Circular Monetary Regulations - REMON 1 — BCRA — AR

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 10 12/02/81
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS REMON - 1.
We address ourselves to you to accompany you with the consolidated text to date of the provisions issued by this Institution, which are applicable to the subject matter referenced. We salute you very respectfully. BANCO CENTRAL DE LA REPÚBLICA ARGENTINA Alberto L. L. Chazelle Manager of Monetary Programming Horacio A. Alonso General Deputy Manager
ANNEX

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONTENT
Circular MONETARY REGULATIONS REMON - 1
I - Minimum cash in national currency
II - Minimum cash in foreign currency.
III - Monetary Regulation Account (Law 21.572).
IV - Credits to the financial system.
12.2.81 1

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONTENT
I - Minimum cash in national currency. REMON - 1

Regulatory norms.
1.1. Included obligations.
1.2. Excluded obligations.
1.3. Integration.
1.4. Calculation and rates.
1.5. Charge for deficiencies.
Procedural norms.
2.1. Entries to be made by entities.
2.2. Information to the Central Bank.
2.3. Instructions for the integration of the formula.
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BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
CONSOLIDATED TEXT
Circular MONETARY REGULATIONS REMON - 1
I - Minimum cash in national currency.

Regulatory norms.
1.1. Included obligations.
Entities must constitute minimum cash on the following obligations in pesos, regardless of the legal nature of the creditors:
1.1.1. Those credited in deposit accounts opened in the name of third parties under the denomination of current accounts, demand deposits, savings accounts, fixed-term deposits, usury, and judicial deposits.
1.1.2. Those assumed through financial transactions between third parties, regarding the capitals effectively transacted. In the case of co-guaranteed documents placed by another financial entity, they must only be computed by the latter.
1.1.3. The sums received or collected for own operations or those of third parties, while they are not returned to the holder or cannot be applied to the payment or cancellation of the operation due to its maturity not having occurred or other cause.
1.1.4. Funds coming from the collection service, the realization of goods or collection of values on behalf of third parties.
1.1.5. The sums received to acquire securities, make placements in the market of financial transactions between third parties or other investments or payments of any nature, including those linked to exchange operations, to the extent that they are not applied.
1.1.6. Other sums received from third parties that constitute deposits by disposition of the Central Bank.
1.1.7. Orders to pay regardless of their instrumentation, as well as drafts, bills of exchange, and transfers pending payment.
1.1.8. Those issued and those assumed with third parties adhering to credit systems inherent to the entity, regardless of their instrumentation, including those pending settlement.
1.1.9. The other funds that they have retained, received, or made available to third parties - including in the concept of loan, credited in account or in transit -, that under any title or denomination are registered in favor of one or several determined or undetermined holders, provided that such funds are subject to return or payment in money to the holder or to third parties, either in the own house, in another of the same entity or in another entity, or when they must be applied to reduce items of the active assets of the receiving entity.
1.2. Excluded obligations.
Entities must not constitute minimum cash on the following obligations in pesos:
1.2.1. The price balances for the purchase of movable and immovable goods intended for own use.
1.2.2. Those linked to the proper functioning of the entity, such as:
1.2.2.1. Profits or surpluses pending distribution - including cash dividends, returns, fees, and other participations pending payment or crediting -, until the moment of making them available to the holders.
1.2.2.2. The sums received from third parties placed by the entity at the disposal of professionals or managers, to attend the payment of the provision of accessory services, such as title study, background checks, powers of attorney, or transactions.
12.2.81 1

I - Minimum cash in national currency (continuation). REMON - 1
1.2.2.3. Social security contributions and taxes, own or withheld from personnel, pending payment.
1.2.2.4. Invoices for expenses, accrued salaries, dismissal indemnities, fees, pending payment.
1.2.3. The sums that represent collections on account of matured loans or for the sale of movable and immovable goods, while they are not applied to reduce the active items.
1.2.4. The sums received on account, with an irrevocable character, for the integration of the capital of the own entity.
1.2.5. Those resulting from credits agreed by the Central Bank of the Argentine Republic.
1.2.6. Operations between financial entities, except for current account deposits constituted in commercial banks by other financial entities to integrate their minimum cash.
1.2.7. Those accrued in favor of third parties for interest, while they have not been credited in account or made available to the holders.
1.2.8. The higher value resulting from the application of adjustment clauses in deposit accounts of that character opened in the name of third parties.
1.2.9. Those issued in the form of certificates or other securities, with prior authorization of the Central Bank.
1.2.10. Savings deposits constituted as a prior condition for the granting of loans for housing or other real estate, according to plans authorized by the Central Bank of the Argentine Republic and, prior to 1.11.77, by the Federal Savings and Loan Box for Housing.
1.2.11. Secured savings accounts constituted until 8.9.78, derived from direct mortgage credits for housing or other real estate.
1.2.12. Installments pending delivery corresponding to mortgage loans intended for the construction, renovation, or expansion of housing or other real estate.
1.3. Integration.
1.3.1. For the integration of the minimum cash, the following are admitted:
1.3.1.1. The funds in pesos that the houses of each entity maintain in banknotes and coins.
1.3.1.2. The creditor balance registered in the Central Bank in the current account opened in the name of the entity.
1.3.1.3. The regular deposits of currency in custody that the financial entities comprised in the institutionalized system carry out among themselves.
The conditions for opening, maintenance, and movement of this type of deposit are those agreed upon between the parties, and the funds received in custody must be kept separate from the banknotes and coins belonging to the entity in a determined and individualized area of the treasury of the depositary, to which officials and inspectors of the Central Bank must have access.
1.3.1.4. The funds belonging to financial entities that are in transit, or deposited in treasuries of cash transport companies that unconditionally agree to the intervention of their treasuries by the Central Bank of the Argentine Republic, provided that:
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B.C.R.A.
I - Minimum cash in national currency (continuation). REMON - 1

The respective amounts are withdrawn from any of the houses of a financial entity or from the Central Bank and delivered the next business day to another house, to which they cannot enter on the same day due to opening and closing hours of its treasury, and
As an exception, the Central Bank may accept longer periods, when there are justified reasons (distance, schedules, weather conditions, alteration of public order, etc.).
The conditions of the instruments by which the services of transport and eventual custody of the cash are contracted must be agreed upon between the parties, and the funds received from each financial entity by the transport companies must be kept separate from the rest of the banknotes and coins they have in their possession, in a determined and individualized area of the treasury of the depositary, to which officials and inspectors of the Central Bank must have access. Failure to comply with the contracted clause, by the transporter and/or depositary, obliges the financial entity to the immediate rectification of the statements in which such items had been included. Such funds are considered in the integration by the sender or the recipient, depending on who has taken charge of the responsibility and risk of the transport.
1.3.1. Also admitted is the temporary integration of the minimum cash with the following items:
1.3.2.1. Pending reimbursements for payments to beneficiaries of pensions and old-age, disability, and gratuity pensions of the National Institute of Social Security.
1.3.2.2. Pending reimbursements for coverage by the Central Bank for the purchase of dollars corresponding to reciprocal credit agreements. The pending debits for coverage for the sale of dollars linked to said agreements must be included with a negative sign.
1.3.2.3. The amount of services for rent and amortization of public securities deposited in custody, pending crediting by the Central Bank.
1.3.2.4. The balance registered in the Bank of the Argentine Nation in the current accounts opened in the name of each entity to attend the movements of the clearing houses of the interior, according to the account statement of the depositary bank.
Likewise, the Bank of the Argentine Nation may consider the eventual debtor balances registered in the accounts of member entities.
1.3.3. Mortgage and investment banks, finance companies, credit boxes, and savings and loan societies for housing or other real estate may also integrate the minimum cash with current account deposits constituted for that purpose in commercial banks, in which case the records of the depositaries must be taken into account.
1.4. Calculation and rates.
1.4.1. The calculation of the minimum cash must be carried out based on the average of the balances registered at the close of operations corresponding to all days of each calendar month
12.2.81 3

I - Minimum cash in national currency (continuation). REMON - 1 of the items indicated in points 1.1. and 1.3. preceding. On days when no movement is registered, the balance corresponding to the immediate previous business day is repeated.
1.4.2. The following rates are applicable:
1.4.2.1. 100% to:
1.4.2.1.1. Deposits - creditor balances - in current accounts constituted by mortgage and investment banks, finance companies, credit boxes, and savings and loan societies for housing or other real estate to integrate their minimum cash.
1.4.2.1.2. The "Extraordinary Amortization Fund - Circular B. 1070" (Multiple Note 505/S.A. 32 of 27.8.74).
1.4.2.1.3. The balances of current accounts opened in the Bank of the Argentine Nation in the name of banking entities to attend the movements of the clearing houses of the interior.
1.4.2.1.4. Prior deposits for import, as long as this type of obligation subsists.
1.4.2.2. The remaining included obligations observe the rate fixed by the Central Bank.
1.5. Charge for deficiencies.
1.5.1. Deficiencies in the integration of the minimum cash are subject to a charge of 1.4 times the maximum rediscount rate in force for the respective month.
For the purposes of determining said charge, the rediscount rate in force during the period of non-compliance arises from the sum of the daily maximum rediscount rates established by this Institution. Without prejudice to the above, to each deficiency of minimum cash incurred prior to May 1, 1980, the charge fixed at the time is applicable.
1.5.2. In exceptional situations, existing mitigating circumstances, the level of the charge provided for in point 1.5.1. may be reduced taking into account the causes that gave rise to the deficiency.
1.5.3. When entities must rectify minimum cash information due to having incurred omissions or errors in their integration, the amount of the charges for the deficiencies that may arise is obtained by summing those corresponding to each monthly period and independently of other technical relations, with incidence on the financial and economic aspects of the entities only from the date on which the corresponding debit is made in the current account they maintain in this Institution.
The amount of the debt resulting from the aforementioned concept must be updated according to the correction factor arising from the comparison of the wholesale price index - general level - prepared by the National Institute of Statistics and Censuses and communicated by the Central Bank, corresponding to the first or second month prior to the moment when said debt had become due and to the same relativity to the date on which the debit is made in the current account that the entity maintains in this Institution. The update provided for in the previous paragraph is not applicable in the case of entities that spontaneously present corrected information corresponding to previous monthly periods, which originate the payment of charges for deficiencies. Spontaneous presentation is considered that which entities make "motu proprio", provided that it is carried out at a time when there is no circumstance that, directly or indirectly, could call into question the own determination of said act. The minimum cash deficiencies that entities spontaneously declare as a consequence of the rectification of information corresponding to previous monthly periods do not affect the projects for expansion of services or participation in financial entities abroad. If as a consequence of the adjustments made spontaneously, those entities will be subject to plans of regularization and sanitation - subsection a) of Article 34 of the Financial Entities Law - those projects will be admitted from the first month in which the situation is considered normalized.
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B.C.R.A.
I - Minimum cash in national currency REMON - 1
2. Procedural norms
2.1. Entries to be made by entities.
Entities must register in specially authorized sheets, the position resulting from the norms on minimum cash on each of the days of the month. Such entries must be consolidated in the head office and kept for a period of no less than three years.
2.2. Information to the Central Bank.
2.2.1. Formula 3000, "Statement of minimum cash in national currency", is used, whose original and duplicate are sent monthly to the Entity Control Management of the Central Bank and the triplicate is archived in the head office of each entity.
2.2.2. The sending of the information must be carried out by the head office with the necessary advance so that they are in the possession of the Central Bank within the following maximum deadlines, counting from the date of the information:
2.2.2.1. Entities with up to 15 houses……………..10 calendar days.
2.2.2.2. Entities with more than 15 houses…………..15 calendar days.
2.2.3. Formula 3000 is subject to the current regime on the provision of information to the B.C.R.A.
2.3. Instructions for the integration of the formula.
2.3.3. The amounts are registered in millions of pesos, without decimals, discarding fractions less than 500,000 and increasing to one million fractions of 500,000 or more. This rule is excepted from the information of the charge which is recorded in pesos.
2.3.4. In the Annex, the items subject to minimum cash and those that conform its integration are detailed, with the observations formulated in particular situations.
2.3.5. Charge for deficiency of the minimum cash.
The charge for deficiency is calculated according to what is provided in point 1.5. of the present Chapter.
When in formula 3000 - both the one referred to the period to be reported and those corresponding to rectifications of previous months - a deficiency has been registered, it is appropriate to send formula 3030 for the purposes of the debit of the charge in the current account in the Central Bank. In case of not fulfilling this requirement, the respective debit is carried out ex officio.
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12.2.81 1
Items subject to the requirement of minimum cash.
Subject to 100% requirement
Subject to ……% requirement
(single rate)
311148, 311748, 311415 and 321151.
311106, 311112, 311131, 311133,
311136, 311139, 311142, 311145,
311151, 311154, 311191, 311706,
311712, 311718, 311721, 311724,
311727, 311731, 311733, 311736,
311739, 311742, 311745, 311751,
311754, 312103, 312106, 312109,
312112, 312118, 312121, 312124,
312131, 312133, 312136, 312139,
312142, 312145, 312151, 312154,
321102, 321124, 321148, 321154,
321155, 321158, 321161, 321162,
321181, 322128, 322131 and 322181.
331106, 331109, 331112, 332106 and
332109.
331127
The balances of current accounts opened in the Bank of the Argentine Nation in the name of banking entities are included to attend the movements of the clearing houses of the interior. They are computed taking into account the provisions of point 1.2.2.1. of the present Chapter. Advances - including the corresponding profits - for the sale of real estate that entities build must be considered 1. 1.1. 1.2.
ANNEX TO CIRCULAR REMON 1, CHAPTER I, POINT 2
B.C.R.A.

