BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACIÓN "A" 3506 I 13/03/02 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 – 295
LISOL 1 - 376
Guarantees for Intermediation in Third-Party Operations. Minimum Cash. Modification of Placement Terms and Reserve Requirements

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

"1. Replace point 1.3. of Section 1. of the rules on "Guarantees for Intermediation in Third-Party Operations", with the following:

"1.3. Terms.

They shall be calculated from the placement until the maturity of the instrument.

1.3.1. From 7 to 29 days.

The placement of instruments -issued in pesos or US dollars- may only be carried out if there is the receipt of cash or transfers received from abroad susceptible to be paid in cash, not linked to foreign trade operations, or by debit from "special accounts for cash deposits".

US dollar operations will only be admitted regarding credit instruments issued by foreign importers of goods from the country, in favor of local exporters, or by the latter to prefinance exports regarding duly formalized contracts, according to documentation that the entity must retain. The borrowers of the funds must settle the resources received in the Single and Free Foreign Exchange Market.

At maturity, the investor may opt to receive the amount corresponding to these instruments in cash, in US dollars or in pesos according to the currency of the instrument, or by crediting an account in pesos, in case converted at the agreed exchange rate.

1.3.2. From 30 days or more.

Instruments issued in pesos or US dollars may be placed.

For the placement of instruments issued in US dollars, the provisions of point 1.3.1. shall be observed.

When it comes to instruments issued in pesos, the placement may be carried out through the receipt of cash and by the modalities mentioned in that point and by checks and transfers of balances from current accounts or savings accounts opened in the same entity or from accounts located in other financial entities.

At the maturity of the peso operations, the investor may receive the resulting amount:

a) In cash or through credit in a special account for cash deposits, indistinctly, only if the investment was made in cash or with debit in that account, or by credit in other accounts indicated by the investor.

b) By credit in a current account or savings account indicated by the investor or by teller check or financial payment check, if the investment was made with a check or debit in any of those accounts or by transfers of funds from them."

2. Replace, with effect from 1.3.02, point 1.3.8. of Section 1. of the rules on "Minimum Cash", with the following:

"1.3.8. Fixed-term deposits, obligations for "acceptances" -including liabilities from the sale or assignment of credits to subjects other than financial entities-, reverse repos, guarantees and passive stock market repos, investments for a fixed term, with option of early cancellation or renewal for a determined term and with variable remuneration, obligations with the fiduciary funds for Assistance to Financial Entities and Insurance and for Provincial Development and other term obligations, with the exception of rescheduled deposits included in points 1.3.9. and 1.3.10. and of the deposits and acceptances contemplated in points 1.3.14. and 1.3.15. 40"

3. Incorporate, with effect from 1.3.02, in Section 1. of the rules on "Minimum Cash", the following points:

"1.3.14. Fixed-term deposits constituted with cash, with debit from "special accounts for cash deposits", or with transfers received from abroad susceptible to be paid in cash, not linked to foreign trade operations:

i) From 7 to 13 days 9 ii) From 14 to 29 days 7 iii) From 30 days or more 5" "1.3.15. Obligations for "acceptances" if there is the receipt of cash, or by debit from "special accounts for cash deposits", or of transfers received from abroad susceptible to be paid in cash, not linked to foreign trade operations:

i) From 7 to 13 days 5 ii) From 14 to 29 days 4 iii) From 30 days or more 3"

Accompanying you with the sheets that correspond to incorporate into the pertinent regulations, we greet you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA

Alfredo A. Besio José Rutman
Manager of Emission Principal Manager of of Norms Norms and Authorizations

