BANCO CENTRAL DE LA REPUBLICA ARGENTINA

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COMMUNICATION "A" 3597 I 03/05/02

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TO FINANCIAL ENTITIES:
Ref.: Circular
REMON 1 - 758
Minimum Cash. Modification

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

"1. Incorporate, effective from 1.5.02, into Section 1 of the norms on 'Minimum Cash' the following points:

"1.1.2.6. Demand liabilities for drafts and transfers from abroad pending payment and for correspondent operations abroad." "1.8. Defect in the application of resources in pesos.

The defect of 'minimum application of resources from demand liabilities in pesos' determined in a month shall be computed by an equivalent amount in the calculation of the minimum cash requirement in pesos for that same period."

2. Replace, effective from 1.5.02, points 1.3.1 to 1.3.5 of the norms on 'Minimum Cash' with the following:

"1.3.1. Current account deposits. 22"

"1.3.2. Savings account deposits. 22"

"1.3.3. Pupillary usuries, special accounts for closed circles, special accounts for cash deposits, "Unemployment Fund for construction industry workers", "Payment of remuneration", special current accounts for legal entities and pension savings. 22"

"1.3.4. Other deposits and demand liabilities, pension benefits credited by ANSES pending realization and immobilized balances corresponding to obligations included in these norms. 22"

"1.3.5. Unused balances of formalized current account advances. 22"

3. Replace, effective from 1.5.02, the first paragraph of point 2.4 of Section 2 of the norms on 'Minimum Cash' with the following:

"On no day of the month, the sum of the balances of the concepts admitted as integration referred to in points 2.1.2 to 2.1.5 and 2.1.7., recorded at the close of each day, may be less than 50% of the total minimum cash requirement, excluding the requirement for deposit increment, determined for the immediate preceding month, recalculated based on the requirements and concepts in force in the month to which the reserves correspond, without considering the effects of the application of what is provided in point
1.5.1 of Section 1."

4. Repeal, with effect from 1.5.02, point
   2.3 of Section 2 of the norms on 'Minimum Cash'
   relating to the maximum limit for computation for the purposes of determining the integration of the requirement in foreign currencies."

Accompanying herewith the sheets that, in replacement of those previously provided, should be incorporated into the norms on 'Minimum Cash', we salute you very respectfully. BANCO CENTRAL DE LA REPUBLICA ARGENTINA Alfredo A. Besio José Rutman Manager of Issuance Principal Manager of of Norms Norms and Authorizations

ANEXO

B.C.R.A.
ORDERED TEXT OF THE NORMS ON
MINIMUM CASH
-IndexSection 1. Requirement.
1.1. Obligations included.
1.2. Application base.
1.3. Minimum cash.
1.4. Point increases in requirement due to concentration of liabilities.
1.5. Transfers.
1.6. Requirement for deposit increment.
1.7. Defect in the application of resources in foreign currency.
1.8. Defect in the application of resources in pesos.
Section 2. Integration.
2.1. Admitted concepts.
2.2. Computation.
2.3. Daily minimum integration.
2.4. Additional remuneration.
Section 3. Non-compliance.
3.1. Charge.
3.2. Framing programs.
3.3. Regularization and sanitation plans.
Section 4. Compliance base.
4.1. Individual base.
Section 5. Responsible parties and sanctions.
5.1. Responsible for liquidity policy.
Section 6. Transitional provisions.
Version: 8th Communication “A” 3597 Validity:
01.05.02

MINIMUM CASH B.C.R.A. Section 1. Requirement.
1.1.2.3. Liabilities with banks abroad -including parent houses and
controlling entities of local entities and their branches- for lines that have as destination the financing of foreign trade operations.
1.1.2.4. Liabilities for spot purchases to be settled and forward.
1.1.2.5. Spot sales to be settled and forward, linked or not to active passes.
1.1.2.6. Demand liabilities for drafts and transfers from abroad pending payment and for correspondent operations abroad.
1.1.3. Computation.
The obligations included will be computed by the balances of capital effectively transacted, including in its case the quotation differences (positive or negative). Therefore, accrued, due or to accrue interests and premiums are excluded, for the obligations included, as long as they have not been credited in account or made available to third parties, and the amount accrued by application of the "Reference Stabilization Coefficient".
1.2. Application base.
The minimum cash requirement will apply to the monthly average of the daily balances of the obligations included, 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. Days on which no movement is registered must repeat the balance corresponding to the immediate previous business day. The requirement will be observed separately for each of the currencies in which the obligations are denominated. Version: 7th Communication “A” 3597 Validity:
01.05.02