12.2.81 to be partly intended for own use
and the rest for sale, to the extent that the same, net of profits, have not been invested in the part of the construction proportionally attributable, within the total of the project, to the units for sale.
331131. They are computed taking into account the provisions of point 1.2.1. of the present
Chapter.
111017 (credits made in the Mentioned account). Consider the checks issued against a current account computable for the integration of the minimum cash, by the financial entities referred to in point 1.3.3. of the present Chapter delivered in payment of any obligation, until their real realization.
4. Integration of the minimum cash
4.1. Banknotes and coins 111001. Excluded are expenses subject to accounting.
111005 and 111009. These items must be individualized by means of references.
4.2. Pending reimbursements for payments to 141133. The aforementioned reimbursements comprise
beneficiaries of pensions and pensions. exclusively the sums that correspond to "prepayment orders" paid under regulatory conditions. Therefore, the paying entities cannot ANNE TO CIRCULAR REMON 1, CHAPTER 1, POINT 2

12.2.81 compute the amounts paid by
orders that are outside such conditions, as, for example, those that were matured or those with respect to which a prolongation had been disposed of in the period of payment or other analogous circumstances occurred that determined that the payment was improperly made.
4.3. "B.C.R.A. - Reciprocal Credits - Credits 141142. Items not corresponding to the B.C.R.A. relative to
pending" conventions celebrated with member of
4.4. "B.C.R.A. - Reciprocal Credits - Debits 321115. the ALALC and with the following
pending " (-) banking entities abroad:

Central Bank of Chile
National Bank of Cuba
Central Bank of Uruguay
Central Bank of Costa Rica
Central Bank of Bolivia
Bank of the Nation of Peru and
Development Financial Corporation
Bank Handlowy W Warszawie
S.A. - Poland
Ceskoslovenska Obchodni Banka
A.S. - Czechoslovakia
4.5. Service of rent and amortization of public 141148.
securities deposited in custody, pending crediting by the B.C.R.A.
ANNEX TO CIRCULAR REMON 1, CHAPTER 1, POINT 2
B.C.R.A.

12.2.81
4.6. "B.C.R.A. - Current Account" 111015. Creditor balances according to statement
from the Central Bank
4.7. Current accounts in commercial banks 111017. Creditor balances according to statements
admitted for the integration of the minimum of the depositaries. cash.
4.8. "B.N.A. - Clearing House". 141127. The balance registered in
the Bank of the Argentine Nation is included in the current accounts opened in the name of each entity to attend the movements of the clearing houses of the interior, according to the account statement of the depositary bank. The Bank of the Argentine Nation may compute the eventual debtor balances registered in the accounts of member entities.
4.9. Currency in custody in other entities 111003. They are computed taking into account the
financial institutions. provisions of point 1.3.1.3. of the present Chapter.
4.10. Delivery of checks against the current account 111015. Credits for that concept
opened in the B.C.R.A. by a financial entity to another, as a counterpart of money received (-).
4.11. Receipt of checks against the current 111011
account opened in the B.C.R.A. issued by a financial entity, as a counterpart of money disbursed and checks and
ANNEX TO CIRCULAR REMON 1, CHAPTER 1, POINT 2

12.2.81 other payment orders issued by
the B.C.R.A. in the possession of the entity.
Back of the "Average monthly daily balances It is recorded - for informational effect only - the average monthly formula. of daily balances of currency in custody regulated by Multiple Note 350/1 of 21.12.79, which by its operational characteristics must not integrate row 4.1. nor alter in any way the original balances declared in row 4.2.
ANNEX TO CIRCULAR REMON 1, CHAPTER 1, POINT 2
B.C.R.A.

MODEL
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Financial Entity Control Department
STATE OF MINIMUM CASH IN NATIONAL CURRENCY
(In millions of pesos)
CODE
ENTITY: Month of 19
CONCEPT AMOUNTS

Items subject to minimum cash requirement.
1.1. Subject to 100% requirement.
1.2. Subject to % requirement.
Minimum cash requirement.
2.1. 100% on amount of line 1.1.
2.2. % on amount of line 1.2.
Difference (line 1 - line 2).
Integration of minimum cash
3.1. Banknotes and coins
4.2. Pending reimbursements for payments to pensioners.
4.3. “B.C.R.A. - Reciprocal Credits - Pending Credits”
4.4. “B.C.R.A. - Reciprocal Credits - Pending Debits” (-)
4.5. Services for rent and amortization of public titles deposited in custody, pending crediting by the B.C.R.A.
4.6. “B.C.R.A. - Current Account”.
4.7. Current accounts in commercial banks, admitted
for the integration of minimum cash.
4.8. “B.N.A. - Clearing House”
4.9. Currency in custody at other financial entities
4.10.
4.11.
4.12.
4.13.
Excess or deficiency of minimum cash for the month under report (line 4 - line 2) (+ or -)
Settlement of charge for deficiency of minimum cash (
% on negative result of line 5 x 1,000,000).
(1)
Place and date:
Accounting Area (2) General Manager
Signature and clarification Signature and clarification (1) - Amount with which Formula No. 3030 is attached. (2) To be signed by the highest-ranking official. Form. 3000 (I - 81) The provision of this form must be requested via Form 337.
12.2.81 1

CENTRAL BANK OF THE ARGENTINE REPUBLIC
CONTENT
II - Minimum cash in foreign currency. REMON - 1

Regulatory rules.
1.1. Computation.
1.2. Integration.
1.3. Charge.
1.4. Application of lendable capacity.
Procedural rules.
2.1. Entries to be made by entities.
2.2. Information to the Central Bank.
2.3. Instructions for integrating the form.
12.2.81 1

CENTRAL BANK OF THE ARGENTINE REPUBLIC
ORDERED TEXT
Circular MONETARY REGULATIONS REMON - 1
II - Minimum cash in foreign currency.

Regulatory rules.
1.1. Computation.
Entities must maintain, on foreign currency deposits, the reserve ratio that is determined. In this regard, the monthly average of the deposits reached, the integration of the reserve, and the final position (excess or deficiency) are calculated on the basis of daily balances of the different currencies converted to United States dollars, using for this purpose the daily exchange rates between currencies arising from the quotations - selling rate to clients for transfers - published by the Banco de la Nación Argentina at the close of its operations. On those days when no movement is recorded, the balance corresponding to the immediately preceding day must be repeated.
1.2. Integration.
The minimum cash referred to in the previous point must be integrated in freely available foreign currency, represented by:
1.2.1. Banknotes and coins in the vault, and
1.2.2. Deposits in United States dollars available to the Central Bank.
The integration of the minimum cash referred to in point 1.2.2. must be carried out in the "Minimum Cash" account opened at the Banco de la Nación Argentina, New York Branch, to the order of the Central Bank of the Argentine Republic. To this end, financial entities are authorized to draw directly on the aforementioned account, and must agree directly with the Banco de la Nación Argentina, New York Branch, on the operational regime for the withdrawal of such funds, which in all cases must be reimbursed over New York.
1.3. Charge.
1.3.1. Deficiencies in the integration of minimum cash are subject to the charge that the Central Bank establishes for failures to meet reserve requirements in national currency. For these purposes, the declared deficiency is applied the selling rate to clients for transfers of the Banco de la Nación Argentina corresponding to the last business day of the immediately preceding month.
Compensation of excess or deficit minimum cash positions between national and foreign currency operations is not permitted.
1.3.2. The provisions contained in points 1.5.2. and 1.5.3. of Chapter I apply as appropriate.
1.4. Application of lendable capacity.
The lendable capacity in foreign currency resulting from these deposits may be used in granting credits and, if applicable, temporarily, in Argentine values issued in foreign currency.
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B.C.R.A.
I - Minimum cash in national currency REMON -1
2. Procedural rules.
2.1. Entries to be made by entities.
Entities must register in specially enabled sheets the resulting position regarding minimum cash rules on each day of the month. Such entries must be consolidated at the head office and preserved for a period of no less than three years.
2.2. Information to the Central Bank.
2.2.1. Formula 1961, "State of Minimum Cash in Foreign Currency", is used, whose original and duplicate are sent monthly to the Financial Entity Control Department and the triplicate is archived at the head office of each entity.
2.2.2. The sending of information must be done by the head office with sufficient advance notice so that they are in possession of the Central Bank within the following maximum time limits, counted from the date of the information:
2.2.2.1. Entities with up to 15 branches…………………10 calendar days.
2.2.2.2. Entities with more than 15 branches………………15 calendar days.
2.2.3. Formula 1961 is subject to the current regime on the presentation of information to the B.C.R.A.
2.3. Instructions for integrating the form.
2.3.1. Amounts are recorded in thousands of United States dollars, without decimals, discarding fractions less than 500 and increasing to one thousand fractions of 500 or more. This rule does not apply to the charge information, which is recorded in pesos.
2.3.2. The Annex details the items subject to minimum cash and those that constitute its integration, with the observations formulated in particular situations.
2.3.3. Charge for deficiency of minimum cash.
The charge for deficiency is recorded according to what is provided in point 1.5. of the present Chapter, in line 5.
When Formula 1961 has registered a deficiency, it is necessary to send Formula 3030 for the purpose of debiting the charge in the current account at the Central Bank. If this requirement is not met, the respective debit will be made ex officio.
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Line Concept Chart of Accounts Items Observations

Items subject to minimum cash requirement.
1.1. Subject to ....% requirement 315107,315142, 315154,
315707, 315742, 315754,
316104, 316107, 316142 and 316154
Demand deposits.
1.2. Subject to ....% requirements 315132, 315137, 315732,
315737, 316132 and

Time deposits
3. Integration of minimum cash.
3.1. Banknotes and coins in the vault. 115001. Only banknotes
and coins in the vault must be computed, provided they do not integrate the position of declared changes to the Central Bank.
3.2. Banco de la Nación Argentina (New York Branch)
account "Minimum cash".
116017. Balances according to statements from the depositary.
12.2.81 1
ANNEX TO CIRCULAR REMON 1, CHAPTER II, POINT 2
B.C.R.A.