ANEXO

B.C.R.A. UPDATED AND ORDERED TEXT OF THE RULES ON GUARANTEES FOR INTERMEDIATION IN THIRD-PARTY OPERATIONS

• Index -
  Section 1. Acceptances.
  1.1. Scope.
  1.2. Participating Entities.
  1.3. Terms.
  1.4. Intermediation Margin.
  1.5. Participations.
  1.6. Secondary Negotiation.
  1.7. Prohibitions.
  1.8. Registration.
  1.9. Formalities.
  1.10. Advertising.
  Section 2. Operations with Securities.
  2.1. Guarantees for Loans.
  2.2. Guarantees for Repos.
  Section 3. Debt Securities Issued by Companies.
  3.1. Scope.
  3.2. Granting of Guarantees.
  3.3. Characteristics of Securities.
  3.4. Issuance and Placement Conditions.
  Version: 2nd. Communication "A" 3506 Validity
  13.03.02

GUARANTEES FOR INTERMEDIATION IN THIRD-PARTY OPERATIONS B.C.R.A. Section 1. Acceptances.
1.1. Scope.
It includes the placement between persons of the non-financial sector of debt-representing instruments (promissory notes, bills of exchange, deferred payment checks, etc.) that meet the following conditions:
1.1.1. Are issued by:
1.1.1.1. The borrowers of the funds themselves.
1.1.1.2. Third parties and belong to the borrower's portfolio.
1.1.2. Count with the guarantee of the intervening financial entity (aval, guarantee, acceptance, etc.).
Regarding the borrowers of the funds, the current regulations in credit matters and prudential regulations applicable to them shall be observed.
1.2. Participating Entities.
Financial entities.
1.3. Terms.
They shall be calculated from the placement until the maturity of the instrument.
1.3.1. From 7 to 29 days.
The placement of instruments -issued in pesos or US dollars- may only be carried out if there is the receipt of cash or transfers received from abroad susceptible to be paid in cash, not linked to foreign trade operations, or by debit from "special accounts for cash deposits". US dollar operations will only be admitted regarding credit instruments issued by foreign importers of goods from the country, in favor of local exporters, or by the latter to prefinance exports regarding duly formalized contracts, according to documentation that the entity must retain. The borrowers of the funds must settle the resources received in the Single and Free Foreign Exchange Market. At maturity, the investor may opt to receive the amount corresponding to these instruments in cash, in US dollars or in pesos according to the currency of the instrument, or by crediting an account in pesos, in case converted at the agreed exchange rate. Version: 2nd. Communication "A" 3506 Validity 13.03.02

GUARANTEES FOR INTERMEDIATION IN THIRD-PARTY OPERATIONS B.C.R.A. Section 1. Acceptances.
1.3.2. From 30 days or more.
Instruments issued in pesos or US dollars may be placed.
For the placement of instruments issued in US dollars, the provisions of point 1.3.1. shall be observed. When it comes to instruments issued in pesos, the placement may be carried out through the receipt of cash and by the modalities mentioned in that point and by checks and transfers of balances from current accounts or savings accounts opened in the same entity or from accounts located in other financial entities. At the maturity of the peso operations, the investor may receive the resulting amount:
a) In cash or through credit in a special account for cash deposits, indistinctly, only if the investment was made in cash or with debit in that account, or by credit in other accounts indicated by the investor. b) By credit in a current account or savings account indicated by the investor or by teller check or financial payment check, if the investment was made with a check or debit in any of those accounts or by transfers of funds from them.
1.4. Intermediation Margin.
It shall be freely agreed upon by the parties, both in the primary placement and in the secondary negotiation.
1.5. Participations.
1.5.1. Their issuance will be admitted.
1.5.2. The representative instrument shall contain the data that allow clear and unequivocal identification of the instruments on which the participation is granted and the conditions of its placement.
1.6. Secondary Negotiation.
Between the primary placement and the first negotiation or transfer, and between each subsequent negotiation or transfer carried out, a period of not less than 30 days must elapse, except when it comes to operations between entities. Version: 2nd. Communication "A" 3506 Validity 13.03.02