MINIMUM CASH B.C.R.A. Section 1. Requirement.
1.3. Minimum cash.
The amounts of minimum cash resulting from applying the following rates must be integrated:
Concept Rate in %
1.3.1. Current account deposits. 22
1.3.2. Savings account deposits. 22
1.3.3. Pupillary usuries, special accounts for closed circles,
special accounts for cash deposits,
"Unemployment Fund for construction industry workers", "Payment of remuneration", special current accounts for legal entities and pension savings. 22
1.3.4. Other deposits and demand liabilities, pension benefits
credited by ANSES pending realization and immobilized balances corresponding to obligations included in these norms. 22
1.3.5. Unused balances of formalized current account advances. 22
1.3.6. Call placements -whatever the form of imposition- that, as a minimum, must constitute the equity of the
common investment funds (according to what is provided in the Norms of the National Securities Commission). 100
1.3.7. Deposits in current accounts of non-bank financial entities,
computable for the integration of their minimum cash. 100
1.3.8. Time deposits, liabilities for "acceptances"
-including responsibilities for sale or assignment of credits to subjects other than financial entities-, passive passes, collateral and passive stock market passes, investments at constant term, with option for early cancellation or for renewal for a determined term and with variable remuneration, and other time liabilities, with the exception of the deposits reprogrammed included in points 1.3.9. and 1.3.10. and of the impositions and acceptances contemplated in the points 1.3.14. to 1.3.18. 40 Version: 9th Communication “A” 3597 Validity:
01.05.02

MINIMUM CASH B.C.R.A. Section 1. Requirement.
1.3.9. Deposits included in the "Deposit Reprogramming Regime",
except those included in point 1.3.10. 40
1.3.10. Deposits included in the "Deposit Reprogramming Regime" in cases where the maturity of the last installment of the schedule operates from March 2003 onwards
(for the entire deposit included, even if the maturity of some of the installments occurs before that month). 0
1.3.11. Liabilities for financial lines from abroad. 0
1.3.12. Negotiable obligations. 0
1.3.13. Reprogrammed deposits ceded by other financial entities, maintained under reprogramming conditions,
due to the carrying out of the operation provided for in point 5. of the "Deposit Reprogramming Regime". 100
1.3.14. Time deposits constituted with cash money,
with debit from "special accounts for cash deposits", or with transfers entered from abroad susceptible to be paid in cash, not linked to operations of foreign trade, except those included in point 1.3.16:
i) From 7 to 13 days ii) From 14 to 29 days iii) From 30 days or more 9 7 5
1.3.15. Liabilities for "acceptances" if there is entry of cash money, or by debit from "special accounts for cash deposits", or of transfers entered from abroad susceptible to be paid in cash, not
linked to foreign trade operations:
i) From 7 to 13 days ii) From 14 to 29 days iii) From 30 days or more 5 4 3
1.3.16. Time deposits in US dollars payable in pesos. (Validity: 25.03.02) 0
1.3.17. Liabilities with the Fiduciary Assistance Fund for Financial Entities and Insurance. 0
Version: 9th Communication “A” 3597 Validity:
01.05.02

MINIMUM CASH B.C.R.A. Section 1. Requirement.
-corresponding to foreign diplomatic or consular representations, international organizations, special missions and commissions or bilateral or multilateral organs established by treaties in which the Argentine Republic is a party, and to foreign officials of those entities, accredited before the Ministry of Foreign Affairs, International Trade and Culture, provided that the accounts are related to the carrying out of their functions, -reprogrammed balances that are ceded by other financial entities, maintained as a deposit in the receiving entity under reprogramming conditions, with motivation for the carrying out of an operation provided for in point 5. of the "Deposit Reprogramming Regime", and -made by order of the Justice in the causes in which it intervenes when its receipt by the depositary entity is mandatory according to the legislation of the jurisdiction. Nor will the liabilities for "acceptances" be considered if there is entry of cash money, or by debit from "special accounts for cash deposits", or of transfers entered from abroad susceptible to be paid in cash, not linked to foreign trade operations. For the purposes of determining the computable growth, the obligations included in foreign currency and the respective comparison base will be converted to pesos at a rate of one peso with forty cents for each US dollar ($ 1.40 = US$ 1) or its equivalent.
1.7. Defect in the application of resources in foreign currency.
The defect in the application of resources corresponding to deposits in foreign currency determined in a month will be computed by an equivalent amount in the calculation of the minimum cash requirement of that same period.
1.8. Defect in the application of resources in pesos.
The defect of "minimum application of resources from demand liabilities in pesos" determined in a month will be computed by an equivalent amount in the calculation of the minimum cash requirement in pesos for that same period. Version: 2nd Communication “A” 3597 Validity:
01.05.02

