BANCO CENTRAL DE LA REPUBLICA ARGENTINA

__________________________________________________________________ COMUNICACION " A " 2648 02/01/98 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 177.
Minimum Liquidity Requirements. Up- date of the consolidated text

We address you to deliver to you the Index sheets and those that correspond to incorporate into Sections 2., 3. and 4. of the consolidated text of the rules on minimum liquidity requirements -in accordance with what is provided in the resolutions disseminated through Communications "A" 2618, 2636 and 2641-, in replacement of those previously provided.

We salute you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Agustín Villar Alfredo A. Besio
Manager of Economic Analysis Manager of Standards for and Information Financial Entities

ANNEX: 16 SHEETS

I B.C.R.A.	TEXTO ORDENADO DE LAS NORMAS SOBRE	Anexo a la	REQUISITOS MINIMOS DE LIQUIDEZ	Com. "A" 2648
-IndiceSección 1. Conceptos comprendidos.
Sección 2. Cómputo.
Sección 3. Integración.
Sección 4. Requisitos mínimos.
Sección 5. Incumplimientos.
Sección 6. Responsables y sanciones.
Sección 7. Registración contable.
Sección 8. Modelo de notificación del contrato de opción de venta.
Sección 9. Modelo de carta de crédito "stand by".
Sección 10. Otras disposiciones.
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I	REQUISITOS MINIMOS DE LIQUIDEZ
I B.C.R.A.	---------------------------------------------------I Sección 2. Cómputo.

In the case of other term operations -including obligations with banks and correspondent banks abroad computable-, the residual terms will be computed according to the number of days remaining until the maturity of the obligation, counted from each of the days of the same computation period to which the minimum liquidity requirements correspond. The requirements will arise from applying the established rates to the daily balances of the aforementioned obligations based on the different residual term tranches that are set.

Furthermore, in the particular case of obligations for full or periodic payments of principal, the amounts of amortization services that mature within the year, counted from each of the days of the position to which the minimum liquidity requirement corresponds, will be considered independently for the purpose of applying the rate that is appropriate based on the number of days remaining until the maturity of each of them.

When the financial entity enters into agreements or option contracts that ensure the total or partial refinancing of term obligations, for the purpose of establishing the residual term until the maturity of the obligations, the term resulting from making use of those facilities will be considered, for the part of the liability included in the agreement. This criterion is applicable in cases where the agreement is carried out with Backstop Fund S.A. (created by the National Government within the framework of the Program for the Development of the Capital Market agreed with the World Bank) or when the counterparty is a bank abroad that has at least an international rating of "A" or higher granted by any of the risk rating agencies according to the list contained in point 2.2. of Section 2. of the rules on Qualification of financial entities (T.O., Communication "A" 2521 and complementary), provided that in the latter case the agreement is kept in custody at Deutsche Bank - New York.

The computation periods will coincide with calendar months.
The averages will be obtained by dividing the sum of daily balances by the total number of days of each calendar month.

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I	REQUISITOS MINIMOS DE LIQUIDEZ
I B.C.R.A.	---------------------------------------------------I Sección 3. Integración.

• the entity does not maintain contracts for financial derivative operations regarding securities of the country, whose fulfillment could signify the neutralization of those operations.
  The entity must refrain from formalizing other operations with the bank issuing the option whose results, according to the framework agreements that are applicable, may be subject to the eventual obligation to offset credits with debts. Consequently, there are no impediments for the local entity to be simultaneously a seller of a call option regarding the titles involved in the put option, configuring a "collar" operation.

Likewise, the computation of this integration will be admitted, from the day on which the operation is negotiated, provided that the supporting documentation of the put option -notification of the option and contract- is deposited in the custodian bank within the next 72 business hours.

3.1.6. "Stand-by" letters of credit that at all times maintain a minimum validity term of 270 days,
opened by banks abroad with at least an international rating of "A" or higher granted by any of the risk rating agencies according to the list contained in point 2.2., Section 2., of the rules on Qualification of financial entities (T.O., Communication "A" 2521 and complementary). The utilization of the fund margin agreed upon by said letters of credit shall not be subject to any condition of any kind -it must be unrestricted- and the resources must be available- bles immediately upon simple request of the local entity without prior notice. It will be admitted that as collateral for the letters of credit opened under the mentioned conditions and for this destination of integration of the liquidity requirements, the financial entity affects mortgage loans or pledge loans or other documents representative of its active portfolio, up to 125% of the amount of the letters of credit. The computation of this integration can be effected provided that the contract adjusts to the model of "stand by" letter of credit of Section 9. and that the original version of the document representative of the letter/s of credit corresponding to the entity, along with the relevant payment instrument, is kept in custody at Deutsche Bank, New York. It will be necessary to deduct the amount of credit lines committed to other local financial entities or abroad regardless of their nature and the amount of liabilities existing with banks abroad subject to cancellation clauses upon simple request, within a period of 30 days.

