Circular LISOL 1-366. Modification of the minimum cash requirement and minimum liquidity requirements

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 3387 I 07/12/01 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 366
Modification of the minimum cash and of the minimum liquidity requirements

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

"1. Establish a minimum cash requirement of 75% on the monthly average of the daily increase that is registered in the deposits (checking and time), in the period 3.12.01/ 31.1.02, with respect to the level verified on 30.11.01.

This additional requirement must be integrated exclusively in the current accounts of financial entities opened in the Central Bank in US dollars, on the third business day following the calculation.

2. Substitute, with effect from 10.12.01, point 2.4.
   of Section 2. of the rules on "Minimum cash" by the following:

"2.4. Minimum daily integration.

The greater requirement resulting from the application of the rate of 100%, established in point 1.3.8. of the
Section 1., with respect to the requirement that would arise from the
use of the rates provided for in points 1.3.1. to 1.3.4. and 1.3.6. of Section 1., must be integrated, exclusively and on the third business day following that which corresponds, in the current account in pesos opened in the Central Bank of the Republic Argentina.

In the case of balances comprised of accounts in foreign currencies, the greater resulting requirement will be integrated, under the same conditions, in the current account in US dollars opened in this Institution."

3. Substitute, with effect from 10.12.01, the last
   paragraph of point 2.2. of Section 2. of the rules on "Minimum liquidity requirements" by the following:

"In addition, the greater requirement resulting from the application of the rate of 100%, established in point 1.3.2. of Section 1., with respect to the requirement that would arise from the use of the rates -according to the different residual terms- provided for in point 1.3.1. of Section 1., must be integrated, exclusively and on the third business day following that which corresponds, in the current account in pesos opened in the Central Bank of the Republic Argentina, when it comes to

operations in pesos, unless the integration option provided for in point 2.1.14. admitted for operations whose remuneration exceeds by more than one point but does not exceed by more than 3 percentage points the base rate fixed."

4. Establish, from 10.12.01 to 31.1.02, in matters
   of "Minimum liquidity requirements" that, on no day of the month, the sum of the balances of the admitted concepts, registered at the close of each day, may not be less than 75% of the total requirement determined in October 2001."

We send you attached the sheets that, in replacement of those previously provided, correspond to incorporate in the rules on "Minimum cash" and "Minimum liquidity requirements".

We greet you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA

Alfredo A. Besio José Rutman
Issuance Manager Principal Manager of Norms Norms and Authorizations

ANNEX

MINIMUM LIQUIDITY REQUIREMENTS B.C.R.A. Section 2. Integration.
2.1.14. Guaranteed loans.
The balance of Guaranteed Loans (net of the amount of the asset regularization account) received in exchange for instruments of the public debt of the Nation and provinces (Decree 1387/01) will be admitted to be counted for up to 10% of the total net exposure (book value) registered by the entity on
31.10.01 with the non-financial public sector, to integrate the greater
requirement resulting from the application of the rate of 100%, established in the point 1.3.2. of Section 1., with respect to the requirement that would arise from the use of the rates -according to the different residual terms- provided for in the point 1.3.1. of Section 1., on the concepts reached and in the extent that the remuneration does not exceed by more than 3 percentage points the base rate fixed. The total net exposure will be calculated considering the loans granted to the aforementioned sector and its net position of titles, determined according to the procedure contained in point 7.5.3. of Section 7. of the rules on "Minimum capital of financial entities". To this effect, the Guaranteed Loans must be found deposited in a specific account of the "Central Registration and Settlement of Public Debt Instruments" -CRYL-.
2.2. Minimum daily computation and integration.
The compliance with the integration of the minimum liquidity requirements will 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 number of days of the period. The days on which no movement is registered must repeat the balance corresponding to the immediate previous business day. On no day of the month, the sum of the balances of the admitted concepts, registered close of each day, may not be less than 75% of the total requirement determined for the immediate next month, recalculated based on the requirements and concepts in force in the month to which the requirements correspond, without considering the effects of the application of what is provided in point 1.7.1. of Section 1. For the purposes of the recalculation the modifications of the requirements by application of point
1.3.2. of Section 1. will not be considered.
This daily requirement will be 80% when in the previous computation period a deficiency of integration has been registered in monthly average greater than the transfer margin admitted. Version: 4th. Communication "A" 3387 Validity:
10.12.01

