Circular REMON 1 - 885: Minimum Cash. Update.

"2014 - YEAR OF TRIBUTE TO ADMIRAL GUILLERMO BROWN, ON THE BICENTENNIAL OF THE NAVAL BATTLE OF MONTEVIDEO" COMMUNICATION "A" 5569 07/04/2014

TO FINANCIAL ENTITIES:
Ref.: Circular
REMON 1 - 885

Minimum Cash. Update.

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We address you with the purpose of delivering the sheets that, in replacement of those previously provided, must be incorporated into the ordered text of the regulations on "Minimum cash", for the purpose of updating them pursuant to the provisions set forth in the resolution made known through Communication "A" 5534, corresponding to points 1.3.2.2., 1.3.3.2., 1.3.4.2., 1.3.7.2., subsection b) of point 1.3.9., 1.3.11.2. and 1.3.12.2. of Section 1.

On the other hand, the updated version of the sheets corresponding to Section 6 is attached, and the wording of point 1.6. of Section 1 is adapted to include the interpretative clarification disseminated in the corresponding information regime, through Communication "A" 5546.

Likewise, it is recalled that on the website of this Institution www.bcra.gob.ar, accessing "regulations" ("ordered texts"), the modifications made with texts highlighted in special characters (strikethrough and bold) will be found.

We salute you attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Matías A. Gutiérrez Girault Alfredo A. Besio
Manager of Issuance of Regulations
General Deputy Manager of Regulations

ANNEX

When the use of information from periods prior to the calculation period (e.g., residual maturity structure, minimum daily integration, etc.) is required and the financial entity lacks such information because it did not operate in those periods (as is the case for new entities authorized to operate), the information from the calculation period must be used.

1.3. Minimum cash.
The minimum cash amounts resulting from applying the following rates must be integrated, which, in the case of operations in pesos, will depend on the category to which the locality where the operating headquarters where the operations are carried out are located belongs, in accordance with what is established in point 3.3. of Section 3, Chapter II of Circular CREFI - 2:

MINIMUM CASH B.C.R.A. Section 1. Requirement.
Rates in %
Concept Category I Categories
II to VI
1.3.1. Demand deposits and sight accounts opened in cooperative credit unions.
17 15
1.3.2. Savings deposits, basic accounts, and universal free accounts.

1.3.2.1. In pesos. 17 15
1.3.2.2. In foreign currency. 50 50
1.3.3. Pupillary usuries, special accounts for closed circles, severance fund for workers in the construction industry, salary/social security, special current accounts for legal entities, and savings accounts for the payment of social assistance plans or programs.

1.3.3.1. In pesos. 17 15
1.3.3.2. In foreign currency. 50 50
1.3.4. Other demand 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. 17 15
1.3.4.2. In foreign currency. 50 50
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MINIMUM CASH B.C.R.A. Section 1. Requirement.
Rates in %
Concept Category I Categories
II to VI

1.3.5. Unused balances of formalized current account advances.
17 15
1.3.6. Deposits in current accounts of non-bank financial entities, calculable for the integration of their minimum cash.
100 100
1.3.7. Time deposits, obligations from "acceptances" -including liabilities from the sale or assignment of credits to subjects other than financial entities-, passive repos, guarantees, and passive stock market repos, investments at constant term, with option for early cancellation or renewal for a determined term and with variable remuneration, and other term obligations with the exception of deposits included in points 1.3.11. to 1.3.14., according to their residual term:

1.3.7.1. In pesos.
i) Up to 29 days. 13 12 ii) From 30 to 59 days. 10 9 iii) From 60 to 89 days. 6 5 iv) From 90 to 179 days. 1 0 v) 180 days or more. 0 0

Deposits with "CER" clause are included in this point.

1.3.7.2. In foreign currency.

i) Up to 29 days. 50 50 ii) From 30 to 59 days. 38 38 iii) From 60 to 89 days. 25 25 iv) From 90 to 179 days. 14 14 v) 180 days or more. 5 5 vi) More than 365 days. 0 0
1.3.8. Obligations from foreign financial lines (not instrumented through time deposits or debt securities to which the requirements provided in points 1.3.7. and 1.3.9., respectively, apply).
0 0
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MINIMUM CASH B.C.R.A. Section 1. Requirement.
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Rates in %
Concept Category I Categories
II to VI

1.3.9. Debt securities (including debentures), according to their residual term:

a) In pesos.

i) Up to 29 days. 14 14 ii) From 30 to 59 days. 11 11 iii) From 60 to 89 days. 7 7 iv) From 90 to 179 days. 2 2 v) 180 days or more. 0 0

b) In foreign currency i) Up to 29 days. 50 50 ii) From 30 to 59 days. 38 38 iii) From 60 to 89 days. 25 25 iv) From 90 to 179 days. 14 14 v) 180 to 365 days. 5 5 vi) More than 365 days. 0 0
1.3.10. Obligations with the Fiduciary Fund for Assistance to Financial and Insurance Entities.
0 0
1.3.11. Demand and time deposits made by order of the Judiciary with funds originating in the cases in which it intervenes, and their immobilized balances.