3.1.7. loans with formal mortgage guarantee formalized between 15.10.95 and 18.7.97, according to the terms of the model contract adopted by the financial entities referred to in the previous version of Section 9. -Communication "A" 2422 (T.O.), repealed by Communication "A" 2563-, originated and carried out under the guidelines established by the National Mortgage Bank or DB Program Manager S.A. (Deutsche Morgan Grenfell), and the participation certificates and debt-representative titles issued by the trustees, regarding fiduciary trusts referred to the cited mortgage loans, provided that the local entity is the holder of the right to exercise a put option on the portfolio or on the values that can be exercised at any time within the following 60 days, observing all other safeguards contained in point 3.1.5.

3.1.8. Securities -bonds and shares- issued by companies constituted in countries members of the Organization for Economic Cooperation and Development (OECD). It will be required that the issuing companies maintain in force obligations that have at least an "A" rating granted by any of the international risk rating agencies according to the list contained in point 2.2, Section 2., Communication "A" 2521 (T.O.).
It must be high liquidity titles, with daily quotation for significant amounts in stock exchanges or securities markets operating in plazas of countries members of the aforementioned organization (OECD). The value of the holding of each title cannot exceed the equivalent to 5% of the daily amount traded in those exchanges, measured according to the average of the movements of the last twelve months that each species has registered. The computation will be effected taking into account the value that arises for each day of the month based on the daily quotation of the values. The computation of this integration will be admitted provided that the titles are kept in custody at Deutsche Bank, New York.

3.1.9. Installment parts of investment funds whose assets are constituted -indistinctly- by the securities referred to in points 3.1.3, 3.1.8. and 3.1.11.
It must be foreseen that orders to sell installment-parts are accepted on the day the instruction is formulated and that their settlement -with crediting in favor of the entity of the pertinent amount- is effected within the five business days following the date of the sales order. The computation will be effected taking into account the value of the installment-part determined for each day of the month based on the daily quotation of the values that compose the fund, when its object is the investment in the assets referred to in points 3.1.3. and 3.1.8. If it concerns the assets referred to in point 3.1.11., the corresponding value reported by Deutsche Bank, New York Branch, will be used, as provided in that last point. When the fund includes among its investments the assets referred to in point 3.1.11, the computation of the installment-parts for integration will also be subject to the liquidity controls and other requirements provided therein. The administrators of the fund must accept that this Institution has possession of the holdings for the purpose of that examination, to which effect they must sign the text whose model is included in point 3.3. of this Section. The ownership of the installment-parts representative of the investments must be in the name of the financial entities and to the order of Deutsche Bank, New York. Likewise, the custody of the fund's assets must be in charge of that bank. No operations on term, futures, options or other derivatives will be admitted, except those carried out for the purpose of hedging the risks implicit in the holdings or for price fixing, without in any case net short or negative positions being registered.

3.1.10. Certificates of deposit at fixed term issued by banks abroad that have, at minimum, a rating granted by any of the rating agencies, as detailed below:

Agency	Required Rating
Moody's Investors Service	Aa (long term)
Standard & Poor's Corporation	AA (long term)
IBCA Limited	AA (long term)
Duff & Phelps Credit Rating Co.	AA (long term)

The entities must be holders of the right to exercise a put option to a bank abroad that meets the requirement indicated above, at any moment during the validity of the deposit. The possibility, expressly established in the instrument or in an independent document, to cancel early -at any moment- the deposit upon simple request of the holder is equivalent to being the holder of the right to exercise the put option. The computation of this integration will be admitted by the exercise value of the option or of early cancellation, from the day of negotiation. The certificates and the put option contracts corresponding to the entity must be kept in custody at Deutsche Bank, New York, or at custodians designated by it, observing in pertinent matters what is provided in this matter in point 3.1.5.