MODEL
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Financial Entity Control Department
STATE OF MINIMUM CASH IN FOREIGN CURRENCY
(In thousands of US$) (1)
CODE
Entity: Month of 19
CONCEPT AMOUNTS

Items subject to minimum cash requirement
1.1. Subject to % requirement.
1.2. Subject to % requirement.
Minimum cash requirement.
2.1. % on amount of line 1.1.
2.2. % on amount of line 1.2.
Integration of minimum cash
3.1. Banknotes and coins in the vault.
3.2. Banco de la Nación Argentina (New York Branch)
account "Minimum Cash".
Excess or deficiency of minimum cash for the month under report
(line 3 - line 2) (+ or -)
Charge for deficiency of minimum cash
Amount with which Formula 3030 is attached.
5.1. Negative amount of line 4, recorded with a positive sign, converted according to current regulations.
5.2. Current percentage for the month under report.
Observations:
Place and date:
Accounting Area (2) General Manager
Signature and clarification Signature and clarification (1) - Except for the calculation of the charge (line 5) which is recorded in pesos.
(2) - To be signed by the highest-ranking official.
Form. 1961 (I - 81)
The provision of this form must be requested via Form 337.
12.2.81 1

CENTRAL BANK OF THE ARGENTINE REPUBLIC
CONTENT
III - Monetary Regulation Account. REMON - 1

Text of Law 21.572.
Regulatory rules.
Procedural rules.
3.1. General instructions.
3.2. Entities presenting an balanced situation or excess of minimum cash.
3.3. Entities presenting a deficiency of minimum cash.
12.2.81 1

CENTRAL BANK OF THE ARGENTINE REPUBLIC
ORDERED TEXT
Circular MONETARY REGULATIONS REMON - 1
III - Monetary Regulation Account

Text of Law 21.572
Ministry of Economy.
Buenos Aires, May 6, 1977
MOST EXCELLENT MR. PRESIDENT OF THE NATION.
I have the honor to address you to submit for your consideration the attached draft law for the creation of a Monetary Regulation Account, whose management and control will be entrusted to the CENTRAL BANK OF THE ARGENTINE REPUBLIC, on behalf of the National Government. The reform of the financial system established by Law 21.495 and its alignment with the provisions of the new Financial Institutions Law, will involve resuming the use of classic monetary regulation mechanisms, within which the maintenance of mandatory minimum reserves by credit institutions will constitute a fundamental instrument in the new stage that begins. But it is known that minimum cash reserves, when they must acquire significant proportions to not exceed desired monetary expansion targets, hinder the achievement of other equally important objectives from the point of view of the financial policy being carried out within the framework of the Government's economic program. Argentine experience indicates and corroborates the reality of the most advanced countries in the world, that the strengthening and stability of internal savings can only be achieved by creating conditions that enable the financial system to reward with positive real interest rates the resources that the community deliberately withdraws from consumption to keep them in reserve as a constant value asset. The partial unavailability of those funds that will arise for financial entities as a consequence of complying with the minimum cash stipulated by the Central Bank, will prevent them from achieving that purpose of favoring and stimulating the formation of savings through the recognition of interest rates that absorb monetary depreciation, unless means are devised to allow them to be economically compensated for that partial immobilization of their lendable funds. With this object, the creation of the Monetary Regulation Account is proposed, to whose formation financial institutions themselves will essentially contribute, through the contributions they make for the use of the lending capacity of deposits and other demand obligations, in the proportions and conditions fixed by the CENTRAL BANK OF THE ARGENTINE REPUBLIC. The advantages offered by the mechanism submitted for your consideration do not end in that substantive point of stimulating and favoring the accumulation of internal savings, but also, it will allow the named Institution to exercise a more refined control of the credit supply, through the establishment of uniform reserve requirements for all liabilities to third parties that under different modalities entities collect, which in turn will favor healthy competition among all of them, contributing to the improvement of their operational aptitudes.
12.2.81 1

III - Monetary Regulation Account (Continuation). REMON - 1 It also seems convenient to mention aspects related to the formulation of the draft law attached. The breadth of its provisions, far from constituting an oversight, obeys to a deliberate attitude, which aims to endow the CENTRAL BANK OF THE ARGENTINE REPUBLIC with the autonomy required to handle such changing aspects as the determination of the compensation to be recognized for maintaining minimum cash reserves - strongly linked to the interest rates fixed by the market as well as to the amount of contribution that financial institutions themselves must make and the detailed breakdown of deposits and other liabilities to third parties that will serve, in each case, to calculate the income of the Account or to establish the corresponding compensatory amounts. A final clarification is required by the stipulations of Article 5th of the Law. The flow of income and expenses recorded by the Monetary Regulation Account will be intimately linked to the permanent movements that occur in the composition of deposits of the financial system, so it is indispensable to foresee, as likely to occur in an initial stage, that its unfavorable balances can be covered immediately by the CENTRAL BANK OF THE ARGENTINE REPUBLIC advancing the necessary resources, without thereby affecting the borrowing limits of the National Government with that Institution. Similarly, its creditor balances cannot be used by the National Treasury to cover its current expenses. God guard Your Excellency. Signed: Brig. Julio Arnaldo Gómez Minister of Justice and Interim Minister of Economy IT IS A COPY.
12.2.81 2

CENTRAL BANK OF THE ARGENTINE REPUBLIC
ORDERED TEXT
Circular MONETARY REGULATIONS REMON - 1
III - Monetary Regulation Account. (Continuation).
THE NATIONAL EXECUTIVE POWER
Buenos Aires, May 6, 1977
In use of the powers conferred by Article 5th of the Statute for the Process of National Reorganization, THE PRESIDENT OF THE ARGENTINE NATION SANCTIONS AND PROMULGATES WITH FORCE OF LAW:
ARTICLE 1st - A Account named "Monetary Regulation" is created, which will be administered by the CENTRAL BANK OF THE ARGENTINE REPUBLIC, on behalf of the National Government and will appear in the balance sheet of that Institution.
ARTICLE 2nd - The resources of the Monetary Regulation Account will come from the following sources:
a) the charges that financial entities included in Law 21.526 will pay for the use of the lending capacity of deposits and other demand obligations that the CENTRAL BANK OF THE ARGENTINE REPUBLIC determines, with the scope and proportions that this establishes; b) the funds that come from the application of the punitive charge and sanctions that the CENTRAL BANK OF THE ARGENTINE REPUBLIC applies to financial entities, according to the provisions of Article 4th of this Law, and c) the advances made by the CENTRAL BANK OF THE ARGENTINE REPUBLIC to cover the debtor balances of the Monetary Regulation Account.
ARTICLE 3rd - The availability of the Monetary Regulation Account will be destined to provide compensation to entities included in Law 21.526 for the minimum cash they maintain regarding deposits and other time obligations, in accordance with the scope and requirements fixed by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.
ARTICLE 4th - Financial entities that do not enter in time and form the charges determined by the CENTRAL BANK OF THE ARGENTINE REPUBLIC by virtue of the power conferred by Article 2, subsection a) of the Law, will pay the punitive charge that that Institution determines, which may reach up to five times the maximum rediscount rate, without prejudice to the application of the remaining sanctions provided for in Title VI of Law 21.526 that may correspond to them.
ARTICLE 5th - The creditor balances recorded by the Monetary Regulation Account will remain unavailable to the National Government and will not accrue interest in their favor.
12.2.81 3

III - Monetary Regulation Account (Continuation). REMON 1 THE CENTRAL BANK OF THE ARGENTINE REPUBLIC will provide the necessary resources to cover the debtor balances of the Monetary Regulation Account, for which it will not receive interest. These fund advances will not be imputed to the borrowing limits of the National Government with the CENTRAL BANK OF THE ARGENTINE REPUBLIC, according to the provisions of articles 29 and 51 of Law 20.539 and its modifications.
ARTICLE 6th - This Law will begin to govern from the date of application of Law 21.526 on the decentralization of deposits of financial entities.
ARTICLE 7th - Communicate, publish, give to the National Directorate of the Official Register and archive.
VIDELA
Signed: Brig. Julio Arnaldo Gómez
Minister of Justice and
Interim Minister of Economy.
IT IS A COPY.
12.2.81 4

B.C.R.A.
III - Monetary Regulation Account REMON - 1
2. Regulatory rules.
2.1. Use of the lending capacity of deposits and other demand obligations that pays or is exempt from the charge established in Article 2, subsection a) of the Law.
2.1.1. Scope.
For the purposes of this regulation, the use of the lending capacity is understood as the effective investment that entities make of resources coming from deposits and other demand obligations in pesos, with the exception of those indicated in the next point.
2.1.2. Exempt investments.
2.1.2.1. Those resulting from demand obligations not subject to minimum cash.
2.1.2.2. Up to the amount resulting from applying the percentage fixed by the Central Bank on deposits and other demand obligations, subject to the single minimum cash rate provided for in Chapter 1, point 1.4.2.2.
2.1.2.3. Up to the amount resulting from applying the percentage fixed by the Central Bank on current account deposits referred to in point 1.4.2.1.2. of Chapter I of this Circular.
2.2. Minimum cash of deposits and other time obligations in pesos that are compensated according to Article 3 of the Law.
2.2.1. Scope.
Compensation only corresponds to the minimum cash reserves indicated by the Central Bank, to the extent that they are effectively constituted, corresponding to the following items:
2.2.1.1. Transferable and non-transferable time deposits, adjustable or not.
2.2.1.2. Savings account deposits (special savings system, adjustable or not, exclusively).
2.2.1.3. Obligations assumed by financial transactions between third parties contracted for terms of 30 days or more, regarding the capitals actually transacted.
In the case of co-guaranteed documents placed by another entity, the compensation corresponds to the latter.
2.3. Appropriation of excesses or deficiencies in the integration of minimum cash for the determination of amounts subject to charge and compensation.
2.3.1. The excess of minimum cash is distributed among all deposits and other obligations subject to minimum cash, in proportion to the amounts of lending capacity resulting from subtracting from said items the amounts of the minimum cash requirements indicated by the Central Bank.
2.3.2. The deficiency of minimum cash is distributed proportionally among the amounts of the minimum cash requirements indicated by the Central Bank. The part of deficiency assigned to deposits and other time obligations without compensation must be appropriated directly as a deficiency of deposits and other time obligations with compensation.
12.2.81 1

III - Monetary Regulation Account (Continuation). REMON 1
2.4. Computation, settlement method and rates.
2.4.1. Computation.
Both the charge and the compensation are effected on the basis of the simple average of the balances corresponding to all days of each calendar month, of the items indicated in the preceding sections, recorded at the close of operations. Days on which no movement is recorded must repeat the balance corresponding to the immediately preceding business day.
2.4.2. Settlement.
The respective settlements must be presented to the Central Bank no later than the 16th day of the month following the period that corresponds.
Entities whose settlements yield a balance in favor of the "Monetary Regulation" account must formulate an order of debit on the current account lodged at this Institution. When settlements yield a balance in favor of the entities, the Central Bank will proceed within 48 hours of their receipt, to credit the corresponding amount in the entity's current account opened at this Institution.
2.4.3. Rates of charge and compensation.
2.4.3.1. General regime.
2.4.3.1.1. The rates of charge and compensation are communicated at the end of each month of application and determined on the basis of passive interest rates paid in the financial market.
The Central Bank takes as an indicator of the market interest rate the weighted average of those paid by 30-day time deposits corresponding to the daily survey on passive interest rates disseminated by this Institution and applies the mathematical procedure attached as Annex III to this Chapter.
2.4.3.1.2. The minimum cash reserves of transferable adjustable time deposits and those corresponding to special adjustable savings account deposits, the latter when they refer to deposits contracted for terms less than 3 months, are compensated according to what is provided in point 2.4.3.1.1.
2.4.3.1.3. The minimum cash reserves of deposits corresponding to the Unemployment Fund for Construction Industry Workers and pupil usuries, are compensated within the "Monetary Regulation" Account at the same rate as Savings Account deposits (special savings system) as regulated in point 2.4.3.1.1.
2.4.3.1.4. In the case where a financial entity repurchases a document representing financial transactions between third parties with the original intervention of the entity itself and places it again, if the term remaining until maturity is less than 30 days, that item is not compensable within the "Monetary Regulation" Account.
2.4.3.1.5. Common savings account deposits do not pay charge nor are their minimum cash reserves compensated.
12.2.81 2

