Circular OPASI 2-511: Application of the Deposit Guarantee Insurance System. Adjustments. Time Deposits and Investments. Update

"2016 - Year of the Bicentennial of the Declaration of National Independence" COMMUNICATION "A" 6125 23/12/2016 TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 511
Application of the deposit guarantee insurance system. Adjustments.
Time deposits and investments.
Update.

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

"1. Replace point 5.2.2. of the regulations on "Application of the deposit guarantee insurance system" with the following:

"5.2.2. Deposits that offer incentives or returns different from the interest rate and, where applicable, the amount accrued by application of the Reference Stabilization Coefficient ("CER") or the construction cost index for Greater Buenos Aires ("ICC"), regardless of the denomination or modality adopted (insurance, lotteries, tourism, provision of services, etc.)."

2. Replace point 5.3.1. of the regulations on "Application of the deposit guarantee insurance system" with the following:

"5.3.1. The guarantee will cover the return of the deposited capital, interest, updates –by the Reference Stabilization Coefficient ("CER") in deposits of Acquisitive Value Units - Law 25.827 ("UVA") and by the construction cost index for Greater Buenos Aires ("ICC") in deposits of Housing Units - Law 27.271 ("UVI")–, and quotation differences, as applicable, accrued until the date of revocation of the authorization to operate or until the date of suspension of the entity by application of article 49 of the Organic Charter of the Central Bank of the Argentine Republic, if this measure had been adopted prior to the former, without exceeding –for these concepts– $ 450,000. That date will be considered for the determination of the CER and the ICC for deposits in Acquisitive Value Units "UVA" and in Housing Units "UVI", respectively, as well as for the determination of the "Reference exchange rate" for the conversion to pesos of deposits in foreign currency, for the purpose of establishing the amount covered."

-2-
Likewise, we send you attached the sheets that, in replacement of those previously provided, must be incorporated into the ordered text of the regulations on "Application of the deposit guarantee insurance system".

In addition, we take this opportunity to accompany the replacement sheet corresponding to point 2.3.2. of the regulations on "Time deposits and investments" and the respective correlation table, in view of the provisions disseminated through Communication "A" 6069.

Finally, it is recalled that on this Institution's website www.bcra.gob.ar, by accessing "Financial and Payment Systems - LEGAL AND REGULATORY FRAMEWORK - Orders and summaries - Ordered texts of general regulations", the modifications made with texts highlighted in special characters (strikethrough and bold) will be found.

We salute you attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Darío C. Stefanelli Agustín Torcassi
Chief Manager of Issuance and Regulatory Applications General Manager of Regulations

ANNEX

3.3.2. Computable assets to determine the minimum required capital, weighted as established in the regulations on "Minimum capitals of financial entities", with respect to total assets.
The additional contribution resulting from the application of the aforementioned factors shall not exceed the normal contribution.

4. Integration of contributions.
   The normal, additional, and advance contributions shall be debited from the current accounts of the entities opened at the Central Bank of the Argentine Republic no later than the fifth business day of the month to which they correspond. In the event that updated information is not available to establish the relevant calculation base, the amount shall be determined based on the last available data, increasing the obtained base by 10%.

5. Scope of the guarantee.
   5.1. Deposits included.
   The coverage offered by the system shall apply to deposits in pesos and in foreign currency constituted in participating entities in the form of:
   5.1.1. Current account.
   5.1.2. Demand account opened in Cooperative Credit Boxes.
   5.1.3. Savings account.
   5.1.4. Time deposit.
   5.1.5. Salary/social security account, basic, universal and free, and special.
   5.1.6. Time investments.
   5.1.7. Immobilized balances arising from the preceding concepts.

5.2. Exclusions.
5.2.1. Transferable time deposits whose ownership has been acquired by endorsement, even if the last endorsee is the original depositor.
5.2.2. Deposits that offer incentives or returns different from the interest rate and, where applicable, the amount accrued by application of the Reference Stabilization Coefficient ("CER") or the construction cost index for Greater Buenos Aires ("ICC"), regardless of the denomination or modality adopted (insurance, lotteries, tourism, provision of services, etc.).
B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 12th COMMUNICATION "A" 6125 Validity:
24/12/2016

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 Argentine Republic through Communications "B", determined by adding two percentage points annually to the moving average of the last five business banking days of the passive rates that, for time deposits and demand account balances (savings account and salary/social security account) of up to $ 100,000 (or its equivalent in other currencies) arise from the survey conducted by the Central Bank of the Argentine Republic.