3.1.11. Securities -bonds and/or shares- not included in sections 3.1.3. and 3.1.8., even if they come from active repos for the entity, issued by:
a) central governments; their companies, agencies or dependencies when they have the full guarantee of said governments. Otherwise, private issuances will be considered. b) international organizations; c) commercial banks. In this case, the computation of certificates of deposit, payment orders or other banking instruments will also be admitted. d) other companies and/or private corporations. The integration with the preferred portion ("senior") of asset-backed issuances (only mortgages or pledges that, in both cases, grant first degree privilege or similar and/or credit card coupons) will also be admitted. The integration with these concepts will be admitted to the extent that, concurrently, it is verified that:

• they are issuers from countries members of the Organization for Economic Cooperation and Development (O.E.C.D.), except when referring to international organizations.
• the debt has been rated, at least, by two of some of the international risk rating agencies according to the list contained in point 2.2. of Section 2. of the consolidated text of the rules on qualification of financial entities (Communication "A" 2521, T.O.), as minimum, with the level that for each case is indicated below:
  i) for the concept referred to in section a): "A" or equivalent. ii) for the concepts referred to in sections b), c) and d): "AA" or equivalent.
  In the case of security issuances backed by assets admitted according to the preceding provisions, the rating must be "AAA" or equivalent.
• they are issuances that have sufficient liquidity to the satisfaction of the Central Bank.
  To this effect, as a prior requirement to the computation of the integration with this concept, financial entities must accept that these holdings are subject by this Institution to effective controls on their degree of liquidity, which will be implemented based on their partial sale on opportunities and according to the procedure that the Central Bank determines at its discretion. To this end the entities must sign the text whose model is included in point 3.3. of this Section. In the case that the Central Bank determines that they do not pass that liquidity test to values that do not affect the reference price of the titles subject to that examination supplied by Deutsche Bank, New York, the assets must be immediately de-designated from the integration.
• the titles are kept in custody at Deutsche Bank, New York.
  The computation will be effected taking into account the value that arises for each day of the month based on the information supplied by Deutsche Bank, New York.

3.2. The integration in the admitted concepts will only be computable up to the following maximum limits, measured with respect to the minimum requirement of each period:

Concept	Maximum computable -in %-
a) Points 3.1.1. and 3.1.4. (together)	100
b) Points 3.1.2., 3.1.3., 3.1.5. and 3.1.7. to 3.1.11 (together)	80
c) Point 3.1.5. (within the preceding margin)	10
d) Point 3.1.7. (within the 80% margin)	5
e) Points 3.1.9. and 3.1.11. (within the 80% margin)	30
f) Point 3.1.6.	50

When opting to use the concept provided in point 3.1.6., it will be required that the amount of the pertinent letters of credit reaches, at minimum, twice the sum computed as integration.

3.3. Model of consent for the disposal of assets by the Central Bank, to be granted by the financial entities or the administrators of investment funds for the purpose of checking the degree of liquidity of the holdings

, of
(indicate place and date)

Messrs.
Central Bank of the Republic Argentina
Reserve Administration Management

S. / D.
Ref.: Minimum liquidity re- quirements. Consent (Points
3.1.9 and 3.1.11 of
the current regulation)

I address you in my capacity as legal representative of ....... .(indicate denomination of the local financial entity or of the administrator of the investment fund, as applicable) with the object of manifesting irrevocably the total, full and perfect consent of the entity/administrator (indicate what applies) that I represent so that the Central Bank of the Republic Argentina disposes of the sale of the assets comprised in points 3.1.9 and/or 3.1.11. of the norm of reference, with the object of checking the degree of liquidity of the same, subject to the procedures that that Central Bank determines at its entire discretion. To these effects, I exempt that Central Bank from all responsibility originating in the aforementioned sale, including but not limited to any loss or incremental cost. Likewise, I attach certified copy of the instruments referring to the corporate decisions required by law, in support of the consent hereby granted. For all effects derived from this consent the entity/the administrator (indicate what applies) that I represent submits to the Argentine Legislation and tribunals of the Federal Capital of the Republic Argentina.

I salute you very attentively.

---

Signature and clarification

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+------------+---------------------------------------------------+ I I REQUISITOS MINIMOS DE LIQUIDEZ I I B.C.R.A. I---------------------------------------------------I Sección 4. Requisitos mínimos. I +------------+---------------------------------------------------+ plazo constante, con opción de can- celación anticipada o de renovación por plazo determinado y con retribu- ción variable:

