Circular Foreign Exchange Operations and Movements of Funds and Securities with the Abroad - CAMEX 1 - 113

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 764 03/09/85
TO AUTHORIZED ENTITIES OPERATING IN FOREIGN EXCHANGE:
Ref.: Circular FOREIGN EXCHANGE OPERATIONS AND MOVEMENTS OF FUNDS AND SECURITIES WITH THE ABROAD - CAMEX-1- 113.
We address you regarding Communications "A" 652 and "A" 663 of May 17, 1985, and May 31, 1985, respectively, through which the measures adopted by this Institution regarding foreign currency deposits and the operational and informational mechanisms applicable were made known.
In this regard, we bring to your knowledge and through you to all interested parties that it has been resolved to modify, where pertinent, the rule established by Communication "A" 652, regarding the return of said deposits.

1. Starting from September 10, 1985, for each account or certificate of deposit in foreign currency, entities may reintegrate to depositors, as a total or partial return of the original capital, a sum that will not exceed US dollars 8,500 or its equivalent in other currencies. Additionally, the total interest accrued up to the payment date for the portion of capital returned will be paid, calculated according to the terms of Communication "A" 663 of May 31, 1985 (point 1.). This return, added to the USD 1,500 agreed upon by Communication "A" 724 of July 19, 1985, constitutes the maximum refund of USD 10,000 plus its interest, for demand accounts or time deposit certificates.

2. Time deposits that maintain balances reached by Communication "A" 652, once the refund established in point 1. has been made, will be returned during the month of October 1985, on the same day or the next business day following their original maturity.

3. The capital and interest of time deposits whose original maturities operate from September 16, 1985, onwards, and which consequently were not reached by Communication "A" 652, will remain at the disposal of their holders from the day of their maturity. The same treatment will apply to the balances of deposits existing on demand on May 17, 1985.

4. It will be a condition for depositors to be able to access the established refund that it be received without conditions or reservations of rights of any kind, as well as, in the case that the refund is total, with express waiver of any judicial or extrajudicial claim.

5. To attend to the refunds, entities will resort, first, to the realization of holdings of External Bonds acquired with foreign currency deposits, second, to the use of net liquid assets transferred in due course to the account of the Central Bank, at the Banco de la Nación Argentina, New York Branch, as provided by Communication "C" 2108 of May 27, 1985, third, to the realization of own External Bonds regardless of their financing source, fourth, to the use of dollar rediscount, and fifth and last instance, to acquire the necessary foreign exchange in the single exchange market.

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For up to the amounts acquired in the market, entities will maintain in their favor the foreign currency assets of longest term corresponding to the use of the lendable capacity of foreign currency deposits, whose amounts at the moment of their realization or collection, must be resold in the single exchange market.
Portfolio recoveries must not be applied directly to the refund of deposits, but must continue to be transferred to the "Communication "A" 652" account at the Banco de la Nación Argentina, New York Branch, as established by point 4. of the Annex to said Communication. Entities that have not proceeded accordingly at the time of the refund established by Communication "A" 724, must inform such circumstance by note to this Central Bank within 10 (ten) business days of the present, detailing situations and dates in which the recoveries were applied directly.

6. In the case of having to attend refunds through the use of dollar rediscounts due to funds from the first three instances mentioned in point 5. being insufficient, entities must grant guarantee of their active portfolio financed with foreign currency deposits, with adjustment to the following conditions:
   a) The maximum amount will be equivalent to 90% of the deposits captured by the regime of Communication "A" 725, computed at the close of operations of the business day prior to that of the rediscount request. b) It will be requested by note signed by the President, the General Manager, or those who replace them with sufficient power to bind the entity. c) The rediscounts will have a term of 120 (one hundred twenty) days. d) A interest rate directly related to the following instances will be applied to such operations:
   d.1. With guarantee of public titles.
   Same reference rate as that corresponding to each class of value offered as guarantee.
   Claims reached by Communications "A" 695, "A" 696 and "A" 697 will be considered for these purposes as refinanced, and future public documents may be offered as guarantee, according to the issuance conditions stated in said communications. Maximum limit: 90% of deposits captured with adjustment to Communication "A" 725. d.2. Other guarantees.
   For the difference existing between 40% of the deposits captured by Communication "A" 725, and the total requested by the preceding point, the LIBOR interest rate will be applied, for the term of 120 days, plus a surcharge of 2 points p.a.

