Circular Monetary Regulations - REMON 1 - 441. Establishment of an Unavailable Deposit

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 1287 18/11/88
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS - REMON - 1 - 441. Establishment of an unavailable deposit.
We address you to inform you that this Institution has adopted the following resolution:

• Establish that, with effect as of 18.11.88, financial entities must establish an unavailable deposit at the Central Bank, not countable for the integration of the minimum cash reserve, subject to the following conditions:

1. Requirement
   1.1. Entities not included in Annex V to Communication "A" 865.
   2% of the annual average of daily balances of fixed-term deposits in transferable and non-transferable australs - excluding those captured with adjustment to point 3.4. of Chapter I of Circular OPASI - 2-, non-adjustable and adjustable by financial index, from the passive passes of national public securities and from the capitals effectively traded in "acceptances", recorded in October 1988.

1.2. Banks included in Annex V to Communication "A" 865
2% of the growth of the concepts mentioned in point 1.1., except passive passes of public securities, resulting from comparing the averages corresponding to October 1988 and to the period 1.10/14.10.87, excluding fixed-term deposits and "acceptances" from the provincial and municipal public sector of the respective jurisdictions.

1.3. When the determined requirement is less than A 1,500,000, the entities will be released from establishing this deposit.

1.4. From 18.11.88, the requirement will be deducted from the integration of the minimum cash reserve until the day prior to the crediting of funds in the deposit account.

2. Realization
   It will take place on 21.11.88.

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3. Adjustment
   To update the original capital of each release, the variation rate arising from the following expression will be applied:

r_t = (I_t / I_{t-1})^{1/n} - 1

Where r_t : variation rate
I_t : financial index corresponding to the day prior to the realization of each release I_{t-1}: financial index of 17.11.88 n: number of days of each period

4. Release
   It will be effected for the amounts and on the dates determined by the Central Bank, provided that the unavailable deposit is fully realized.

We clarify that to effect fund movements, the provisions disseminated through Communication "A" 641 will be applied.

In Formulas 4028, to be submitted to the Treasury Department, or in "Telex" cases, the following data will be recorded:

• Unavailable deposit "Communication "A" 1287"
• Special account number: the number assigned to the financial asset "at unregulated rate" (Communication "A" 733) will be recorded, replacing its
  first 2 digits with the number 98.
• Operation code: 385 (deposit)

On the other hand, the amount deductible from the integration of the minimum cash reserve referred to in point 1.4., will be reported in row 56 of Formula 3000 B with the designation: Requirement of the unavailable deposit "Communication "A" 1287".

BCRA COMMUNICATION "A" 1287 18.11.88
We salute you very attentively.
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Alfredo A. Besio
Manager of Standards for
Financial Entities
Julio A. Piekarz
Deputy General Manager