Circular Monetary Regulations - REMON 1 - 218: Active and Passive Operations Adjustable by Price Index - Procedural Rules

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION “A” 642
03/05/85

TO THE FINANCIAL INSTITUTIONS:

Ref.: Circular MONETARY REGULATIONS - REMON - 1 - 218. Active and passive operations adjustable by price index. Procedural rules.

We address you with reference to the provisions made known by Communication “A” 611, regarding active and passive operations adjustable by price index.

In this regard, we send you the model of Form 4029 and the instructions for its completion, usable to report the application of resources and settle the differences of accruals for credits not allocated to the complementary loan line.

On the other hand, we point out that the charges referred to in line 5. of Table A of the aforementioned form, not entered in a timely and proper manner, remain subject to the debt updating regime provided in point 3.2.5.2. of Chapter V of Circular LISOL - 1.

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Liliana M. Conti
Department Head
Deputy Manager of Rules for
Financial Institutions a/c

Néstor J. Taró
Departmental Manager
C/f Deputy General Manager

Annex

MODEL

CENTRAL BANK OF THE ARGENTINE REPUBLIC
Rediscount Department

OPERATIONS ADJUSTABLE BY PRICE INDEX
CODE

Institution:		Month of	of 19
TABLE A	APPLICATION OF RESOURCES
CONCEPT		Amounts in thousands of Argentine pesos
1. Resources (sum of lines 1.1. to 1.4.)
1.1. Deposits
1.2. Interfinancial obligations
1.3. Complementary loan lines
1.4. Additional support from the Central Bank
2. Applications (algebraic sum of lines 2.1. to 2.6.)
2.1. Credits granted up to 28.3.85
2.2. credits granted as of 1.4.85
2.3. Interfinancial loans
2.4. Unavailable deposit
2.5. Adjustable B.C.R.A. certificates
2.6. Operations allocated to own resources (-)
3. Unused margin (line 2. - line 1.) (-)
4. Excess investment (line 2. - line 1. ) (+)
5. Settlement of the charge (	% of line 4. X 1000)	Amount	in Argentine pesos

The provision of this form must be requested through Form 337

TABLE B	ACCRUAL DIFFERENCE FOR CREDITS NOT ALLOCATED TO THE COMPLEMENTARY LOAN LINE
CONCEPT	Amounts in Argentine pesos
1. Adjustments by combined price index
2. Adjustments by agreed price indices
3. Difference (line 1. - line 2.) (+ or -)
4. Complement of the gross intermediation margin of credits to small and medium-sized enterprises
5. Amounts in favor of the institution (+) / of the B.C.R.A. (-) (algebraic sum of lines 3. and 4.)

OBSERVATIONS:

Place and Date:

ACCOUNTING AREA (*)
GENERAL MANAGER
Signature and printed name
Signature and printed name

[*] To be signed by the highest-ranking officer

The supply of this form must be requested by Form 337

B.C.R.A. INSTRUCTIONS FOR THE COMPLETION OF FORM 4029 "OPERATIONS ADJUSTABLE BY PRICE INDEX"
Annex to
Com. "A" 642

1. General instructions

To determine, as from April 1985, the application of resources adjustable by price index and the accrual difference for active operations not allocated to the complementary loan line, entities shall use Form 4029, which must be submitted monthly to the Central Bank no later than the 16th of the month following the reporting month.

It shall be completed in triplicate. The original and the duplicate shall be sent to the Financial Institutions Control Management, and the triplicate shall be filed at the entity's head office.

Form 4029 is subject to the information submission regime (Circular RUNOR - 1, Chapter II, point 1).

2. Table A

The amounts, except for that of line 5., shall be expressed in thousands of Argentine pesos, without decimals, discarding fractions less than 500 and rounding those of 500 or more up to 1.000.

The data corresponding to lines 1. and 2. shall be calculated on the basis of the monthly average of daily balances (principal and adjustments) of the items included, recorded in the reporting month. The accrual of the updates shall be made on a monthly basis.

Line 1.1.

Non-transferable registered fixed-term deposits adjustable to medium term and by combined price index shall be recorded.

Line 1.4.

Financial support for insufficient growth of deposits adjustable by price index shall be recorded.

Line 2.1.

Credits adjustable by price indices granted up to 28.3.85 shall be recorded, except those allocated to own resources as of 31.12.84.

Line 2.2.

Credits adjustable by price index granted as from 1.4.85 shall be recorded.

Line 2.3.

The unavailable deposit referred to in Communication "A" 611 shall be reported.

Line 2.5.

Holdings of Central Bank certificates adjustable by combined price index referred to in point 1.3. of Annex II to Communication "A" 566 shall be recorded.

Line 2.6.

The total of operations allocated to own resources reported in lines 2.1 to 2.5 shall be recorded.

Line 5.

Entities shall attach a debit note (Form 3030) for the value resulting from applying to the amount recorded in line 4. the charge rate in force for the reporting month.

3. Table B

Line 1.

The adjustments that would have accrued in each month for credits outstanding as of 31.12.84, not originally allocated to the complementary loan line (included in Table B of Form 4025) and for those that become deallocated from it due to early cancellations by increases in lending capacity, granted with an adjustment clause by indices other than the combined price index (Communication "A" 539), according to the variations of the latter indicator, shall be recorded.

Line 2.

The adjustments accrued in each month for the credits referred to in line 1. adjustable by indices other than the combined price index (Communication "A" 539) shall be included.

In the case of credits adjustable for small and medium-sized enterprises agreed with an annual interest rate of - 4%, the updates reduced by the application of said rate shall be recorded.

Line 4.

The interest resulting from applying to the principal, adjusted by the agreed indices, of credits to small and medium-sized enterprises accruing effective annual rates of 3, 5% and 5, 5%, the rates resulting from subtracting the aforementioned types from the maximum in force in each month for updatable operations, shall be reported. In the cases of credits granted with an annual rate of - 4%, the maximum rate established in full shall be applied for these purposes.

B.C.R.A. INSTRUCTIONS FOR THE COMPLETION OF FORM 4029 "OPERATIONS ADJUSTABLE BY PRICE INDEX"
Annex I to the
Com. "A" 642

Line 5.

For the positive or negative amount determined in this line, entities shall attach a credit or debit note (Form 3030), respectively.

From the first day of the month following the one to which they refer, such amounts shall be added or subtracted, as applicable, in the computation of the minimum cash reserve until the day before the date on which the funds movement is made.

4. Observations

In this table, financial entities shall provide the clarifications they deem pertinent and all additional information required by the Central Bank.