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B.C.R.A. COMMUNICATION “A” 764 03/09/85
For the amount that exceeds said 40% and up to 90% of the deposits at that same moment, the LIBOR interest rate will be applied, for the term 120 (one hundred twenty) days, plus a surcharge of 3.5 points p.a. e) A form 2894 must be presented for each final interest rate, in which the detail of the claims and values given as guarantee and the calculation of the tranches corresponding to each rate, according to the percentages indicated in point d). Additionally, for the only time, they will send together with the request for funds, the guarantee letter whose text appears as Annex II of Communication "A" 725 of July 25, 1985, in original and two copies. f) The requests must be presented in the Foreign Exchange Operations Department, Office 304, 3rd floor, Central Building, until 14 hours, and will be resolved through credit to the "Deposits in US Dollars - Communication "A" 652" account. In order to allow a fluid return of the loans, these requests may be presented starting from September 4, 1985. g) The Central Bank of the Argentine Republic may request the additional information that proves necessary for the consideration of the fund requests that are formulated with adjustment to the present regime.

7. To facilitate the use of the liquidities deposited in the Central Bank, entities will access the exchange market to the extent of their needs and up to the amount resulting from adding to the net balance of said liquidities the interest earned by the amounts already withdrawn and those corresponding to the withdrawal referred to by these provisions. For this latter effect, the business day following the purchase in the exchange market will be considered the withdrawal date.
   As a counterpart, they will sell to the Central Bank, charged to said deposit and its interest, without making movements of funds abroad, the resulting amount whose countervalue in australs, at the selling exchange rate communicated at the opening of the market, will be credited to them in the form of practice.
   The operations will be formalized through the Exchange Switch by presenting form 2600 in which, in addition to the usual data and signature at management level, they will consign separately: a) the amount corresponding to imposed capitals and b) the interest earned. Additionally, on the back of said form, it will be detailed in the way that the interest was calculated, with mention of the dates of constitution of the deposits and their applications, number of days computed, interest rates applied, and amount of interest corresponding to each partial.

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8. In the case of partial refunds with respect to the balance of the capital originally deposited, by application of this Communication and of Communication "A" 724 of July 19, 1985, a record of the sums returned directly in the certificate of deposit will be left. The final balance after the partial or total return of the USD 10,000, may be transferred to the regime regulated by Communication "A" 725 of July 25, 1985, in order to integrate new deposits under the general conditions established by point 3. of said Communication.
Just as for the cash return, entities must adjust to what is indicated in points 5., 6. and 7. of this Communication to obtain the funds to be transferred to the "Communication "A" 725" account at the Banco de la Nación Argentina, New York Branch.
When the deposit to be transferred is constituted in an entity that is not registered to receive impositions under the terms of Communication "A" 725, the depositor will indicate to this the name of the entity to which they wish to make the transfer. For these purposes, it corresponds that the ceding bank credits the funds in the Banco de la Nación Argentina, New York Branch, for the "Communication "A" 725" account, indicating that it does so on behalf of the Bank that will receive the deposit and order of the depositor. Once this transfer is verified by the Foreign Exchange Operations Department of the Central Bank, it will instruct the ceding entity to issue the corresponding certificate of deposit with adjustment to the terms indicated by the depositor. The transfer of the deposit to the new system must be made by the capital and the corresponding interest, and the amounts that cannot be incorporated into the regime of Communication "A" 725 by virtue of what is established in point 3.2. of the same, must be refunded to the depositors.

9. Exchange sales will be denounced in form 4002-A, integrated in the name of the entity, separately, according to whether it is capital or interest and operations included in points 5., last instance, and 7.
   For the case of point 5., the codes to be used for the integration of the forms will be the following:

• Capital: 640
• Interest: 690
  Regarding point 7., they will be coded:
• Capital: 641
• Interest: 691
  On the back of form 4002-A, in the place reserved for "Other Data", they will consign the number of impositions that are refunded and the average rates applied.

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B.C.R.A. COMMUNICATION “A” 764 03/09/85
10. Starting from September 16, 1985, entities will only be able to capture foreign currency deposits with adjustment to the regulation established by Communication "A" 725 of July 25, 1985.
We salute you very attentively.
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Oraldo N. Fernández Antonio E. Conde
Manager of General Manager
Foreign and Exchange