GUARANTEES FOR INTERMEDIATION IN THIRD-PARTY OPERATIONS B.C.R.A. Section 1. Acceptances.
1.7. Prohibitions.
The intervening entities shall not:
1.7.1. Facilitate with their management the realization of financial transactions between third parties in which the collection of resources that takes place, from residents or non-residents in the country, implies that their return is guaranteed by another local or foreign financial entity.
1.7.2. Receive as counter-guarantee for the guarantees they grant, securities or debt-representing instruments subordinate, admitted to determine the computable patrimonial liability, or convertible into shares of the entity.
1.7.3. Agree on the repurchase of the accepted or guaranteed instruments in whose placement or negotiation they intervened.
1.8. Registration.
The intervening entities shall adopt the necessary precautions to allow the identification of the operations carried out.
1.9. Formalities.
1.9.1. Upon perfection of each transaction, the intervening financial entity shall deliver to the investor the instrument object of the transaction or the representative instrument of the participation that is extended, in which they shall insert the following legends:
1.9.1.1. "Accepted" or "Guaranteed", with mention of the name of the entity, the date and the signatures of two officials duly authorized to commit the financial entity.
1.9.1.2. "The instrument object of the transaction is excluded from the deposit guarantee insurance system – Law 24.485. It also does not participate in the special, exclusive and excluding privilege, nor in the general and absolute privilege granted to depositors by paragraphs d) and e) of article 49 of the Financial Entities Law".
1.9.2. All procedures related to the operation shall be complied with within the headquarters of the entity, in the offices destined to public attention.
1.10. Advertising.
In all advertising carried out regarding these operations, express notice shall be left that they are not deposits and that therefore they are excluded from the deposit guarantee insurance system, according to what arises from Law 24.485 and the privilege regime for deposits referred to in article 49 of the Financial Entities Law. Version: 2nd. Communication "A" 3506 Validity 13.03.02

B.C.R.A.
ORIGIN OF THE PROVISIONS RELATED TO THE
RULES ON GUARANTEES FOR INTERMEDIATION IN
THIRD-PARTY OPERATIONS
ORDERED TEXT ORIGIN NORM
Section Point Par. Communication Annex Ch. Point Par.
OBSERVATIONS
1.1. 1st "A" 3053
1.1.1. "A" 1199 II 3.1. and 3.2.
1.1.2. "A" 3053
1.1. ult. "A" 1199 II 3.5. S/Com. "A" 3053
1.2. "A" 1653 II 1.1. S/Com. "A" 3053
1.3. "A" 1653 II 1.2. S/Com. "A" 3506 – pt. 1.
1.4. "A" 1653 II 1.3.
1.5.1. "A" 1653 II 1.4.
1.5.2. "A" 3053
1.6. "A" 1653 II 1.5. 1st S/Com. "A" 2064 -ult. par.
and "A" 3053
1.7.1. "A" 1199 II 3.4. S/Com. "A" 2383
1.7.2. "A" 2177 3.
1.7.3. "A" 2802 I 1.2.
1.8. "A" 1199 II 3.7. S/Com. "A" 3053
1.9.1. "A" 3053
1.9.2. "A" 1199 II 3.8.
1.
1.10. "A" 1653 II 1.6. S/Com. "A" 2122-8th par. and
"A" 3053
2.1.1. "A" 1465 III 2.1. S/Com. "A" 3053
2.1.2. "A" 1465 III 2.2. S/Com. "A" 2140 - pt.
9.2.
2.1.3.1. "A" 3053
2.1.3.2. "A" 1465 III 2.3. S/Com. "A" 2061 - pt.
1.2.
2.1.4. "A" 1465 III 2.4.
2.1.5. "A" 2177 3.
2.2.1. "A" 1465 III 3.2.1.
2.2.2. "A" 1465 III 3.2.1. S/Com. "A" 2140 - pt.
9.2.
2.2.3.1. "A" 3053
2.2.3.2. "A" 1465 III 3.2.1. S/Com. "A" 2061 - pt.
1.2.
2.2.4. "A" 1465 III 3.2.2.
2.2.5. "A" 1465 III 3.2.3. S/Com. "A" 3053
2.
2.2.6. "A" 2177 3.
3.1. "A" 1905 1. S/Com. "A" 3053
3.2. 1st "A" 1905 1.1.7. 1st S/Com. "A" 3053
2nd "A" 1905 1.1.7. 2nd
3.3.1. "A" 1905 1.
3.3.2. "A" 1905 1.
3.3.3. "A" 1905 1.1.8.
3.
3.4.1. "A" 1905 1.1.1. S/Com. "A" 2061 - pt.
1.5.

