2012 – Year of Tribute to Dr. D. Manuel Belgrano

COMMUNICATION “A” 5356 21/09/2012

TO FINANCIAL INSTITUTIONS:

Ref.: Circular

• REMON 1‑872
• LISOL 1‑561

Minimum cash. Net global foreign currency position. Modifications.

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

1. Replacement, effective 1 Mar 2013, of point 1.3 of Section 1 of the rules on “Minimum cash” with the following:

1.3. Minimum cash.

The amounts of minimum cash that arise from applying the following rates must be integrated; for operations in pesos, the rates depend on the category of the locality where the operative branch is located, according to point 3.3 of Section 3, Chapter II of Circular CREFI‑2:

Rates in %

Concept	Category I	Categories II‑VI
1.3.1. Deposits in checking account and sight accounts opened in cooperative credit boxes.	17	15
1.3.2. Deposits in savings box, basic account and universal free account.
1.3.2.1. In pesos.	17	15
1.3.2.2. In foreign currency.	20	20
1.3.3. Pupillary usury, special accounts for closed circles, “Labor lay‑off fund for construction‑industry workers”, “Salary/social security”, “Special checking accounts for legal entities” and “Savings box for payment of social‑aid plans or programs”.
1.3.3.1. In pesos.	17	15
1.3.3.2. In foreign currency.	20	20
1.3.4. Other sight deposits and obligations, pension entitlements credited by ANSES pending cash‑conversion and immobilised balances corresponding to obligations covered by these rules.
1.3.4.1. In pesos.	17	15
1.3.4.2. In foreign currency.	20	20
1.3.5. Unused balances of formalised current‑account advances.	17	15
1.3.6. Deposits in current accounts of non‑bank financial entities, computable for the integration of their minimum cash.	100	100
1.3.7. Fixed‑term deposits, obligations by “acceptances” (including responsibilities for sale or assignment of credits to parties other than financial entities), passive passes, guarantees and passive securities‑market passes, constant‑term investments, with early‑cancellation option or renewal for a determined term and variable remuneration, and other term obligations except those covered in points 1.3.11‑1.3.14, according to their residual term:
1.3.7.1. In pesos.
i) Up to 29 days.	13	12
ii) 30 to 59 days.	10	9
iii) 60 to 89 days.	6	5
iv) 90 to 179 days.	1	0
v) 180 days or more.	0	0
1.3.7.2. In foreign currency.
i) Up to 29 days.	20	20
ii) 30 to 59 days.	15	15
iii) 60 to 89 days.	10	10
iv) 90 to 179 days.	5	5
v) 180 days or more.	2	2
vi) More than 365 days.	0	0
1.3.8. Obligations by foreign financial lines (not instrumented through fixed‑term deposits nor debt securities to which the requirements of points 1.3.7 and 1.3.9 respectively apply).	0	0
1.3.9. Debt securities (including negotiable obligations), according to their residual term:
a) In pesos.
i) Up to 29 days.	14	14
ii) 30 to 59 days.	11	11
iii) 60 to 89 days.	7	7
iv) 90 to 179 days.	2	2
v) 180 days or more.	0	0
b) In foreign currency
i) Up to 29 days.	20	20
ii) 30 to 59 days.	15	15
iii) 60 to 89 days.	10	10
iv) 90 to 179 days.	5	5
v) 180 to 365 days.	2	2
vi) More than 365 days.	0	0
1.3.10. Obligations with the Fiduciary Assistance Fund for Financial and Insurance Entities.	0	0
1.3.11. Sight and fixed‑term deposits made by court order with funds originating from the cases in which the institution intervenes, and their immobilised balances.
1.3.11.1. In pesos.	10	10
1.3.11.2. In foreign currency.	10	10

2. Incorporation, effective 1 Dec 2012, after point 1.4 of Section 1 of the rules on “Minimum cash”, of the following point:

