Circular Monetary Regulations - REMON 1 - 115. Assignment of a compensatory loan and requirement of an unavailable deposit

CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION "A" 366 10/08/83
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS - REMON 1 - 115. Assignment of a compensatory loan and requirement of an unavailable deposit

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

1 - Assign to financial entities a compensatory loan, effective 11.8.83, due to the requirement of minimum cash imposed for fixed-term deposits, non-transferable, at a free rate, whose amount will be equivalent to the positive result arising from adding to the balance on 9.8.83 of said deposits the net amount on 10.8.83 of interfinancial operations (loans received minus those granted), with the exception of those covered in point 3 of Circular REMON - 1 - 84 (Communication “A” 280).

When this total results in a negative figure, entities must establish an unavailable deposit at the Central Bank for the same amount and effective 11.8.83, which will not be counted for the purposes of integrating the minimum cash requirement.

2 - The Compensatory Loan will be cancelled in 6 consecutive monthly installments whose due dates will operate starting from 1.10.83.

This assignment will accrue interest calculated at the rate determined by this Institution and will be paid monthly, with due dates on the first day of the month following the corresponding one.

3 - The Unavailable Deposit will be released in 6 equal and consecutive monthly installments whose due dates will operate starting from 1.10.83.

This deposit will accrue interest determined at the rate established by the Central Bank and will be paid monthly, with due dates on the first day of the month following the one referred to.

4 - Financial entities must cancel with effective date 11.8.83 the interfinancial loans outstanding the previous day, providing the interest accrued from their granting.

5 - The rates that will accrue during August 1983 for the Compensatory Loan and the Unavailable Deposit will be 10.5% and 12.5% effective monthly, respectively.

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6 - The entities must endorse liquid portfolio documents and/or pledge pledges or mortgages to back the assignment they receive from the Central Bank, whose amount, at all times, is not less than the balance of the debt.

We greet you very attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Ernesto V. Feldman
Manager of Financing and Studies of the Financial System Daniel E. de Pablo Deputy General Manager