1.3.11.1. In pesos. 10 10
1.3.11.2. In foreign currency. 25 25

1.3.12. Deposits -whatever their modality- that constitute the equity of common investment funds.
1.3.12.1. In pesos. 19 19
1.3.12.2. In foreign currency. 50 50
1.3.13. Special deposits linked to the inflow of funds from abroad - Decree 616/05.
100 100
1.3.14. Term investments instrumented in non-transferable registered certificates, in pesos, corresponding to public sector holders who have the right to exercise the option for early cancellation within a period of less than 30 days counted from their constitution.
15 14

1.5.3. Based on the granting of financing to SMEs from 1.1.14 (with validity until 1.3.14).
The requirement will be reduced by an amount equivalent to 16% of the financing agreed to SMEs from 1.1.14, pursuant to the provisions in the regulations on the "Credit Line for Productive Investment", to the extent that it is verified that the term of such financing at the time of granting exceeds 5 years, provided that their average term is not less than 30 months. To this effect, the monthly average of daily balances of the aforementioned financing -principal- of the month prior to the calculation of the requirement will be considered. This reduction will also apply to financial entities that, despite not being included in point 1.3. of the regulations on the "Credit Line for Productive Investment", grant financing to SMEs under the conditions of this point.

1.6. Decrease in the requirement on average in US dollars, with validity for time deposits captured from 27.1.14.
Prior to determining the requirement, the monthly average of daily balances of the net position of Internal Letters of the Central Bank of the Argentine Republic in US dollars registered by the financial entity will be deducted from the application base.

1.7. Specific increases in requirement due to liability concentration.
When an excessive concentration of liabilities (in holders and/or terms) is verified, which implies a significant risk regarding the individual liquidity of the financial entity and/or has an important negative effect on systemic liquidity, additional minimum cash requirements may be set on the liabilities included in the financial entity and/or complementary measures deemed pertinent. It will be considered that this situation is configured when, among others, any of the following factors are present:

• A high percentage of liabilities is concentrated in the same holder or holders.
• In term obligations, the term is short.
• The aforementioned liabilities represent a significant percentage with respect to the integration of minimum cash and/or the total deposits of the private sector in the entity.

1.8. Transfers.
1.8.1. Admitted margin.
The integration of the minimum cash of the positions in monthly or quarterly average of daily balances of the included obligations cannot be less than 80% of the requirement resulting from the following expression:
EEMA (n) = EEF (n) + ENI (n-1)
MINIMUM CASH B.C.R.A. Section 1. Requirement.
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6.1. Minimum daily integration in foreign currency.
6.1.1. From 1.11.11, the defect of application of resources in that species will be excluded from the calculation base for the minimum daily integration requirement in foreign currency.
6.1.2. From 1.6.12, the minimum daily integration requirement in foreign currency referred to in point 2.3. of Section 2 is suspended.
MINIMUM CASH B.C.R.A. Section 6. Transitional Provisions.
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ORDERED TEXT SOURCE REGULATION
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, 4815 and
"B" 9186.
1.1.3. "A" 3274 II 1. 1.1.3. According to Com. "A" 3498, 3905 and
4473.
1.2. "A" 3274 II 1. 1.2. According to Com. "A" 3304, 3498,
3597, 4449, 4716 (includes interpretative clarification), 4815, 5471 and "B" 9186.
1.3. "A" 3274 II 1. 1.3. According to Com. "A" 5356.
1.3.1. "A" 3274 II 1. 1.3.1. According to Com. "A" 3338, 3417,
3498, 3597, 3917, 3967, 4032,
4051, 4147, 4276, 4449, 4473,
4509, 4549, 4602, 4712, 5108 and
5356.
1.3.2. "A" 3274 II 1. 1.3.2. According to Com. "A" 3338, 3417,
3498, 3597, 3917, 3967, 4032,
4051, 4147, 4179, 4276, 4449,
4473, 4509, 4549, 4602, 4809,
4851, 5164, 5356, 5534, 5555 and
5569.
1.3.3. "A" 3274 II 1. 1.3.3. According to Com. "A" 3338, 3399,
3417, 3498, 3597, 3824, 3917,
3967, 4032, 4051, 4147, 4179,
4276, 4449, 4473, 4509, 4549,
4602, 4754, 4851, 5007, 5091,
5234, 5356, 5534, 5555 and 5569.
1.3.4. "A" 3274 II 1. 1.3.4. According to Com. "A" 3338, 3417,
3498, 3597, 3917, 3967, 4032,
4051, 4147, 4179, 4276, 4449,
4473, 4509, 4549, 4602, 4851,
5356, 5534, 5555 and 5569.
1.3.5. "A" 3274 II 1. 1.3.5. According to Com. "A" 3338, 3417,
3498, 3597, 3917, 3967, 4032,
4051, 4147, 4276, 4449, 4509,
4549 and 5356.
1.3.6. "A" 3274 II 1. 1.3.7. According to Com. "A" 5356.
1.3.7. "A" 3498 unique 1. 1.3.8. According to Com. "A" 3506 (pt. 2.),
3549, 3732, 3824, 3905, 3917,
3925, 3967, 4032, 4140, 4179,
4276, 4360 (pt. 3.), 4449,
4549, 4602, 4754, 4851, 5356,
5534, 5555 and 5569.
1.
1.3.8. "A" 3498 unique 1. 1.3.11. According to Com. "A" 3597, 3732,
4032 and 5356.
B.C.R.A. ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE REGULATIONS ON "MINIMUM CASH"