MINIMUM CASH B.C.R.A. Section 2. Integration.
2.1. Admitted concepts.
The integration must be carried out in the same currency that corresponds to the requirement.
2.1.1. Cash.
Includes bills and coins kept in the entity's offices and in custody in other financial entities.
2.1.2. Current accounts of financial entities opened at the Central Bank in
pesos.
The balance registered at the close of each business day in these accounts will accrue interest for the period that elapses until the first next business day, at the rate that is fixed daily and that will be transmitted through the Exchange and Open Market Operations Desk. The corresponding settlement will be made available to the entities at the opening of operations of the next business day through the STAF communications system; the accrued amounts will be automatically credited in the current accounts that correspond. Special current accounts opened for the crediting of pension benefits will not be computable.
2.1.3. Minimum Cash Accounts of financial entities opened at the Central Bank in US dollars or in other foreign currencies.
The balance registered at the close of each business day in these accounts will accrue interest for the period that elapses until the first next business day, at the rate that is fixed daily and that will be transmitted through the Exchange and Open Market Operations Desk. The corresponding settlement will be made available to the entities at the opening of operations of the next business day through the STAF communications system; the accrued amounts will be automatically credited in the current accounts that correspond.
2.1.4. Special guarantee accounts in favor of electronic clearing chambers and for the coverage of the settlement of operations with credit cards and in ATMs.
Version: 4th Communication "A" 3597 Validity:
01.05.02

MINIMUM CASH B.C.R.A. Section 2. Integration.
2.3. Daily minimum integration.
On no day of the month, the sum of the balances of the concepts admitted as integration referred to in points 2.1.2. to 2.1.5. and 2.1.7., recorded at the close of each day, may be less than 50% of the total minimum cash requirement, excluding the requirement for deposit increment, determined for the immediate preceding month, recalculated based on the requirements and concepts in force in the month to which the reserves correspond, without considering the effects of the application of what is provided in point
1.5.1 of Section 1.
This daily requirement will be 70% when in the previous computation period a deficiency in integration has been registered in a monthly average greater than the allowed transfer margin. To the amount obtained as applicable, the requirements for increment deposits referred to in point 1.6 of Section 1 will be added, which must be integrated exclusively in the current account in pesos opened at the Central Bank of the Argentine Republic, on the third business day following the calculation.
2.4. Additional remuneration.
An interest rate equivalent to 0.75 times the monthly average rate arising from the daily survey carried out by the Central Bank of the Argentine Republic for time deposits in pesos for terms of 7 to 59 days, not exceeding the average of discount rates in force during the month under report, applied to the lesser amount between:
i) the monthly average of daily balances registered in the accounts referred to in points 2.1.2. and 2.1.4., and ii) the minimum cash requirement corresponding to time deposits in pesos of 14 days or more included in point 1.3.8. of Section 1. To the sum obtained according to the foregoing, the amount resulting from applying to the computable base value -paragraph i) or ii)- the monthly average rate used to settle interest daily on those accounts will be deducted. The settlement and crediting will be carried out per month expired according to what the relevant information regime establishes. Version: 10th Communication “A” 3597 Validity:
01.05.02

MINIMUM CASH B.C.R.A. Section 6. Transitional provisions.
6.1. Deductible concept from the requirement.
Amounts contributed to the Banking Liquidity Fund.
Version: 2nd Communication “A” 3597 Validity:
01.05.02

