Circular LISOL 1 - 377. Minimum Cash Requirement. Modification of the Deductible Concept

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA __________________________________________________________________ COMUNICACIÓN "A" 3508 I 14/03/02 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
LISOL 1 - 377
Minimum Cash Requirement. Modi- fication of the deductible concept

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

"- Replace point 1.7 of Section 1 of the regulations on "Minimum Cash" with the following:

"1.7. Deductible Concept.

Sums contributed since 3.1.02 to the Bank Liquidity Fund, including amounts that exceed the equivalent to mandatory integration."

We send you attached the sheets that, in replacement of those previously provided, should be incorporated into the regulations on "Minimum Cash".

We salute you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA

Alfredo A. Besio José Rutman
Gerente de Emisión Gerente Principal de de Normas Normas y Autorizaciones

ANNEX

MINIMUM CASH B.C.R.A. Section 1. Requirement.
Additionally, a minimum cash requirement of 25% shall be observed on the monthly average (considering only positive balances) of the daily increase registered in deposits (on demand and time deposits, including all obligations subject to minimum cash requirement, except obligations with banks abroad - including head offices and controlling entities of local entities and their branches - for lines that do not have as destination the financing of foreign trade operations, debentures, and unused balances of current account advances computable), from 3.1.02, with respect to the balance verified on 4.1.02 (in this case, including computable obligations, according to the preceding criterion, subject to minimum liquidity requirements). In the determination of such requirements, the following deposits shall not be considered, for all purposes:

• official,
• time deposits constituted in cash from 3.12.01,
• in special accounts for cash deposits,
• corresponding to foreign diplomatic or consular representations, international organizations, special missions and commissions or bilateral or multilateral organs established by treaties in which the Argentine Republic is a party, and to foreign officials of those entities, accredited before the Ministry of Foreign Relations, International Trade and Worship, provided that the accounts are related to the performance of their functions, and
• rescheduled balances that are ceded by other financial entities, maintained as a deposit in the receiving entity under the rescheduling conditions, for the purpose of carrying out an operation provided for in point 5 of the "Deposit Rescheduling Regime".
  For the purposes of determining the computable growth, obligations included in foreign currency and the respective comparison base shall be converted to pesos at the rate of one peso with forty cents for each United States dollar ($ 1.40 = US$ 1) or its equivalent.
  1.7. Deductible Concept.
  Sums contributed since 3.1.02 to the Bank Liquidity Fund, including amounts that exceed the equivalent to mandatory integration.
  1.8. Defect in the application of resources in foreign currency.
  The defect in the application of resources corresponding to deposits in foreign currency that is determined in a month shall be computed by an equivalent amount in the calculation of the minimum cash requirement of that same period. Version: 3rd Communication "A" 3508 Validity:
  14.03.02

B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE REGULATIONS ON MINIMUM CASH ORDERED TEXT ORIGIN RULE OBSERVATIONS Sec. Point Para. Com. Annex Sec. Point Para.
1.1. "A" 3274 II 1. 1.1.
1.1.1. "A" 3274 II 1. 1.1.1. According to Comm. "A" 3498
1.1.2. "A" 3274 II 1. 1.1.2.
1.1.3. "A" 3274 II 1. 1.1.3. According to Comm. "A" 3498
1.2. "A" 3274 II 1. 1.2. According to Comm. "A" 3304 and
"A" 3498.
1.3. "A" 3274 II 1. 1.3.
1.3.1. "A" 3274 II 1. 1.3.1. According to Comm. "A" 3338,
"A" 3417 and "A" 3498.
1.3.2. "A" 3274 II 1. 1.3.2. According to Comm. "A" 3338,
"A" 3417 and "A" 3498.
1.3.3. "A" 3274 II 1. 1.3.3. According to Comm. "A" 3338,
"A" 3399, "A" 3417 and "A"
3498.
1.3.4. "A" 3274 II 1. 1.3.4. According to Comm. "A" 3338,
"A" 3417 and "A" 3498.
1.3.5. "A" 3274 II 1. 1.3.5. According to Comm. "A" 3338,
"A" 3417 and "A" 3498.
1.3.6. "A" 3274 II 1. 1.3.6. According to Comm. "A" 3365 and
"A" 3498.
1.3.7. "A" 3274 II 1. 1.3.7.
1.3.8. "A" 3498 unique 1. 1.3.8. According to Comm. "A" 3506 –
pt. 2.
1.3.9. "A" 3498 unique 1. 1.3.9.
1.3.10. "A" 3498 unique 1. 1.3.10.
1.3.11. "A" 3498 unique 1. 1.3.11.
1.3.12. "A" 3498 unique 1. 1.3.12.
1.3.13. "A" 3498 unique 1. 1.3.13.
1.3.14. "A" 3506 3.
1.3.15. "A" 3506 3.
1.4. "A" 3274 II 1. 1.5. According to Comm. "A" 3498
1.5. "A" 3274 II 1. 1.6.
1.5.1. "A" 3274 II 1. 1.6.1.
1.5.2. "A" 3274 II 1. 1.6.2. According to Comm. "A" 3304.
1.6. "A" 3470 1. According to Comm. "A" 3498
1.7. "A" 3498 unique 1. 1.7. According to Comm. "A" 3508
1.
1.8. "A" 3498 unique 1. 1.8.
2.1. "A" 3274 II 2. 2.1. According to Comm. "A" 3498
2.1.1. "A" 3274 II 2. 2.1.1. According to Comm. "A" 3304.
2.1.2. "A" 3274 II 2. 2.1.2. According to Comm. "A" 3304 and
"A" 3498.
2.1.3. "A" 3498 unique 2. 2.1.3.
2.1.4. "A" 3274 II 2. 2.1.3. According to Comm. "A" 3498
2.1.5. "A" 3274 II 2. 2.1.4.
2.1.6. "A" 3311
2.
2.1.7. "A" 3498 unique 2. 2.1.7.