1.5. Reduction of the average‑requirement in pesos.

The requirement will be reduced according to the share of total financing to the non‑financial private sector in pesos that the entity provides to Micro, Small and Medium Enterprises (MiPyMES) in the same currency – as defined in the rules on “Determination of the condition of Micro, Small or Medium Enterprise” – considering that classification at the moment of granting, according to the following table without exceeding the previously determined requirement amount:

Concept – Rates in %

Concept	Category I	Categories II‑VI
1.3.12. Deposits – whatever their modality – that constitute the assets of common investment funds.
1.3.12.1. In pesos.	19	19
1.3.12.2. In foreign currency.	20	20
1.3.13. Special deposits linked to the entry of foreign funds – Decree 616/05.	100	100
1.3.14. Fixed‑term investments instrumented in non‑transferable nominative certificates, in pesos, corresponding to public‑sector holders that have the right to exercise early‑cancellation within less than 30 days from their constitution.	15	14

Financing participation of MiPyMES with respect to total financing to the non‑financial private sector, in the entity (in %)

Participation %	Deduction (on total concepts included in pesos) %
Less than 4	0.00
Between 4 and less than 6	0.25
Between 6 and less than 8	0.50
Between 8 and less than 10	0.75
Between 10 and less than 12	1.00
Between 12 and less than 14	1.25
Between 14 and less than 16	1.50
Between 16 and less than 18	1.75
Between 18 and less than 20	2.00
Between 20 and less than 22	2.25
Between 22 and less than 24	2.50
Between 24 and less than 26	2.65
Between 26 and less than 28	2.80
Between 28 and less than 30	2.90
30 or more	3.00

3. Replacement of point 3.1.1 of the ordered text on “Minimum cash” with the following:

3.1.1. Deficiencies in the integration of minimum cash in pesos and in monetary‑regulation titles and instruments denominated in that currency, and the daily minimum integration in pesos, will be subject to a charge equivalent to twice the BADLAR rate of private banks for peso deposits, reported for the last business day of the relevant period.

Deficiencies in foreign‑currency integration and in monetary‑regulation titles and instruments denominated in that currency are subject to a charge equivalent to twice the BADLAR rate of private banks in United States dollars or twice the LIBOR 30‑day rate for operations in that currency, reported for the last business day of the relevant period or the latest available, whichever is higher.

When deficiencies in the average position and in the daily minimum integration occur concurrently in the same month or quarter, the higher charge will apply.

To determine deficiencies of the average position, the following will be considered:

i) those for which the option of transfer is not used.

ii) those that cannot be transferred to the following month because they exceed the admitted margin.

4. Replacement of point 5.2 of Section 5 of the rules on “Minimum cash” with the following:

5.2. Responsibilities.

Designated officials will be responsible in case of improper calculations that cause reductions in the minimum‑cash requirement.

Mechanisms or modalities that, at the discretion of the Superintendency of Financial and Currency Entities, suggest the existence of such calculations, will determine the obligation of the financial entity to provide explanations on the matter within 5 business days from notification of the request.

The Superintendency will issue a decision within 30 business days following receipt of the explanations.

5. Replacement of point 6.3 of Section 6 of the rules on “Minimum cash” with the following:

6.3. Allow, for the peso position, financial entities to deduct from the average‑requirement of minimum cash the percentage of the amount – arising from the schedule below – corresponding to the integration performed in March 2012 with cash, cash‑in‑transit and cash‑transporting companies, after accounting for the remaining admitted integration items and without exceeding the amount necessary to reach the equilibrium position (no excess nor deficit) in that month.

Period	% admitted
September 2012	100
October and November 2012	75
December 2012 to February 2013	25
From March 2013	0

6. Incorporation of point 6.5 in Section 6 of the rules on “Minimum cash”:

6.5. Transitional schedule of the rates foreseen for the determination of the minimum‑cash requirement in pesos, established in point 1.3 of Section 1.

