Circular A 3883: Deposits with Reference Stabilization Coefficient (CER) Clause

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMUNICACIÓN “A” 3883 21/02/2003
TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1 - 549
REMON 1 - 772
Deposits with clause applying the Reference Stabilization Coefficient (“CER”).

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We address you to inform you that this Institution adopted the following resolution:

“1. Substitute, with effect from 1.3.03, in Sections 1. and 2. of the regulations on “Minimum application of resources from liabilities at sight and fixed-term in pesos” the following points:
“1.3.14. Fixed-term deposits with “CER” clause. 12” “2.1.2. Letters of the Central Bank of the Republic Argentina in pesos adjustable by the Reference Stabilization Coefficient (“CER”), acquired in auctions or through secondary negotiation.”

2. Replace, with effect from 1.3.03, the first paragraph of point 4.1. of Section 4. of the regulations on “Minimum application of resources from liabilities at sight and fixed-term in pesos” with the following:
   “4.1. From August 2002, it will be permitted to deduct from the requirement determined by the concepts included in point 1.3. of Section 1., the amount of the “National Government Bonds 9% - maturity 2002” computed for the fulfillment of the corresponding minimum application based on the average of June 2002, without exceeding the resulting requirement.”

3. Substitute in Section 1. of the regulations on “Minimum cash” the following point:
   “1.3.18. Fixed-term deposits with “CER” clause. 14”

We send you attached the sheets that, in replacement of those previously provided, should be incorporated into the consolidated texts of the regulations on “Minimum application of resources from liabilities at sight and fixed-term in pesos” and “Minimum cash”.

We salute you very respectfully.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Ana María Lemmi Alejandro G. Henke
Submanager of Emission Submanager General of of Norms Economic Studies

ANEXO

MINIMUM APPLICATION OF RESOURCES FROM LIABILITIES AT B.C.R.A. SIGHT AND FIXED-TERM IN PESOS
Section 1. Scope.
Version: 5a. Communication “A” 3883 Validity:
01/03/2003

1.3.4. Other deposits and liabilities at sight, pension benefits credited by ANSES pending confirmation, and immobilized balances corresponding to liabilities included in these regulations. 18
1.3.5. Unused balances of current account advances formalized. 18
1.3.6. Sight placements - regardless of the form of imposition - which, as a minimum, must constitute the credit of common investment funds (in accordance with what is provided in the regulations of the National Securities Commission). 0
1.3.7. Deposits in current accounts of non-banking financial entities, computable for the integration of their minimum cash. 0
1.3.8. Fixed-term deposits, liabilities for “acceptances” - including responsibilities for sale or assignment of credits to subjects other than financial entities - passive swaps, sureties, and passive stock market swaps, investments at constant term, with option for early cancellation or renewal for a fixed term and with variable remuneration, and other fixed-term liabilities, with the exception of reprogrammed deposits. 12
1.3.9. Liabilities for foreign financial lines, regardless of their instrumentation. 0
1.3.10. Sight and fixed-term deposits made by order of the Judiciary with funds originating in the cases in which it intervenes, and their immobilized balances. 0
1.3.11. Deposits included in the “Deposit Reprogramming Regime” (“CEDROS”). 0
1.3.12. Negotiable liabilities. 0
1.3.13. Liabilities with the Fiduciary Fund for Assistance to Financial and Insurance Entities. 0
1.3.14. Fixed-term deposits with “CER” clause. 12

MINIMUM APPLICATION OF RESOURCES FROM LIABILITIES AT B.C.R.A. SIGHT AND FIXED-TERM IN PESOS
Section 2. Application.
Version: 6a. Communication “A” 3883 Validity:
01/03/2003

2.1. Destinations.
2.1.1. Credits acquired, participation certificates, or debt titles issued by financial trusts, and sums contributed in any other way for any of these destinations in operations formalized or to be formalized from 26.11.98, on the occasion of the restructuring of financial entities within the framework of article 35 bis of the Financial Entities Law, including any eventual unpaid balances of participation certificates or debt titles of those trusts subscribed until 31.1.01.
2.1.2. Letters of the Central Bank of the Republic Argentina in pesos adjustable by the Reference Stabilization Coefficient (“CER”), acquired in auctions or through secondary negotiation.

MINIMUM APPLICATION OF RESOURCES FROM LIABILITIES AT B.C.R.A. SIGHT AND FIXED-TERM IN PESOS
Section 4. Transitional provisions.
Version: 5a. Communication “A” 3883 Validity:
01/03/2003

4.1. From August 2002, it will be permitted to deduct from the requirement determined by the concepts included in point 1.3. of Section 1., the amount of the “National Government Bonds 9% - maturity 2002” computed for the fulfillment of the corresponding minimum application based on the average of June 2002, without exceeding the resulting requirement.
That deduction will be allowed for twelve consecutive months, according to the following schedule:

• in the first six months, 100% of the aforementioned amount may be considered.
• in each of the following five months, it will decrease by 15% of said amount, cumulatively.
• in the last month, the deduction will be equivalent to 25% of the original amount.