MINIMUM LIQUIDITY REQUIREMENTS B.C.R.A. Section 2. Integration. In addition, the greater requirement resulting from the application of the rate of 100%, established in point 1.3.2. of Section 1., with respect to the requirement that would arise from the use of the rates -according to the different residual terms- provided for in point
1.3.1. of Section 1., must be integrated, exclusively and on the third business day
following that which corresponds, in the current account in pesos opened in the Bank Central of the Republic Argentina, when it comes to operations in pesos, unless the integration option provided for in point 2.1.14. admitted for operations whose remuneration exceeds by more than one point but does not exceed by more than 3 percentage points the base rate fixed.
2.3. Maximum computation limits.
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 Maximum computable
-in %- i) Points 2.1.1., 2.1.11. and 2.1.12. (together). 100 ii) Point 2.1.2. 20 iii) Point 2.1.3. to 2.1.10. (together). 10 a) Points 2.1.7. and 2.1.8. (within the 10% margin) 5 b) Point 2.1.9. (within the 10% margin) 2 c) Point 2.1.10. (within the 10% margin) 0 The concepts corresponding to points 2.1.13. and 2.1.14. will observe the limits specifically contemplated in those points. Version: 2a. Communication "A" 3387 Validity:
10.12.01

MINIMUM LIQUIDITY REQUIREMENTS B.C.R.A. Section 7. Transitional provisions.
7.1. The holding of the "Government Bond 9% -
maturity 2002" will be admitted as a computable concept for the integration of the requirements minimum liquidity, without exceeding the amount equivalent to 18% of the requirement minimum of February 2001. Its computation will be allowed for the amount invested for its acquisition without taking into account the interest that accrues on its nominal value and without exceeding the cap indicated, provided that the titles are kept deposited in the account opened in the Central Registration and Settlement of Public Debt Instruments "CRYL" of the Central Bank of the Republic Argentina.
7.2. It will be admitted, for the quarterly period November 2001/January 2002, the
integration of the minimum liquidity requirements with the balances of the account current in pesos opened in the Bank Central, without exceeding 70% of the requirement. Version: 7a. Communication "A" 3387 Validity:
01.11.01

MINIMUM LIQUIDITY REQUIREMENTS
ORDERED TEXT ORIGIN OF THE RULE
Section Point Paragraph Com. Annex Point Paragraph Observations
2. 2.1.4. "A" 2422 unique 3.1.10. According to Com. "A" 2648, "A"
3231, 3274 and "A" 3290.
2. 2.1.5. "A" 2422 unique 3.1.3. According to Com. "A" 2663, "A"
3274 and "A" 3290.
2. 2.1.6. "A" 2422 unique 3.1.8. According to Com. "A" 2648, "A"
3274 and "A" 3290.
2. 2.1.7. "A" 2422 unique 3.1.11. According to Com. "A" 2648,
2705, "A" 3274 and "A" 3290.
2. 2.1.8. "A" 2422 unique 3.1.9. According to Com. "A" 2648, "A"
3274 and "A" 3290.
2. 2.1.9. "A" 2422 unique 3.1.5. According to Com. "A" 2663,
2648, "A" 3274 and "A" 3290.
2. 2.1.10. "A" 2422 unique 3.1.7. According to Com. "A" 2648 and "A"
3274.
2. 2.1.11 "A" 3274 According to Com. "A" 3304.
2. 2.1.12. "A" 3274
2. 2.1.13. "A" 3365 3.
2. 2.1.14. "A" 3365 3.
2. 2.2. "A" 2422 unique 3. 1st and 2nd According to Com. "A" 2663,
2833, 2915, 3195, 3246,
3274, 3302, 3365 and 3387.
2. 2.3. "A" 2422 unique 3.2. According to Com. "A" 2705,
2817, 3274, 3357 and 3365.
3. 3.1.1. "A" 2422 unique 5. According to Com. "A" 2490,
modified by the Com. "A"
2833, 2915 and 3326.
3. 3.1.2. "A" 2422 unique 5. According to Com. "A" 2490.
3. 3.1.3. "A" 2422 unique 5. According to Com. "A" 2490, 3100
and 3326.
3. 3.1.4. "A" 2422 unique 5. According to Com. "A" 2490 and "A"
3274.
"B" 5159
3. 3.2.1. "A"3274
3. 3.2.2. "A" 2895 According to Com. "A" 2991 and "A"
3274.
3. 3.3. "A" 2833 2. According to Com. "A" 2895 and "A"
3274.
3. 3.3.2. "A" 2833 According to "A" 3274.
4. 4.1. Explicit criterion.
5. "A" 2422 unique 6. According to Com. "A" 2490, with
interpretative clarification.
6. 6.1. "A" 2422 unique 3.3. According to Com. "A" 2705, 2694
and "A" 3274.
6. 6.2. "A" 2422 unique 8. According to Com. "A" 3274.
6. 6.3. "A" 2422 unique 9. According to Com. "A" 2648 and "A"
3112.
6. 6.4. "A" 3132 unique
6. 6.5. "A" 3290
7. 7.1. "A" 3251 According to Com. "A" 3274.
7. 7.2. "A" 3361 2.