MINIMUM CASH B.C.R.A. Section 1. Requirement.
1.3. Minimum Cash.
The amounts of minimum cash arising from applying the following rates shall be integrated:
Concept Rate in %
1.3.1. Current account deposits. 40
1.3.2. Savings account deposits. 40
1.3.3. Pupillary usuries, special accounts for closed circles,
special accounts for cash deposits, "Unemployment Fund for construction industry workers", "Payment of Remuneration", special current accounts for legal entities and pension savings account. 40
1.3.4. Other demand deposits and obligations, pension
benefits credited by ANSES pending cashing and immobilized balances corresponding to obligations included in these rules. 40
1.3.5. Unused balances of current account advances
formalized. 40
1.3.6. Demand placements -whatever the form of
deposit- that, at minimum, must constitute the credit of common investment funds (according to what is provided in the rules of the National Securities Commission). 100
1.3.7. Deposits in current accounts of non-bank financial entities,
computable for the integration of their minimum cash. 100
1.3.8. Fixed-term deposits, obligations for "acceptances"
-including liabilities from the sale or assignment of credits to subjects other than financial entities-, reverse repos, guarantees and passive stock market repos, investments for a fixed term, with option of early cancellation or renewal for a determined term and with variable remuneration, obligations with the fiduciary funds for Assistance to Financial Entities and Insurance and for Provincial Development and other term obligations, with the exception of the rescheduled deposits included in points 1.3.9. and 1.3.10. and of the deposits and acceptances contemplated in points 1.3.14. and 1.3.15. 40 Version: 7th. Communication "A" 3506 Validity:
01.03.02

MINIMUM CASH B.C.R.A. Section 1. Requirement.
1.3.9. Deposits included in the "Deposit Rescheduling Regime" regarding the installments whose maturity operates until the eleventh month following the computation period,
except those included in point 1.3.13. 40
1.3.10. Deposits included in the "Deposit Rescheduling Regime" regarding the installments whose maturity operates
from the twelfth month following the computation period, except those included in point 1.3.13. 0
1.3.11. Obligations for foreign financial lines, including the
obligations with correspondents. 0
1.3.12. Negotiable obligations. 0
1.3.13. Rescheduled deposits assigned by other financial
entities, maintained under the conditions of rescheduling, due to the carrying out of the operation provided in point 5. of the "Deposit Rescheduling Regime". 100
1.3.14. Fixed-term deposits constituted with cash,
with debit from "special accounts for cash deposits", or with transfers received from abroad susceptible to be paid in cash, not linked to foreign trade operations:
i) From 7 to 13 days ii) From 14 to 29 days iii) From 30 days or more 9 7 5
1.3.15. Obligations for "acceptances" if there is the receipt of
cash, or by debit from "special accounts for cash deposits", or of transfers received from abroad susceptible to be paid in cash, not linked to foreign trade operations:
i) From 7 to 13 days ii) From 14 to 29 days iii) From 30 days or more 5 4 3
1.4. Specific increases in requirement due to liability concentration.
When an excessive concentration of liabilities (in titleholders and/or terms) occurs, which implies a significant risk regarding the individual liquidity of the financial entity and/or has an important negative effect on systemic liquidity, additional minimum cash may be fixed on the liabilities included in the financial entity and/or those complementary measures that are deemed pertinent. Version: 6th. Communication "A" 3506 Validity:
01.03.02

MINIMUM CASH B.C.R.A. Section 1. Requirement.
It shall be considered that this situation is configured when, among others, any of the following factors are present:

