Circular REMON 1 - 802: Minimum Cash Requirement in Pesos. Quarterly Position December of One Year to February of the Following Year

"2005 - Year of Homage to Antonio Berni"
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMMUNICATION "A" 4449 02/12/2005
TO FINANCIAL ENTITIES:
Ref.: Circular
REMON 1 - 802
Minimum cash in pesos. Quarterly position December of one year to February of the following year.

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

"1. Establish, with effect from December 2005, that for the period December of one year/February of the following year, the requirement and integration of the minimum cash in pesos shall be observed based on the average resulting from dividing the sum of the daily balances of the included concepts recorded during that period by the total number of days in the quarter, and for the purposes of determining the daily minimum requirement, the total minimum cash requirement corresponding to the preceding month of November shall be used. With respect to the aforementioned quarterly position, the provisions in force generally regarding the transfer of requirements referred to in point 1.6. of Section 1. of the norms on 'Minimum Cash' shall apply, as well as for the purposes of the situations provided for in point 3.2. of Section 3. of those norms.

2. Provide that, without prejudice to the establishment of the quarterly position for the period December of one year/February of the following year, for the purposes of the settlement of the remuneration of the balances deposited in the current accounts of financial entities opened at the Central Bank, referred to in point 2.4. of Section 2. of the norms on 'Minimum Cash', the corresponding monthly position shall be considered.
   Likewise, for March of each year, for the purposes of determining the structure of residual maturities to be used for the calculation of the requirement on time deposits and with respect to the daily minimum integration - referred to in points 1.4.2. of Section 1. and 2.3. of Section 2. of the norms on 'Minimum Cash', respectively - the corresponding position for the month of February shall be considered.

3. Establish that, on no day of the period December 2005/February 2006, the daily minimum integration, referred to in the first paragraph of point 2.3. of Section 2. of the norms on 'Minimum Cash', may be less than 35% of the total minimum cash requirement determined for November 2005.

4. Substitute, with effect from 1.12.05, point 1.3. of Section 1. of the norms on 'Minimum Cash' with the following:

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"1.3. Minimum Cash.
The amounts of minimum cash resulting from applying the following rates shall be integrated:

Concept Rate in %
1.3.1. Current account deposits. 15
1.3.2. Savings account deposits.
1.3.2.1. In pesos. 15
1.3.2.2. In foreign currency. 30
1.3.3. Pupilar usury, special accounts for closed circles,
"Unemployment Fund for workers in the construction industry", "Payment of remunerations", special current accounts for legal entities and pension savings account.
1.3.3.1. In pesos. 15
1.3.3.2. In foreign currency. 30
1.3.4. Other deposits and liabilities at sight, pension benefits credited by ANSES pending realization and immobilized balances corresponding to obligations included in these norms.
1.3.4.1. In pesos. 15
1.3.4.2. In foreign currency. 30
1.3.5. Unused balances of current account advances formalized. 15
1.3.6. Deposits in current accounts of non-banking financial entities, computable for the integration of their minimum cash. 100
1.3.7. Time deposits, liabilities from 'acceptances' - including liabilities from sale or assignment of credits to subjects other than financial entities', passive swaps, sureties and passive stock swaps, investments at constant term, with option for early cancellation or renewal for a fixed term and with variable remuneration, and other term liabilities with the exception of deposits included in points 1.3.11., 1.3.14. and 1.3.15., according to their residual term:
1.3.7.1. In pesos.
i) Up to 29 days. 14 ii) From 30 to 59 days. 11 iii) From 60 to 89 days. 7

-3- iv) From 90 to 179 days. 2 v) From 180 to 365 days. 1 vi) More than 365 days. 0 Deposits with 'CER' clause and those included in the 'Deposit Rescheduling Regime' are included in this point - without excluding those reached according to their point 6.5., in whole or in part if applicable depending on the nature of the judicial decision.
1.3.7.2. In foreign currency.
i) Up to 29 days. 35 ii) From 30 to 59 days. 28 iii) From 60 to 89 days. 20 iv) From 90 to 179 days. 10 v) From 180 to 365 days. 6 vi) More than 365 days. 0
1.3.8. Liabilities from foreign financial lines (not instrumented through time deposits or debt securities to which the requirements provided for in points 1.3.7. and 1.3.9., respectively, apply). 0
1.3.9. Debt securities (including bond obligations).
a) Debt issued from 1.1.02, including those from restructured obligations, according to their residual term:
In pesos. i) Up to 29 days. 14 ii) From 30 to 59 days. 11 iii) From 60 to 89 days. 7 iv) From 90 to 179 days. 2 v) From 180 to 365 days. 1 vi) More than 365 days. 0 In foreign currency. i) Up to 29 days. 35 ii) From 30 to 59 days. 28 iii) From 60 to 89 days. 20 iv) From 90 to 179 days. 10 v) From 180 to 365 days. 6 vi) More than 365 days. 0 b) Others. 0
1.3.10. Liabilities with the Fiduciary Fund for Assistance to Financial and Insurance Entities. 0

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1.3.11. Sight and time deposits made by order of the Justice with funds originating in the cases in which it intervenes, and their immobilized balances.
1.3.11.1. In pesos. 8
1.3.11.2. In foreign currency. 15
1.3.12. Special accounts in US dollars destined for the deposit of guarantees required in futures and options operations conducted in self-regulated markets subject to the control of the National Securities Commission. 100
1.3.13. Special sight accounts in foreign currency. 100
1.3.14. Deposits - whatever their modality - that constitute the assets of common investment funds.
1.3.14.1. In pesos. 18
1.3.14.2. In foreign currency. 40
1.3.15. Special deposits linked to the inflow of funds from abroad - Decree 616/05. 100"

At the appropriate time, we will send you the sheets that correspond to replace in the ordered text of the norms on 'Minimum Cash'.
We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Juan Carlos Isi José I. Rutman
Principal Manager of Research and Issuance Normative a/c General Submanager a/c