Circular REGULACIONES MONETARIAS - REMON - 1 - 409. Partial Transformation of Special Deposit "Comunicación A" 1096

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMMUNICATION "A" 1187 11/05/88
TO FINANCIAL ENTITIES:
Ref.: Circular MONETARY REGULATIONS - REMON - 1 - 409. Partial transformation of the special deposit "Communication 'A' 1096".

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

"1 - It is ordered that, effective as of May 1, 1988, financial entities apply 45% of the balance for capital and adjustments as of April 30, 1988 - net of adjustments available from May 1, 1988 - of the special deposit "Communication 'A' 1096", to the establishment of a term deposit at the Central Bank, not computable for the integration of the minimum cash reserve, under the following conditions:

1.1. Term.
10 years.

The return will be effected starting June 1, 1988, in successive monthly installments according to the following schedule:
12 first installments, each equivalent to 0.5% of the deposit.
12 following installments, each equivalent to 0.6% of the deposit.
12 following installments, each equivalent to 0.7% of the deposit.
12 following installments, each equivalent to 0.8% of the deposit.
36 following installments, each equivalent to 0.9% of the deposit.
35 following installments, each equivalent to 1.0% of the deposit.
1 last installment equivalent to 1.4% of the deposit.

The installments will be updated according to the procedure contained in point 1.2.
The Central Bank may order the early return, total or partial, of the deposit.

1.2. Adjustment.
Based on the variation experienced by the Financial Index (point 3.1.2. of Chapter II of Circular OPRAC - 1), or that which replaces it, between the fifth business day immediately preceding the date of establishment and the same interval preceding each of the returns.

• 2 -
  The adjustments accrued monthly, net of those corresponding to the returns, will be accumulated in the respective account effective as of the first day of the month following that to which they refer. To this end, the index of the fifth business day preceding that day and that of equal antecedence to the first day of the preceding month will be considered.

1.3. Interest.
On the adjusted capital at the end of each month, an interest rate of 0.5% effective monthly will be applied. To this end, the adjustment will be calculated according to the procedure mentioned in the last paragraph of the previous point. The resulting interests will be paid effective as of the first day of the month following that to which they correspond, by crediting them to the entities' current accounts. When the returns are carried out on dates other than the first day of the month, they will be settled together with the accrued interests relevant up to the day preceding the return date.

1.4. Pledge.
The balances of this deposit may be made available as guarantee for interbank loans up to ARS 9,200,000 or 15% of the imposition, whichever is greater.

1.5. Conversion
It will be admitted that entities allocate up to 15% of the deposit to the subscription of "Bonds Adjustable by Financial Index - B.C.R.A.".
The conversion may be effected in one or several opportunities, effective as of the first day of the month in which it is carried out.

2 - The application referred to in the first paragraph of point I. above will be imputed proportionally to the accounts "unavailable", "transferable and pledgeable" and "pledged" of the special deposit "Communication 'A' 1096".

We greet you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio
Manager of Standards for
Financial Entities
Julio A. Piekarz
General Sub-manager"