B.C.R.A.
III - Monetary Regulation Account (Continuation). REMON 1
2.4.3.2. Adjustable, non-transferable, named fixed-term deposits.
The minimum cash reserves for adjustable, non-transferable, named fixed-term deposits based on the wholesale price index - general level - are compensated within the "Monetary Regulation" Account, at a monthly rate specifically fixed for this purpose. In determining such rate, the variation recorded by the wholesale price index - general level - prepared by the National Institute of Statistics and Censures corresponding to the month prior to the compensation is explicitly taken into account, and it is communicated to the entities within the monthly period during which it shall apply. Nevertheless, the Central Bank informs with sufficient advance notice the real interest rate that is added monthly to the indicated price variation for the calculation of the minimum cash reserve compensation.
2.4.3.3. Adjustable special savings account deposits.
The minimum cash reserves for adjustable special savings account deposits based on the wholesale price index - general level -, whose deposits remain for periods not less than 3 months, are compensated within the "Monetary Regulation" Account with a special rate that is fixed monthly for this purpose. In determining such rate, the variation recorded by the wholesale price index - general level - prepared by the National Institute of Statistics and Censuses corresponding to the month prior to the compensation is explicitly taken into account, and it is communicated to the entities within the monthly period during which it shall apply. Nevertheless, the Central Bank informs with sufficient advance notice the real interest rate that is added monthly to the indicated price variation for the calculation of the minimum cash reserve compensation.
2.4.3.4. Adjustable transferable and non-transferable named fixed-term deposits with the financial adjustment index prepared by the Central Bank.
The minimum cash reserves for said deposits are compensated, within the "Monetary Regulation" Account, with a monthly rate that arises from the comparison of the indices corresponding to the last day of the respective month and to the last day of the immediate previous month.
2.4.4. Non-compliances.
2.4.4.1. Entities must pay the punitive charge referred to in Article 4 of the Law, on net amounts not deposited in time and form into the "Monetary Regulation" Account.
The concept of net amounts not deposited in time and form into the "Monetary Regulation" Account includes both the charges owed, net of compensations, as well as the compensations, net of charges, that because they were improperly received by the financial entities, must be reintegrated into the "Monetary Regulation" Account.
2.4.4.2. Starting from May 1st, 1980, for the non-compliances provided for in point 2.4.4.1., financial entities must pay the punitive charge resulting from the application of the following scale:

Duration of Non-compliance - In days	Number of times the maximum rediscount rate in effect during the non-compliance
Up to 30	1.40
From 31 to 60	1.45
From 61 to 90	1.50
From 91 to 180	1.60
From 181 to 270	1.80
From 271 to 360	2.00
From 361 to 450	2.25
From 451 to 540	2.55
From 541 to 630	2.85
From 631 to 720	3.25
From 721 to 810	3.65
From 811 to 900	4.10
From 901 to 990	4.65
More than 990	5.00

The rediscount rate in effect during the non-compliance results from the sum of the maximum daily rediscount rates established by this Institution.
2.4.4.3. In the case of non-compliances that have their origin before the date provided for in point 2.4.4.2. and that are regularized subsequently, the punitive charge is determined through the sum of:
a) The amount of the charge for the period elapsed until May 1st, 1980, calculated according to the regulations in force until said date, plus b) The amount of the charge corresponding to the time elapsed between said date and the moment of regularization, resulting from applying for that period and to the proportional rediscount rate corresponding, the punitive coefficient that establishes the scale of point 2.4.4.2. for the total duration of the non-compliance.
2.4.4.4. In exceptional situations, existing mitigating circumstances, the punitive scale detailed in point 2.4.4.2. may be reduced taking into account the causes that have given rise to the non-compliance.

12.2.81 3

III - Monetary Regulation Account (Continuation). REMON 1

B.C.R.A.
III - Monetary Regulation Account. REMON - 1
3. Procedural rules.
3.1. General instructions.
To determine the charge and compensation established by the Law and to inform its settlement to this Institution, formula 3100 is used, which must be submitted monthly to the Central Bank by the head office of each entity, no later than the 16th day of the following month. The aforementioned formula is subject to the current regime on submission of information to the B.C.R.A.. Its integration is carried out in triplicate. The original and duplicate are sent to the Management of Control of Financial Entities and the triplicate remains archived in said head office. The amounts are registered in millions of pesos without decimals, discarding fractions less than 500,000 and increasing to one million fractions of 500,000 or more; this rule is excepted for the settlement of the charge and of the compensation (lines 17 and 18) which are consigned in pesos. The calculation of the percentages provided for in this formula must be obtained with three decimals, registering them in the respective box with two, approximating the second to the third. Row 1, column 1, must coincide with the average of the items subject to minimum cash that are declared in formula 3000 and row 2, column 1, with the minimum requirement fixed by the B.C.R.A. that is consigned in said formula. In columns 2 to 15, the concepts alluded to by the headings of the Chart of Accounts are included, individualized according to the codes detailed in Annex I for each of them. In column 2, data corresponding to deposits whose investment is subject to the charge, and which is defined in point 2.1. of this Chapter, must be declared. In column 3, those related to deposits corresponding to current accounts that financial entities are authorized to count to integrate their minimum cash - even those opened in the Bank of the Argentine Nation to attend the movements of the clearing houses of the interior - are detailed, and in 4 the other deposits and obligations payable in pesos with 100% minimum cash. The data regarding deposits and other obligations in pesos that are compensated are consigned in columns 5 to 12, rows: 1 to 5; 9 to 12; 14; 15; and 17.1 or 18.1 as appropriate, noting in columns 13 and 14 following the amounts of the term items that do not receive compensation and in column 15 those corresponding to common savings deposits.
3.2. Entities presenting a balanced situation or excess of minimum cash.
In cases where entities register excess minimum cash, this is appropriated to the different deposits in columns 2, 5 to 13 and 15 (row 5), proportionally to the authorized lending capacity (row 3), based on the percentages that are included in row 4. The amounts to be consigned in row 7, columns 2 and 3, represent the exempt investment resulting from the percentages referred to in point 2.1.2. of this Chapter (row 6). In row 8, column 2, the use of the lending capacity subject to charge is determined according to the procedure indicated therein. The amounts that receive compensation are those consigned in row 2, columns 5 to 12.
3.3. Entities presenting a deficiency of minimum cash.
Entities declaring a deficiency of minimum cash must appropriate it proportionally to the different classes of deposits reached by this provision (row 10) on the basis of the
12.2.81 1

III - Monetary Regulation Account. REMON - 1 minimum cash requirement that each of them must observe (row 2), based on the percentages that are included in row 9. In row 11, columns 5 to 12, the percentages representing the amounts consigned in said columns with row 10 with respect to their sum are noted. Based on said percentages, the sum of the deficiencies consigned in row 10, columns 13, 14 and 15 is appropriated in the same columns of row 12. In row 13 (columns 2 and 4), the use of the lending capacity subject to charge is determined according to the temperament indicated there. In row 14, columns 5 to 12, the amounts to be compensated are obtained. In rows 17.3 and 18.3, the balance to be paid or received is determined, as appropriate.
3.4. In Annex II, the instructions for the integration of formula 3100, reverse side, are detailed.

12.2.81 2

Formula 3100 Column | Chart of Accounts Headings --- | --- No | Concept | Codes | Observations Total | Deposits and other obligations payable in pesos. With minimum cash of .....% (Circular REMON 1, Chapter III, point 2.1.2.2.) | 311106, 311112, 3111142, 311145, 311706, 311712, 311742, 311745, 312103, 312106, 312109, 312112, 312142, 312145, 321124, 321154, 321155, 321158, 321161, 322128, 322131 and 331127. |

	311151, 311154, 311751, 311754, 312151, 312154, 321148, 321181, 322181 and 351009	Only those that are payable are included.
	331106, 331109, 331112, 331131, 332106 and 332109	Only computed taking into account the provisions of point 1.2.2.1. of Chapter I
12.2.81 1
111017 (credits made in the account)	Checks issued against a current account computable for the integration of minimum cash, by the financial entities referred to in point 1.3.3. of this Chapter delivered in payment of any obligation, up to their actual realization, must be considered.
3	Deposits and other obligations payable in pesos. With minimum cash of 100 %. Deposits in other financial entities computable for minimum cash (Circular REMON 1 - Chapter III - point 2.1.2.3.).	311415
ANNEX I TO CIRCULAR REMON 1, CHAPTER III, POINT 3
B.C.R.A.

Formula 3100 Column | Chart of Accounts Headings --- | --- No | Concept | Codes | Observations 4 | Deposits and other obligations payable in pesos. With minimum cash of 100 %. Other deposits. | 311148, 311748 and 321151 | Only those that are payable are included. 5 | Deposits and other obligations term in pesos. With minimum cash of ....%. Compensable (Circular REMON 1 - Cap. III- points 2.2.1.1. and 2.2.1.3.). Excluded those declared in columns 8, 9, 11, 12, 13 and 14. | 311133, 311139, 311733, 311131, 311731 and 312131 | Except adjustable by financial index (R.F. 1050)

	311136, 311736 and 312136	Except those adjustable by R.F. 1050 and W.P.I.G.L.
	311139, 311739 and 312139	Only those of 30 days and more are included.
	321102	30 days or more.
6	Deposits and other obligations term in pesos. With minimum cash of ....%. Compensable. (Circular REMON 1 - Cap. III point 2.4.3.3.). - Excluded those declared in column 7-	311721 and 312121
	311724 and 312124
12.2.81
7	Deposits and other obligations term in pesos with minimum cash of ....%. Compensable. (Circular REMON 1 - Cap. III point 2.4.3.3.).	311721 and 312121
ANNEX I TO CIRCULAR REMON 1, CHAPTER III, POINT 3
8	Deposits and other obligations term in pesos with minimum cash of ....%. Compensable. (Circular REMON 1 - Cap. III point 2.4.3.2.).	311136, 311736 and 312136

Formula 3100 Column | Chart of Accounts Headings --- | --- No | Concept | Codes | Observations 9 | Deposits and other obligations term in pesos with minimum cash of …%. Compensable (Circular REMON 1, Chapter III, point 2.4.3.4.) | 311131, 311136 and 311731 | Only adjustable by R.F. 1050.
| | 311736, 312131 and 312136 |
10 | Deposits and other obligations term in pesos with minimum cash of…….%. Compensable. Non-transferable for less than 30 days (from 7 to 14 days). | 311139, 311739 and 312139 | Only from 7 to 14 days. 11 | Idem. (From 15 to 22 days). | 311139, 311739 and 312139 | Only from 15 to 22 days. Idem. (From 23 to 29 days). | 311139, 311739 and 312139 | Only from 23 to 29 days. 13 | Deposits and other obligations term in pesos. With minimum cash of……%. Non-compensable. | 311151, 311751, 312151, 321148, 321155, 321161, 321181, 322181 and 351009 | They will only be computed if they are term. 12.2.81 14 | Deposits and other obligations term in pesos. With minimum cash of 100% | 311148, 311748 and 321151 | Only if they are term. 15 | Common Savings Account Deposits. Circular REMON 1, Chapter III, point 2.4.3.1.5. | 311718, 311727 and 312118 |
ANNEX I TO CIRCULAR REMON 1, CHAPTER III, POINT 3
B.C.R.A.

