Circular Monetary Regulations - REMON 1 - 342. Minimum Cash Requirement on Growth of Non-Regulated Rate Operations

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 1006 31/03/87
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS -
REMON - 1 - 342. Minimum cash requirement on the growth of operations in the non-regulated rate segment

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

“ 1. Establish that financial entities must increase the minimum cash requirement corresponding to April 1987 by an amount equivalent to the amount by which the average of non-transferable fixed-term deposits at non-regulated rates, of capitals effectively traded in “acceptances”, in securities loans between third parties, of passive repos, and of deposits of national public securities, corresponding to said month, exceeds the average of the first three concepts verified in February of the previous year, multiplied by 1.20.

2. Exempt from the requirement referred to in the preceding point those entities whose excess amount is less than A 2,000,000.

3. Provide that the requirement established in point 1. must be used to integrate a special deposit at the Central Bank, the average balance of which will be remunerated at a rate equivalent to 60% of the variation in the index of non-regulated passive interest rate that is recorded in April 1987. The resulting interest will be credited with a value date of 1.5.87”

We salute you very respectfully.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Alfredo A. Besio
Manager of Standards for
Financial Entities
Julio A. Piekarz
General Sub-manager