Circular REMON 1 - 807: Minimum Cash Requirements. Modifications — BCRA — AR

“2006 - Year of Tribute to Dr. Ramón CARRILLO”

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA

COMMUNICATION “A” 4509 14/03/2006

TO FINANCIAL ENTITIES:

Ref.: Circular
REMON 1 - 807
Minimum Cash. Modifications

We address you to inform you that this Institution adopted the resolution, in its pertinent part, which is transcribed below:

“1. Substitute, with effect from 1.4.06, points 1.3.1 to 1.3.5 of Section 1 of the regulations on “Minimum Cash” with the following:

“1.3.1. Current account deposits (except those included in point 1.3.16.).
17
1.3.2. Savings account deposits.
1.3.2.1. In pesos (except those included in point 1.3.16.). 17
1.3.2.2. In foreign currency. 30
1.3.3. Usury accounts, special accounts for closed circles, “Unemployment Fund for Construction Industry Workers”, “Payment of Remuneration”, special current accounts for legal entities and pension savings accounts.
1.3.3.1. In pesos (except those included in point 1.3.16.). 17
1.3.3.2. In foreign currency. 30
1.3.4. Other current deposits and obligations, pension benefits credited by ANSES pending cashing and immobilized balances corresponding to obligations included in these regulations.
1.3.4.1. In pesos (except those included in point 1.3.16.). 17
1.3.4.2. In foreign currency. 30
1.3.5. Unused balances of formalized current account advances. 17”

Replace, with effect from 1.4.06, points 2.4 and 2.5 of Section 2 of the regulations on “Minimum Cash” with the following:

-2-

“2.4. Remuneration of balances of accounts in pesos opened at the Central Bank.
Interest will be recognized on the proportion of the monthly average of the daily balances of current accounts and special guarantee accounts in favor of electronic clearing chambers and for the settlement of operations with credit cards, consumption vouchers and in ATMs (considered together) corresponding to the integration of the requirement derived from time deposits and obligations, without exceeding the greater of the amounts resulting from comparing the result of the following procedure:

2.4.1. Monthly minimum cash requirement in pesos of time deposits and obligations net of the integration carried out through the admitted concepts of points 2.1.1 and 2.1.5 to 2.1.8 in the proportion corresponding to the requirement of these liabilities.

2.4.2. Daily minimum integration requirement in pesos of time deposits and obligations net of the integration carried out through the admitted concepts of points 2.1.5., 2.1.7. and 2.1.8. in the proportion corresponding to the requirement of these liabilities.

For the purpose of determining the aforementioned proportion to be allocated, the percentage resulting from comparing the requirement on time deposits and obligations with respect to the total requirement corresponding to the monthly position will be considered.

Therefore, no interest will be recognized for the integration corresponding to current deposits and other current obligations.

The determination of remuneration will always be carried out on a monthly basis, even in the case of the quarterly position.

Interest will 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 will be used.

The amounts will be credited to the corresponding accounts within 5 business days of the validation of the presentation of the relevant information regime.

2.5. Remuneration of balances of accounts in foreign currency opened at the Central Bank.
Interest will be recognized on the proportion of the monthly average of current accounts and special guarantee accounts in favor of electronic clearing chambers and for the settlement of operations in ATMs (considered together) corresponding to the integration of the requirement derived from time deposits and obligations, without exceeding the greater of the amounts resulting from comparing the result of the following procedure increased, in both cases, by 50%:

-3-

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

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

Therefore, no interest will be recognized for the integration corresponding to current deposits and other current obligations.

The settlement will be carried out considering each foreign currency account and the requirements on the respective deposits separately.

The amounts will be credited to the corresponding accounts within 5 business days of the validation of the presentation of the relevant information regime.”

We send you attached the sheets that, in replacement of those previously provided, should replace the ordered text of the regulations on “Minimum Cash”. Likewise, it is recalled that on this Institution's website www.bcra.gov.ar, accessing “regulations” (“ordered texts”), the modifications made with texts highlighted in special characters (strikethrough and bold) will be found.

