Circular LISOL 1 - 185. Integration of Minimum Liquidity Requirements. New Admitted Item

1998 - Year of the Municipalities

CENTRAL BANK OF THE ARGENTINE REPUBLIC ____________________________________________________________________ COMMUNICATION "A" 2694 28/04/98 ____________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 185.
Integration of the minimum liquidity requirements. New admitted item

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

"1. Incorporate, with effect from 1.5.98, into Section 3 of the norms on minimum liquidity requirements (Consolidated Text), the following point:

"3.1.12. Time deposit certificates acquired by the Central Bank from banks abroad whose ownership is transferred to the entity.

The calculation of this integration must be carried out during the validity period of the deposits and for the value of capital and accrued interest.

The deposit certificates may not be transferred, except in the case provided for in the following paragraph, and must be kept in custody at Deutsche Bank, New York.

The Central Bank will repurchase the deposit certificates at market prices, when the liquidity needs of the entity so justify."

2. Incorporate, with effect from 1.5.98, into point 3.2 of
   Section 3 of the norms on minimum liquidity
   requirements (Consolidated Text), the following subsection:

"g) Point 3.1.12. 30%"

Likewise, the replacement sheets that should be incorporated into the consolidated text of the norms on minimum liquidity requirements are attached.

We greet you very respectfully.

CENTRAL BANK OF THE ARGENTINE REPUBLIC Juan Carlos Isi Alfredo A. Besio Submanager of Standards Manager of Standards for for Financial Entities Financial Entities

ANNEX: 3 SHEETS

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	MINIMUM LIQUIDITY REQUIREMENTS
B.C.R.A.	Section 3. Integration.
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• the titles are kept in custody at
  Deutsche Bank, New York.
  The calculation will be carried out taking into account the value that arises for each day of the month based on the information provided by Deutsche Bank, New York.

3.1.12. Time deposit certificates acquired by the
Central Bank from banks abroad whose ownership is transferred to the entity. The calculation of this integration must be carried out during the validity period of the deposits and for the value of capital and accrued interest. The deposit certificates may not be transferred, except in the case provided for in the following paragraph, and must be kept in custody at Deutsche Bank, New York. The Central Bank will repurchase at market prices the deposit certificates, when the liquidity needs of the entity so justify.

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. (in con-
joint)	100
b) Points 3.1.2., 3.1.3., 3.1.5. and
3.1.7. to 3.1.11. (in joint)	80
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Version: 3a.	Communication "A" 2694
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	MINIMUM LIQUIDITY REQUIREMENTS
B.C.R.A.	Section 3. Integration.
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c) Point 3.1.5. (within the margin
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precedent)	10
d) Point 3.1.7. (within the margin
of 80%)	5
e) Points 3.1.9. and 3.1.11. (within
the margin of 80%)	30
f) Point 3.1.6.	50
g) Point 3.1.12.	30

When opting to use the concept provided for in point 3.1.6., it will be required that the amount of the relevant 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 verifying the degree of liquidity of the holdings

(indicate place and date)

Messrs.
Central Bank of the Argentine Republic Reserve Administration Management

S. / D.

Ref.: Minimum liquidity requirements. Consent (Points
3.1.9 and 3.1.11 of
the current regulation)

I address you in my capacity as

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	MINIMUM LIQUIDITY REQUIREMENTS
B.C.R.A.	Section 3. Integration.
+------------+---------------------------------------------------+ legal representative of ....... .(indicate the name of the local financial entity or 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 for the Central Bank of the Argentine Republic to dispose of the sale of the assets included in points 3.1.9 and/or 3.1.11 of the norm in reference, with the object of verifying the degree of liquidity of the same, subject to the procedures that that Central Bank determines at its full discretion.

For these purposes, I exempt that Central Bank from any responsibility arising from the sale mentioned above, including but not limited to any loss or incremental cost.

Likewise, I attach a certified copy of the instruments referring to the corporate decisions required by law, in support of the consent given here.

For all effects derived from the present consent, the entity/the administrator (in- dicate what applies) that I represent submits to the Argentine Legislation and courts of the Federal Capital of the Argentine Republic.

I greet you very respectfully.

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Signature and clarification

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