• hasta 59 días 19
• de 60 a 89 días 19
• de 90 a 179 días 14
• de 180 a 365 días 9
• mas de 365 días 0
• depósitos a la vista remunerados, en
  pesos y en moneda extranjera, cuando la remuneración supere en más de 1 punto la tasa de interés por depósi- tos en caja de ahorros que surja de la encuesta diaria del B.C.R.A. o el 1% anual sobre saldos acreedores en cuentas corrientes o en otras a la vista 80 +------------+---------------------+------------------+----------+ IVersión: 6a.IComunicacion "A" 2648IVigencia: 1.1.98 IPágina 2 I +------------+---------------------+------------------+----------+

+------------+---------------------------------------------------+ I I REQUISITOS MINIMOS DE LIQUIDEZ I I B.C.R.A. I---------------------------------------------------I Sección 9. Modelo de carta de crédito "stand by". I +------------+---------------------------------------------------+
9.1. Carta de crédito.
IRREVOCABLE STAND-BY LETTER OF CREDIT N§ ....
(Date)
Dear Sirs:
We hereby establish, at the request and for the account of .... (bank's name)..., in your favour, our irrevocable stand-by letter of credit N§ ..... for the aggregate amount of US$...(amount in numbers and words)..., effective immediately and expiring on the
expiration date of ......
This irrevocable stand-by letter of credit is issued to guarantee the obligation assumed by ... (bank's name)....within the scope of the liquidity minimum
requirements established by Communication "A" .....
issued by Banco Central de la República Argentina.
Our obligations under this irrevocable letter of credit will be discharged by us without demand of payment or protest by making funds available to you against a sight draft drawn and signed by you, referring thereon to the number of this letter of credit, and presented on our offices located at ........., in the form of Annex "A" attached hereto. Each such draft shall be dated the date of its presentation and shall be presented to our International Trade Services Department as provided bellow:
Drafts presented by mail should be mailed to .....
Courier or phisical deliveries should be addressed
to ....
We hereby engage with you that all drafts drawn under and in compliance with the terms of this letter of +------------+---------------------+------------------+----------+ IVersión: 1a.IComunicacion "A" 2648IVigencia: 1.1.98 IPágina 1 I +------------+---------------------+------------------+----------+

+------------+---------------------------------------------------+ I I REQUISITOS MINIMOS DE LIQUIDEZ I I B.C.R.A. I---------------------------------------------------I Sección 9. Modelo de carta de crédito "stand by". I +------------+---------------------------------------------------+ credit will be duly honored if drawn and presented for payment as indicated above on or before the expiration date. Should we fail to pay to the beneficiary the amount of this stand-by letter of credit when drawn by the beneficiary in accordance with the terms hereof, we agree to pay interest at a rate per month equal to ...% of the amount guaranteed, as from the date you give us written notice in the form set forth in Annex A hereto of your intention to draw under this stand by letter of credit, until the date of effective payment. We also agree to pay and reimbourse all costs and expenses incurred by the beneficiary in connection with the enforcement of this stand-by letter of credit. This letter of credit is subject to the "Uniform Customs and Practice for Documentary Credits (1993 Revision), International Chamber of Commerce, Publication N§ 500. This letter of credit sets forth in full our undertaking, and such undertaking shall not in any way be modified, amended, amplified or limited by any document, instrument or situation whatsoever. Very truly yours, (Authorized Signature)
9.2. Anexo a la carta de crédito.
ANNEX "A"
CERTIFICATE FOR DRAWING UNDER IRREVOCABLE
STAND-BY LETTER OF CREDIT
The undersigned hereby certifies to ....
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+------------+---------------------------------------------------+ I I REQUISITOS MINIMOS DE LIQUIDEZ I I B.C.R.A. I---------------------------------------------------I Sección 9. Modelo de carta de crédito "stand by". I +------------+---------------------------------------------------+ (issuer).., with reference to the irrevocable stand-by letter of credit N§ ... issued by ... (issuer)... in favour of ... (the beneficiary)..., the following:
(i) The beneficiary is making a drawing under the stand-by letter of credit with respect to the failure by ...(bank's name).. to comply with its obligation related to the minimum liquidity requirements, under the provisions set forth in Communication "A" .... of the Banco Central de la República Argentina. (ii) The amount of the draft accompanying the
stand-by letter of credit is US$ ....
(iii) Such amount shall be deposited by you by wire transfer in immediately available funds to the following account:
Account title:
Account number:
Reference:
Attention:
IN WITNESS WHEREOF, the beneficiary has executed and delivered this certificate as of the ... day of ...., 199..
(Beneficiary)
+------------+---------------------+------------------+----------+ IVersión: 1a.IComunicacion "A" 2648IVigencia: 1.1.98 IPágina 3 I +------------+---------------------+------------------+----------+