Circular OPASI 2-362: Rules on Application of Deposit Guarantee Insurance System - Reduction of Normal Contribution

“2004 - Year of the Argentine Antarctic”
CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION “A” 4271 30/12/2004
TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 362
Rules on “Application of the deposit guarantee insurance system”. Reduction of the normal contribution. ______ We address you to inform you that this Institution has adopted the following resolution:

“- Substitute, with effect from the contribution due in January 2005, point 2. of the rules on “Application of the deposit guarantee insurance system” with the following:

“2. Normal Contribution.
Entities covered by the Financial Entities Law shall allocate monthly to the Deposit Guarantee Fund (FGD) a normal contribution equivalent to 0.015% 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 Bank of the Argentine Nation shall adhere to the provisions of the second paragraph of Article 6º of Decree 540/95 (text according to Decree 1292/96 - Article 3º). The Central Bank of the Argentine Republic 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 calendar days, to cover resource needs of the Fund.”

We send you attached the sheets that, in replacement of those previously provided, should be incorporated into the ordered text of the rules on “Application of the deposit guarantee insurance system”.

We salute you very respectfully.

CENTRAL BANK OF THE ARGENTINE REPUBLIC
Alfredo A. Besio
Issuance Manager
José I. Rutman
Principal Manager of Rules

ANNEX

B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 6th COMMUNICATION “A” 4271 Validity:
01/01/2005

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.
   Entities covered by the Financial Entities Law shall allocate monthly to the Deposit Guarantee Fund (FGD) a normal contribution equivalent to 0.015% 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 Bank of the Argentine Nation shall adhere to the provisions of the second paragraph of Article 6º of Decree 540/95 (text according to Decree 1292/96 - Article 3º). The Central Bank of the Argentine Republic 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 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 according to 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 to the provisions for uncollectible risk constituted in excess of the minimums established in the pertinent rules.

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 as established in the rules on “Minimum capitals of financial entities”, regarding total assets.

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 RULE
Point Paragraph. Comm. Annex Point Paragraph
Observations

1. “A” 2337 I 1. 1° and 2°
   1° “A” 2337 I 2. 1° S/Dec. 1292/96, Com. “A”
   280, “A” 3358, “A” 4206 and “A”
   4271

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, 8th 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, item c)
5.2.5. “A” 2337 I 6.2.
5.2.6. “A” 2337 IV S/Dec. 540/95, art. 12, item 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 and “A” 4040
7.2. “A” 2337 II 2. S/Com. “A” 2561
7.3. “A” 4040
8. “A” 2807 II and III
8.1. “A” 2807 II S/Law 25.089
8.2. “A” 2807 III S/Dec. 1292/99 and “A” 4206