Circular LISOL 1-219 and OPASI 2-203: Foreign Credit Lines for Settlement in CEDEL System and Pledge of Assets

1998 - Year of the Municipalities

CENTRAL BANK OF THE ARGENTINE REPUBLIC ______ COMMUNICATION "A" 2832 24/12/98 ______ TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 219.
OPASI 2 - 203.
Foreign credit lines for the settlement of operations in the "CEDEL" system. Pledge of assets in guarantee

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

"1. Replace points 2.1.1 of Section 2. and 3.1 of Section 3. of the regulations on the pledge of assets in guarantee with the following:

"2.1.1. Guaranteed operations.
Foreign credit lines received for the purpose of settling operations that are processed through the securities clearing systems Euroclear and Cedel."

"3.1. For pledges by credit lines and operations with derivatives. The total of the funds and/or securities that are pledged as guarantee for foreign credit lines to settle operations by Euroclear and Cedel and for futures, options, and other derivative products operations, may not exceed 5% of the computable net worth of the second month prior to the one in which the pledge is made."

2. Replace subsection iv) of point 1.2.1.2. of
   Section 1. of the regulations on immobilized assets with the
   following:

"iv) Foreign credit lines for the settlement of operations processed through Euroclear and Cedel."

We salute you very respectfully.

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