Circular OPASI 2 - 111. Time Deposits with Interest Rate Ratchet Clause — BCRA — AR

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 2188 27/01/94 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 111.
Time Deposits with Interest Rate Ratchet Clause

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

"1. Authorize financial entities to capture, starting from February 1, 1994, transferable and non-transferable time deposits remunerated with a rate that recognizes the variations experienced by the market, provided they are contracted for terms of 120 days, as a minimum.

Establish that the deposits referred to in the previous point shall be subject to the following conditions:

2.1. They shall have a basic remuneration equivalent to the interest rate arising from the survey conducted by the B.C.R.A. regarding 30 to 59-day time deposits or the LIBOR also for the 30-day segment, which the Central Bank reports, depending on whether the deposits are in local currency or US dollars, respectively. For these purposes, each entity may consider the level current on one of the days within the period comprising the two to five immediate preceding banking business days before the start date of each calculation sub-period, which shall not be less than 30 days. This option shall remain fixed for the entire duration of the deposit's validity.

Above that level, depositary entities may recognize the number of points freely agreed upon, which must also remain unchanged during the total agreed term.

2.2. The body of the certificate must clearly record the basic parameter used, including the fixed number of days in advance chosen for each operation, the additional points that will govern it, as well as the duration of the agreed sub-periods.

2.3. The modality referred to in the preceding subsections shall be governed by the rules contained in point 3 of Chapter I of Circular OPASI - 2 insofar as they are not modified by this resolution."

We greet you very respectfully.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio Martha L. Blanco
Manager of Standards for Manager of Studies
Financial Entities Economic