Circular LISOL 1 - 186. Integration of minimum liquidity requirements with time deposit certificates

1998 - Year of the Municipalities

CENTRAL BANK OF THE ARGENTINE REPUBLIC

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COMMUNICATION "A" 2695 04/05/98

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TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 186.
Integration of minimum liquidity requirements with time deposit certificates.

To Financial Entities:

We address you to inform you that, in order to allow the integration of minimum liquidity requirements as established in point 3.1.12 of Section 3 of the applicable regulations (Consolidated Text), starting from 06.05.98, the Central Bank will offer to entities, through its Foreign Exchange and Open Market Desk, Certificates of Deposit (CDs) from its portfolio. This offer will be made through the Electronic Operations System (SIOPEL) of Mercado Abierto Electrónico S.A.

The operations will be settled "Delivery against Payment" at Deutsche Bank, N.Y., against the accounts that the entities maintain at said Institution, adjusted to the conditions that are explicitly stated for each instrument in each offer.

Entities may request the Central Bank, through the Area of Supervision of Financial Entities, to repurchase at market price the CDs acquired through this operation, provided that their classification in accordance with the provisions of the last paragraph of point 3.1.12 cited above is verified.

We salute you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC
Raúl Omar PLANES
Manager of Open Market

Hector O. BIONDO
Deputy General Manager of Operations