Circular OPASI 2 - 598 OPRAC 1 - 1030 REMON 1 - 1014 LISOL 1 - 885. Time deposits and investments. Minimum cash. Minimum capital of financial entities. Adjustments.

"2020 - YEAR OF GENERAL MANUEL BELGRANO"
COMMUNICATION "A" 7018 14/05/2020
TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 598
OPRAC 1 - 1030
REMON 1 - 1014
LISOL 1 - 885
Time deposits and investments. Minimum cash. Minimum capital of financial entities. Adjustments.
____________________________________________________________ We address you to inform you that this Institution adopted the resolution that, in its pertinent part, establishes:

"1. To establish, with effect for deposits collected from May 18, 2020 inclusive, that the minimum rate provided below in the first paragraph of point 1.11.1 of the rules on "Time deposits and investments" will apply to deposits made in the name of holders from the non-financial private sector, without limit on the amount.

2. To establish, with effect from May 18, 2020, that all financial entities may integrate with BCRA Liquidity Bills (LELIQ) the entirety of the minimum cash requirement in pesos – except for the maximum proportion admitted for integration in "Fixed-rate National Treasury Bonds in pesos" – of fixed-term deposits and time investments made by holders from the non-financial private and public sectors, except for what is provided in point 3 of this communication.

3. To establish, with effect from May 18, 2020, that the possibility of making time investments with variable remuneration determined based on the value of cereals or oilseeds as provided in point 2.5.5.4 of the rules on "Time deposits and investments" will be limited to individuals – natural or legal – with agricultural activity and for an amount up to twice the total value of their cereal and/or oilseed sales registered from November 1, 2019. All financial entities may integrate with LELIQ the entirety of the minimum cash requirement in pesos for these time investments.

4. To establish, with effect from May 18, 2020, that financial entities will not be able to grant the financings provided for in point 1.5.5 of the rules on "Minimum cash" nor in Communication "A" 7006 to individuals – natural or legal – with agricultural activity that maintain a stock of their wheat and/or soy production with a value greater than 5% of their annual harvest capacity.

5. To establish that, to determine the minimum capital requirement for credit risk of any financing agreed from May 18, 2020 to clients with agricultural activity that are not MSMEs and have a stock ratio higher than that defined in point 4 of this communication, the amount resulting from applying what is provided in Section 2 of the rules on "Minimum capital of financial entities" must be multiplied by a factor equal to 4."

We will subsequently send you the sheets that, in replacement of those previously provided, will need to be incorporated into the referenced rules.

We greet you sincerely.

CENTRAL BANK OF THE ARGENTINE REPUBLIC
Matías A. Gutiérrez Girault Darío C. Stefanelli Manager of Emission of Norms Principal Manager of Emission and Normative Applications