Entity:
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Management of Control of Financial Entities
MONETARY REGULATION ACCOUNT
SETTLEMENT OF CHARGE AND COMPENSATION Month of of 19 CODE Deposits and other obligations payable in pesos Deposits and other obligations term in pesos With min. cash of ……% With minimum cash of 100% With minimum cash of % Circular REMON 1 Compensable

Chapter III -
Point 2.1.2.3. Circular REMON 1 - Chapter III Non-transferable for less than 30 days Concept Total Circular REMON 1
Chapter III
Point 2.1.2.2. Deposits in other financial entities computable for minimum cash Other deposits Points 2.2.1.1.
AND
2.2.1.3.
(1)
Points
2.2.1.2. and
2.4.3.1.3.
(2)
Point
2.4.3.3.
Point
2.4.3.2.
Point
2.4.3.4.
From 7 to 14 days
From 15 to 22 days
From 23 to 29 days
Non-compensable
With minimum cash of 100%
Common savings
(Circular
REMON
1 Chapter III point
2.4.3.1.5)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Average of the month of items subject to minimum cash.
Amount of minimum requirement fixed by the B.C.R.A.
Authorized lending capacity (row 1 - row 2)
Proration of the authorized lending capacity (Percentage on row 3 ). 100% % % % % % % % % % % %
Appropriation of the excess of minimum cash registered in the month under report.
Margin of exempt investment % %
Exempt lending capacity (row 1 x row 6)
Use of the lending capacity subject to charge when a balanced position or
excess of minimum cash is registered (row 3, col 2. - row -, cols. 2 and 3 ).
Proration of the minimum cash requirement fixed by the B.C.R.A. (Percentage on
row 2) 100% % % % % % % % % % % % % % %
Appropriation of the deficiency of minimum cash registered in the month under report.
Percentage that the amounts of row 10, cols. 5 to 12, represent with respect to the
sum. 100% % % % % % % % %
Appropriation of the sum of the amounts of row 10, cols. 13, 14 and 15 to those of the same row,
cols 5 to 12.
Use of the lending capacity subject to charge in case of registering deficiency of
minimum cash (Row 3 - row 7 + row10)
Amount to compensate in case of registering deficiency of minimum cash (Row 2 - row
10 - row 12).
Compensation rate fixed for the month under report.
Charge rate fixed for the month under report. % % %
Settlement of the charge and of the compensation established when a balanced position
or excess of minimum cash is registered
17.1. Compensation (Row 15 x row 2 x 1,000,000) (3)
17.2. Charge (Row 16 x row 8 x 1,000,000 (4)
17.3. Difference in favor of the entity (+) / of the B.C.R.A. (-) (5) (Row 17.1 ., col. 1 - row 17.2 .,
col. 1) (6)
Settlement of the charge and of the compensation established when a deficiency of
minimum cash is registered:
18.1. Compensation (Row 15 x row 14 x 1,000,000) (3)
18.2. Charge (Row 16 x row 13 x 1,000,000) (4)
18.3. Difference in favor of the entity (+) / of the B.C.R.A. (-) (5) (Row 18.1 ., col.1 - row 18.2 .,
col 1) (6)
Form. 3100 (I - 81)
The supply of this form must be requested via Form. 337
12.2.81 1

B.C.R.A.
ANNEX II TO CIRCULAR REMON 1, CHAPTER III, POINT 3.

For the classification of operations linked to the Public Sector, from an institutional point of view, financial entities must take into account the following considerations:
1.1. Within "Governments" are included ministries, entities, offices and other organisms dependent on each level of Government. Workshops, printing presses and other companies that provide services in a total or principal manner to said "Governments" or that do not sell their services principally to the market are also included. Also incorporated are pertinent non-profit institutions and regional representations of the National Government. Administrative units comprised in the next point are excluded from these levels.
1.2. As "companies and other public bodies" are included, within the three levels of Government, those that belong to or are controlled by them and that sell to the public industrial or commercial goods and services on a large scale:
1.2.1. Public companies constituted under various regimes (State companies, State societies, autarchic bodies, etc.).
1.2.2. Large administrative units (decentralized bodies, special accounts) that produce goods and services that sell principally to the market and that have financial autonomy.
1.2.3. Mixed companies, which are those in which ownership and/or management is shared by the State and by the Private Sector, but with a state majority. It should be noted that in this group private companies whose control is held by the State are considered. These are fundamentally companies subject to the regime of Law 18.832/72, i.e., those private companies declared bankrupt or that being in receivership proceedings considerably reduced exploitation, ceased in it or were in default in the payment of salaries.
1.2.4. Intergovernmental corporations in which national, provincial or municipal governments intervene among themselves or in participation with foreign governments.
In "Judicial Deposits" are declared the sums that are deposited at the order of judges, whatever the legal nature of the depositor.
In other obligations payable or term computable for minimum cash, the remaining obligations, payable or term, as appropriate, not declared in the other rows of code 1.2000 must be included.
In the row corresponding to the total of savings account deposits (code 1.1500) must include the amount of "linked savings to loans, subject to minimum cash" operations (code 311.727) which must be discriminated according to the operational modalities of each entity.
For the classification of deposits by term tranches, the term of contracting of the operations must be taken into account.
The sum of the deposits and obligations subject to minimum cash declared on the reverse of formula 3100 must coincide with the amount of row 1, column 1 of the front of this present formula.
For the integration of the back of formula 3100, the equivalences with the codes of the Minimum Chart of Accounts are listed below.

12.2.81 1

INSTRUCTIONS FOR THE USE OF FORMULA 3100 (Reverse Side) - EQUIVALENCE OF CATEGORIES WITH THOSE OF THE MINIMUM MODEL CHART OF ACCOUNTS Deposits and obligations (Operations in pesos) (7) Deposits (Operations in foreign currency) (7) Public Sector Public Sector Governments (a) Companies and other public entities (a) Private Sector Residents abroad Judicial (See Point B) TOTAL Governments (a) Companies and other public entities (a) Private Sector Residents abroad TOTAL Ownership Instrumentation Code

In millions of pesos -
Code
In thousands of US dollars -
SUBJECT TO CASH Minimum 315.100 315.700 316.100 DEPOSITS 1.1000 311.100 (b) 311.700 (b) 312.100 (b)
Interest-free current accounts 1.1100
311.106 311.706 312.106
Interest-bearing current accounts 1.1200 311.112 311.712 312.112 315.107, 315.142, 315.154 (c) 315.707, 315.742
315.754 (c)
316.104, 316.107,
316.142, 316.154 (c)
Payable orders 1.1300 311.145 311.745 312.145
Other deposits and demand accounts 1.1400 311.142
311.154 (c)
311.742
311.754 (c)
312.142
312.154 (c)
Savings account: 1.1500 See point D
Common 1.1510 311.718 312.118
315.135, 315.137 315.732
315.737
316.132
316.137
Special non-adjustable 1.1520 311.724 312.124
Special adjustable 1.1530 311.721 312.121
Time deposits: 1.1600
Transferable adjustable
from 3 to 6 months 1.1610
1.1611 311.131 311.731 312.131
from 7 months and more 1.1612
Non-transferable adjustable 1.1620 311.136 311.736 312.136
from 3 to 6 months 1.1621 from 7 months and more 1.1622
Transferable and non-transferable non-adjustable 1.1630 311.133
311.139
311.733
311.739
312.133
312.139 315.132, 315.137 315.732
315.737
316.132
316.137 from 7 to 14 days 1.1631
from 15 to 22 days 1.1632 315.154 (d) 315.754 (d) 316.154 (d) from 23 to 29 days 1.1633 2.1000 2.1400 2.1600 2.1630 2.1635 2.1636 2.1700 from 30 to 89 days 1.1634 from 90 to 180 days 1.1635 more than 180 days 1.1636
Other time deposits 1.1700 311.151
311.154 (d)
311.751
311.754 (d)
312.151
312.154 (d)
OTHER OBLIGATIONS 1.2000 from Cod. 321.102 from Cod. 321.102 from Cod. 322.181
Third-party financial transactions
up to 29 days 1.2101 from 30 to 89 days 1.2102 from 90 to 180 days 1.2103 more than 180 days 1.1204
For financing of purchases 1.2200
Other demand obligations 1.2300 (e) (e) (e) (e)
Other term obligations 1.2400 (e) (e) (e) (e)
OTHER DEPOSITS WITH 100% RATE 1.1.3000 311.148 311.748 OTHER OBLIGATIONS WITH 100% RATE 1.4000 from Cod. 321.151 from Cod. 321.151 DEPOSITS NOT SUBJECT TO CASH Minimum 1.5000
Savings linked to loans 1.5100 311.728
Other deposits 1.5200
Use of unified funds 1.5300 311.191
Observations:
(a) - See instructions, point A.
(b) - Does not include judicial deposits, which are recorded in a separate column, other deposits with 100% rates, and those not subject to minimum cash.
(c) - Demand-exigible items.
(d) - Non-demand-exigible items.
(e) - See instructions, point C.
(f) - Shall not be used unless expressly indicated by the Central Bank.
Financial sector (Operations in pesos (7)
Ownership
Instrumentation Code Banks and savings banks
Finance Companies Credit Unions Savings and loan associations for housing and other real estate TOTAL 311.400 NOTE: This form shall be integrated in millions of pesos, with the exception of rows 17 and 18, which shall be in pesos. Rows 4, 5, 8 and 17 will only be integrated if there is a balanced position or excess of minimum cash in the month under report. Rows 9 to 14 and 18 will only be integrated if there is a deficiency of minimum cash in the month under report 311.415 FINANCIAL SECTOR DEPOSITS
Computable checking accounts for minimum cash (with
100% rate)
Other non-computable deposits
Rest of items
Place and date:
Accounting Area (9) General Manager
Signature and clarification Signature and clarification CLARIFICATIONS:
(1) - Excluded those declared in columns 8 to 12 (2) - Excluded those declared in column 7.
(3) - Sum of columns 5 to 12.
(4) - Sum of columns 2 to 4.
(5) - Strike out what does not apply.
(6) - Amount accompanying Form 3030.
(7) - Monthly average of daily balances.
(8) - To be signed by the highest-ranking responsible person
19.1.82 1

B.C.R.A.
METHODOLOGY FOR DETERMINING THE RATES OF
THE "MONETARY REGULATION" ACCOUNT
Annex III to Circular REMON 1
Chapter III
Point 2.4.3.1.1. i* j = i j - 2 [ 1] i* j = Effective monthly interest rate of 30 days, assigned to business day j, of months t and t - 1, expressed as a ratio. i j - 2 = Weighted average monthly interest rate of 30-day time deposits according to the daily survey of passive interest rates, disseminated by the Central Bank, corresponding to the second immediate preceding business day to business day j, expressed as a ratio. n n ∑ dj i* = Π (1 + i*) d j j = 1 - 1 [ 2] j =1 i* = Basic effective monthly interest rate of 30 days, expressed as a ratio. d j = Number of calendar days of validity in month t of a theoretical 30-day time deposit, constituted on business day j of months t and t - 1. 365 m I* (k) = (1 + i*) 30 - 1 . k + 1 365 - 1 100 [ 3] i* (k) = Rate of the "Monetary Regulation" Account of month t, expressed as a percentage. m = Number of calendar days of month t. k = Coefficient for determining the different rates. Value of coefficient k

Charge………………………………….…..………...……. 1,00
Compensation
2.1. Savings account deposits (special savings system)………………………….…….. 0,90
2.2. Non-transferable nominative time deposits formalized at
terms less than 30 days:

from 7 days to 14 days ……………….……. 0,85
from 15 days to 22 days……………..….…… 0,90
from 23 days to 29 days ………………….…. 0,95
2.3. Remaining items reached …..……….… 1,00
This calculation procedure is also used to determine certain interest rates that the Central Bank must fix monthly, according to the following detail:
Coefficient k
I - Financing of sales to public organizations (Circulars R.F. 22 and R.F. 31)……………….. 1,10
12.2.81 1

METHODOLOGY FOR DETERMINING THE RATES OF
THE "MONETARY REGULATION" ACCOUNT
Annex III to Circular REMON 1
Chapter III
Point 2.4.3.1.1.
II - Special advance (point 1 Ch., IV, Annex II, Circular R.F. 118) 1,00 III - Advances linked to extensions in operations of pre-financing of promoted exports (Circulars R.F. 20, point 11, and R.F. 99,
Annex I point 11………………………………………………………………… 1,20
12.2.81 2