For the determination of the minimum‑cash requirement on peso deposits, the amounts of minimum cash that arise from applying the rates foreseen in the following schedule must be integrated, according to the location of each operative branch that has attracted the deposit, in line with the categories provided in point 3.3 of Section 3, Chapter II of Circular CREFI‑2:

Categories – Rates (%)

Concept	Oct‑Nov 12 (Category I)	Oct‑Nov 12 (Categories II‑VI)	Dec‑Feb 13 (Category I)	Dec‑Feb 13 (Categories II‑VI)
1.3.1. Deposits in checking account and sight accounts opened in cooperative credit boxes.	18	17	17.5	16
1.3.2. Deposits in savings box, basic account and universal free account.
1.3.2.1. In pesos (except those covered by point 1.3.14).	18	17	17.5	16
1.3.3. Pupillary usury, special accounts for closed circles, “Labor lay‑off fund…”, “Salary/social security”, “Special checking accounts for legal entities” and “Savings box for payment of social‑aid plans or programs”.
1.3.3.1. In pesos (except those covered by point 1.3.14).	18	17	17.5	16
1.3.4. Other sight deposits and obligations, pension entitlements credited by ANSES pending cash‑conversion and immobilised balances corresponding to obligations covered by these rules.
1.3.4.1. In pesos (except those covered by point 1.3.14).	18	17	17.5	16
1.3.5. Unused balances of formalised current‑account advances.	18	17	17.5	16
1.3.7. Fixed‑term deposits, obligations by “acceptances” … (excluding deposits covered by points 1.3.11, 1.3.12, 1.3.13 and 1.3.15), according to their residual term:
1.3.7.1. In pesos.
i) Up to 29 days.	13.5	13	13.25	12.5
ii) 30 to 59 days.	10.5	10	10.25	9.5
iii) 60 to 89 days.	6.5	6	6.25	5.5
iv) 90 to 179 days.	1.5	1	1.25	0.5
v) 180 days or more.	0	0	0	0
Deposits with “CER” clause are included in this point.
1.3.15. Fixed‑term investments instrumented in non‑transferable nominative certificates, in pesos, corresponding to public‑sector holders that have the right to exercise early‑cancellation within less than 30 days from their constitution.	15.5	15	15.25	14.5

For the remaining items of point 1.3 and up to February 2013, the rates in force on the publication date of this resolution shall apply.

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7. Replacement of point 3.1 of the ordered text on “Net global foreign currency position” with the following:

3.1. Charges

Excesses in these relationships will be subject to a charge equivalent to twice the annual nominal interest rate (matured) that arises from the auctions of Central Bank of the Argentine Republic letters in United States dollars or twice the 30‑day LIBOR rate for operations in that currency, reported for the last business day of the relevant month or the latest available, whichever is higher.

To determine the charge based on the Central Bank letters, the accepted cut‑off rate reported by this Institution will be used, expressed as an annual nominal rate (matured) corresponding to the last auction carried out in the reporting period. If letters of different maturities are awarded on the same date, the rate of the shortest‑maturity operation will be considered.

Charges not entered in time and form will be subject, during the period of non‑compliance, to interest equivalent to the rate resulting from adding 50 % to the rate applicable to the excesses in these relationships.

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We enclose the pages that, in replacement of those previously provided, must be incorporated into the ordered texts of the rules on “Minimum cash” and on “Net global foreign currency position”. We will also send the remaining pages corresponding to the provisions effective from December 2012 and March 2013 in due course.

Sincerely,

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Matías A. Gutiérrez Girault – Manager of Norms Issuance

Alfredo A. Besio – Deputy General Manager of Norms

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ANNEX

3.1. Charge.

3.1.1.

Deficiencies in the integration of minimum cash in pesos and in monetary‑regulation titles and instruments denominated in that currency, and the daily minimum integration in pesos, will be subject to a charge equivalent to twice the BADLAR rate of private banks for peso deposits, reported for the last business day of the pertinent period.

Deficiencies in foreign‑currency integration and in monetary‑regulation titles and instruments denominated in that currency are subject to a charge equivalent to twice the BADLAR rate of private banks in United States dollars or twice the LIBOR 30‑day rate for operations in that currency, reported for the last business day of the pertinent period or the latest available, whichever is higher.

