Circular Monetary Regulations - REMON 1 - 232. Punitive Charge Applicable for Deficiencies in the Integration of the Minimum Cash in Pesos

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 669 07/06/85
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS - REMON - 1 - 232. Punitive charge applicable for deficiencies in the integration of the minimum cash in pesos

We address you to bring to your knowledge that this Institution has adopted the following resolution:

“1º - Establish that deficiencies in the integration of the minimum cash of May 1985 will have the following punitive charges:
a) For up to the positive difference between the maximum amount of financial assistance for insufficient growth of deposits at unregulated rates not used in May and the average amount of the subscription of the financial asset of the Central Bank not constituted in accordance with the provisions made known through Communication “A” 653, 35.3%. b) Rest of the deficiency of the month, 39.5%.

2º - The difference in minimum cash of May 1985 will not be considered non-compliance for the purposes provided for in the various provisions of the Central Bank.

3º - Non-compliance with the constitution of the financial asset of the Central Bank referred to in point 5 of Annex I to Communication “A” 617 with the scope of the provisions made known through Communications “A” 641 and “A” 653 will observe, in May 1985, a charge of 39.5%.”

Consequently, those entities that observe a minimum cash deficiency in May must add the following data in the “Observations” box of Form 3000 of that month:

1. Average financial assistance for insufficient growth of deposits at unregulated rates not used in May, within the maximum admitted margins.
2. Average financial asset of the Central Bank not constituted in May as established by Communication “A” 653.
3. Difference (row 1 - row 2) (+)
4. Negative result, in absolute values, of row 5 of Table A of Form 3000.
5. Difference (row 4 - row 3) (+)

• 2 -

6. Charges
   6.1. 35.3% on row 3 or 4, the lesser, x 1000
   6.2. 39.5% on row 5 x 1000

The sum of the amounts contained in rows 6.1. and 6.2. must be included in row 6 of Table A of Form 3000 corresponding to May.

We salute you very attentively.
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Alfredo A. Besio
Manager of Standards for
Financial Entities
Elías Salama
Deputy General Manager