Circular REMON 1-1126: Active Repo Operations. Compensated Settlement.

"Año de la Reconstrucción de la Nación Argentina" "Año de la Reconstrucción de la Nación Argentina"

COMUNICACIÓN “A” 8190 30/01/2025

TO FINANCIAL ENTITIES:
Ref.: Circular
REMON 1-1126:
Active Repo Operations. Compensated Settlement.

---

We address you to inform you that the matching and maturity of active repo operations for the Central Bank of the Republic Argentina (BCRA) will be settled in a compensated manner starting from 03/02/25.

In this regard, we point out that the cash amounts and collateral involved in each operation will be netted, generating a net movement in pesos and in each of the asset types, which will be reflected in this manner in the MEP and CRYL systems.

If the balances in CRYL or MEP are insufficient to meet the obligations arising from the compensation, the operations will be settled individually in accordance with what is established by Communications A 4143, B 12871, and complementary communications. Defaults on active repos will generate a charge equivalent to the daily interest that the operation would have accrued, increased by 50%.

Likewise, in the event that the entity does not have sufficient pesos in its current account to cover the maturities of active repos, the matching operations carried out, from the day of the default inclusive, will not be executed and will be cancelled until the situation is regularized.

It is highlighted that a single compensation will be carried out per day, after the closing time of the SIOPEL REPO Wheel.

The securities to be used as collateral are those calculated in accordance with point 6.3.1 of the consolidated text on Financing to the Non-Financial Public Sector.

The BCRA will carry out the necessary movements in the CRYL account and in the entity's peso current account to proceed with the compensated settlement of the operations.

Finally, we indicate that queries regarding the procedure must be sent with subject "Query Active Repo Compensation" to the email address soctitulos@bcra.gob.ar.

Entities may consult their operations in the "Repo API".

We salute you attentively.

CENTRAL BANK OF THE REPUBLIC OF ARGENTINA
Martín S. Candido Luis D. Briones Rouco
Manager of Operations with
Securities and Foreign Exchange
Principal Manager of Control and
Settlement of Operations