When deficiencies in the average position and in the daily minimum integration occur concurrently in the same month or quarter, the higher charge will apply.

To determine deficiencies of the average position, the following will be considered:

i) those for which the option of transfer is not used.

ii) those that cannot be transferred to the next month because they exceed the admitted margin.

3.1.2.

Charges may be reduced in exceptional cases when mitigating circumstances exist, weighing the causes that generated the non‑compliance.

3.1.3.

Charges not entered in time and form will be subject during the period of non‑compliance to interest equivalent to the rate resulting from adding 50 % to the rate applicable to the deficiency, as provided in point 3.1.1.

3.1.4.

The charge will be calculated with the following expression:

``` c = D * TNA / 36500
```

where:

• c: amount of the charge.
• D: deficit amount.
• TNA: annual nominal rate (matured).

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5.1. Persons responsible for liquidity policy.

The financial entity shall inform the Superintendency of Financial and Currency Entities of the names of those responsible for managing the liquidity policy – which includes adopting the measures for complying with the integration of minimum cash and monitoring the liquidity position – (officials and/or area manager), the General Manager, and the director or counselor or highest authority in the country in the case of foreign entities, to whom the function must be reported.

When changes occur in that list, the information must be updated within 10 calendar days of the modification’s implementation.

5.2. Responsibilities.

Designated officials will be responsible in case of improper calculations that cause reductions in the minimum‑cash requirement.

Mechanisms or modalities that, at the discretion of the Superintendency of Financial and Currency Entities, suggest the existence of such calculations, will determine the obligation of the financial entity to provide explanations on the matter within 5 business days from notification of the request.

The Superintendency will issue a decision within 30 business days following receipt of the explanations.

5.3. Sanctions.

Verification of infringements will determine the application of the following sanctions:

• 5.3.1. Fine of 5 % to 10 % of the improperly computed amounts, accumulating the sums of the last 12 periods. The financial entity and the mentioned persons will be jointly liable for the imposed fines.
• 5.3.2. Disqualification of 5 to 20 years from performing functions in the financial activity for the persons responsible for the liquidity area. The sanctions will be executed immediately, without prejudice to the right of appeal provided by the Financial Entities Law.

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6.1. Treatment of special deposits linked to externalisation and repatriation of capital pursuant to Law 26.476.

The application defect of resources corresponding to peso deposits determined in a month will be counted as an equivalent amount in the calculation of the minimum‑cash requirement in pesos for that period.

Furthermore, until the National Executive Power regulates the destination of loan capacity, both in pesos and in foreign currency, application defects will be remunerated by this Institution. For this purpose, they must be considered in the calculations of the remuneration of balances of accounts opened at the Central Bank – points 2.4 and 2.5, respectively.

6.2. Minimum daily integration in foreign currency.

• 6.2.1. Since 1 Nov 2011, the application defect of resources in that currency will be excluded from the calculation base of the minimum‑daily‑integration requirement in foreign currency.
• 6.2.2. Since 1 Jun 2012, the requirement of minimum daily integration in foreign currency referred to in point 2.3 of Section 2 is suspended.

6.3. (Repeated) Allow, for the peso position, financial entities to deduct from the average‑requirement of minimum cash the percentage of the amount – arising from the schedule below – corresponding to the integration performed in March 2012 with cash, cash‑in‑transit and cash‑transporting companies, after accounting for the remaining admitted integration items and without exceeding the amount necessary to reach the equilibrium position (no excess nor deficit) in that month.

6.4.

The deduction established in the preceding point will not be considered for the purpose of determining the minimum daily integration in pesos contemplated in point 2.3.

6.5. Transitional schedule of the rates foreseen for the determination of the minimum‑cash requirement in pesos, established in point 1.3 of Section 1.

