Circular LISOL 1 - 351. Minimum liquidity requirements. Reduction of requirements for the July/August 2001 bi-monthly position. Transitional modification in the calculation of integration. Cash in transit and in cash transport companies as integration of minimum cash.

BANCO CENTRAL DE THE REPUBLIC OF ARGENTINA
COMMUNICATION "A" 3311 I 31/07/01
TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 351
Minimum liquidity requirements. Reduction of the requirements for the bi-monthly position July/August 2001. Transitional modification in the calculation of integration. Cash in transit and in cash transport companies as integration of minimum cash

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

"1. Reduce, for the bi-monthly position July/August 2001, by one percentage point the requirements for minimum liquidity.

2. Establish that, during the period July-September 2001, it will be admitted that the integration of the minimum liquidity requirements be carried out with the balances of the current account in pesos opened at the Central Bank of the Argentine Republic, in the following proportions, calculated on the aforementioned requirement:

Period	%
July/August 2001	70
September 2001	40

3. Establish that for the minimum daily integration of the bi-monthly position July/August 2001 of the minimum liquidity requirements, with effect from the date of this communication, the total requirement of June recalculated based on a decrease of two percentage points shall be taken.

4. Incorporate, with effect from 1.7.01, as point 2.1.6. of Section 2. of the regulations on "Minimum Cash" the following:

"2.1.6. Cash in transit and in cash transport companies.

Includes banknotes and coins in transit within the country from or to another financial entity or between branches of the same entity or in the possession of transport companies located in the country."

5. Substitute, with effect from 1.7.01, point 2.3. of Section 2. of the regulations on "Minimum Cash" with the following:

"2.3. Maximum calculation limits.
The integration in the admitted concepts will only be calculable up to the following maximum limits, measured with respect to the minimum cash of each period:

| Concept | Maximum calculable
-in %-

i) Points 2.1.1. to 2.1.4. and 2.1.6. (together)	100
ii) Point 2.1.5.	0

We send you the sheets attached, which, in replacement of those previously provided, correspond to incorporate in the ordered texts of the regulations on "Minimum Cash" and "Minimum Liquidity Requirements."

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA

Alfredo A. Besio
Issuance Manager of Standards

José Rutman
Principal Manager of Standards

ANEXO

MINIMUM LIQUIDITY REQUIREMENTS B.C.R.A. Section 1. Requirement.
1.3. Minimum requirements.
As a minimum, the requirements arising from applying the following rates must be integrated:

| Concept | Rate
in % |
| :--- | :--- |
| --- |
| 1.3.1. Time deposits -except those included in point |
1.3.3.-, obligations by "acceptances", passive passes, sureties and passive stock market passes, obligations to term with banks and foreign correspondents, debentures, constant term investments, with option of early cancellation or renewal for a determined term and with variable remuneration, obligations with the fiduciary funds of Assistance to Financial Entities and Insurance and for Provincial Development and other term obligations, according to their residual term: |

i) Up to 59 days.	21
ii) From 60 to 89 days.	21
iii) From 90 to 179 days.	14
iv) From 180 to 365 days.	9
v) More than 365 days.	0
1.3.2. Immobilized balances of the concepts included in
these norms with the exception of those corresponding to point 1.3.3.	21
i) Up to 179 days.	14
---	---
ii) From 180 to 365 days.	9
iii) More than 365 days.	0
Immobilized balances for this concept.	14
1.4. Residual term.
1.4.1. Determination.
1.4.1.1. General case.
The residual term of each term obligation is equivalent to the amount
of days remaining until its maturity.