• A high percentage of liabilities is concentrated in the same titleholder or titleholders.
• In term obligations, the term is short.
• The aforementioned liabilities represent a significant percentage regarding the integration of the minimum cash and/or the total of private sector deposits in the entity.
  1.5. Transfers.
  1.5.1. Admitted Margin.
  The integration of the minimum cash of the positions in average monthly balance of daily balances of the obligations included shall not be less than 90% of the requirement resulting from the following expression:
  EEMA (n) = EEF (n) + ENI (n-1)
  Where
  EEMA (n): adjusted minimum cash requirement corresponding to month "n".
  EEF (n): minimum cash requirement according to current regulations corresponding to month "n".
  ENI (n-1): requirement not integrated in month "n-1".
  1.5.2. Utilization Period.
  The admitted transfer of the requirement not integrated in each month to the next position may be carried out up to a maximum of six months, counted from the first month (inclusive) in which the option to use it is chosen according to what is provided previously or from the first immediate position subsequent to that in which the defects transferred are compensated or charge is paid on them.
  1.6. Requirement for deposit increase.
  A minimum cash requirement of 75% shall be observed on the monthly average (considering only positive balances) of the daily increase that is registered in the deposits (demand and term, including all obligations subject to minimum cash requirement, except obligations with banks abroad - including parent companies and controlling entities of local entities and their branches - for lines that do not have as destination the financing of foreign trade operations, negotiable obligations and unused balances of current account advances computable), from 1.3.02, with respect to the balance verified on 30.11.01 (in this case, including the computable obligations, according to the preceding criterion, subject to minimum liquidity requirements). Version: 3rd. Communication "A" 3506 Validity:
  01.03.02

MINIMUM CASH B.C.R.A. Section 1. Requirement.
Additionally, a minimum cash requirement of 25% shall be observed on the monthly average (considering only positive balances) of the daily increase that is registered in the deposits (demand and term, including all obligations subject to minimum cash requirement, except obligations with banks abroad -including parent companies and controlling entities of local entities and their branches - for lines that do not have as destination the financing of foreign trade operations, negotiable obligations and unused balances of current account advances computable), from 1.3.02, with respect to the balance verified on 4.1.02 (in this case, including the computable obligations, according to the preceding criterion, subject to minimum liquidity requirements). In the determination of such requirements, the following deposits shall not be considered, for all purposes:

• official,
• fixed-term deposits constituted in cash from 3.12.01,
• in special accounts for cash deposits,
• corresponding to foreign diplomatic or consular representations, international
  organizations, special missions and commissions or bilateral or multilateral organs established by treaties in which the Argentine Republic is a party, and to foreign officials of those entities, accredited before the Ministry of Foreign Relations, International Trade and Worship, provided that the accounts are related to the performance of their functions, and
• rescheduled balances that are assigned by other financial entities, maintained
  as a deposit in the receiving entity under the conditions of rescheduling, due to the carrying out of an operation provided in point 5. of the "Deposit Rescheduling Regime". For the purposes of determining the computable growth, the obligations included in foreign currency and the respective comparison base shall be converted to pesos at the rate of one peso with forty cents for each US dollar ($ 1.40 = US$ 1) or its equivalent.
  1.7. Deductible Concept.
  Amounts contributed to the Bank Liquidity Fund.
  1.8. Defect of application of resources in foreign currency.
  The defect of application of resources corresponding to deposits in foreign currency that is determined in a month shall be computed by an equivalent amount in the calculation of the minimum cash requirement of that same period. Version: 2nd. Communication "A" 3506 Validity:
  01.03.02

