BANCO CENTRAL DE LA REPUBLICA ARGENTINA

COMMUNICATION "A" 3358 I 09/11/01

TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 269
Rules on "Application of the deposit guarantee insurance system". Contribution to the fund and determination of the reference rate

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

"1. Substitute, with effect from the contribution due in December 2001, point 2. of the rules on "Application of the deposit guarantee insurance system", with the following:

"2. Normal contribution.

Financial entities included in the Financial Entities Law must monthly allocate to the Deposit Guarantee Fund (FGD) a normal contribution equivalent to 0.03% of their monthly average of daily balances of the items listed in point 5.1., recorded in the second month immediately preceding. For these purposes, the Banco de la Nación Argentina will adhere to what is provided in the second paragraph of article 6° of Decree 540/95 (text according to Decree 1292/96 - article 3°).

The Central Bank of the Republic Argentina may require the integration, as an advance, of the equivalent of up to twenty-four (24) minimum normal contributions, with a notice of no less than thirty (30) calendar days, to cover resource needs of the Fund."

2. Replace point 5.2.3. of the rules on "Application of the deposit guarantee insurance system", with the following:

"5.2.3. Deposits in which interest rates higher than the reference rates are agreed upon, which are periodically disseminated by the Central Bank of the Republic Argentina through Communications "B", determined by adding two percentage points annually to the moving average of the last five (5) banking business days of the passive rates that, for fixed-term deposits and balances of current accounts (checking and savings accounts) up to $100,000 (or its equivalent in other currencies), arise from the survey conducted by the Central Bank of the Republic Argentina."

We send you attached the justifications for the measure adopted and the sheets that, in replacement of those previously provided, should be incorporated into the pertinent ordered text.

We salute you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio
Manager of
Norms Issuance

José Rutman
Manager of
Norms and Authorizations

ANNEX

B.C.R.A.
JUSTIFICATIONS FOR THE RESOLUTION MODIFYING THE CONTRIBUTION TO THE DEPOSIT GUARANTEE FUND AND THE REFERENCE RATE

Annex
to
Communication "A" 3358

1. Through Law 24.485 and its amendments, the Deposit Guarantee Insurance System was instituted with the objective of covering banking deposit risks, in a subsidiary and complementary manner to the system of privileges and deposit protections established by the Financial Entities Law.

2. Article 6° of Decree N° 540/95 (modified by 1292/96 - art. 3°), regulatory of the aforementioned Law, establishes a normal monthly contribution to the Deposit Guarantee Fund (FGD) that is determined by the Central Bank of the Republic Argentina between a minimum (0.015%) and a maximum (0.06%) of the monthly average of daily balances of the items reached. Currently, that contribution amounts to 0.015% and it is considered necessary to increase that contribution to the equivalent of 0.03% to increase the amount of the Fund with the objective of analyzing the subsequent elevation of the guarantee amount that covers the return of deposits.

3. Article 12 of the aforementioned Decree 540/95 provides that deposits constituted after 1.7.95 on which an interest rate higher by two percentage points annually than the passive interest rate for equivalent terms of the Banco de la Nación Argentina corresponding to the day prior to the imposition, are not covered by the guarantee system coverage -among others-, also enabling the Central Bank to modify said reference rate, communicating it with five (5) banking business days of advance (subsection d).

Based on the above, considering it more representative and in order to avoid the volatilities emerging from atypical operations of the Banco de la Nación Argentina, this Institution resolved in September 1998 to replace the reference base with the rate arising from the survey of passive rates for fixed-term deposits and balances of current accounts (checking and savings accounts), corresponding to the moving average of the last five (5) banking business days, plus two percentage points (Communication "A" 2777).

4. The current calculation methodology implies taking into account the interest rates agreed upon for deposits of high amounts that are not representative of those recognized to small depositors towards whom, basically, the protective mechanism of the insurance is oriented, measured through deposits of relatively low magnitude.

This is given that the significant volume of high-value deposits -not covered by the guarantee, except in marginal proportions- influences significantly the total average, regardless that in complex situations in systemic matters such as the current one, these are the ones that generally observe greater volatility.

Consequently, in order to have greater stability of the mentioned value, it is estimated appropriate to modify the methodology in question using the average rates paid for deposits up to $100,000, and not innovating regarding the current criterion about the moving average considered.

B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

1. Shareholder trust of SEDESA.
   The participation in the trust that acts as shareholder of the company Seguro de Depósitos S.A. (SEDESA) arises from providing the contribution effectively made by each entity regarding the contributions collected from the entire system, corresponding to each calendar year. The non-exercise of the option to participate by an entity will determine the proportional increase in the participation of the other entities.

2. Normal contribution.
   Financial entities included in the Financial Entities Law must monthly allocate to the Deposit Guarantee Fund (FGD) a normal contribution equivalent to 0.03% of their monthly average of daily balances of the items listed in point 5.1., recorded in the second month immediately preceding. For these purposes, the Banco de la Nación Argentina will adhere to what is provided in the second paragraph of article 6° of Decree 540/95 (text according to Decree 1292/96 - article 3°). The Central Bank of the Republic Argentina may require the integration, as an advance, of the equivalent of up to twenty-four (24) minimum normal contributions, with a notice of no less than thirty (30) calendar days, to cover resource needs of the Fund.

3. Additional contribution.
   In addition to the normal contribution referred to in point 2., entities must make an additional differentiated contribution depending on the result obtained from the weighting of the following factors, based on the methodology contained in point 7.

3.1. The rating assigned to the entity according to the evaluation carried out by the Superintendence of Financial and Exchange Entities.

