Circular Monetary Regulations - REMON 1 - 84. Minimum Cash in National Currency and Application of Lending Capacity of Deposits at Regulated Rates. Complementary Norms

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 280 28/01/83
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS - REMON - 1 - 84. Minimum cash in national currency and application of the lending capacity of deposits at regulated rates. Complementary Norms

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

“1º - Increase, effective January 1983, the minimum cash requirement by the amount of the margin not applied in operations subject to the maximum interest rate requirement arising from the lending capacity of deposits and other obligations, due to the reduction of the single reserve ratio.

2º - Replace point 1.3.1.5. of Chapter I of Circular REMON - 1 (Communication “A” 206) with the following:

“1.3.1.5. The balance registered in the Central Bank in the “Special” account in the name of the entity. In this account, from the due date established for the submission of Form No. 3000, no less than 60% of the average of the items subject to the minimum cash existence requirement for the month to which said form refers must be maintained.

The entity may dispose of the funds deposited in this account with prior authorization from this Institution, for which it must submit a request to that effect explaining the reasons justifying the withdrawals.”

3º - Authorize financial entities to use the lending capacity of deposits at regulated rates and other obligations in the negotiation of inter-financial loans, under the maturity terms freely agreed upon between themselves and at interest rates that do not exceed the maximum established by the Central Bank for active operations.

The borrowing entities must allocate these funds to the financing of operations subject to the maximum interest rate requirement.”

In addition, we enclose the new model of Form No. 3000 to be used starting from the January information of this year and the instructions for its integration that complement those already in force.

• 2 -

Finally, we inform you that fund transfers originating from the inter-financial operations referred to in point 3º of the preceding resolution must be identified in Form No. 2677 by the legend “TASA REGULADA” placed in prominent characters below the “Amount” box.

We salute you very respectfully.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Germán R. Pampillo
Deputy Manager for Standards for
Financial Entities

Elías Salama
General Deputy Manager

ANNEX

MODEL

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Department of Studies and Control of Financial Entities

STATE OF MINIMUM CASH IN NATIONAL CURRENCY AND SETTLEMENT OF THE CONTRIBUTION TO THE DEPOSIT GUARANTEE FUND

CODE

Entity: Month of of 19

TABLE A STATE OF MINIMUM CASH IN NATIONAL CURRENCY

Concept Amounts in millions of pesos

1. Items covered by minimum cash requirements
   1.1. Subject to 100% requirement
   1.1.1. Deposits of financial entities
   1.1.2. Fixed-term nominative non-transferable deposits adjustable to medium term
   1.1.3. Deposits constituted by reason of foreign exchange operations
   1.1.4. Other items
   1.2. Subject to % requirement
2. Fixed-term nominative non-transferable deposits at free rate
3. Minimum cash requirement
   3.1. 100% on amount of item 1.1.
   3.2. % on amount of item 1.2.
   3.3. Unused margin of deposits at regulated rate (Positive result of item 7
   of Table B)
4. Integration of minimum cash
   4.1. Banknotes and coins
   4.2. “B.C.R.A. - Current Account”
   4.3. “B.C.R.A. - Special Account”
   4.4. Current accounts in commercial banks admitted for integration of minimum cash
   4.5. “B.N.A. - Clearing House”
   4.6. Currency in custody at other financial entities
   4.7. Pending refunds for payments to beneficiaries of pensions and retirement benefits
   4.8. “B.C.R.A. - Reciprocal Credits - Pending Credits”
   4.9. “B.C.R.A. - Reciprocal Credits - Pending Debits” (-)
   4.10. Services for rent and amortization of public securities deposited in custody,
   pending crediting by the B.C.R.A.
   4.11. Loans from other financial entities not computable (-)
   4.12. Amortization installment of the Consolidated Loan yet to be debited (-)
   4.13. Interest and adjustments of the Consolidated Loan yet to be debited or balances in favor
   of the entity yet to be compensated (- or +)
   4.14. Adjustments and Interest effectively paid for deposits subject to compensation, pending settlement by the B.C.R.A.
   4.15. Utilization of the special loan limit (REMON 1 - 23) yet to be credited or
   debited (+ or -)
   4.16. Adjustments whose exigibility has occurred in the month under report, corresponding to credits affected to the special loan limit (REMON 1 - 23) yet
   to be debited (-)
   4.17. Reduction of compensation within the Monetary Regulation Account (-)
   4.18. Early cancellations of the Consolidated Loan yet to be debited. (-)
   Form. 3000 (I - 83)
   4.19. Excess over the admitted increase of the Consolidated Loan (-)

