Circular Monetary Regulations REMON 1 199. Active Operations OPRAC 1 55. Passive Operations OPASI 1 55. Applicable Norms to Deposits and Loans at Interest Rates Not Regulated by the Central Bank

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMMUNICATION "A" 613 29/03/85
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS - REMON - 1 - 199. ACTIVE OPERATIONS - OPRAC - 1 - 55. PASSIVE OPERATIONS - OPASI - 1 - 55. Applicable norms to deposits and loans at interest rates not regulated by the Central Bank

We address you to inform you that this Institution has decided to implement a new system for capitalizing and applying resources at unregulated interest rates, effective from 1.4.85, taking into account the provisions contained in Annexes I to III. We salute you very respectfully

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Alfredo A. Besio
Departmental Submanager
Manager of Standards for
Financial Entities a/c
Elías Salama
General Submanager

ANNEXES

B.C.R.A.
NOMINATIVE NON-TRANSFERABLE FIXED-TERM DEPOSITS AT INTEREST RATES NOT REGULATED BY THE CENTRAL BANK OF THE REPUBLICA ARGENTINA
Annex I to
Com. “A” 613

1. They shall be established in favor of:
   1.1. Natural persons and private legal entities.
   1.2. Religious entities.
   1.3. Associations, foundations, and entities whose purpose is social assistance, public health, charity, beneficiary, education and instruction, scientific, literary, artistic, union, and physical or intellectual culture activities.
   1.4. Insurance companies, regardless of their legal nature.
   1.5. Non-financial public companies, whose list is included in the item "Loans -
   In pesos - Residents in the country - Non-financial public sector - Capitals" (Code:
   131100) of the Account Manual (Book of Accounting Standards for Financial Entities),
   excluding the entities listed in point 4. of Annex I to Communication “A” 282 and complementary.

2. Each deposit must remain for a period of no less than 7 days.

3. The interest rate freely agreed upon shall be applied to the principal. The effective annual interest rate must be expressed in the corresponding document, and interest must be paid at the maturity of the deposit.

4. The certificates representing these deposits shall be issued with the inscription “Certificate of nominative non-transferable fixed-term deposit at interest rate not regulated by the Central Bank”.

5. Deposits must be established in amounts no lower than those indicated in the following scale:
   From 7 to 14 days …………………… $a 2,000,000
   From 15 to 29 days …………………. $a 1,000,000
   From 30 days or more …………………$a 500,000

6. The instruments corresponding to these deposits must highlight in printed characters and visibly - occupying no less than 10% of the surface of the front of the document - the following expression: “This deposit is guaranteed by the Central Bank of the Republic Argentina up to the amount of $a…… plus the corresponding interest on that amount, when the holder is a natural person. As additional coverage, only 1% of the excess of that amount is guaranteed. In the case of ideal existence entities, the guarantee only covers 1% of the deposited capital plus the corresponding interest”.

For a period of 30 days counting from 1.4.85, the use of stamps with the aforementioned legend to be placed on deposit certificates will be admitted.

7. To the extent not provided for in these requirements, the provisions governing the Circular PASSIVE OPERATIONS - OPASI 1 - Chapter 1, Deposits, points 3.1.1. to 3.1.12 inclusive and 3.2.2. and 3.2.3. shall apply.

B.C.R.A. STANDARDS FOR THE APPLICATION OF RESOURCES Annex II to Com. “A” 613

1. The lending capacity resulting from the financial resources provided in this resolution may be applied to the following destinations:
   1.1. Financing operations that fall under the provisions issued regarding credit policy under the conditions established in point 2.
   1.2. Interfinancial loans, under the conditions established in point 2. These operations may be carried out exclusively between entities of the same character, taking into account the following groupings:

• Public financial entities.
• Rest of entities.
  The borrowing entities may use these funds to grant credits provided in point 1.1.
  1.3. Non-adjustable certificates of the B.C.R.A.

2. Credits must be granted in accordance with the following conditions:
   2.1. Term: freely agreed upon.
   2.2. Guarantees: to the satisfaction of the entities.
   2.3. Destination: Financing of working capital for productive activities (primary economic sectors, secondary, and their complementary services).
   2.4. Interest rate: freely agreed upon between the parties, with the limitation established in point 5 of Annex III.

3. To attend these financing operations, entities may apply the following resources:
   3.1. The lending capacity of nominative non-transferable fixed-term deposits at interest rates not regulated by the B.C.R.A.
   3.2. The interfinancial obligations mentioned in point 1.2.
   3.3. Own resources, net of immobilized assets.

B.C.R.A.
STANDARDS ON LENDING CAPACITY OF THE SYSTEM
AT INTEREST RATES NOT REGULATED BY THE
CENTRAL BANK OF THE REPUBLICA ARGENTINA
Annex III to
Com. “A” 613

1. Nominative non-transferable fixed-term deposits at interest rates not regulated by the Central Bank shall not observe a minimum cash requirement and shall be subject to the norms mentioned in Annex I.

2. The collection of nominative non-transferable fixed-term deposits at interest rates not regulated by the Central Bank may not exceed the amount resulting from summing the amounts obtained by applying the proportions established by the Central Bank on the following concepts:

• Deposits and obligations subject to fractional reserve.
• Computable Patrimonial Liability.
  For the determination of the limit, deposits and other obligations subject to fractional reserve shall be calculated based on the monthly average of daily balances, and Patrimonial Liability shall be that of the last day of the month, both with respect to the period immediately preceding the one in question. When the monthly average of capitals effectively invested in “pase” operations and acceptances in March 1985 exceeds the limit established previously, this may be increased exclusively in April 1985 up to reach that average without exceeding this increase by 20% of the established quota.

3. For excesses beyond the limitation established in the previous point, entities shall observe a minimum cash requirement equivalent, which shall not be remunerated by the Central Bank. Such excesses shall be determined based on the monthly average of daily balances of deposits valid in each month.

4. Excesses that occur in the placements referred to in point 1 of Annex II - excluding loans attended with own resources - with respect to deposits and interfinancial obligations taken at interest rates not regulated by the Central Bank, shall be subject to a charge equivalent to 0.55 times the maximum rediscount rate valid for the month in question.

5. The difference between the interest rates - weighted average - active and passive for operations at rates not regulated by the Central Bank, excluding those corresponding to loans attended with own resources and to Central Bank certificates, may not exceed 1% per month.