Circular OPASI 2-574, REMON 1-992, RUNOR 1-1515: Time Deposits and Investments, Minimum Cash, Electronic Communication for Environmental Care, and Adjustments

"2020 - YEAR OF GENERAL MANUEL BELGRANO"
COMMUNICATION "A" 6871 16/01/2020
TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 574
REMON 1 - 992
RUNOR 1 - 1515
Time Deposits and Investments. Minimum Cash. Communication by Electronic Means for Environmental Care. Adjustments.
____________________________________________________________ We address you to inform you that this Institution adopted the resolution that, in its pertinent part, establishes:

"1. Incorporate, effective 1.2.2020, into the regulations on "Time Deposits and Investments" the following:

"2.8. Deposits with early cancellation option in Units of Purchasing Power adjustable by "CER" - Law 25.827 ("UVA").

Financial entities that collect fixed-term deposits must offer deposits to natural persons, in pesos, expressed in Units of Purchasing Power adjustable by "CER" - Law 25.827 ("UVA") – in accordance with the calculation methodology provided in point 1.9.1.–, with an option for early cancellation under the following conditions:

2.8.1. Minimum Term.
90 days, with the possibility of early cancellation, by the investor from day 30, which must be communicated to the entity with a notice of 5 (five) business days, through the use of electronic communication mechanisms (such as email, telephony, internet banking –"home banking"–, ATMs, and self-service terminals) or in person when so constituted.

2.8.2. Fixed Pre-cancellation Rate.
If the option for early cancellation is exercised, the investment will accrue a fixed pre-cancellation rate for the period effectively elapsed – which will be published daily by the Central Bank on its website – based on the following expression:

TP = TL * 0,70

where:

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TP: Fixed pre-cancellation rate.
TL: Simple average of the rates of the liquidity letter auctions in pesos of shortest term for the last five business days prior to the date of constitution of the investment.

This rate must be reported to the depositor and included in the record of the investment.

2.8.3. Remuneration.
According to the rate freely agreed upon, not less than 1% APR.

2.8.4. Advertising.
They must offer this type of deposit through all available means at the entity's disposal, both in-person and electronic – including web time placements provided for in point 3.11.– in accordance with what is provided for in the regulations on "Communication by Electronic Means for Environmental Care."

2. Substitute, effective 1.2.2020, subsection ii) of point 1.4.1.2. of the regulations on "Minimum Cash" with the following:

"ii) With early cancellation option.
The remaining term until the date on which the investor can exercise the option for early cancellation will be taken into account, to the extent that they are the holder of the right, except for deposits with early cancellation option in Units of Purchasing Power adjustable by "CER" - Law 25.827 ("UVA"), or the originally agreed term, in case the entity is the holder of that right."

3. Incorporate, effective 1.2.2020, as the last paragraph of point 4.4.1.3. and in point 5.3.1.2. of the regulations on "Communication by Electronic Means for Environmental Care" the following:

"Regarding deposits with early cancellation option in Units of Purchasing Power adjustable by "CER" - Law 25.827 ("UVA"), specifically mentioning the possibility of early cancellation, the interest rate, and the fixed pre-cancellation rate in case that option is exercised."

"iii) Regarding deposits with early cancellation option in Units of Purchasing Power adjustable by "CER" - Law 25.827 ("UVA"), specifically mentioning the possibility of early cancellation, the interest rate, and the fixed pre-cancellation rate in case that option is exercised."

Likewise, we inform you that we will subsequently send you the sheets that, in replacement of those previously provided, should be incorporated into the referenced regulations.

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We greet you attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Enrique C. Martin María D. Bossio
Submanager of Emission of Norms
General Submanager of Financial Regulation a/c