5.2.4. Deposits of financial entities in other intermediaries, including time deposit certificates acquired through secondary negotiation.

5.2.5. Deposits made by persons directly or indirectly linked to the entity according to the guidelines defined in point 2.2. of the regulations on "Fragmentation of credit risk".

5.2.6. Time deposits of securities, acceptances, or guarantees.

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

5.3. Coverage. Amount and formalities.
5.3.1. The guarantee will cover the return of the deposited capital, interest, updates –by the Reference Stabilization Coefficient ("CER") in deposits of Acquisitive Value Units - Law 25.827 ("UVA") and by the construction cost index for Greater Buenos Aires ("ICC") in deposits of Housing Units - Law 27.271 ("UVI")–, and quotation differences, as applicable, accrued until the date of revocation of the authorization to operate or until the date of suspension of the entity by application of article 49 of the Organic Charter of the Central Bank of the Argentine Republic, if this measure had been adopted prior to the former, without exceeding –for these concepts– $ 450,000.
That date will be considered for the determination of the CER and the ICC for deposits in Acquisitive Value Units "UVA" and in Housing Units "UVI", respectively, as well as for the determination of the "Reference exchange rate" for the conversion to pesos of deposits in foreign currency, for the purpose of establishing the amount covered.

5.3.2. In accounts and deposits constituted in the name of two or more persons, the guarantee limit shall be $ 450,000, regardless of the number of titular owners, with the amount of the guarantee corresponding to them distributed proportionally among the owners.

5.3.3. The total guaranteed to a specific person, by accumulation of accounts and deposits covered, as provided previously, shall not exceed the limit of $ 450,000.

5.3.4. SEDESA will reject or postpone until judicial recognition the request for coverage by application of this guarantee regime when the deposits do not meet the requirements established in the applicable regulations or when the depositants do not exhibit titles that are materially and formally valid.
B.C.R.A. APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM Version: 15th COMMUNICATION "A" 6125 Validity:
24/12/2016

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE REGULATIONS 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. N°1292/96, Com. "A" 2807, 3358, 4206, 4271, 5641 and 5943.
2.
2° "A" 2337 I 2. 2° S/Dec. N°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°
1° "A" 2337 I 4. 2° and 3° S/Com. "B" 5806 (8th paragraph), "A" 3068, 5710 and 5720.
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" 5108
5.1.3. "A" 2337 I 6.1. ii)
5.1.4. "A" 2337 I 6.1. iii)
5.1.5. "A" 2337 I 6.1. iv) S/Com. "A" 5091, 5108, 5164
and 5234.
5.1.6. "A" 2482 1. 2°
5.1.7. "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, 4681,
4874 and 6125.
5.2.3. "A" 2337 I 6.3. S/Com. "A" 2777, 3358,
5108, 5234, 5640, 5654 and
5891. Includes interpretative clarification.
5.2.4. "A" 2337 IV S/Dec. N° 540/95, art. 12,
inc. c).
5.2.5. "A" 2337 I 6.2. S/ Com. "A" 5520.
5.2.6. "A" 2337 IV S/Dec. N° 540/95, art. 12,
inc. c).
5.2.7. "A" 2807 5.2.7.
5.3. "A" 2337 I 6. S/Dec. N°540/95.
5.3.1. "A" 2337 I 6.5. S/Com. "A" 4681, 5170,
5641, 5943 and 6125.
5.3.2. "A" 2337 I 6.7. 1° S/Dec. N°540/95 and Com. "A"
5170, 5641 and 5943.
5.3.3. "A" 2337 I 6.7. 2° S/Dec. N°540/95 and Com. "A"
5170, 5641 and 5943.
5.3.4. "A" 2337 I 6.8. S/Dec. N°540/95.
5.3.5. "A" 2337 I 6.9.