B.C.R.A. ORDERED TEXT OF THE RULES ON
MINIMUM CASH
-IndexSection 1. Requirement.
1.1. Obligations included.
1.2. Application base.
1.3. Minimum cash.
1.4. Alternative increase in requirement to debt placement.
1.5. Specific increases in requirement by concentration of liabilities.
1.6. Transfers.
Section 2. Integration.
2.1. Admitted concepts.
2.2. Computation.
2.3. Maximum computation limits.
2.4. Minimum daily integration.
Section 3. Non-compliance.
3.1. Charge.
3.2. Framing programs.
3.3. Regularization and sanitation plans.
Section 4. Base for observance of the rules.
4.1. Individual base.
Section 5. Responsible parties and sanctions.
5.1. Responsible for liquidity policy.
Section 6. Transitional provisions.
Version: 3a. Communication "A" 3387 Validity:
07.12.01

MINIMUM CASH B.C.R.A. Section 2. Integration.
2.3. Maximum computation limits.
The integration in the admitted concepts will only be computable up to the following maximum limits, measured with respect to the minimum cash of each period:
Concept Maximum computable
-in %- i) Points 2.1.1. to 2.1.4. and 2.1.6. (together) 100 ii) Point 2.1.5. 20
2.4. Minimum daily integration.
The greater requirement resulting from the application of the rate of 100%, established in the point 1.3.8. of Section 1., with respect to the requirement that would arise from the use of the rates provided for in points 1.3.1. to 1.3.4. and 1.3.6. of Section 1., must be integrated, exclusively and on the third business day following that which corresponds, in the current account in pesos opened in the Central Bank of the Republic Argentina. In the case of balances comprised of accounts in foreign currencies, the greater resulting requirement will be integrated, under the same conditions, in the current account in US dollars opened in this Institution. Version: 5a. Communication "A" 3387 Validity:
10.12.01

MINIMUM CASH B.C.R.A. Section 6. Transitional provisions.
6.1. It will be admitted, for the quarterly period November 2001/January 2002, the
integration of the minimum cash requirement in pesos with the balances of the account current in US dollars opened in the Bank Central, without exceeding 70% of the mentioned requirement.
6.2. A minimum cash requirement of 75% must be observed on the monthly
average of the daily increase that is registered in the deposits (checking and time, comprising all obligations subject to minimum cash requirement and to minimum liquidity requirements), in the period 3.12.01/ 31.1.02, with respect to the level verified on 30.11.01. This additional requirement must be integrated exclusively in the accounts current of financial entities opened in the Bank Central in US dollars on the third business day following the calculation. Version: 2a. Communication "A" 3387 Validity:
10.12.01

B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON MINIMUM CASH ORDERED TEXT ORIGIN OF THE RULE OBSERVATIONS Sec. Point Par. Com. Annex Sec. Point Par.
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. According to Com. "A" 3338.
1.3.2. "A" 3274 II 1. 1.3.2. According to Com. "A" 3338.
1.3.3. "A" 3274 II 1. 1.3.3. According to Com. "A" 3338.
1.3.4. "A" 3274 II 1. 1.3.4. According to Com. "A" 3338.
1.3.5. "A" 3274 II 1. 1.3.5. According to Com. "A" 3338.
1.3.6. "A" 3274 II 1. 1.3.6. According to Com. "A" 3365.
1.3.7. "A" 3274 II 1. 1.3.7.
1.3.8. "A" 3365 2.
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. According to Com. "A" 3304.
2.1. "A" 3274 II 2. 2.1.
2.1.1. "A" 3274 II 2. 2.1.1. According to Com. "A" 3304.
2.1.2. "A" 3274 II 2. 2.1.2. According to Com. "A" 3304.
2.1.3. "A" 3274 II 2. 2.1.3.
2.1.4. "A" 3274 II 2. 2.1.4.
2.1.5. "A" 3274 II 2. 2.1.5. According to Com. "A" 3338.
2.1.6. "A" 3311
2.2. "A" 3274 II 2. 2.2.
2.3. "A" 3274 II 2. 2.3. According to Com. "A" 3311 and
3338.
2.
2.4. "A" 3365 2. According to Com. "A" 3387.
3.1. "A" 3274 II 3. 3.1.
3.1.1. "A" 3274 II 3. 3.1.1. According to Com. "A" 3326 and
3365.
3.1.2. "A" 3274 II 3. 3.1.2.
3.1.3. "A" 3274 II 3. 3.1.3. According to Com. "A" 3326.
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" 3361 1.
6.2. "A" 3387 1.