Circular Monetary Regulations - REMON 1 - 217. Absorption of lending capacity derived from increases in regulated rate deposits compared to the balance as of 31.3.85

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMUNICACIÓN “A” 641 03/05/85
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS -
REMON - 1 - 217. Absorption of lending capacity derived from increases in deposits at regulated rates compared to the balance as of 31.3.85

We address you with reference to the financial asset provided for in point 5 of Annex I of Communication “A” 617 of 3.4.85 (Circular REMON - 1 - 200).

In this regard, it has been ordered that investments be made in a deposit system whose characteristics are detailed in Annex I of this document. Annex II specifies the corresponding operational regime.

For the current month of May, the remuneration of the deposit - as provided for in section c) of Annex I - will be equivalent to the percentage variation of the “Loan Update Index”, without deduction.

We salute you very respectfully.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
José A. H. Pozzi
Manager of
Public Finances
Germán R. Pampillo
Principal Manager c/f Deputy General Manager
Annexes

B.C.R.A. CHARACTERISTICS OF THE ASSET PROVIDED FOR IN POINT 5 OF
ANNEX I OF COMMUNICATION “A” 617 OF 3.4.85
Annex I to
Com. “A” 641

For the purposes provided for in point 5 of Annex I of Communication “A” 617 of 3.4.85, the implementation of a deposit system for financial entities at this Institution is ordered, subject to the following modalities. a) Deposit and withdrawal of funds:
They will be carried out at the request of the financial entity through the respective debit or credit in its current account at this Institution. b) Ownership of the investment:
It will be presumed by the record kept by this Institution in the accounts that will be opened for that purpose. c) Yield:
The average deposit balances of each month will be remunerated according to the variation experienced by the “Loan Update Index” - deducted in the proportion that will be resolved at the appropriate time - between the last day of the month and the last day of the immediately preceding month. This percentage variation will be applied to the average daily balance recorded in the deposit account during the month or to the minimum amount that each entity should have invested on average during said period multiplied by 1.03, whichever is lower of the two. The amount resulting for each month will be credited to the deposit account of each entity with value on the first day of the immediately following month. d) Negotiability:
The investments will be non-transferable. e) Cancellation:
This Institution is authorized to cancel the investments in whole or in part by crediting the common current account of the holder for the invested amount, adjusted as provided previously.

B.C.R.A.
PROCEDURE RULES RELATED TO THE
MOVEMENT OF THE “SPECIAL” DEPOSIT ACCOUNT
(CIRCULAR REMON - 1 - 217) Communication “A” 641
Annex II to
Com. “A” 641

1 - To provide funds to the “Special” deposit account referred to in this communication, entities will transfer funds from the common current account opened at the Central Bank. To this effect, they will complete Formula No. 4028 in triplicate. The original and duplicate will be sent to the Central Bank, (Treasury Department), with the triplicate remaining in the possession of the entity. 2 - Entities must maintain sufficient funds in their common current account to be able to make the transfers referred to in the previous point. Otherwise, the corresponding order will be rejected, as overdraft balances in the current account originated by this cause are not admissible. 3 - To access the funds deposited in the “Special” deposit account, entities will complete Formula No. 4027 in triplicate, through which they will order its transfer to the common current account. The original and duplicate will be sent to the Central Bank (Treasury Department), with the triplicate remaining in the possession of the entity. 4 - The transfers referred to in points 1. and 3. may also be ordered by telex, which will contain the same data that make up Formulas Nos. 4027 and 4028. 5 - Formulas Nos. 4027 and 4028 must be signed by the same officials authorized to order the movement of the common current account at the Central Bank (point 2.1., Chapter I, Circular RUNOR - 1). 6 - The numbers of the “Special” deposit account assigned to each entity will be informed by Communication “B”.

Nº
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Accounting Department
TRANSFER OF FUNDS FROM THE “SPECIAL” DEPOSIT ACCOUNT (Circular REMON - 1 - 217 “A” 641 of 3.5.85) TO THE COMMON CURRENT ACCOUNT / / Entity:
DEBIT
For the Special Account No
CREDIT
For the Current Account No
AMOUNT OF THE TRANSFER
In Argentine pesos: _______________________________________________________________ ________________________________________________________________________________ $a CONCEPT 0 1 4 SHOULD BE COMPLETED IN TRIPLICATE ORIGINAL AND DUPLICATE for the B.C.R.A.. - Dept. of Accounting TRIPLICATE for the Authorized Entity Observations:
FINANCIAL ENTITY RESERVED B.C.R.A.
Form. 4027 (V - 85)
Authorized stamps and signatures Reviewed Registered The provision of this form must be requested via Form. 337

Nº
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Accounting Department
TRANSFER OF FUNDS FROM THE COMMON CURRENT ACCOUNT TO THE “SPECIAL” DEPOSIT ACCOUNT (Circular REMON - 1 - 217 “A” 641 of 3.5.85) / / Entity:
DEBIT For the Current Account No CREDIT For the Special Account No AMOUNT OF THE TRANSFER In Argentine pesos: ___________________________________________________________________ _________________________________________________________________________________________ _ $a CONCEPT 0 1 5 SHOULD BE COMPLETED IN TRIPLICATE ORIGINAL AND DUPLICATE for the B.C.R.A.. - Dept. of Accounting TRIPLICATE for the Authorized Entity Observations:
FINANCIAL ENTITY RESERVED B.C.R.A.
Form. 4028 (V - 85)
Authorized stamps and signatures Reviewed Registered The provision of this form must be requested via Form. 337