CENTRAL BANK OF THE ARGENTINE REPUBLIC
CONTENT
IV - Credits to the Financial System REMON - 1

Rediscount regime for addressing liquidity situations.
1.1. Temporary liquidity situations.
1.2. Liquidity situations related to medium and long-term loans.
1.3. Provisions common to both rediscount margins.
1.4. Procedural rules.
Advances to address situations arising from the temporary reduction of deposits.
2.1. Maximum quota.
2.2. Method of computing limits.
2.3. Interest rate.
2.4. Guarantees.
2.5. Resolution of requests.
2.6. Defaults.
2.7. Other conditions.
2.8. Operational regime.
2.9. Informational regime.
Loan regime to financial entities for the purpose of regulating monetary resources.
3.1. General provisions.
3.2. Maximum amount of offers per entity.
3.3. Conditions of the loans.
3.4. Operational regime.
3.5. Generalities.
12.2.81 1

CENTRAL BANK OF THE ARGENTINE REPUBLIC
ORDERED TEXT
Circular MONETARY REGULATION REMON - 1
IV - Credits to the Financial System

Rediscount regime for addressing liquidity situations.
This rediscount regime is divided into two margins that operate independently of each other, and its use is subject to the following conditions:
1.1. Temporary liquidity situations.
1.1.1. The monthly average of daily balances of utilization of this margin cannot exceed 1% of the respective average of items subject to minimum cash requirement (point 1 of formula 3000) corresponding to the penultimate monthly computation position, with respect to the month in which the requests are made.
1.1.2. The outstanding debt under this margin must not at any time exceed 7% of the total of said items.
1.1.3. Each request may be made for up to 7 calendar days of utilization, with the limitations established in points 1.1.1. and 1.1.2.
1.1.4. During the period of utilization of this margin, entities must not effectuate loans and other financing operations destined to other entities in the system.
1.1.5. The maturity of the documents affected to this margin must be posterior to the utilization period and the term of said period must not exceed 30 days.
1.2. Liquidity situations related to medium and long-term loans.
1.2.1. The monthly average of daily balances of utilization of this margin during each calendar month cannot exceed 2% of the respective average of items subject to minimum cash requirements corresponding to the penultimate monthly computation position (point 1 of formula 3000), with respect to the month in which the requests are made.
1.2.2. The outstanding debt under this margin must not at any time exceed 4% of the total of said items.
1.2.3. Each request must be made for 30 calendar days of utilization, with the limitations established in points 1.2.1. and 1.2.2.
1.2.4. If the indicated term expires on an invalid day, the utilization period is reduced so that the operation's maturity coincides with a valid day.
1.2.5. Entities cannot maintain debts with the Central Bank through operations carried out through this rediscount margin for more than 60 calendar days or 90 alternating days, within a 12-month period.
1.2.6. The documents affected to this margin must correspond to operations originally formalized at terms not less than one year and with maturity posterior to each utilization period.
1.3. Provisions common to both rediscount margins.
1.3.1. The interest rates to be applied in each margin will be those established by the Central Bank. The collection of interests will be effected in advance for the duration of each operation.
12.2.81 1

IV - Credits to the Financial System (continued). REMON - 1
1.3.2. Early cancellation of credited resources is not admitted.
1.3.3. Rediscount requests are resolved on the same day of their presentation, provided they enter the Rediscount Sector of this Institution until 12 hours of the day for which the entity requests the disposition of funds.
1.3.4. Entities that, on the date of each request, do not have pending presentation or approval plans for regularization and sanitation as provided in Article 34 of Law 21.526 may make use of this regime.
Without prejudice to this, the Central Bank may, at its discretion, limit the access of entities to this rediscount regime.
1.3.5. Financial entities will act as custodians of the documents offered for rediscount, prior to formal acceptance on their part. Compliance with this requirement must be performed only once before or simultaneously with the first request.
1.3.6. Transgressions proven in the use of this regime will determine, immediately, the cancellation of sums given as if they were due and the prohibition of resorting to this resource enabling system for a term of one year counted from the date the operation's debit occurs, without prejudice to other sanctions that may apply.
1.4. Procedural rules.
1.4.1. For the use of resources through this regime, financial entities must - only once - accept the mission of custodians of the documents offered for rediscount, by delivering the note and copy of the instructions, according to the models attached. This requirement is considered fulfilled if the mission of custodian was accepted in the previous rediscount regime for addressing temporary liquidity situations.
1.4.2. Simultaneously or subsequently to fulfilling the requirement provided in point 1.4.1., the list of documents (formula 2929) must be delivered to the Rediscount Sector until 12 o'clock of the day for which the entity needs to dispose of funds.
Entities in the interior may make their presentations via telex provided they have previously complied with what is stipulated in point 1.4.1. Such presentations must contain a summary of the operation with the following information: amount requested; period of rediscount utilization; the numbering corresponding to the first and last of the documents in the list; the dates between which the maturities of the documents are comprised and the total amount of the list. Simultaneously and separately they will send by mail the formula 2929 duly integrated.
1.4.3. Presentations that do not fit within current norms or lack the requested data (not stating the utilization period, requesting initiation on a non-working day, lack of authorized signatures, error in the sum of partial amounts, lack of key in the case of requests submitted by telex, etc.) will be rejected.
1.4.4. In the case of errors that determine the elimination of one or several of the documents listed in the presented list (repeated order numbers, lack of maturity date or erroneously stated, etc.), the crediting of resources will be effected for the amount of the unobserved obligations.
1.4.5 In the current account that the recurring entity maintains at the Central Bank of the Argentine Republic, simultaneous creditings for enabled resources and debits for interests will be effected. The same account will be debited with the amounts corresponding to each utilization on the next business day after its conclusion.
12.2.81 2

B.C.R.A.
NOTE TO ACCEPT THE MISSION OF CUSTODIAN MODEL
To the Central Bank of the Argentine Republic, Rediscount Sector.
Ref.: Rediscount regime for addressing liquidity situations.
We have the pleasure of addressing you regarding the rediscount regime for addressing liquidity situations, for whose use this Entity was designated, as free-of-charge custodian, of the documents offered for rediscount under the conditions established by the aforementioned circular. On this matter, we manifest our conformity to the assigned mission and, accordingly, attach duly signed instructions for its performance. We salute you very attentively.
12.2.81 3

B.C.R.A.
INSTRUCTIONS FOR THE CUSTODIAN MODEL

The documents rediscounted by the Central Bank of the Argentine Republic and whose detail appears in formulas 2929 that you remit (1) ……………………………………… must contain the endorsement in guarantee and the corresponding legal stamping.
Said documents will remain deposited in the treasury (1) …………………………………… separated from the rest of the portfolio and at the disposal of the Central Bank of the Argentine Republic in a determined and individualized scope that (1) …………………………………………… will facilitate free of charge and to which officials and inspectors of the Central Bank of the Argentine Republic will have pertinent access.
On the next business day following the end of each utilization period, the Central Bank of the Argentine Republic will debit the corresponding amount in the current account that (1)…………………………… maintains in that Institution; consequently
(1)…………………………………….. will proceed to de-affect the documents offered for rediscount for their collection, whether judicial or extrajudicial, which will remain exclusively at your charge, cost, and responsibility, assuming likewise the debt that might arise.
Immediately communicate to the Central Bank of the Argentine Republic cases of signatories of rediscounted documents that enter civil bankruptcy, creditor calls, bankruptcies, successions, etc., detailing the name of the signatory, amount, and plan and document number.
The Central Bank of the Argentine Republic, by itself or through communication from this (1)
…………………… debit immediately, plainly and simply, in the current account we maintain in that Institution, the amount of the or the rediscounted documents whose signatories enter into civil bankruptcy, creditor call, bankruptcy, or equivalent situations, leaving the Central Bank of the Argentine Republic liberated from all judicial and extrajudicial actions that correspond, which we commit to exercise and execute at our exclusive charge, cost, and responsibility.
At the opportunity when the Central Bank of the Argentine Republic requires it, we commit to transfer in its favor the mortgages and pledges with registration that correspond to guarantees of loans whose original promissory notes and accessory instruments of the mortgages and/or pledges with registration have been rediscounted before that Institution, remaining subsistent in all respects the full responsibility of their payment by this Entity and, consequently, the obligation to perform at our exclusive cost the judicial or extrajudicial collection of the pertinent credits with such guarantees.
That for the purposes of establishing the certain date of the rediscount of the documents offered, the
(1)………………………….. will record in the Board Minutes Book the quantity of documents, the total amount of the operation, the order numbers of the documents, and the date and numbering of the sheets in which they are individualized, for the subsequent entry of the pertinent sheets in the Central Bank of the Argentine Republic, where they will be preserved. (1) - State the complete denomination of the Entity.
12.2.81 4

MODEL
CENTRAL BANK OF
THE ARGENTINE REPUBLIC
Rediscount Sector
LIST OF DOCUMENTS PRESENTED TO THE CENTRAL BANK OF THE ARGENTINE REPUBLIC FOR REDISCOUNT REGIME FOR ADDRESSING LIQUIDITY SITUATIONS No (1) ENTITY: Code: To rediscount from / / to / / inclusive Maturity (2) No (1) Signatory or endorser Day Month Year (3) Amount in pesos (3) Transport Transport TOTAL RESERVED FOR THE B.C.R.A. Authorized signature and clarifying seal Authorized signature and clarifying seal GENERAL OBSERVATIONS a) Quotes shall not be used in any case to repeat texts or figures. b) Sheets must not contain amendments or erasures that are not saved with seal and authorized signature. (1) The numbers assigned to the sheets and the order numbers of the documents will be consecutive. In successive lists, the numbering will begin with the number following that of the last sheet remitting. (2) Documents will be recorded maintaining a single chronological order of maturity, meaning they shall not be grouped by house. (3) Reserved for the Central Bank of the Argentine Republic. Form. 2929 (I - 81) The provision of this form must be requested via formula 1794
12.2.81 1

B.C.R.A.
IV - Credits to the Financial System REMON - 1
2. Advances to address situations arising from the temporary reduction of deposits.
The system adjusts to the conditions detailed below:
2.1. Maximum quota.
2.1.1. The average utilization limit that this advance can reach in the first month of use will be determined by the decrease experienced by the average of deposits in pesos - subject to the unique minimum cash rate - of the month for which it is requested, with respect to the average of the immediate preceding month (base month).
2.1.2. In each subsequent monthly period, the utilization limit of the advance will be that resulting from adding to the remaining limit - constituted by 70% of the effective utilization, within the permitted maximums, carried out in the preceding month - the reduction of the average of deposits with respect to the immediate preceding month.
2.1.3. In each monthly period, the average utilization of this advance cannot exceed the difference between the average of deposits of the respective month and that of the base month.
2.1.4. In monthly periods where the remaining limit is less than 3% of the average of deposits of the base month, the average utilization limit of the advance will be exclusively the decrease in the average of deposits of that month with respect to the previous one.
2.1.5. Decreases in the monthly averages of deposits that occur subsequent to the extinction of fund use will enable entities to resume the employment of the regime. In that case, the new base month will be the immediate preceding one to the month in which the use of resources is resumed.
2.2. Method of computing limits.
Computed as monthly average of daily balances, per calendar month.
2.3. Interest rate.
2.3.1. The interest rate applied for the use of the advance is determined according to the following expression:
i = I (t) . (1 + f) - 1
I (t -1)
Where:
I : monthly interest rate, expressed as a ratio.
I (t) : Financial adjustment index elaborated by the B.C.R.A. of the last day of the month to which the settlement corresponds.
I (t - 1) : Idem previous month.
The value of f is initially 0.009 and may be modified by the Central Bank when deemed convenient.
2.3.2. The settlement of interests is practiced by this Institution on the first business day of the following month, based on the simple average of the daily balances of utilization that the advance registers.
2.4. Guarantees.
Financial entities must constitute a pledge in favor of the Central Bank over the documen12.2.81 1

IV - Credits to the Financial System (continued). REMON - 1 tos of its liquid portfolio by a value not inferior, at all times, to one hundred percent (100%) of the sums owed. The Central Bank may demand additional guarantees that it considers necessary.