MINIMUM CASH
ORDERED TEXT SOURCE REGULATION
Sec. Point Para. Com. Annex Sec. Point Para. OBSERVATIONS
1.3.9. "A" 3498 unique 1. 1.3.12. According to Com. "A" 3905,
3917, 3967, 4032, 4179,
4276, 4449, 4549, 4851,
5356, 5534 , 5555 and 5569.
1.3.10. "A" 3549 1.
1.3.11. "A" 3549 1. According to Com. "A" 4179,
4388, 4549, 4851, 5356,
5534, 5555 and 5569.
1.3.12. "A" 4179 2. According to Com. "A" 4406,
4449, 4707, 4851, 5356,
5534, 5555 and 5569.
1.3.13. "A" 4360 2. According to Com. "A" 5356.
1.3.14. "A" 4754 6. According to Com. "A" 5356.
1.4. "A" 3905 3. According to Com. "A" 4179,
4449 and 4473.
1.5. "A" 5356 2. According to Com. "A" 5471.
1.5.1. "A" 5356 2. According to Com. "A" 5471.
1.5.2. "A" 5471 1.
1.5.3. "A" 5524
1.6. "A" 5534 According to Com. "A" 5569.
1.7. "A" 3274 II 1. 1.5. According to Com. "A" 3498.
1.8. "A" 3274 II 1. 1.6.
1.8.1. "A" 3274 II 1. 1.6.1. According to Com. "A" 4405,
4449.
1.8.2. "A" 3274 II 1. 1.6.2. According to Com. "A" 3304,
4449.
1.9. "A" 3498 unique 1. 1.8. According to Com. "A" 4147
1.
1.10. "A" 5380 According to Com. "A" 5449,
5516.
2.1. "A" 3274 II 2. 2.1. According to Com. "A" 3498,
3597, 4716 (includes interpretative clarification), 4815 and "B" 9186.
2.1.1. "A" 3274 II 2. 2.1.2. According to Com. "A" 3304,
3498, 4016 and 4147.
2.1.2. "A" 3498 unique 2. 2.1.3. According to Com. "A" 4147.
2.1.3. "A" 3274 II 2. 2.1.3. According to Com. "A" 3498,
4147, 4276 and 5194.
2.1.4. "A" 3274 II 2. 2.1.4.
2.1.5. "A" 4016 1.
2.1.6. "A" 4716 2. According to Com. "B" 9186.
2.2. "A" 3274 II 2. 2.2. According to Com. "A" 3498,
4449, 4716 and 5299.
2.3. "A" 3365 2. According to Com. "A" 3387,
3470, 3498, 3549, 3597,
3732, 3824, 4016, 4449,
4716, 5152, 5299, 5373 and "B" 9186.
2.
2.4. "A" 4147 3. According to Com. "A" 4276,
4449, 4509, 5152 and 5299.

MINIMUM CASH
ORDERED TEXT SOURCE REGULATION
Sec. Point Para. Com. Annex Sec. Point Para. OBSERVATIONS
2. 2.5. "A" 4147 3. According to Com. "A" 4393,
4509, 4716 and 5299.
3.1. "A" 3274 II 3. 3.1.
3.1.1. "A" 3274 II 3. 3.1.1. According to Com. "A" 3326,
3365, 3498, 3549, 3905,
4276, 4449, 4473, 4707,
4716, 4862, 5356 and "B"
9186.
3.1.2. "A" 3274 II 3. 3.1.2.
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. "A" 3274 II 3. 3.3. According to Com. "A" 3498.
3.3.1. "A" 3274 II 3. 3.3.1. According to Com. "A" 4771.
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. According to Com. "A" 5356.
5.
5.3. "A" 3905 5. According to Com. "A" 4449.
6. 6.1.1. "A" 5246 3.
6.1.2. "A" 5312 According to Com. "A" 5333.