Version: 9a. Communication “A” 3311 Validity:
01.07.01

B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE REGULATIONS ON MINIMUM LIQUIDITY REQUIREMENTS

ORDERED TEXT	ORIGIN NORM	OBSERVATIONS
Section	Point	Paragraph	Com.	Annex	Point	Paragraph
1.	1.1.1.	“A” 2422
1.	1.1.1.	2422	único	1.	1º	According to Com “A” 3274.
1.	1.1.2.1.	“A” 2422	único	1.	2°
1.	1.1.2.2.	“A” 2422	único	1.	2°
1.	1.1.2.3.	“A” 2422	único	1.	2°	Includes interpretative clarification.
1.	1.1.2.4.
a 1.1.2.5.	“A” 2422	único	1.	2º
1.	1.1.3.	1º	“A” 2422	único	1.	1º	Includes interpretative clarification.
---	---	---	---	---	---	---	---
1.	1.1.3. último	“A” 2422	único	1.	2º	Includes interpretative clarification.
1.	1.2.	1º	“A” 2422	único	2.	1º	According to Com. “A” 2511.
1.	1.2.	“A” 2422	único	2.	7º	According to Com. “A” 2648.
1.	1.2.	2º	“A” 2422	único	2.	8º	According to Com. “A” 2648.
1.	1.2. último	“A” 2422	único	2.	9º	According to Com. “A” 2569.
1.	1.3.1.	“A” 2422	único	4.	According to Com. “A” 2663,
2669, 2825, 3261, 3274,
3305 and 3311, with interpretative clarification. Decree N° 342/00.
1.	1.3.2.	“A” 3274	According to Com. “A” 3305 and
3311.
1.	1.3.3.	“A” 3305	According to Com. “A” 3311.
---	---	---	---	---	---	---
1.	1.4.1.1.	Explicit criterion.
1.	1.4.1.2.	“A” 2422	único	2.	3º	According to Com. “A” 2511.
1.	1.4.1.3.	“A” 2422	único	2.	6º	According to Com. “A” 2648 and
3274.
1.	1.4.1.4.	“A” 3126
---	---	---	---	---	---	---
1.	1.4.2.	“A” 2422	único	2.	2º	According to Com. “A” 2511.
Modifies applicable criterion.
1.	1.4.3.	“A” 2422	único	2.	4º and 5º	According to Com. “A” 2648.
Modifies applicable criterion.
1.	1.5.	1º	“A” 2494	5.1.1.	1º	According to Com. “A” 2653.
Modified by Com. “A”
2886, 2931 and “A” 3274.
1.	1.5.	2º	“A” 2494	5.1. último	According to Com. “A” 2653.
---	---	---	---	---	---
1.	1.5. último	“A” 2494	5.3.
1.	1.6.	“A” 3229	According to Com. “A” 3274.
1.	1.7.	“A” 2833	1. Includes clarification.
2.	2.1.1.	“A” 3274
2.	2.1.2.	“A” 2817	According to Com. “A” 3112 and “A”
3274.
2.	2.1.3.	“A” 2422	único	3.1.2.	According to Com. “A” 2663 and
3274.

MINIMUM CASH B.C.R.A. Section 2. Integration.
The balance recorded at the close of each business day in these accounts will accrue interest for the period that elapses until the first business day following, at the rate fixed daily and which will be transmitted through the Foreign Exchange and Open Market Operations Desk. The corresponding settlement will be made available to the entities at the opening of operations of the next business day through the STAF communications system; the accrued amounts will be credited automatically in the special accounts that correspond. In the case of US dollar accounts, also used for the integration of minimum liquidity requirements, the appropriation for these or for the minimum cash will be made by the entity after the calculation period has concluded in accordance with the procedure established by the information regime.
2.1.4. Current accounts of non-banking financial entities.
Opened in commercial banks for the integration of the minimum cash requirement.
2.1.5. Public securities.
National public securities that have normal and habitual quotation.
2.1.6. Cash in transit and in cash transport companies.
Includes banknotes and coins in transit within the country from or to another financial entity or between branches of the same entity or in the possession of transport companies located in the country.
2.2. Calculation.
The compliance with the integration of the minimum cash will be measured on the basis of the monthly average of daily balances of the concepts admitted for such effect, registered during the same month to which the minimum cash corresponds, dividing the sum of said balances by the total number of days in the period. The days on which no movement is registered must repeat the balance corresponding to the immediate preceding business day. In the case of current accounts opened in commercial banks by non-banking entities, the balances reflected in the account summaries will be taken into account. The calculation of national public securities will be carried out taking into account the value that arises for each day of the month based on the daily quotation of the securities.