We salute you very attentively.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Dario Stefanelli José Rutman
Manager of
Issuance of Standards on behalf of
Deputy General Manager of Standards

ANNEX

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

Concept Rate in %
1.3.1. Current account deposits (except those included in point
1.3.16.).
17
1.3.2. Savings account deposits.
1.3.2.1. In pesos (except those included in point 1.3.16.). 17
1.3.2.2. In foreign currency. 30
1.3.3. Usury accounts, special accounts for closed circles, “Unemployment
Fund for Construction Industry Workers”,
“Payment of Remuneration”, special current accounts for legal entities and pension savings accounts.
1.3.3.1. In pesos (except those included in point 1.3.16.). 17
1.3.3.2. In foreign currency. 30
1.3.4. Other current deposits and obligations, pension benefits credited by ANSES pending cashing and immobilized balances
corresponding to obligations included in these regulations.
1.3.4.1. In pesos (except those included in point 1.3.16.). 17
1.3.4.2. In foreign currency. 30
1.3.5. Unused balances of formalized current account advances. 17
1.3.6. Deposits in current accounts of non-bank financial entities,
computable for the integration of their minimum cash. 100
1.3.7. Time deposits, obligations from “acceptances” -including liabilities from sale or assignment of credits to subjects other than
financial entities-, reverse repos, guarantees and reverse stock market repos, investments with constant term, with option for early cancellation or renewal for a determined term and with variable remuneration, and other time obligations except for deposits included in points 1.3.11., 1.3.14. and 1.3.15., according to their residual term:

B.C.R.A.
MINIMUM CASH
Section 1. Requirement.
Version: 24th COMMUNICATION “A” 4509
Validity:
01/04/2006

2.2. Calculation.
The compliance with the integration of minimum cash will be measured based on the monthly average of daily balances of the concepts admitted for this purpose, registered during the same month to which the minimum cash corresponds, dividing the sum of said balances by the total number of days in the period, except for the period December of one year/February of the following year, in which the integration in pesos will be observed on the average resulting from dividing the sum of the daily balances of the included concepts registered during that period by the total number of days in the quarter.

The days on which no movement is registered must repeat the balance corresponding to the immediate preceding business day.

In the case of current accounts opened in commercial banks by non-bank entities, the balances reflected in the account summaries will be taken into account.

2.3. Daily minimum integration.
On no day of the month or the quarterly period -December of one year/February of the following year-, the sum of the balances of the concepts admitted as integration referred to in points 2.1.2 to 2.1.5., 2.1.7. and 2.1.8., registered at the close of each day, may be less than 50% of the total minimum cash requirement, determined for the immediate previous 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 1.6.1. of Section 1. To determine the daily minimum integration in pesos, in the quarterly position, the total minimum cash requirement of November and in March the corresponding to February will be considered.

This daily requirement will be 70% when a deficiency in integration in average greater than the admitted transfer margin has been registered in the previous calculation period.

2.4. Remuneration of balances of accounts in pesos opened at the Central Bank.
Interest will be recognized on the proportion of the monthly average of the daily balances of current accounts and special guarantee accounts in favor of electronic clearing chambers and for the settlement of operations with credit cards, consumption vouchers and in ATMs (considered together) corresponding to the integration of the requirement derived from time deposits and obligations, without exceeding the greater of the amounts resulting from comparing the result of the following procedure:

Version: 10th COMMUNICATION “A” 4509
Validity:
01/04/2006
MINIMUM CASH B.C.R.A.
Section 2. Integration.

Therefore, no interest will be recognized for the integration corresponding to current deposits and other current obligations.

The determination of remuneration will always be carried out on a monthly basis, even in the case of the quarterly position.

The amounts will be credited to the corresponding accounts within 5 business days of the validation of the presentation of the relevant information regime.

Therefore, no interest will be recognized for the integration corresponding to current deposits and other current obligations.

Version: 17th COMMUNICATION “A” 4509
Validity:
01/04/2006
MINIMUM CASH B.C.R.A.
Section 2. Integration.

The settlement will be carried out considering each foreign currency account and the requirements on the respective deposits separately.

The amounts will be credited to the corresponding accounts within 5 business days of the validation of the presentation of the relevant information regime.