The supply of this form must be requested via Form. 337.

Concept Amounts in millions of pesos
4.20.
4.21.
4.22.
4.23.
4.24.
4.25.
5. Excess or deficiency of minimum cash for the month under report (Item 4 -
item 3) (+ or -)
Amount in pesos 6. Settlement of charge for deficiency of minimum cash ( % on negative result of item 5) x 1,000,000 (‘)

TABLE B APPLICATION OF THE LENDING CAPACITY OF DEPOSITS AT REGULATED RATES

Concept Amounts in millions of pesos

1. Deposits at regulated rate and other obligations subject to minimum cash
2. Minimum cash requirement ( % on item 1.)
3. Difference (Item 1 - item 2)
4. Inter-financial loans taken
5. Lending capacity (Item 3 + item 4)
6. Utilization
7. Unused margin or excess of utilization (Item 5 - item 6) (+ or - )

TABLE C SETTLEMENT OF THE CONTRIBUTION TO THE DEPOSIT GUARANTEE FUND

Concept Amounts in pesos

1. 3‰ of item 1 of Table A x 1,000,000
2. Bonus (10% of item 1) (-)
3. Contribution to be paid (Item 1 - item 2) for which Form.
   3030 A is enclosed

Observations:
Place and date:
Accounting Area (‘’) General Manager
Signature and clarification Signature and clarification (‘) Amount for which Form. 3030 is enclosed (‘’) To be signed by the highest-ranking responsible person.

B.C.R.A.

COMPLEMENTARY INSTRUCTIONS FOR THE INTEGRATION OF FORMULA No. 3000 “STATE OF MINIMUM CASH IN NATIONAL CURRENCY AND SETTLEMENT OF THE CONTRIBUTION TO THE DEPOSIT GUARANTEE FUND”
Annex to
Comm. “A” 280

TABLE A

Item 1.1.4.
Without prejudice to other concepts covered by the 100% requirement not reported in the preceding items, the average of the adjustments and interest to be paid accrued as of 30.6.82 corresponding to deposits and other obligations in pesos computable for the determination of the “Basic” loan will be included in this item, to the extent that they remain pending maturity.

Item 2
The monthly average of fixed-term nominative non-transferable deposits at free rate will be reported.

Item 4.17
The average of deductions determined in accordance with what is established in point 3º of Circular REMON - 1 - 82 (Communication “A” 270) will be deducted, from the first day of the month following that to which they correspond until the day prior to that on which the settlements in which they are absorbed are made.

TABLE B

Item 1
The average of deposits captured at regulated rate and other obligations covered by the single minimum cash rate will be reported.

Item 4
The average of loans obtained from other financial entities originating from resources of deposits at regulated rate and other obligations will be computed.

Item 6
The average of credit operations - capitals and adjustments - originally agreed subject to the maximum interest rate requirement established by the Central Bank will be recorded, for the amounts that are not imputed to the Consolidated Loan or other financing lines specially enabled by this Institution. The average of inter-financial loans granted with resources originating from the lending capacity of deposits at regulated rate and other obligations will also be computable.

Observations
In this table, entities will formulate the clarifications they deem pertinent and all additional information required by the Central Bank. For the computation of the preceding concepts, the criterion established in point
1.4.1. of Chapter 1 of Circular REMON - 1 is applicable.