B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE NORMS ON MINIMUM CASH ORDERED TEXT ORIGIN NORM OBSERVATIONS Sec. Point Para. Com. Annex Sec. Point Para.
1.1. “A” 3274 II 1. 1.1.
1.1.1. “A” 3274 II 1. 1.1.1. According to Com. “A” 3498.
1.1.2. “A” 3274 II 1. 1.1.2. According to Com. “A” 3597.
1.1.3. “A” 3274 II 1. 1.1.3. According to Com. “A” 3498
1.2. “A” 3274 II 1. 1.2. According to Com. “A” 3304,
“A” 3498 and “A” 3597.
1.3. “A” 3274 II 1. 1.3.
1.3.1. “A” 3274 II 1. 1.3.1. According to Com. “A” 3338,
“A” 3417, “A” 3498 and “A”
3597.
1.3.2. “A” 3274 II 1. 1.3.2. According to Com. “A” 3338,
“A” 3417, “A” 3498 and “A”
3597.
1.3.3. “A” 3274 II 1. 1.3.3. According to Com. “A” 3338,
“A” 3399, “A” 3417, “A”
3498 and “A” 3597.
1.3.4. “A” 3274 II 1. 1.3.4. According to Com. “A” 3338,
“A” 3417, “A” 3498 and “A”
3597.
1.3.5. “A” 3274 II 1. 1.3.5. According to Com. “A” 3338,
“A” 3417, “A” 3498 and “A”
3597.
1.3.6. “A” 3274 II 1. 1.3.6. According to Com. “A” 3365 and
“A” 3498.
1.3.7. “A” 3274 II 1. 1.3.7.
1.3.8. “A” 3498 unique 1. 1.3.8. According to Com. “A” 3506 -
pt. 2.- and 3549.
1.3.9. “A” 3498 unique 1. 1.3.9. According to Com. “A” 3549.
1.3.10. “A” 3498 unique 1. 1.3.10. According to Com. “A” 3549.
1.3.11. “A” 3498 unique 1. 1.3.11. According to Com. “A” 3597.
1.3.12. “A” 3498 unique 1. 1.3.12.
1.3.13. “A” 3498 unique 1. 1.3.13.
1.3.14. “A” 3506 3.
1.3.15. “A” 3506 3.
1.3.16. “A” 3527 3.
1.3.17. “A” 3549 1.
1.3.18. “A” 3549 1.
1.3.19. “A” 3566 5.
1.3.20. “A” 3583 3.
1.4. “A” 3274 II 1. 1.5. According to Com. “A” 3498.
1.5. “A” 3274 II 1. 1.6.
1.5.1. “A” 3274 II 1. 1.6.1.
1.5.2. “A” 3274 II 1. 1.6.2. According to Com. “A” 3304.
1.6. “A” 3470 1. According to Com. “A” 3498,
3549 and 3566, pt. 6.
1.
1.7. “A” 3498 unique 1. 1.8.

MINIMUM CASH
ORDERED TEXT ORIGIN NORM OBSERVATIONS
Sec. Point Para. Com. Annex Sec. Point Para.
1. 1.8. “A” 3597 1.
2.1. “A” 3274 II 2. 2.1. According to Com. “A” 3498 and
“A” 3597.
2.1.1. “A” 3274 II 2. 2.1.1. According to Com. "A" 3304.
2.1.2. “A” 3274 II 2. 2.1.2. According to Com. “A” 3304 and
“A” 3498.
2.1.3. “A” 3498 unique 2. 2.1.3.
2.1.4. “A” 3274 II 2. 2.1.3. According to Com. “A” 3498.
2.1.5. “A” 3274 II 2. 2.1.4.
2.1.6. “A” 3311
2.1.7. “A” 3498 unique 2. 2.1.7.
2.2. “A” 3274 II 2. 2.2. According to Com. “A” 3498
2.3. “A” 3365 2. According to Com. “A” 3387,
3470, “A” 3498, “A”
3549 and “A” 3597.
2.
2.4. “A” 3527 4.
3.1. “A” 3274 II 3. 3.1.
3.1.1. “A” 3274 II 3. 3.1.1. According to Com. “A” 3326,
3365, “A” 3498 and 3549.
3.1.2. “A” 3274 II 3. 3.1.2.
3.1.3. “A” 3274 II 3. 3.1.3. According to Com. “A” 3326.
3.1.4. “A” 3274 II 3. 3.1.4.
3.2. “A” 3274 II 3. 3.2.
3.2.1. “A” 3274 II 3. 3.2.2.1.
3.2.2. “A” 3274 II 3. 3.2.2.2.
3.3. “A” 3274 II 3. 3.3. According to Com. “A” 3498.
3.3.1. “A” 3274 II 3. 3.3.1.
3.
3.3.2. “A” 3274 II 3. 3.3.2.
4. 4.1. “A” 3274 II 4. 4.1.
5. 5.1. “A” 3274 II 5. 5.1. According to Com. “A” 3498.
6. 6.1. “A” 3498 unique 1. 6. 1.7. According to Com. “A” 3508 and
3582.