dating back to the Roman Law establishes that a person called “trustor” transfer ownership of some goods to another -trustee- to be administered for the benefit of a third party called “beneficiary” and after the term is due or a condition is fulfilled it must be transferred to a fourth person, called trust beneficiary. The latter is the one to whom the goods are delivered once the term is due or the condition of its origin fulfilled. The trust beneficiary may be both the trustor or the beneficiary.

The trustor is the person who transfers the goods or the right that will constitute the trust. Likewise, this party individualizes the trust goods: sets the objective of the trust, revokes it and appoints the trustee, the beneficiary and the trust beneficiary.

On the other hand, the trustee receives the goods or rights transferred by the trustor and commits to running the trust, fulfilling the aim it was created for. Among this party´s rights we may mention the reimbursement of expenses and a remuneration, to dispose of and have the trust goods levied and to carry out all actions for the sake of defending these goods.

For investors, the trust agreement means a safe alternative for their placements as it lets them separate goods of a specific estate and allocate them to a particular objective. This way the trust assets are not mixed up with those of the administrator, and they may move according to the instructions of the creator. This business model –which globally moves around 5 quintillion of dollars (5 trillones in Spanish)- specifies that the transfer of assets ownership made by the trustor to the trustee is full because the trustee becomes the owner of such assets. They remain separate from the trustee’s estate and allocated to fulfilling the aim of the business.

Type of trusts

  • Financial
    The financial trust is the agreement in which the trustee a financial institution or a company specially authorized byt he National Securities Commission to act as financial trustee. The beneficiaries are the holders of the certificates of trust estate interests or bonds guaranteed by the trust assets. The main function of the financial trust is to act as a vehicle in the “securitization” of credit portfolios transferred by the trustor to the financial trustee (financial institution or authorized company), as trust estate. This way, the holder of credit assets may use them as a support for bond issuance that allows to obtain fresh funds, thus changing iliquid fixed assets into negotiable financial instruments.

  • Guarantee
    In a guarantee trust a person (trustor) transfer the trust property to another one (trustee) to guarantee a debt the former has with the latter or with a third party. Should the trustor fail to comply, the trustee sells the good and gets the repayment for his/her credit or that of the third party and gives the debtor the remant of the price.

    • It is not necessary to file a case for its collection.

    • The guarantee trust allows the direct sale of the assets.

    • The price obtained will always be higher than that of a judicial sale started by enforcement proceeding.

    • It allows wide satisfaction of the amounts owed to the creditor and it does not damage the debtor so much as it lets the latter get a favorable balance at the sale.

    • In a guarantee trust, the assets cannot be seized by third parties while pledged or mortgaged assets may.

  • Administration Trust
    This is a trust created for a third party called trustee to control and sell some assets in order to distribute the benefits as specified. It is generally created to carry out activities focused on providing a service specified in the trust agreement itself, such as property, machinery and equipment lease, etc.

Advantages of a Trust?

  • Isolates the assets transferred into an independent estate. Therefore:

    • The trustee’s bankruptcy (administrator) does not affect the trust.

    • The trustor’s bankruptcy (that who hands in the trust asset) does not affect the trust and eliminates the ancillary jurisdiction (“fuero de atracción”).

  • It improves the cost of borrowing, and in many cases it gives access to credits.

  • Provides the handling of funds with transparency.

  • Avoids, in some cases, the creation of a society with a specific objective.

Our communication channels

Telephone Service

Mondays to Fridays 9 am to 6 pm
0800.444.2423

Online Application

SME First Loan
www.primercreditopyme.com.ar

REQUEST

Central Office

25 de mayo 526 (C1002ABL),
Bs. As., Argentina

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