express manifestation to the contrary by the owner. In this case, maturity will occur on the day the term agreed upon at origin is fulfilled, counted from the date of the deposit or from the last automatic extension in the event that this circumstance has occurred.
2.2.2. Owners.
Qualified investors, defined in point 3.3.
2.2.3. Interest rate.
The one freely agreed upon.
During the course of the term agreed upon at origin, it may be fixed. Thereafter, it must be renegotiated, and pre-established margins ("spreads") calculated on indicators of a financial nature of wide national or international dissemination may be applied. The use of variable rates may also be agreed upon from the beginning of the deposit. The calculation bases must be clearly fixed in the contract.
2.3. With option for early cancellation.
2.3.1. Minimum term.
2.3.1.1. For non-transferable nominative certificates in pesos, corresponding to public sector owners: 90 days, with the possibility of early cancellation by the investor.
2.3.1.2. Others: 180 days, with the possibility of early cancellation.
2.3.2. Cancellation.
Cancellation before maturity may be requested by the investor or by the entity, depending on who maintains the ownership of the right to exercise that option. That right may only be exercised once the agreed period has elapsed, which shall not be less than 180 or 30 calendar days counted from the date of the deposit, depending on whether the investments are adjustable by "UVA" or other investments with the option for early cancellation. In the case of non-transferable nominative certificates, in pesos, corresponding to public sector owners who have the right to exercise the option for early cancellation, the aforementioned period shall not be less than 3 days.
2.3.3. Owners.
TIME DEPOSITS AND INVESTMENTS B.C.R.A.
Section 2. Time investments.
Version: 5th COMMUNICATION "A" 6125
Validity:
17/09/2016

TIME DEPOSITS AND INVESTMENTS
ORDERED TEXT ORIGIN NORM
Sec. Point Para. Com. Annex Cap. Sec. Point Para.
OBSERVATIONS
2.2.3. "A" 2482 1.A)5.
2.3.1. "A" 2482 1.B)1. 1° S/Com. "A" 4754.
2.3.2. "A" 2482 1.B)1. 2° S/Com. "A" 4754, 5149,
5945 and 6125.
2.3.3.1. "A" 2482
"A" 2482
1.B)2. 1°
4°
2.3.3.2. "A" 2482 1.B)2. 2° S/Com. "A" 4754.
2.3.4. "A" 2482 1.B)5.
2.3.5.1. "A" 2482 1.B)7. a)
2.3.5.2. "A" 2482 1.B)7. b)
2.4.1. "A" 2482 1.C)1.
2.4.2.1. "A" 2482
"A" 2482
1.C)2. 1°
4°
2.4.2.2. "A" 2482 1.C)2. 2° S/Com. "A" 4754.
2.4.3. "A" 2482 1.C)5.
2.4.4. "A" 2482 1.C)7.
2.5.1. "A" 2482 1.D)1. S/Com. "A" 3043, 4234,
4612, 5945 and "C" 40024.
2.5.2.1. "A" 2482 1.D)4.2. S/Com. "A" 2617 and
4612.
2.5.2.2. "A" 2482 1.D)4.1.
2.5.3. "A" 2482 1.D)5. S/Com. "A" 2617, 4234,
4612, 4742, 5671 and
5740.
2.5.4. "A" 2617 2. S/Com. "A" 4612.
2.5.5.1. "A" 2617 unique 1. S/Com. "A" 3043, 3185,
4234, 4612 and 6091.
2.5.5.2. "A" 2617 unique 2. S/Com. "A" 4234.
2.5.5.3. "A" 2617 unique 3. S/Com. "A" 3090, 3185
and 4234.
2.5.5.4. "A" 2617 unique 4.
2.5.5.5. "A" 2617 unique 6. S/Com. "A" 2961 -
Annex, 4234, 4612 and
5257.
2.5.5.6. "A" 4612
2.5.5.7. "A" 4612 S/Com. "A" 5945 and
6069.
2.6. "A" 6069 2.
2.
2.7. "A" 6069 2.
3.1. "A" 3043
3.1.1. "A" 2885 1.
3.1.2. "A" 2885 2. 2.2.
3.1.3. "A" 2885 2. 2.3.
3.1.4. "A" 2885 2. 2.4.
3.1.5. "A" 2885 2. 2.5. and
2.6.
3.1.6. "A" 3043
3.
3.2. "A" 1891 S/Com. "A" 1922, 3323
and 4875.