MINIMUM CASH B.C.R.A.
Section 2. Integration.
Version: 1st COMMUNICATION “A” 4509
Validity:
01/04/2006

ORDERED TEXT ORIGIN STANDARD
Sec. Point Para. Com. Annex Sec. Point Para.
OBSERVATIONS
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, “A”
3905 and “A” 4473.
1.2. “A” 3274 II 1. 1.2. According to Com. “A” 3304, “A”
3498, “A” 3597 and “A” 4449.
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, “A” 3597, “A”
3917, “A” 3967, “A” 4032, “A”
4051, “A” 4147, ”A” 4276, “A”
4449, “A” 4473 and “A” 4509.
1.3.2. “A” 3274 II 1. 1.3.2. According to Com. “A” 3338, “A”
3417, “A” 3498, “A” 3597, “A”
3917, “A” 3967, “A” 4032, “A”
4051, “A” 4147, “A” 4179, ”A”
4276, “A” 4449, “A” 4473 and
“A” 4509.
1.3.3. “A” 3274 II 1. 1.3.3. According to Com. “A” 3338, “A”
3399, “A” 3417, “A” 3498, “A”
3597, “A” 3824, “A” 3917, “A”
3967, “A” 4032, “A” 4051, “A”
4147, “A” 4179, ”A” 4276, “A”
4449, “A” 4473 and “A” 4509.
1.3.4. “A” 3274 II 1. 1.3.4. According to Com. “A” 3338, “A”
3417, “A” 3498, “A” 3597, “A”
3917, “A” 3967, “A” 4032, “A”
4051, “A” 4147, “A” 4179, ”A”
4276, “A” 4449, “A” 4473 and
“A” 4509.
1.3.5. “A” 3274 II 1. 1.3.5. According to Com. “A” 3338, “A”
3417, “A” 3498, “A” 3597, “A”
3917, “A” 3967, “A” 4032, “A”
4051, “A” 4147, ”A” 4276, “A”
4449 and “A” 4509.
1.3.6. “A” 3274 II 1. 1.3.7.
1.3.7. “A” 3498 unique 1. 1.3.8. According to Com. “A” 3506 - pt.
2.-, “A” 3549, “A” 3732, “A”
3824, “A” 3905, “A” 3917, “A”
3925, “A” 3967, “A” 4032, “A”
4140, “A” 4179, ”A” 4276,
“A” 4360, pt. 3 and “A” 4449.
1.3.8. “A” 3498 unique 1. 1.3.11. According to Com. “A” 3597, “A”
3732 and “A” 4032.
1.3.9. “A” 3498 unique 1. 1.3.12. According to Com. “A” 3905, “A”
3917, “A” 3967, “A” 4032, “A”
4179, ”A” 4276 and “A” 4449.
1.
1.3.10. “A” 3549 1.
B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE REGULATIONS ON “MINIMUM CASH”

MINIMUM CASH
ORDERED TEXT ORIGIN STANDARD
Sec. Point Para. Com. Annex Sec. Point Para.
OBSERVATIONS
1.3.11. “A” 3549 1. According to Com. “A” 4179 and
”A” 4388.
1.3.12. “A” 3566 5.
1.3.13. “A” 3583 3.
1.3.14. “A” 4179 2. According to Com. “A” 4406 and
“A” 4449.
1.3.15. “A” 4360 2.
1.3.16. “A” 4473. 1.
1.4. “A” 3905 3. According to Com. “A” 4179, “A”
4449 and “A” 4473.
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. According to Com. “A” 4405 and
“A” 4449.
1.6.2. “A” 3274 II 1. 1.6.2. According to Com. “A” 3304 and
“A” 4449.
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 and
“A” 4449.
2.3. “A” 3365 2. According to Com. “A” 3387, “A”
3470, “A” 3498, “A” 3549,
“A” 3597, “A” 3732, “A”
3824, “A” 4016 and “A” 4449.
2.4. “A” 4147 3. According to Com. ”A” 4276, “A”
4449 and “A” 4509.
2.
2.5. “A” 4147 3. According to Com. ”A” 4393 and
“A” 4509.
3.1. “A” 3274 II 3. 3.1.
3.1.1. “A” 3274 II 3. 3.1.1. According to Com. “A” 3326, “A”
3365, “A” 3498, “A” 3549,
“A” 3905, ”A” 4276, “A”
4449 and “A” 4473.
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. According to Com. “A” 4449.
3.2.2. “A” 3274 II 3. 3.2.2.2. According to Com. “A” 4449.
3.
3.3. “A” 3274 II 3. 3.3. According to Com. “A” 3498.

MINIMUM CASH
ORDERED TEXT ORIGIN STANDARD
Sec. Point Para. Com. Annex Sec. Point Para.
OBSERVATIONS
3. 3.3.1. “A” 3274 II 3. 3.3.1.
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. According to Com. “A” 4449.
6. 6.1. “A” 3824 According to Com. “A” 4032.
6.2. “A” 4449 3.

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