B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE CONSOLIDATED TEXT OF THE RULES ON MINIMUM CASH

CONSOLIDATED TEXT	ORIGIN RULE	OBSERVATIONS
Sec.	Point	Para.	Com.	Annex	Sec.	Point	Para.
1.1.	“A” 3274	II	1.		1.1.
1.1.1.	“A” 3274	II	1.		1.1.1.		According to Com. “A” 3498
1.1.2.	“A” 3274	II	1.		1.1.2.
1.1.3.	“A” 3274	II	1.		1.1.3.		According to Com. “A” 3498
1.2.	“A” 3274	II	1.		1.2.		According to Com. “A” 3304 and “A” 3498.
1.3.	“A” 3274	II	1.		1.3.
1.3.1.	“A” 3274	II	1.		1.3.1.		According to Com. “A” 3338, “A” 3417 and “A” 3498.
1.3.2.	“A” 3274	II	1.		1.3.2.		According to Com. “A” 3338, “A” 3417 and “A” 3498.
1.3.3.	“A” 3274	II	1.		1.3.3.		According to Com. “A” 3338, “A” 3399, “A” 3417 and “A” 3498.
1.3.4.	“A” 3274	II	1.		1.3.4.		According to Com. “A” 3338, “A” 3417 and “A” 3498.
1.3.5.	“A” 3274	II	1.		1.3.5.		According to Com. “A” 3338, “A” 3417 and “A” 3498.
1.3.6.	“A” 3274	II	1.		1.3.6.		According to Com. “A” 3365 and “A” 3498.
1.3.7.	“A” 3274	II	1.		1.3.7.
1.3.8.	“A” 3498	único	1.		1.3.8.		According to Com. “A” 3506 – pt. 2.
1.3.9.	“A” 3498	único	1.		1.3.9.
1.3.10.	“A” 3498	único	1.		1.3.10.
1.3.11.	“A” 3498	único	1.		1.3.11.
1.3.12.	“A” 3498	único	1.		1.3.12.
1.3.13.	“A” 3498	único	1.		1.3.13.
1.3.14.	“A” 3506		3.
1.3.15.	“A” 3506		3.
1.4.	“A” 3274	II	1.		1.5.		According to Com. “A” 3498
1.5.	“A” 3274	II	1.		1.6.
1.5.1.	“A” 3274	II	1.		1.6.1.
1.5.2.	“A” 3274	II	1.		1.6.2.		According to Com. “A” 3304.
1.6.	“A” 3470		1.				According to Com. “A” 3498
1.7.	“A” 3498	único	1.		1.7.
1.8.	“A” 3498	único	1.		1.8.
2.1.	“A” 3274	II	2.		2.1.		According to Com. “A” 3498
2.1.1.	“A” 3274	II	2.		2.1.1.		According to Com. "A" 3304.
2.1.2.	“A” 3274	II	2.		2.1.2.		According to Com. “A” 3304 and “A” 3498.
2.1.3.	“A” 3498	único	2.		2.1.3.
2.1.4.	“A” 3274	II	2.		2.1.3.		According to Com. “A” 3498
2.1.5.	“A” 3274	II	2.		2.1.4.
2.1.6.	“A” 3311		2.
2.1.7.	“A” 3498	único	2.		2.1.7.

MINIMUM CASH

CONSOLIDATED TEXT	ORIGIN RULE	OBSERVATIONS
Sec.	Point	Para.	Com.	Annex	Sec.	Point	Para.
2.2.	“A” 3274	II	2.		2.2.		According to Com. “A” 3498
2.3.	“A” 3274	II	2.		2.3.		According to Com. “A” 3311, 2.
2.4.	“A” 3365		2.				According to Com. “A” 3387, 3470 and “A” 3498.
3.1.	“A” 3274	II	3.		3.1.
3.1.1.	“A” 3274	II	3.		3.1.1.		According to Com. “A” 3326, 3365 and “A” 3498.
3.1.2.	“A” 3274	II	3.		3.1.2.
3.1.3.	“A” 3274	II	3.		3.1.3.		According to Com. “A” 3326.
3.1.4.	“A” 3274	II	3.		3.1.4.
3.2.	“A” 3274	II	3.		3.2.
3.2.1.	“A” 3274	II	3.		3.2.2.1.
3.2.2.	“A” 3274	II	3.		3.2.2.2.
3.3.	“A” 3274	II	3.		3.3.		According to Com. “A” 3498
3.3.1.	“A” 3274	II	3.		3.3.1.		3.
3.3.2.	“A” 3274	II	3.		3.3.2.
4.					4.1.	“A” 3274	II	4.	4.1.
5.					5.1.	“A” 3274	II	5.	5.1.	According to Com. “A” 3498