For the determination of the minimum‑cash requirement on peso deposits, the amounts of minimum cash that arise from applying the rates foreseen in the following schedule must be integrated, according to the location of each operative branch that has attracted the deposit, in line with the categories provided in point 3.3 of Section 3, Chapter II of Circular CREFI‑2:

Period – % admitted

Period	% admitted
September 2012	100
October and November 2012	75
December 2012 to February 2013	25
From March 2013	0

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Categories – Rates (%)

Concept	Oct‑Nov 12 (Category I)	Oct‑Nov 12 (Categories II‑VI)	Dec‑Feb 13 (Category I)	Dec‑Feb 13 (Categories II‑VI)
1.3.1. Deposits in checking account and sight accounts opened in cooperative credit boxes.	18	17	17.5	16
1.3.2. Deposits in savings box, basic account and universal free account.
1.3.2.1. In pesos (except those covered by point 1.3.14).	18	17	17.5	16
1.3.3. Pupillary usury, special accounts for closed circles, “Labor lay‑off fund…”, “Salary/social security”, “Special checking accounts for legal entities” and “Savings box for payment of social‑aid plans or programs”.
1.3.3.1. In pesos (except those covered by point 1.3.14).	18	17	17.5	16
1.3.4. Other sight deposits and obligations, pension entitlements credited by ANSES pending cash‑conversion and immobilised balances corresponding to obligations covered by these rules.
1.3.4.1. In pesos (except those covered by point 1.3.14).	18	17	17.5	16
1.3.5. Unused balances of formalised current‑account advances.	18	17	17.5	16
1.3.7. Fixed‑term deposits, obligations by “acceptances” … (excluding deposits covered by points 1.3.11, 1.3.12, 1.3.13 and 1.3.15), according to their residual term:
1.3.7.1. In pesos.
i) Up to 29 days.	13.5	13	13.25	12.5
ii) 30 to 59 days.	10.5	10	10.25	9.5
iii) 60 to 89 days.	6.5	6	6.25	5.5
iv) 90 to 179 days.	1.5	1	1.25	0.5
v) 180 days or more.	0	0	0	0
Deposits with “CER” clause are included in this point.
1.3.15. Fixed‑term investments instrumented in non‑transferable nominative certificates, in pesos, corresponding to public‑sector holders that have the right to exercise early‑cancellation within less than 30 days from their constitution.	15.5	15	15.25	14.5

For the remaining items of point 1.3 and up to February 2013, the rates in force on 21 Sep 2012 shall apply.

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Version: 13a. COMMUNICATION “A” 5356
Effective: 21/09/2012

