Circular REMON 1-796: Inflow of Funds from Abroad - Decree 616/05 - Minimum Cash. Modifications — BCRA — AR

"2005 - Year of Homage to Antonio Berni"
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 4393 25/07/2005
TO FINANCIAL ENTITIES:
Ref.: Circular
REMON 1 - 796
Inflow of funds from abroad - Decree 616/05.
Minimum cash. Modifications

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

"- Replace, with effect from June 2005, in Section 2 of the regulations on 'Minimum Cash' the following point:

"2.5. Remuneration of balances of foreign currency accounts opened at the Central Bank.
Interest shall be recognized on the monthly average of sight accounts and special guarantee accounts in favor of electronic clearing chambers and for the coverage of settlement of operations in automated teller machines (considered together), without exceeding the greater of the amounts resulting from comparing the result of the following procedure, increased in both cases by 50%:

2.5.1. Monthly minimum cash requirement in the corresponding foreign currency without considering the defect of application of resources in the same currency, excluding the reserve amount corresponding to special deposits linked to the inflow of funds from abroad - Decree 616/05. To that requirement, the integration carried out through the admitted concepts of points 2.1.1. and 2.1.6. shall be deducted, in the corresponding proportion. For the purpose of determining the proportion to be attributed, the percentage resulting from comparing the requirement on deposits with respect to the total requirement (which includes, if applicable, the defect of application of resources in the corresponding foreign currency) shall be considered.

2.5.2. Daily minimum integration requirement in the corresponding foreign currency without considering the defect of application of resources in the same currency, excluding the reserve amount corresponding to special deposits linked to the inflow of funds from abroad - Decree 616/05. To that requirement, the integration carried out through the admitted concepts of points 2.1.1. and 2.1.6. shall be deducted, in the corresponding proportion. For the purpose of determining the proportion to be attributed, the percentage resulting from comparing the requirement on deposits with respect to the total requirement (which includes, if applicable, the defect of application of resources in the corresponding foreign currency) shall be considered.

Interest shall accrue at the rate that is set and which will be transmitted through the Foreign Exchange and Open Market Operations Desk. In case of modifications during the course of the same month, the weighted average rate based on the number of calendar days of validity in the period shall be used.

-2-
Settlement shall be carried out considering each foreign currency account and the requirements on the respective deposits separately. Amounts shall be credited to the corresponding accounts within 5 business days of validating the presentation of the relevant information regime."

We send you attached the sheets that, in replacement of those previously provided, correspond to be incorporated into the ordered text of the regulations on "Minimum Cash".

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Ana María Lemmi José I. Rutman
Submanager of Emission of Norms
Main Manager of Research and Regulatory Emission

ANNEX

MINIMUM CASH
B.C.R.A.
Section 2. Integration.
Version: 15a. COMMUNICATION "A" 4393
Validity:
01/06/2005

2.5. Remuneration of balances of foreign currency accounts opened at the Central Bank.
Interest shall be recognized on the monthly average of sight accounts and special guarantee accounts in favor of electronic clearing chambers and for the coverage of settlement of operations in automated teller machines (considered together), without exceeding the greater of the amounts resulting from comparing the result of the following procedure, increased in both cases by 50%:

Settlement shall be carried out considering each foreign currency account and the requirements on the respective deposits separately. Amounts shall be credited to the corresponding accounts within 5 business days of validating the presentation of the relevant information regime.

MINIMUM CASH
ORDERED TEXT ORIGIN NORM
Sec. Point Para. Com. Annex Sec. Point Para.
OBSERVATIONS
1.3.14. "A" 3583 3.
1.3.15. "A" 4179 2.
1.3.16. "A" 4360 2.
1.4. "A" 3905 3. According to Com. "A" 4179.
1.5. "A" 3274 II 1. 1.5. According to Com. "A" 3498.
1.6. "A" 3274 II 1. 1.6.
1.6.1. "A" 3274 II 1. 1.6.1.
1.6.2. "A" 3274 II 1. 1.6.2. According to Com. "A" 3304.
1.
1.7. "A" 3498 unique 1. 1.8. According to Com. "A" 4147.
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, "A"
3498, "A" 4016 and "A" 4147.
2.1.3. "A" 3498 unique 2. 2.1.3. According to Com. "A" 4147.
2.1.4. "A" 3274 II 2. 2.1.3. According to Com. "A" 3498, "A"
4147 and "A" 4276.
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.
2.1.8. "A" 4016 1.
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,
"A" 3597, "A" 3732, "A"
3824 and "A" 4016.
2.4. "A" 4147 3. According to Com. "A" 4276.
2.
2.5. "A" 4147 3. According to Com. "A" 4393.
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, "A" 3549,
"A" 3905 and "A" 4276.
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.
5.1. "A" 3274 II 5. 5.1. According to Com. "A" 3498.
5.2. "A" 3905 5.
5.
5.3. "A" 3905 5.
6. 6.1. "A" 3824 According to Com. "A" 4032.