Circular LISOL 1 - 236. Minimum liquidity requirements. Daily requirement. Penalty for non-compliance. Modifications.

"1999 - Year of Export"
BANCO CENTRAL DE LA REPUBLICA ARGENTINA ____________________________________________________________ COMMUNICATION "A" 2915 I 05/05/99 ____________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 236.
Minimum liquidity requirements. Daily requirement. Penalty for non-compliance. Modifications

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

"1. Incorporate, with effect from 1.6.99, as the last paragraph in point 2.2. of Section 2. of the norms on minimum liquidity requirements, the following:
"This daily requirement shall be 80% when in the previous computation period a deficiency of integration has been registered in monthly average exceeding the permitted transfer margin."

2. Substitute, with effect from 1.6.99, the first
   paragraph of point 3.1.1. of Section 3. of the norms on minimum liquidity requirements, by the following:
   "3.1.1. The integration deficiencies of the minimum liquidity requirements and the deficiencies of minimum daily integration, shall be subject to a charge equivalent to the interest rate fixed for the rediscount for temporary illiquidity on credit portfolios granted to clients of the non-financial private sector, classified "in normal situation" or "of normal compliance", without any other effect except what is provided in point 3.2."

In attachment we send you the sheets that correspond to incorporate in the ordered text of the norms on minimum liquidity requirements, on account of the provisions in the resolution transcribed above.

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA Juan Carlos Isi Alfredo A. Besio Submanager of Norms Manager of Norms for for Financial Entities Financial Entities

ANNEX: 3 sheets

B.C.R.A. MINIMUM LIQUIDITY REQUIREMENTS
Section 2. Integration.
2.2. Computation.
The compliance with the integration of the minimum liquidity requirements shall be measured on the basis of the monthly average of daily balances of the concepts admitted to such effect, registered during the same month to which the requirements correspond, dividing the sum of said balances by the total quantity of days of the period. The days on which no movement is registered shall repeat the balance corresponding to the immediate preceding business day.

On no day of the month, the sum of the balances of the admitted concepts, registered at the close of each day, shall be less than 60% of the total requirement determined for the immediate previous month to which it corresponds, without considering the effects of the application of what is provided in point 1.7.1. of the
Section 1.

This daily requirement shall be 80% when in the previous computation period a deficiency of integration has been registered in monthly average exceeding the permitted transfer margin.

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

Concept Maximum computable
-in %- i) Points 2.1.1. and 2.1.2. (together) 100 ii) Point 2.1.3. 20 iii) Points 2.1.4. to 2.1.12. (together) 80 a) Points 2.1.9. and 2.1.10. (within the margin of 80%) 30 b) Point 2.1.11. (within the margin of 80%) 10 c) Point 2.1.12. (within the margin of 80%) 5

Version: 4th. Communication “A” 2915 Validity:
01.06.99

B.C.R.A. MINIMUM LIQUIDITY REQUIREMENTS
Section 3. Non-compliance.
3.1. Charge.
3.1.1. The integration deficiencies of the minimum liquidity
requirements and the deficiencies of minimum daily integration, shall be subject to a charge equivalent to the interest rate fixed for the rediscount for temporary illiquidity on credit portfolios granted to clients of the non-financial private sector, classified “in normal situation” or “of normal compliance”, without any other effect except what is provided in point 3.2.

When deficiencies are verified concurrently in the position in average and in the daily requirement in the same month, the charge shall be determined by the greater of both.

For these purposes, to determine the deficiencies of the position in average, the following shall be considered:
i) those for which the option of their transfer is not used. ii) those that are not susceptible of being transferred to the next month by exceeding the permitted margin.

3.1.2. The charges may be reduced in exceptional cases, when
mitigating circumstances are given and weighing the causes that originated the non-compliance.

3.1.3. The charges not entered in time and form shall be subject to an
interest equivalent to 40% effective annual during the period of non-compliance.

3.1.4. The Central Bank of the Republic of Argentina may debit ex officio
in the current account of the entity, totally or partially when in its judgment so justified, the charges and the corresponding interests.

3.1.5. The charge shall be calculated with the following expression:
c = D * TNA / 36500

Where

Version: 3rd. Communication “A” 2915 Validity:
01.06.99

ORDERED TEXT ORIGIN NORM
Section Point Paragraph Com. Annex Point Paragraph Observations
2. 2.1.12. “A” 2422 single 3.1.7. According to Com. “A”
2648
2. 2.2. “A” 2422 single 3. 1st and 2nd According to Com. “A”
2663, 2833 and 2915
2. 2.3. “A” 2422 single 3.2. According to Com. “A”
2705 except ii) “A” 2817 3.
2. 2.4. “A” 2610 I I.1. 3rd
3. 3.1.1. “A” 2422 single 5. According to Com. “A”
2490, modified by the Com. “A”
2833 and 2915
3. 3.1.2. to
3.1.4.
“A” 2422 single 5. According to Com. “A” 2490
3. 3.1.5. “A” 2422 single 5. According to Com. “A”
2490
“B” 5159
3. 3.2. “A” 2895
3. 3.3. “A” 2833 2. According to Com. “A”
2895
4. 4.1. Explicit criterion
5. “A” 2422 single 6. According to Com. “A”
2490, with interpretative clarification
6. 6.1. “A” 2422 single 3.3. According to Com. “A”
2705 and 2694
6. 6.2. “A” 2422 single 8.
6. 6.3. “A” 2422 single 9. According to Com. “A”
2648