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE CONSOLIDATED TEXT OF THE REGULATIONS ON “MINIMUM APPLICATION OF RESOURCES FROM LIABILITIES AT SIGHT AND FIXED-TERM IN PESOS” CONSOLIDATED TEXT ORIGIN REGULATION OBSERVATIONS Sec. Point Para. Com. Annex Sec. Point Para.
1.1. “A” 3598 unique 1. 1.1. According to Com. “A” 3660,
3732 and 3824.
1.2. “A” 3598 unique 1. 1.2.
1.3. “A” 3598 unique 1. 1.3.
1.3.1. “A” 3598 unique 1. 1.3.
1.3.2. “A” 3598 unique 1. 1.3.
1.3.3. “A” 3598 unique 1. 1.3. According to Com. “A” 3824.
1.3.4. “A” 3598 unique 1. 1.3.
1.3.5. “A” 3598 unique 1. 1.3.
1.3.6. “A” 3598 unique 1. 1.3.
1.3.7. “A” 3598 unique 1. 1.3.
1.3.8. “A” 3732 5. According to Com. “A” 3824.
1.3.9. “A” 3598 unique 1. 1.3. According to Com. “A” 3732.
1.3.10. “A” 3598 unique 1. 1.3. According to Com. “A” 3824.
1.3.11. “A” 3824
1.3.12. “A” 3824
1.3.13. “A” 3824
1.
1.3.14. “A” 3660 8. According to Com. “A” 3883.
2.1. “A” 3598 unique 2. 2.1.
2.1.1. “A” 3598 unique 2. 2.1.1.
2.
2.1.2. “A” 3660 According to Com. “A” 3732,
“A” 3824 and “A” 3883.
3. 3.1. “A” 3598 unique 3. 3.1.
4. 4.1. “A” 3674 According to Com. “A” 3698,
3732, “A” 3824 and “A”
3883.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 12a. COMMUNICATION “A“ 3883
Validity:
01/03/2003

1.3.9. Deposits included in the “Deposit Reprogramming Regime”. 0
1.3.10. Liabilities for foreign financial lines, regardless of their instrumentation. 0
1.3.11. Negotiable liabilities. 0
1.3.12. Reprogrammed deposits ceded by other financial entities, maintained under reprogramming conditions, on the occasion of the operation provided for in point 5. of the “Deposit Reprogramming Regime”. 100
1.3.13. Fixed-term deposits in US dollars payable in pesos. (Validity: 25.03.02) 0
1.3.14. Liabilities with the Fiduciary Fund for Assistance to Financial and Insurance Entities. 0
1.3.15. Sight and fixed-term deposits made by order of the Judiciary with funds originating in the cases in which it intervenes, and their immobilized balances. 10
1.3.16. Special accounts in US dollars intended for the deposit of guarantees required in futures and options operations conducted in self-regulated markets subject to the control of the National Securities Commission. 100
1.3.17. Special sight accounts in foreign currency. 100
1.3.18. Fixed-term deposits with “CER” clause. 14
1.4. Specific increases in requirement due to liability concentration.
When excessive concentration of liabilities (in titleholders and/or terms) is verified, which implies a significant risk regarding the individual liquidity of the financial entity and/or has a significant negative effect on systemic liquidity, additional minimum cash holdings on the liabilities of the financial entity and/or complementary measures deemed pertinent may be established. It will be considered that this situation is configured when, among others, any of the following factors are present:

• A high percentage of liabilities is concentrated in the same titleholder or titleholders.
• In term liabilities, the term is short.
• The aforementioned liabilities represent a significant percentage regarding the integration of the minimum cash and/or the total deposits of the private sector in the entity.

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE CONSOLIDATED TEXT OF THE REGULATIONS ON MINIMUM CASH CONSOLIDATED TEXT ORIGIN REGULATION OBSERVATIONS Sec. Point Para. Com. Annex Sec. Point Para.
1.1. “A” 3274 II 1. 1.1.
1.1.1. “A” 3274 II 1. 1.1.1. According to Com. “A” 3498.
1.1.2. “A” 3274 II 1. 1.1.2. According to Com. “A” 3597.
1.1.3. “A” 3274 II 1. 1.1.3. According to Com. “A” 3498
1.2. “A” 3274 II 1. 1.2. According to Com. “A” 3304, “A”
3498 and “A” 3597.
1.3. “A” 3274 II 1. 1.3.
1.3.1. “A” 3274 II 1. 1.3.1. According to Com. “A” 3338, “A”
3417, “A” 3498 and “A” 3597.
1.3.2. “A” 3274 II 1. 1.3.2. According to Com. “A” 3338, “A”
3417, “A” 3498 and “A” 3597.
1.3.3. “A” 3274 II 1. 1.3.3. According to Com. “A” 3338, “A”
3399, “A” 3417, “A” 3498,
“A” 3597 and “A” 3824.
1.3.4. “A” 3274 II 1. 1.3.4. According to Com. “A” 3338, “A”
3417, “A” 3498 and “A” 3597.
1.3.5. “A” 3274 II 1. 1.3.5. According to Com. “A” 3338, “A”
3417, “A” 3498 and “A” 3597.
1.3.6. “A” 3274 II 1. 1.3.6. According to Com. “A” 3365 and
“A” 3498.
1.3.7. “A” 3274 II 1. 1.3.7.
1.3.8. “A” 3498 unique 1. 1.3.8. According to Com. “A” 3506 -
pt. 2.-, 3549, 3732 and
3824.
1.3.9. “A” 3498 unique 1. 1.3.10. According to Com. “A” 3549 and
“A” 3824.
1.3.10. “A” 3498 unique 1. 1.3.11. According to Com. “A” 3597 and
3732.
1.3.11. “A” 3498 unique 1. 1.3.12.
1.3.12. “A” 3498 unique 1. 1.3.13.
1.3.13. “A” 3527 3.
1.3.14. “A” 3549 1.
1.3.15. “A” 3549 1.
1.3.16. “A” 3566 5.
1.3.17. “A” 3583 3.
1.3.18. “A” 3660 9. According to Com. “A” 3883.
1.4. “A” 3274 II 1. 1.5. According to Com. “A” 3498.
1.5. “A” 3274 II 1. 1.6.
1.5.1. “A” 3274 II 1. 1.6.1.
1.5.2. “A” 3274 II 1. 1.6.2. According to Com. “A” 3304.
1.
1.6. “A” 3498 unique 1. 1.8.