Circular Passive Operations OPASI 1-58, Active Operations OPRAC 1-62. Advertising of interest rates in active and passive operations

CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION "A" 627 16/04/85
TO FINANCIAL ENTITIES:
Ref.: CIRCULAR PASSIVE OPERATIONS - OPASI - 1 - 58; ACTIVE OPERATIONS - OPRAC - 1 -
62. Advertising of interest rates in
active and passive operations

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

"1º - Establish that in all operations carried out by financial entities, regardless of their instrumentation, it will be required that in contracts, receipts, debit notes, or other documents relating to clients, where interest rates or amounts are specified, there be an express mention of the contractual interest or discount rate applied and the effective monthly interest rate, equivalent to the calculation of interest in arrears on balances, repealing the requirement to record the effective annual rate.

The same method of displaying interest rates for deposits shall be recorded in the notice boards authorized for this purpose in customer service locations and in all media through which this operational modality is advertised.

2º- Order that financial entities adhering to the deposit guarantee regime, in all advertising intended to attract public funds, must explicitly and prominently detail the guarantee and/or the pertinent coverage percentages in effect at each moment for the deposit being promoted, whether it concerns natural persons or ideal existence entities. Entities not adhering to said regime must prominently record that circumstance."

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC
Alfredo A. Besio
Departmental Sub-manager
Manager for Standards for
Financial Entities a/c
Néstor J. Taró
Departmental Manager c/f General Sub-manager