2.5. Resolution of requests.
Financing requests are resolved on the same day of their presentation, provided they enter the Rediscount Sector of this Institution until 12:00 on the day for which the disbursement of funds is requested.

2.6. Defaults.
2.6.1. For amounts used in excess of the limits established in point 2.1., entities must pay a punitive interest equivalent to 1.18 times the maximum rediscount rate in effect for the respective month, from which is deducted the interest rate charged by the Central Bank according to what is provided in point 2.3.
For the purpose of determining said punitive interest, the rediscount rate in effect during the period of default results from the sum of the daily maximum rediscount rates established by this Institution. Without prejudice to the above, for each excess of utilization over the limits established, incurred prior to the current regime, the punitive regime fixed at that time applies.

2.6.2. The punitive interest will be due no later than the 16th day of the month following that in which the excess of utilization is registered. Amounts not deposited on time will be adjusted applying the variation of the financial adjustment index prepared by the B.C.R.A. between the last day established for payment and the day on which it is effectively carried out.

2.7. Other conditions.
The Central Bank may require the information it considers necessary for the use of this regime. Likewise, it may limit the access of entities in cases where, in its judgment, it is justified.

2.8. Operational regime.
In operational aspects, the following procedural rules must be observed:
2.8.1. Entities may request the authorization of resources with adjustment under this regime through a note signed by the President and General Manager, or their natural replacements. Such communication must contain, at minimum, the following data:

Simple average of daily balances of deposits in pesos, subject to the single minimum cash rate, of the previous month.
Estimated average of those deposits of the current month.
Amount requested.

2.8.2. For the purpose of operating within this regime, entities must send the guarantee letter whose model is attached, in original and two copies. This document is sent only once simultaneously with the first request for funds.

2.9. Informational regime.
2.9.1. Information to the Central Bank.
2.9.1.1. Formula 3471 is used, which must be sent monthly to the Central Bank; its completion is done in triplicate; the original and duplicate are sent to the Rediscount Sector and the triplicate is archived in the headquarters of each entity.
12.2.81 2

B.C.R.A.
IV - Credits to the Financial System (continued). REMON - 1 tral and whose integration is effected in triplicate; the original and the duplicate are sent to the Rediscount Sector and the triplicate remains archived in the head office of each entity.

2.9.1.2. The sending of the information must be done with the necessary advance so that they are invariably in the possession of the Central Bank by the 16th day of
each month.

2.9.1.3. Formula 3471 is subject to the current regime on the submission of information to the B.C.R.A.

2.9.2. Instructions for the integration of formula 3471.
2.9.2.2. Generalities.
2.9.2.2.1. Amounts are recorded in millions of pesos, without decimals, discarding fractions less than 500,000 and increasing to one million fractions of 500,000 or more.

2.9.2.2.2. The calculation of deposits and the use of the advance is carried out based on the simple average of the balances corresponding to all days of each calendar month, recorded at the close of
operations. Days on which no movement is registered must repeat the balance corresponding to the previous day.

2.9.2.3. Form of integration.
Row 1: Always record the average of deposits subject to the single minimum cash rate of the base month.
Row 2: Report the average of deposits subject to the single minimum cash rate of the month.
Row 3: The amount of the difference between rows 1 and 2 is the global restriction indicated in point 2.1.3. of this Chapter.
Row 4: To be integrated from the second information and in each of the subsequent ones.
The amount must be 70% of the figure in row 6 or row 7 if it is lower, corresponding to the information of the immediate preceding month.
If the remaining average limit is equal to or less than 3% of the average deposits of the base month (row 1) it must be reduced to zero.
Row 5: In the first information, the amount of row 3 must be recorded.
In subsequent ones, proceed according to the instructions that appear in formula 3471 as long as there is a drop in deposits.
Row 6: The amount to be recorded is the result of the sum of rows 4 and 5, without exceeding the amount of row 3.
Row 7: From the first information, record the actual average monthly utilization of the advance.
Row 8: Register the average excess difference regarding the maximum limit of utilization of each month. The resulting figure pays the charge under the conditions provided in points 2.6.1. and 2.6.2. of this Chapter.
12.2.81 3

IV - Credits to the Financial System (continued). REMON - 1 Row 9: The punitive interest to be applied to row 8 arises from the difference between the percentage established in point 2.6.1. and the one determined by calculation indicated in point 2.3.1., both of this Chapter. These percentages are communicated by this Institution with monthly periodicity. Row 10: This amount is expressed in pesos. The corresponding settlement must be deposited before 16:00 in the Rediscount Sector of according to the terms established in point 2.6.2. of this Chapter. The debit request is made in formula 3030 - original and three copies - in which you add in the blank lines of the box “On concept of” the following legend: “Punitive Interest - Advance CIRCULAR REMON 1 - Chapter IV - point 2”.
12.2.81 4

B.C.R.A.
GUARANTEE LETTER FOR THE USE OF ADVANCES IN ACCOUNT MODEL To the President of the Central Bank of the Argentine Republic S/D.
Ref.: Guarantee letter for the use of advances in account, agreed by the Central Bank of the Argentine Republic to address situations originated by the temporary reduction of the deposits. - We have the pleasure of addressing you, with reference to the use of funds that we accord that Institution within the regime of advances in account provided for in Circular REMON 1,
Chapter IV, Point 2.
Regarding this and by the present, we expressly state that we commit and accept the following:
1º - That as guarantee of advances in account for the aforementioned regime, which we accord the Central Bank of the Argentine Republic, a pledge will be constituted in favor of the Central Bank of the Argentine Republic on the documents of our liquid portfolio by a value that reaches or exceeds at all times one hundred percent (100%) of the sums owed to the Central Bank of the Argentine Republic. 2º - That the documents offered as guarantee will be endorsed with the legend “Value in guarantee in favor of the Central Bank of the Argentine Republic” and we commit to keep them separate from the rest of the portfolio and at the disposal of the Central Bank of the Argentine Republic in a specific and individualized area of the treasury of this Entity that we provide free of charge and to which officials and inspectors of the Central Bank of the Argentine Republic will have pertinent access. 3º - That we accept the obligation of depositaries of the documents offered as guarantee, which we will perform free of charge. 4º - That we fully understand that any subsequent management of collection of the documents offered as guarantee will run exclusively at the expense and cost of this Entity, whether judicial or extrajudicial. 5º - That when by maturity of the documents or by other circumstances (early cancellation, signers or endorsers who enter into civil bankruptcy, call for creditors, bankruptcies, successions, etc.) the minimum guarantee established in clause 1 may decrease, we commit to replenish with other documents from our liquid portfolio, up to cover the minimum guarantee indicated. If we do not have documents to replace, we obligate ourselves to communicate the amount that we authorize that Central Bank to debit in the current account that we maintain in that Institution, for purposes of responding to the debt balance with the amount of the documents that guarantee them. 6º - That the list of documents offered as guarantee will be detailed in formula 2894, numbered consecutively, which will form an integral part of this guarantee, and will remain in this Entity at the disposal of the Central Bank of the Argentine Republic. 7º - That the Central Bank of the Argentine Republic reserves the right to reject or demand the replacement of any of the documents that guarantee the uses of the advances corresponding. 8º - That for the purpose of establishing the date of the transfer of the values given as guarantee, we
12.2.81 5

GUARANTEE LETTER FOR THE USE OF ADVANCES IN ACCOUNT (Continuation). MODEL commit to record in the Book of Minutes of this ……………………………, the quantity of documents, the total amount, order numbers of the same and the date and numbering of the sheets in which they are individually identified. The cited sheets will remain in custody in this Entity at the disposal of the Central Bank of the Argentine Republic, which we obligate ourselves to send to that Institution on the occasion that they are requested. 9º - That we commit to satisfy the additional guarantees that the Central Bank of the Argentine Republic may require for the debt resulting from the use of this regime of advances. NOTE: This guarantee letter must be signed by those authorized to legally commit the entity.
12.2.81 6

MODEL
Reserved for the B.C.R.A. CENTRAL BANK OF THE
ARGENTINE REPUBLIC
Rediscount Sector
ADVANCES TO ADDRESS
SITUATIONS ORIGINATED BY
THE TEMPORARY REDUCTION OF
DEPOSITS
Information of the month of
ENTITY: Code:

Millions of pesos -
%
Pesos -

Average of deposits of the base month
Average of deposits of the month
Global restriction (1 - 2)
Remaining average limit of the month
Average reduction of deposits (row 2 of the immediate
previous month minus row 2 of the month)
Maximum average utilization limit of the month (4 + 5 )
Actual average utilization of the advance in the month
Excess of average utilization of the month (7 - 6)
Punitive interest to apply to the amount of row 8
Amount of punitive interest (row 8 x 1,000,000 x row 9) ÷
Observations:
Form. 3471 (I - 81)
Place and date:
Authorized signatures
The provision of this printout must be requested via formula 337.
12.2.81 7

B.C.R.A.
IV - Credits to the Financial System REMON - 1
3. Regime of loans to financial entities for the purpose of regulating monetary resources.
Its objective is to have an instrument that facilitates adequate regulation of the resources monetary origin internal.
This regime of fund authorization adjusts to the ordering detailed below:
3.1. General provisions.
3.1.1. Resources are assigned by auction based on the interest rates offered,
expressed in effective annual percentages.
3.1.2. The amount to bid, the date of the calls, the date of crediting of the funds and the validity periods of the loans will be communicated on the occasion of each auction.
3.1.3. Those financial entities that, on the date of
each auction, do not have pending presentation or approval plans for regularization and sanitation as provided in Article 34 of Law 21.526.
Without prejudice to this, the Central Bank may, in its judgment, limit the access of entities to this loan regime.
3.1.4. It is the faculty of the Central Bank to accept or reject, totally or partially, the proposals
received.
3.1.5. When monetary reasons determine it, the Central Bank may auction the early recovery of the funds awarded through this regime. In exceptional cases duly justified in the judgment of the Central Bank, and at the request of the entities, early cancellations, partial or total, may be authorized.
3.1.6. The computation of these loans within the maximum ratio to be observed by financial entities between deposits and other obligations arising from operations that imply financial intermediation and their patrimonial responsibility (Regulation of Article 30, item e) of Law 21.526), must be carried out by their original amount.

3.2. Maximum amount of offers per entity.
3.2.1. In the first auction in which participation occurs, that maximum amount is determined by
the proportion that for the respective auction fixes the Central Bank regarding the calculable patrimonial responsibility of each entity.
3.2.2. In subsequent auctions, funds may be requested for an amount that does not exceed
the difference between the result of the proportion of the calculable patrimonial responsibility, which is determined in each call, and the debt registered under this regime at the time of the auction. Such debts are readjusted to the last day of the previous month, according to the procedure indicated in point 3.3.1. Funds received during the month of the auction will be taken by their nominal value.
3.2.3. The calculable patrimonial responsibility is defined in the norms that regulate
minimum capitals of financial entities, admitting optional computation of the positive balance of profit accounts purged according to the instructions that govern their inclusion in the technical relations provided in Article 30, items d) and e) of Law 21.526 and is considered, for the purposes of this regime, the corresponding to the penultimate month prior to the date of each call.
12.2.81 1

IV - Credits to the Financial System (Continuation) REMON - 1
3.3. Conditions of the loans.
3.3.1. Debts are readjusted to the last day of each month and at their maturity, through the
application of the financial adjustment index prepared by the Central Bank.
3.3.2. The interest rates are those accepted in the auction for each offer.
3.3.3. Interests are settled at the maturity of each operation, on the readjusted capital. For operations with terms longer than 180 days, settlements
are carried out with this periodicity and at maturity.
3.3.4. As guarantee for these loans, entities must constitute in favor of the Central Bank
pledge on the documents of their liquid portfolio or caution of mortgages or pledges, in the latter case with notification of the constitution of the encumbrance to the debtors, by a value not lower than one hundred twenty percent (120%) of the sums that are owed by readjusted capital. The Central Bank may demand additional guarantees that it considers necessary.