Minimum Cash

Ordered Text Source Norm

Sec.	Point	Paragraph	Comm.	Annex	Sec.	Point	Paragraph	Observations
1.3.11.	“A”	3549	1.	According to Comm. “A” 4179, 4388, 4549 and 4851.
1.3.12.	“A”	4179	2.	According to Comm. “A” 4406, 4449, 4707 and 4851.
1.3.13.	“A”	4360	2.
1.3.14.	“A”	4754	6.
1.4.	“A”	3905	3.	According to Comm. “A” 4179, 4449 and 4473.
1.5.	“A”	3274 II	1.	According to Comm. “A” 3498.
1.6.	“A”	3274 II	1.
1.6.1.	“A”	3274 II	1.	According to Comm. “A” 4405 and 4449.
1.6.2.	“A”	3274 II	1.	According to Comm. “A” 3304 and 4449.
1.7.	“A”	3498	unique	1.
1.8.	–	–	–	According to Comm. “A” 4147.
2.1.	“A”	3274 II	2.	According to Comm. “A” 3498, 3597, 4716 (including interpretative clarification), 4815 and “B” 9186.
2.1.1.	“A”	3274 II	2.	–
2.1.2.	“A”	3274 II	2.	According to Comm. “A” 3304, 3498, 4016 and 4147.
2.1.2.	“A”	3498	unique	2.
2.1.3.	–	–	–	According to Comm. “A” 4147.
2.1.3.	“A”	3274 II	2.	–
2.1.3.	–	–	–	According to Comm. “A” 3498, 4147, 4276 and 5194.
2.1.4.	“A”	3274 II	2.	–
2.1.5.	“A”	4016	1.	–
2.1.6.	“A”	4716	2.	According to Comm. “B” 9186.
2.2.	“A”	3274 II	2.	According to Comm. “A” 3498, 4449, 4716 and 5299.
2.3.	“A”	3365	2.	According to Comm. “A” 3387, 3470, 3498, 3549, 3597, 3732, 3824, 4016, 4449, 4716, 5152, 5299 and “B” 9186.
2.4.	“A”	4147	3.	According to Comm. “A” 4276, 4449, 4509, 5152 and 5299.
2.5.	“A”	4147	3.	According to Comm. “A” 4393, 4509, 4716 and 5299.
3.1.	“A”	3274 II	3.	–
3.1.1.	“A”	3274 II	3.	According to Comm. “A” 3326, 3365, 3498, 3549, 3905, 4276, 4449, 4473, 4707, 4716, 4862, 5356 and “B” 9186.
3.1.2.	“A”	3274 II	3.	–
3.1.3.	“A”	3274 II	3.	According to Comm. “A” 3326.
3.1.4.	“A”	3274 II	3.	–
3.2.	“A”	3274 II	3.	–
3.2.1.	“A”	3274 II	3.	–
3.2.2.1.	–	–	–	According to Comm. “A” 4449.
3.2.2.2.	–	–	–	According to Comm. “A” 4449.
3.3.	“A”	3274 II	3.	According to Comm. “A” 3498.
3.3.1.	“A”	3274 II	3.	According to Comm. “A” 4771.
3.3.2.	“A”	3274 II	3.	–
4.	–	–	–	–
4.1.	“A”	3274 II	4.	–
5.1.	“A”	3274 II	5.	According to Comm. “A” 3498.
5.2.	“A”	3905	5.	According to Comm. “A” 5356.
5.3.	“A”	3905	5.	According to Comm. “A” 4449.
6.1.	“A”	4916	–	–
6.2.1.	“A”	5246	3.	–
6.2.2.	“A”	5312	–	According to Comm. “A” 5333.
6.3.	“A”	5299	2.	According to Comm. “A” 5356.
6.4.	“A”	5299	3.	–
6.5.	“A”	5356	6.	–

Minimum Cash (continued)

3.1. Charges.

Excesses over these relationships will be subject to a charge equal to twice the nominal annual interest rate (in arrears) that arises from the auctions of the Central Bank of the Argentine Republic’s letters in United States dollars, or twice the 30‑day LIBOR rate for operations in that currency, reported for the last business day of the relevant month or the latest available, whichever is higher.

To determine the charge based on the interest rate of the Central Bank’s letters, the cut‑off rate accepted and reported by the Institution will be used, expressed as a nominal annual rate in arrears, corresponding to the last auction carried out in the reporting period.

If letters of different maturities are awarded on the same date, the rate corresponding to the shortest‑maturity operation will be considered.

Charges not entered in time and form will, during the period of non‑compliance, be subject to an interest rate equal to the applicable excess charge rate increased by 50 %.

Net Global Position of Foreign Currency B.C.R.A.

Section 3. Non‑compliance.

Version: 2a. COMMUNICATION “A” 5356

Effective date:
21/09/2012

Ordered Text Source Norm

Sec.	Point	Paragraph	Comm.	Annex	Sec.	Point	Paragraph	Observations
1.1.	“A”	3889	1.	According to Comm. “A” 4135, 4140, 4150 and 4577.
1.2.	“A”	4350	2.	–
2.1.	“A”	3889	1.	According to Comm. “A” 4577 and “A” 4598.
2.2.	“A”	3889	1.	According to Comm. “A” 4350 and “A” 4598.
3.	“A”	3889	1.	According to Comm. “A” 4350 and 5356.
4.	“A”	4686	5.	–

B.C.R.A.

Source of the provisions included in the ordered text of the regulations on “Net Global Position of Foreign Currency”