Circular OPRAC 1 - 385. OPASI 2 - 126. Operations with fixed-term deposit certificates and negotiable obligations

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 2308 03/02/95 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1 - 385.
OPASI 2 - 126.
Operations with fixed-term deposit certificates and negotiable obligations

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

"- It is ordered that financial entities that make use of rediscounts or advances from the Central Bank for temporary situations of illiquidity or of financial assistance linked to the funds referred to in point 8 of the resolution made known through Communication "A" 2298 may not acquire fixed-term deposit certificates -in pesos, in foreign currency or of public debt titles- or negotiable obligations issued by them, nor cancel passive repos early or grant financial assistance in which those instruments are received as collateral for the fulfillment of loans, even if the minimum term of 30 days has elapsed from the date of issuance, last negotiation or transfer, while those facilities remain in force."

We salute you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Juan Carlos Isi Hector Biondo
Submanager of Standards for Financial Entities General Submanager Area of Operations