3.4. Operational regime.
3.4.1. Proposals must be presented in firm under closed envelope, using formula 3525 whose model is attached, and deposited in the urn that to such effect is
enabled in the Rediscount Sector of the Central Bank.
Up to five (5) offers can be made for each term, within the maximum amount provided in point 3.2.
3.4.2. Presentations are received until the day and hour that in each case is determined.
Those that do not adjust to these rules or contain deficiencies in the integration of formula 3525 will not be considered.
3.4.3. Entities located in the interior of the country may make their proposals by
telex to this Bank, with all the information requested in the referred formula.
3.4.4. The crediting of the awarded funds and the debits for amortization and interests
are carried out through movements in the current accounts that financial entities have enabled in the Central Bank.
3.4.5. To operate within this regime, entities must send the Guarantee Letter that
adjusts to its operation, among which are transcribed in annex, in original and two copies. This document is sent only once before or simultaneously with the first offer. This Guarantee Letter must be presented in the Rediscount Sector separately from the envelope containing the offer, delivering to entities a copy with the proof of its receipt.

3.5. Generalities.
3.5.1. Solely for the purpose of proceeding to the settlement of interests, the Central Bank will carry out a
readjustment of the debt to the day of maturity of each sub-period of 180 days. The index financial adjustment to be used as a basis for this calculation will be the following: a) in the case of the first sub-period, the corresponding to the day of crediting of the funds, and b) in the following sub-periods the one referred to the day of the previous sub-period. On the amount of the adjusted debt, interests at the stipulated rate will be calculated, proceeding to the corresponding debit in the entity's current account. If the day of maturity of the sub-period is a non-business day, the debit will be made on the first business day following. If the interest rate of the loan were less than 0%, no movement will occur in the entity's current account, reducing to that date, the debt by capital readjusted in the amount resulting from applying to that value the agreed interest rate. This new balance will constitute the base for future adjustments. Likewise, it is indicated that for the determination of the amounts to be accounted for at the end of each month, by accrual of interests and by adjustment of the debt, one must proceed as indicated below:
a) In the first month: The procedure indicated for the adjustment of the debt and settlement of interests in each sub-period of 180 days will be observed. b) In each following month: The calculations already indicated for the entire period starting from the date of crediting must be made. The amounts to be accounted for in each month will result from the difference between the amount obtained by application of what was noted previously and the sums already accounted for by such concepts at the end of the immediate previous month.

3.5.2. According to what is provided in formula 3525, the interest rate in the offer must be expressed
in effective annual percentage, with three decimals.
If one wishes to offer an interest rate lower than 0%, it must be preceded by the minus sign.
Likewise, it is noted that to cancel any field, the letter “X” must be placed, whether it is interest rate, term or amount.

3.5.3. Proposals must be expressed in millions of pesos, according to what is provided
in formula 3525. Therefore, fractions must be disregarded, whatever their magnitude, taking into account that the sum of the offers must not exceed the maximum amounts resulting from applying the procedures indicated in point 3.2. to determine the global offer, aspect that should be carefully monitored so that the entity is not eliminated from the auction.

3.5.4. According to the procedure indicated in point 3.2.2., one must proceed to
determine the maximum amount, applying the percentage that the Central Bank determines for each auction to the calculable patrimonial responsibility corresponding to the penultimate month prior to the date of each call. From the resulting amount, the following will be deducted:
a) amounts awarded during the same month of the auction by their nominal value, and b) readjusted debts to the last day of the month prior to that of the auction, through the application of the financial adjustment index. The indicated difference is the maximum amount of the offer, which will be rounded according to the procedure indicated in point 3.5.3.
12.2.81 3

B.C.R.A.
GUARANTEE LETTER (Commercial Documents) MODEL
To the President of the Central Bank of the Republic Argentina, S/D.
Ref.: Guarantee letter for loans granted to financial entities by the Central Bank for the purpose of regulating monetary resources.
We have the pleasure of addressing you regarding the loans that your Institution grants us within the framework of Circular REMON 1, Chapter IV, point 3.
In this regard, and by means of this document, we expressly state that we commit to and accept the following:

1 - That as security for the loans granted to us by the Central Bank of the Republic Argentina, with adjustment according to the reference regime, a pledge in favor of the Central Bank of the Republic Argentina shall be constituted over the documents in our liquid portfolio with a value reaching or exceeding one hundred twenty percent (120%) of the sums owed to the Central Bank of the Republic Argentina for adjusted principal amounts.

2 - That the documents offered as guarantee shall be endorsed with the legend “Value in guarantee in favor of the Central Bank of the Republic Argentina” and we commit to keeping them separate from the rest of the portfolio and available to the Central Bank of the Republic Argentina in a specific and individualized area of the treasury of this Entity, which we provide free of charge and to which officials and inspectors of the Central Bank of the Republic Argentina will have pertinent access.

3 - That we accept the obligation of depositaries of the documents offered as guarantee, which we shall perform free of charge.

4 - That it is perfectly understood that any subsequent management for the collection of the documents offered as guarantee shall be at the exclusive charge and cost of this Entity, whether judicial or extrajudicial.

5 - That when, due to the maturity of the documents or other circumstances (early cancellation, signatories or endorsers entering into civil bankruptcy, creditor summons, bankruptcies, successions, etc.), the minimum guarantee established in clause 1 may decrease, we commit to replenishing it with other documents from our liquid portfolio until covering the indicated minimum guarantee. If we do not have documents to replace them, we obligate ourselves to immediately communicate the amount that we authorize that Central Bank to debit from the current account we maintain at that Institution, in order to correspond to the debt with the amount of the documents that guarantee it.

6 - That the list of documents offered as guarantee shall be detailed in form 2894, numbered consecutively, which shall form an integral part of this guarantee, and shall be kept at this entity available to the Central Bank of the Republic Argentina.

7 - That the Central Bank of the Republic Argentina reserves the right to reject or demand the replacement of any of the documents that guarantee the corresponding loans.

8 - That we commit that the maturity of the documents offered as guarantee shall not exceed 30 days from the date of cancellation of each loan awarded.

9 - That for the purposes of establishing the date of transfer of the securities given as guarantee, we commit to recording in the Minutes Book of this …………………………………, the quantity of documents, the total amount, their order numbers, and the date and numbering of the sheets in which they are itemized. The aforementioned sheets shall remain in custody at this Entity available to the Central Bank of the Republic Argentina, which we obligate ourselves to send to that Institution when requested.

10 - That we commit to satisfying any additional guarantees that the Central Bank of the Republic Argentina may require for the debt resulting from this loan regime.

NOTE: This guarantee letter must be signed by those authorized to legally bind the entity.
12.2.81 4

GUARANTEE LETTER (Mortgages and Pledges) MODEL To the President of the Central Bank of the Republic Argentina, S/D.
Ref.: Guarantee letter for loans granted by the Central Bank to financial entities for the purpose of regulating monetary resources.
We have the pleasure of addressing you regarding the loans that your Institution grants us within the framework of Circular REMON 1, Chapter IV, point 3.
In this regard, and by means of this document, we expressly state that we commit to and accept the following:

1 - That as security for the loans granted to us by the Central Bank of the Republic Argentina, with adjustment according to the reference regime, a pledge/caution in favor of the Central Bank of the Republic Argentina shall be constituted over the (1) in our liquid portfolio with a value reaching or exceeding one hundred twenty percent (120%) of the sums owed to the Central Bank of the Republic Argentina for readjusted capitals.

2 - That we commit to keeping the (1) separate from the rest of the portfolio and available to the Central Bank of the Republic Argentina in a specific and individualized area of the treasury of this Entity, which we provide free of charge and to which officials and inspectors of the Central Bank of the Republic Argentina will have pertinent access.

3 - That simultaneously with the constitution of the caution on the (1) referred to in point 1 of this guarantee letter, we shall notify in a reliable manner the debtors of the corresponding credits of such circumstance.

4 - That we accept the mission of depositaries of the (1) offered as guarantee, which we shall perform free of charge.

5 - That it is perfectly understood that any subsequent management for the collection of the (1) offered as guarantee shall be at the exclusive charge and cost of this Entity, whether judicial or extrajudicial.

6 - That when, due to contractual amortization of the debt or other circumstances (early cancellation, signatories or endorsers entering into civil bankruptcy, creditor summons, bankruptcies, successions, etc.), the minimum guarantee established in clause 1 may decrease, we commit to replenishing it with other (1) from our liquid portfolio until covering the indicated minimum guarantee. If we do not have (1) to replace them, we obligate ourselves to immediately communicate the amount that we authorize that Central Bank to debit from the current account we maintain at that Institution, in order to correspond to the debt with the amount of the documents that guarantee it.

7 - That the list of (1) offered as guarantee shall be detailed in form 3055, numbered consecutively, which shall form an integral part of this guarantee, and shall be kept at this entity available to the Central Bank of the Republic Argentina.

8 - That the Central Bank of the Republic Argentina reserves the right to reject or demand the replacement of any of the (1) that guarantee the corresponding loans.

9 - That for the purposes of establishing the date of transfer of the securities given as guarantee, we commit to recording in the Minutes Book of this …………………………………, the quantity of (1), the total amount of outstanding balances, order numbers of said instruments, and the date and numbering of the sheets in which they are itemized. The aforementioned sheets shall remain in custody at this Entity available to the Central Bank of the Republic Argentina, which we obligate ourselves to send to that Institution when requested.

10 - That we commit to satisfying any additional guarantees that the Central Bank of the Republic Argentina may require for the debt resulting from this loan regime.

(1) - Specify: mortgage deeds or pledges, as applicable.
NOTE: This guarantee letter must be signed by those authorized to legally bind the entity.
12.2.81 7

NOTIFICATION LETTER TO DEBTORS MODEL
(To communicate the constitution of pledge/caution in favor of the Central Bank of the Republic Argentina over the instrument representing the mortgage or pledge encumbrance, as applicable). To PRESENT Ref.: Credit (1) No. We have the pleasure of addressing you regarding the debt you hold with this Entity, originating in the credit cited in the reference, which we granted you with encumbrance (1) in our favor. Regarding this matter, we bring to your knowledge that a pledge/caution has been constituted in favor of the CENTRAL BANK OF THE REPUBLIC ARGENTINA over the instrument representing said encumbrance (1), as security for loans granted by that Institution. Consequently, this implies the assignment to the aforementioned Central Bank of all rights guaranteed by it. Furthermore, we comply by informing you that this Entity, in its capacity as depositary of the pledged titles, is authorized to collect the agreed installments, provided that such procedure is not revoked by the Central Bank of the Republic Argentina, a circumstance that will be explicitly communicated to you. Asking you to please take notice of the foregoing, we salute you very attentively. authorized signature Receipt of copy of the present and I notify myself of its content. Signature and clarification of signature Place and date (1) - Specify: mortgage or pledge, as applicable.
12.2.81 8

MODEL
CENTRAL BANK Date of the auction
OF THE REPUBLIC
ARGENTINA
Rediscount Sector
LOAN REGIME FOR FINANCIAL ENTITIES FOR THE PURPOSE OF REGULATING MONETARY RESOURCES Current Account Number Entity:
OFFERS
No.
AMOUNT

In millions of pesos -
TERM
In days -
EFFECTIVE ANNUAL RATE
In % -
NOTE: Fill in the fields from right to left.
/ / Authorized Signatures
RESERVED FOR THE CENTRAL BANK OF THE REPUBLIC ARGENTINA Rediscount Sector Data Processing Center Form. 3525 (I - 81) The provision of this form must be requested via Form. 337.
12.2.81 9

Circular Monetary Regulations - REMON 1

Lineage: In force

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