Amendment of Provisions on Interest Rates and Adjustments (REMON 1-367, OPRAC 1-182)

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION "A" 1100
16/10/87

TO THE FINANCIAL INSTITUTIONS:

Ref.: Circulars MONETARY REGULATIONS -
REMON - 1 - 367 and ACTIVE OPERATIONS -
OPRAC - 1 - 182. Amendment of the provi- sions on interest rates and adjustments

We address you to inform you that this Institution adopted the following resolu-tion:

"1 - Active and passive operations that provide for adjustment clauses based on the non-regulated passive interest rate index published by the Central Bank shall accrue adjustments in accordance with the variation of the financial index (Circular OPRAC - 1 - Chapter II - Point 3).

2 - Credit operations allocated to loan lines of the Central Bank, excluding those under the mortgage debt recalculation regime (Law 23.370) and those that generate adjustments linked to price indices, shall accrue -at most- as applicable, adjustments based on the financial index (Circular OPRAC - 1 - Chapter II - Point 3) or interest at the rate of said indicator, both increased by the following effective monthly percentage points:

2.1. Consolidated Loan, General Clientele sublimit: 2.5.

2.2. Remaining Operations: 1.5

3 - The other credit facilities subject to the maximum interest rate requirement, excluding those that generate adjustments linked to price indices, shall accrue interest at the rate freely agreed upon by the financial institutions with their clients.

4 - Loans granted by the Central Bank to financial institutions -excluding those linked to the variation of price indices or the US dollar exchange rate and for the refinancing of mortgage debts (Communication "A" 995)- shall accrue, as applicable, adjustments or interest at the rate of said indicator, both plus the following effective monthly percentage points:

4.1. Consolidated Loan, General Clientele sublimit

• Banks and Savings Banks: 2.2.

• Non-banking entities: 1.8.

4.2. Other loans of the Central Bank (including those whose cost is set based on the rates established by the use of the Consolidated Loan and the Mortgage Credits for Housing sublimit of the Consolidated Loan)

• Banks and Savings Banks: 1.2.

• Non-banking entities: 0.8.

The measures provided for in points 2, 3 and 4 are effective as of 15.10.87, while the one established in point 1 shall be effective as of today's date."

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Juan Carlos Baez
Manager of
Financing and Studies of the Financial System

Elías Salama
General Manager