Version: 3a. Communication “A” 3311 Validity:
01.07.01

MINIMUM CASH B.C.R.A. Section 2. Integration.
2.3. Maximum calculation limits.
The integration in the admitted concepts will only be calculable up to the following maximum limits, measured with respect to the minimum cash of each period:

| Concept | Maximum calculable
-in %-

i) Points 2.1.1. to 2.1.4. and 2.1.6. (together)	100
ii) Point 2.1.5.	0

Version: 2a. Communication “A” 3311 Validity:
01.07.01

B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE REGULATIONS ON MINIMUM CASH

ORDERED TEXT	ORIGIN NORM	OBSERVATIONS
Sec.	Point	Párr.	Com.	Annex	Sec.	Point	Párr.
1.1.	“A” 3274	II	1.	1.1.
1.1.1.	“A” 3274	II	1.	1.1.1.
1.1.2.	“A” 3274	II	1.	1.1.2.
1.1.3.	“A” 3274	II	1.	1.1.3.
1.2.	“A” 3274	II	1.	1.2.	According to Com. “A” 3304.
1.3.	“A” 3274	II	1.	1.3.
1.3.1.	“A” 3274	II	1.	1.3.1.
1.3.2.	“A” 3274	II	1.	1.3.2.
1.3.3.	“A” 3274	II	1.	1.3.3.
1.3.4.	“A” 3274	II	1.	1.3.4.
1.3.5.	“A” 3274	II	1.	1.3.5.
1.3.6.	“A” 3274	II	1.	1.3.6.
1.3.7.	“A” 3274	II	1.	1.3.7.
1.3.8.	“A” 3274	II	1.	1.3.8.
1.4.	“A” 3274	II	1.	1.4.
1.5.	“A” 3274	II	1.	1.5.
1.6.	“A” 3274	II	1.	1.6.
1.6.1.	“A” 3274	II	1.	1.6.1.
1.	1.6.2.	“A” 3274	II	1.	1.6.2.
2.1.	“A” 3274	II	2.	2.1.	According to Com. “A” 3304.
2.1.1.	“A” 3274	II	2.	2.1.1.
2.1.2.	“A” 3274	II	2.	2.1.2.	According to "A" 3304.
2.1.3.	“A” 3274	II	2.	2.1.3.	According to Com. “A” 3304.
2.1.4.	“A” 3274	II	2.	2.1.4.
2.1.5.	“A” 3274	II	2.	2.1.5.
2.1.6.	“A” 3311
2.2.	“A” 3274	II	2.	2.2.
2.	2.3.	“A” 3274	II	2.	2.3.	According to Com. “A” 3311.
3.1.	“A” 3274	II	3.	3.1.
3.1.1.	“A” 3274	II	3.	3.1.1.
3.1.2.	“A” 3274	II	3.	3.1.2.
3.1.3.	“A” 3274	II	3.	3.1.3.
3.1.4.	“A” 3274	II	3.	3.1.4.
3.2.	“A” 3274	II	3.	3.2.
3.2.1.	“A” 3274	II	3.	3.2.1.
3.2.2.	“A” 3274	II	3.	3.2.2.
3.3.	“A” 3274	II	3.	3.3.
3.3.1.	“A” 3274	II	3.	3.3.1.
3.	3.3.2.	“A” 3274	II	3.	3.3.2.
4.	4.1.	“A” 3274	II	4.	4.1.
5.	5.1.	“A” 3274	II	5.	5.1.
6.	6.1.	“A” 3274	II	6.	6.1.