Circular LISOL 1 - 188. Minimum liquidity requirements. Inclusion in time deposit certificates acquired by the Central Bank

"1998 - Year of the Municipalities" BANCO CENTRAL DE LA REPUBLICA ARGENTINA __________________________________________________________________ COMMUNICATION "A" 2705 15/05/98 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 188.
Minimum liquidity requirements. Integration in Time deposit certificates ac- quired by the Central Bank

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

"- Replace point 3.2. of Section 3. of the norms on minimum liquidity requirements (Consolidated Text), text according to Communication "A" 2694, with the following:

"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 Computable Maximum
-in %- a) Points 3.1.1. and 3.1.4. (to- gether) 100 b) Points 3.1.2., 3.1.3., 3.1.5. and
3.1.7. to 3.1.12. (together) 80
c) Point 3.1.5. (within the pre- ceding margin) 10 d) Point 3.1.7. (within the mar- gin of 80%) 5 e) Points 3.1.9. and 3.1.11. (within the margin of 80%) 30 f) Point 3.1.6. 50

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

Likewise, the sheets that correspond to incorporate into the consolidated text of the norms on minimum liquidity requirements are attached, in replacement of those previously provided.

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA Alberto R. Karlen Alfredo A. Besio Manager of Administration Manager of Standards for Reserve Management Financial Entities

ANNEX: 2 SHEETS

+------------+---------------------------------------------------+ I I MINIMUM LIQUIDITY REQUIREMENTS I I B.C.R.A. I---------------------------------------------------I Section 3. Integration. I +------------+---------------------------------------------------+

• the titles must be kept in custody at the
  Deutsche Bank, New York.
  The computation 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 computation 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 cannot 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, which must be requested to the Area of Supervision of Financial Entities.
  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 Computable Maximum
  -in %- a) Points 3.1.1. and 3.1.4. (to- gether) 100 b) Points 3.1.2., 3.1.3., 3.1.5. and
  3.1.7. to 3.1.12. (together) 80
  +------------+---------------------+------------------+----------+ IVersion: 4a.ICommunication "A" 2705IVigence: 15.5.98 IPage 10 I +------------+---------------------+------------------+----------+

+------------+---------------------------------------------------+ I I MINIMUM LIQUIDITY REQUIREMENTS I I B.C.R.A. I---------------------------------------------------I Section 3. Integration. I +------------+---------------------------------------------------+ c) Point 3.1.5. (within the margin preceding) 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 When opting to use the concept provided for in the point 3.1.6., it will be required that the amount of the pertinent letters of credit reach, at minimum, two times 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 , of (indicate place and date) Messrs. Central Bank of the Argentine Republic Reserve Administration Management S. / D. Ref.: Minimum liquidity re- quirements. Consent (Points
3.1.9 and 3.1.11 of the
current ordering)
I address you in my capacity as
+------------+---------------------+------------------+----------+ Inversion: 3a.ICommunication "A" 2705IVigence: 15.5.98 IPage 11 I +------------+---------------------+------------------+----------+