Circular Monetary Regulations - REMON 1 - 273. Constitution of a special financial asset of the Central Bank

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION "A" 793
31/10/85

TO THE FINANCIAL INSTITUTIONS:

Ref.: Circular MONETARY REGULATIONS - RE-
MON - 1 - 273. Constitution of a special finan- cial asset of the Central Bank

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

" 1 - Establish that financial institutions must allocate to the subscription and integration of a special financial asset of the Central Bank an amount equivalent to the credits that this Institution makes effective as from 1.11.85 with the following purposes:

1.1. prefinancing of promoted exports.

1.2. financing to exporters (Communication "A" 228 and complementary ones).

1.3. financial support due to insufficient growth of deposits adjustable by price indices.

2 - In the cases referred to in paragraphs 1.1. and 1.2. of the previous point, the integration shall be made to the extent that the new loans of this Institution, within each line, exceed the balance of the debt (principal and adjustments) for each concept as of 30.10.85. For this purpose, as of that date the equivalent in United States dollars of the loans granted shall be determined, which shall be converted at the respective exchange rate in force at the time the request for funds is submitted.

3 - The integration of the aforementioned asset shall be made simultaneously with the crediting of the resources granted by the Central Bank and its release - for the amount of the principal - shall be effected together with the cancellation of the loans of the lines referred to in point 1.

The cancellations of loans disbursed on 31.10.85 within the regimes mentioned in points 1.1. and 1.3. shall not determine the release of investments in this asset.

4 - For the integration of this asset, financial institutions may allocate their own resources - net of immobilized assets - or funds from deposits captured at a non-regulated interest rate.

5 - The average balances invested in the financial asset referred to in point 1., recorded in each month, shall be remunerated at the rate resulting from the variation experienced, between the last day of each period and the last day of the immediately preceding one, by the index that this Institution shall publish, prepared on the basis of non-regulated passive interest rates plus the increase that is periodically set.

The crediting of the yield shall be made in the current account opened at the Central Bank, with value as of the first day of the month following the corresponding one.

6 - Leave without effect, as from 1.11.85, the available given to know through Communication "A" 772".

We inform you that for the constitution of the aforementioned asset a procedure similar to that provided in Communication "A" 641 (Annexes I and II) shall be used, except in what is linked to the yield and with the exceptions indicated below.

To make the fund movements, Forms 4027 and 4028 shall be used, indicating the numbers of the new accounts assigned to each entity, which are informed by Communication "B". As concept code, 33 and 34 shall be placed, respectively.

If applicable, Forms 4028 to constitute the asset must be accompanied to the pertinent request for funds, an indispensable condition to process the operation. Likewise, the entities must send the request for release (Form 4027) when the cancellation - anticipated or at maturity - of the loans included in point 1. of the preceding resolution proceeds.

Forms 4027 shall be presented directly to the Department of Rediscount or of Special Credit to Export, according to the line in question.

In addition, on the back of Forms 2408 and 3764 the following data must be recorded, with respect to the pertinent line:

• Balance as of 30.10.85 of the debt in australes (principal and, where applicable, adjustments) and its equivalent in United States dollars in accordance with the parity in force as of that date.

• Balance of the debt (principal and, where applicable, adjustments) at the close of the day immediately preceding that of the request for funds, excluding the operations of 31.10.85, plus the amount of the new request, in australes and in United States dollars, converted at the exchange rate of the day of the request.

• Balance of the debt (principal and adjustments) in australes as of the date of presentation of the request for funds, for the operations included in point 2.1.10.4. of Circular OPRAC - 1 - 52 (Annex II to Communication "A" 598).

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Alfredo A. Besio
Manager of Standards for
Financial Institutions
Néstor J. Taró
Deputy General Manager