3.2. The ratio of excess integration of computable equity responsibility regarding the minimum capital requirement. For this effect, the computable equity responsibility will be added with provisions for uncollectible risk constituted in excess of the minimums established in the pertinent norms.

3.3. The quality of the active portfolio measured by:
3.3.1. Minimum provisions required for uncollectible risk regarding financings.
3.3.2. Computable assets to determine the required minimum capital, weighted according to what is established in the rules on "Minimum capitals of financial entities", regarding total assets.

Version: 4th Communication "A" 3358 Validity:
01.12.01

B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

na by means of Communications "B", determined by adding two percentage points annually to the moving average of the last five (5) banking business days of the passive rates that, for fixed-term deposits and balances of current accounts (checking and savings accounts) up to $100,000 (or its equivalent in other currencies), arise from the survey conducted by the Central Bank of the Republic Argentina.

5.2.4. Deposits of financial entities in other intermediaries, including fixed-term certificates acquired through secondary negotiation.

5.2.5. Deposits made by persons linked, directly or indirectly, to the entity according to the guidelines defined in point 4.2. of Chapter I of Circular OPRAC-1 and in point 1.1. of Annex I to Communication "A" 2140.

5.2.6. Fixed-term deposits of securities, acceptances or guarantees.

5.2.7. Immobilized balances arising from deposits and other excluded operations.

5.3. Coverage. Amount and formalities.

5.3.1. The guarantee will cover the return of the deposited capital and its interest, accrued until the date of revocation of the authorization to function or until the date of suspension of the entity by application of article 49 of the Organic Charter of the Central Bank of the Republic Argentina, if this measure had been adopted prior to that, not exceeding -for both concepts- $ 30,000.

5.3.2. In accounts and deposits constituted in the name of two or more persons, the guarantee limit will be $ 30,000, regardless of the number of titular persons, distributing proportionally the amount of the guarantee that corresponds among the titulators.

5.3.3. The total guaranteed to a specific person, by accumulation of accounts and deposits covered by the guarantee, according to what is provided previously, cannot exceed the limit of $ 30,000 established in article 13 of Decree 540/95 (text according to Decree 1127/98).

5.3.4. SEDESA will reject or postpone until its judicial recognition the coverage request by application of this guarantee regime when the deposits do not meet the requirements established in the applicable norms or when the depositors do not exhibit titles materially and formally valid.

5.3.5. SEDESA may require, prior to the settlement of the guarantee, that depositors justify the origin and availability of the deposited funds through records that demonstrate the verisimilitude thereof and/or that the effective entry of the funds to the entity has been verified regarding each operation covered by the regime.

Version: 4th Communication "A" 3358 Validity:
09.11.01

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED
IN THE ORDERED TEXT OF THE RULES ON
APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

ORDERED TEXT ORIGIN NORM
Point Paragraph. Com. Annex Point Paragraph Observations

1. "A" 2337 I 1. 1° and 2°
   1° "A" 2337 I 2. 1° S/Dec. 1292/96, Com. "A"
   2807 and “A” 3358

2° "A" 2337 I 2. 2° S/Dec. 1292/96
3. 1° "A" 2337 I 3. 1°
3.1. "A" 2337 I 3.1.
3.2. "A" 2337 I 3.2.
3.3. "A" 2337 I 3.3.
3.3.1. "A" 2337 I 3.3.1.
3.3.2. "A" 2337 I 3.3.2.
3. 2° "A" 2337 I 3. 2°
1º "A" 2337 I 4. 3 and 2 S/Com. "B" 5806, 8º paragraph and “A” 3068 4.
2° "A" 2337 I 4. 4°
5. "A" 2337 I 6.
5.1. 1° "A" 2337 I 6.1. 1°
5.1.1. "A" 2337 I 6.1. i)
5.1.2. "A" 2337 I 6.1. ii)
5.1.3. "A" 2337 I 6.1. iii)
5.1.4. "A" 2337 I 6.1. iv)
5.1.5. "A" 2482 1. 2°
5.1.6. "B" 5806 3° S/Com. "A" 2807
5.2. "A" 2337 I 6.4. S/Com. "A" 2399
5.2.1. "A" 2337 I 6.4.1. S/Com. "A" 2399
5.2.2. "A" 2337 I 6.4.2. S/Com. "A" 2399
5.2.3. "A" 2337 I 6.3. S/Com. "A" 2777 and “A” 3358
5.2.4. "A" 2337 IV S/Dec. 540/95,art. 12, inc. c)
5.2.5. "A" 2337 I 6.2.
5.2.6. "A" 2337 IV S/Dec. 540/95,art. 12, inc. c)
5.2.7. "A" 2807 5.2.7.
5.3. "A" 2337 I 6. S/Dec. 540/95
5.3.1. "A" 2337 I 6.5.
5.3.2. "A" 2337 I 6.7. 1° S/Dec. 540/95
5.3.3. "A" 2337 I 6.7. 2° S/Dec. 540/95
5.3.4. "A" 2337 I 6.8. S/Dec. 540/95
5.3.5. "A" 2337 I 6.9.
6. "A" 2337 I 7. S/Com. "A" 2399 and 3270, and
Decree 1292/96
7. 1° "A" 2337 II 1. S/Com. "A" 2561
7.1. "A" 2337 II 1. S/Com. "A" 2561
7.2. "A" 2337 II 2. S/Com. "A" 2561
8. "A" 2807 II and III
8.1. "A" 2807 II S/Law 25.089
8.2. "A" 2807 III S/Dec. 1292/99