Circular OPRAC 1-524: Lending Capacity of Foreign Currency Deposits. Application

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA

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COMMUNICATION "A" 3528 I 25/03/02

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TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1 – 524
Lending Capacity of Foreign Currency Deposits.
Application.

We address you to bring to your knowledge that this Institution has adopted the following resolution:

"1. Establish that the lending capacity arising from deposits constituted in foreign currency, including time deposits in US dollars liquidated in pesos, shall be applied, interchangeably, to the following destinations:
1.1. Pre-financing and financing of exports.
1.2. Interfinancial loans.
Entities must identify the interfinancial loans granted with these resources.
1.3. Letters of the Central Bank of the Republic Argentina in US dollars, acquired in auctions or through secondary negotiation.
The application, at a minimum, must be equivalent to the deposits liquidated in pesos.
The resulting lending capacity will be the sum of the foreign currency deposits and the interfinancial loans received, which have been identified by the granting financial entity as originating from its lending capacity of time deposits of that kind, and the deduction of the minimum cash requirement on the deposits. Defects in application will be subject to an equivalent increase in the minimum cash requirement, except where they correspond to the minimum application provided for in point 1.3. These latter defects will be subject to a charge equivalent to twice the nominal annual effective interest rate arising from the auctions of the Letters of the Central Bank of the Republic Argentina in pesos. The accepted cut-off rate reported by this Institution will be taken into account, which is expressed as a nominal annual effective rate, corresponding to the last auction carried out in the period. In the event that letters are awarded for different terms on the same date, the rate corresponding to the operation with the shortest term will be considered.

2. Repeal the resolution disseminated by Communication "A" 3486."

We salute you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio José Rutman
Manager of Issuance Principal Manager of of Norms Norms and Authorizations