Circular OPRAC 1-530 / REMON 1-759: Regime on Minimum Application of Resources from Peso Demand Obligations

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA

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COMMUNICATION "A" 3598 I 03/05/02

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TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1 – 530
REMON 1 - 759
Regime on "Minimum Application of Resources from Peso Demand Obligations"

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

"1. Approve, with effect from 1.5.02, the rules on "Minimum Application of Resources from Peso Demand Obligations" contained in the annex.

2. Admit the application of this regime and the new minimum cash structure with effect from 1.3.02 for financial entities that so request."

We salute you very respectfully.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Alfredo A. Besio José Rutman
Manager of Emission Principal Manager of of Rules Rules and Authorizations

ANNEX

B.C.R.A.
ORDERED TEXT OF THE RULES ON
MINIMUM APPLICATION OF RESOURCES FROM DEMAND OBLIGATIONS IN PESOS -IndexSection 1. Scope.
1.1. Obligations included.
1.2. Application base.
1.3. Requirements.
Section 2. Application.
2.1. Destinations.
Section 3. Application defects.
3.1. Determination.
Version: 1st. Communication “A” 3598 Validity:
01.05.02

MINIMUM APPLICATION OF RESOURCES FROM DEMAND OBLIGATIONS IN PESOS B.C.R.A.
Section 1. Scope.
1.1. Obligations included.
1.1.1. Concepts included.
1.1.1.1. Deposits and other obligations for financial intermediation in pesos on demand.
Obligations that do not participate in the concept of financial intermediation are not included, among them the following:
i) Price balances for the purchase of movable and immovable goods intended for own use. ii) Obligations linked to the proper functioning of the entity, such as:
a) Profits or surpluses pending distribution
-including cash dividends, returns, fees and other participations pending payment or crediting- until the moment of making them available to the holders. b) Sums received from third parties and made by the entity available to professionals or managers, to attend the payment of the provision of accessory services, such as title study, background checks, powers of attorney or appraisals. c) Social charges, taxes and withholdings on personnel, pending payment. d) Expenses, salaries, severance indemnities, fees, pending payment. iii) Collections on account of loans due or for the sale of movable and immovable goods, while they are not applied to reduce the corresponding asset items.
1.1.1.2. Unused balances of formalized current account advances that
do not contain clauses that enable the entity to dispose discretionarily and unilaterally of the possibility of use of such margins.
1.1.2. Exclusions.
1.1.2.1. Obligations with the Central Bank of the Republic Argentina.
1.1.2.2. Obligations with local financial entities.
Version: 1st. Communication “A” 3598 Validity:
01.05.02

MINIMUM APPLICATION OF RESOURCES FROM DEMAND OBLIGATIONS IN PESOS B.C.R.A.
Section 1. Demand Obligations.
1.1.2.3. Obligations with banks abroad -including parent companies and
controlling entities of local entities and their branches- for lines that have as their destination the financing of foreign trade operations.
1.1.2.4. Obligations for cash purchases to be settled and forward.
1.1.2.5. Cash sales to be settled and forward, linked or not to active repos.
1.1.2.6. Demand obligations for drafts and transfers from abroad pending payment and for correspondent operations abroad.
1.1.3. Computation.
The included obligations will be computed by the balances of capital effectively transacted, including in their case the quotation differences (positive or negative).
1.2. Application base.
The requirement will be applied on the monthly average of the daily balances of the included obligations, recorded at the close of each day during each calendar month. The averages are obtained by dividing the sum of the daily balances by the total quantity of days of each month. The days on which no movement is registered must repeat the balance corresponding to the immediate preceding business day.
1.3. Requirement.
The amounts of requirement resulting from applying the following rates must be applied:
Concept Rate
In %
1.3.1. Current account deposits. 18
1.3.2. Savings account deposits. 18
1.3.3. Pupil loans, special accounts for closed circles,
special accounts for cash deposits, “Unemployment fund for workers in the construction industry”, “Payment of remuneration”, special current accounts for legal entities and pension savings account. 18 Version: 1st. Communication “A” 3598 Validity:
01.05.02

MINIMUM APPLICATION OF RESOURCES FROM DEMAND OBLIGATIONS IN PESOS B.C.R.A.
Section 1. Demand Obligations.
1.3.4. Other deposits and demand obligations, pension benefits credited by ANSES pending cashing and immobilized balances corresponding to obligations included in these rules. 18
1.3.5. Unused balances of formalized current account advances. 18
1.3.6. Demand placements -whatever the form of imposition- that, as a minimum, must constitute the liability of the common investment funds (in accordance with what is provided in the Rules of the National Securities Commission). 0
1.3.7. Deposits in current accounts of non-bank financial entities, computable for the integration of their minimum cash. 0
1.3.8. Obligations for foreign financial lines. 0
1.3.9. Demand deposits made by order of the Justice with funds originated in the cases in which it intervenes, and their immobilized balances. 0
Version: 1st. Communication “A” 3598 Validity:
01.05.02

MINIMUM APPLICATION OF RESOURCES FROM DEMAND OBLIGATIONS IN PESOS B.C.R.A.
Section 2. Application.
2.1. Destinations.
2.1.1. Credits acquired, participation certificates or debt titles issued by
financial trusts, and sums contributed in another way for any of those destinations in operations formalized or to be formalized from 26.11.98, on the occasion of the restructuring of financial entities in the framework of article 35 bis of the Financial Entities Law, including eventual unpaid balances of participation certificates or debt titles of those trusts subscribed until 31.1.01.
2.1.2. Public titles.
Holding of the "National Government Bond 9% - maturity 2002" (own portfolio and from loans). Its computation will be allowed at nominal value, converted at a rate of $ 1.40 for each United States dollar, recalculated by application of the “Reference Stabilization Coefficient” (“Cer”), without taking into account the interest that accrues, provided that the titles are kept deposited in the account opened in the Central Registration and Settlement of Public Debt Instruments "CRYL" of the Central Bank of the Republic Argentina. Version: 1st. Communication “A” 3598 Validity:
01.05.02

MINIMUM APPLICATION OF RESOURCES FROM DEMAND OBLIGATIONS IN PESOS B.C.R.A.
Section 3. Application defects.
3.1. Application defects.
The application defect of resources determined in a month will be computed by an amount equivalent in the calculation of the minimum cash requirement in pesos of that same period, without any other consequence. Version: 1st. Communication “A” 3598 Validity:
01.05.02

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON MINIMUM APPLICATION OF RESOURCES FROM DEMAND OBLIGATIONS IN PESOS ORDERED TEXT ORIGIN RULE OBSERVATIONS Sec. Point Para. Com. Annex Sec. Point Para.
1.1. “A” 3598 single 1. 1.1.
1.2. “A” 3598 single 1. 1.2.
1.
1.3. “A” 3598 single 1. 1.3.
2. 2.1. “A” 3598 single 2. 2.1.
2.1.1. “A” 3598 single 2. 2.1.1.
2.1.2. “A” 3598 single 2. 2.1.2.
3. 3.1. “A” 3598 single 3. 3.1.