Circular REMON 1-889 / OPRAC 1-743: Minimum Cash. Credit Line for Productive Investment. Modifications.

2014 - YEAR OF TRIBUTE TO ADMIRAL GUILLERMO BROWN, ON THE BICENTENNIAL OF THE NAVAL BATTLE OF MONTEVIDEO COMMUNICATION “A” 5638 25/09/2014 TO FINANCIAL ENTITIES:
Ref.: Circular
REMON 1 - 889
OPRAC 1 - 743
Minimum Cash. Credit Line for Productive Investment. Modifications.

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

“1. Replace, with effect from 1.10.14., point 1.5.5. of Section 1. of the rules on “Minimum Cash”, with the following:

“1.5.5. Based on the granting of financing under the “AHORA 12” Program.
The requirement shall be reduced by an amount equivalent to 16% of the sum of the peso financing that the entity grants:

1.5.5.1. As provided for by the “AHORA 12” Program referred to in Joint Resolution No. 671/2014 and 267/2014 of the Ministry of Economy and Public Finances and the Ministry of Industry, respectively, whose purpose is the acquisition of goods and services included in said resolution and its complementary rules.
To this effect, the balance of financing achieved in the period prior to the computation of the requirement that meet the stated requirements shall be considered.

1.5.5.2. To non-financial companies issuing credit cards at an interest rate of 0%, to the extent that these companies have adhered to the “AHORA 12” Program.
To this effect, financing from the period prior to the computation of the requirement shall be considered, measured by the monthly average of daily balances. The financial entity must require and have documentation that certifies that the borrowing company has allocated the funds to grant financing under the conditions of the aforementioned Program. This deduction, furthermore, may not exceed 1% of the peso concepts subject to the requirement, on average, of the month prior to the computation.”

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2. Replace point 5.3. of Section 5. of the rules on “Credit Line for Productive Investment”, with the following:

“5.3. Defect in the application of the credit quota that may be destined for clients who are not MiPyMEs - second tranche of the 2014 Quota.
Up to 15% of the amount corresponding to the second tranche of the 2014 Quota may be imputed with the amount effectively disbursed from the sum of:

5.3.1. The financing referred to in point 6.3.2. of the rules on “Interest Rates in Credit Operations” granted from 11.6.14 when incorporated by transmission by assignment or as claims regarding trusts, to the extent that the originator and transferor of the assigned or trust credits -as applicable- is a financial entity of Group II according to point 6.4.2. of those rules.
In the case of “bridge loans” to trusts whose trust assets, originators, and transferors are those provided in the preceding paragraph, the amount to be imputed shall be the simple average of the monthly averages of daily balances recorded between July and December 2014 of those loans.

5.3.2. Financing to non-financial companies issuing credit cards at an interest rate of 0%, to the extent that these companies have adhered to the “AHORA 12” Program.
The amount to be imputed shall be the simple average of the monthly averages of daily balances recorded between October and December 2014 of that financing. The financial entity must require and have documentation that certifies that the borrowing company has allocated the funds to grant financing under the conditions of the aforementioned Program. The Superintendency of Financial and Exchange Entities will carry out a specific verification of the operations contracted with affiliated entities -according to the definitions contained in point 2.2. of Section 2. of the rules on “Credit Risk Fractionation”- regarding compliance with the provisions applicable to this financing.”

Finally, we send you the sheets that, in replacement of those previously provided, should be incorporated into the rules in reference. Likewise, we remind you that on this Institution's website www.bcra.gob.ar, accessing “regulations” (“ordered texts”), the modifications made with text highlighted in special characters (strikethrough and bold) will be found.

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We greet you sincerely.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Enrique C. Martín Darío C. Stefanelli
Submanager of Issuance of Regulations
Submanager General of Regulations a/c

ANNEX

1.5.3. Based on the credits made by the National Social Security Administration (ANSES) for the payment of social security benefits.
The requirement shall be reduced by the amount resulting from the following expression:
Q(I-IV) x 0.027 + Q(V-VI) x 0.056
Where:
Q(I-IV): total amount in pesos credited in the previous month by ANSES to effect the payment of wages and/or other social security benefits -such as social aid plans or programs-, to the extent that the locality in which the operational house where the payment is made is located belongs to any jurisdiction included in categories I to IV -provided for in point 3.3. of Section 3. of Chapter II of Circular CREFI - 2-. Q(V-VI): total amount in pesos credited in the previous month by ANSES to effect the payment of wages and/or other social security benefits -such as social aid plans or programs-, to the extent that the locality in which the operational house where the payment is made is located belongs to any jurisdiction included in categories V and VI -provided for in point 3.3. of the aforementioned Circular CREFI - 2-.

1.5.4. Based on the granting of financing to MiPyMEs from 1.1.14 (with effect from 1.3.14).
The requirement shall be reduced by an amount equivalent to 16% of the financing agreed to MiPyMES from 1.1.14, as provided in the rules on the “Credit Line for Productive Investment”, to the extent that it is verified that the term of said financing at the time of granting exceeds 5 years, without its average term being less than 30 months. To this effect, the monthly average of daily balances of the aforementioned financing -capitals- of the month prior to the computation of the requirement shall be considered. This reduction shall also apply to financial entities that, despite not being included in point 1.3. of the rules on the “Credit Line for Productive Investment”, grant financing to MiPyMEs under the conditions of this point.

1.5.5. Based on the granting of financing under the “AHORA 12” Program.
The requirement shall be reduced by an amount equivalent to 16% of the sum of the peso financing that the entity grants:

1.5.5.1. As provided for by the “AHORA 12” Program referred to in Joint Resolution No. 671/2014 and 267/2014 of the Ministry of Economy and Public Finances and the Ministry of Industry, respectively, whose purpose is the acquisition of goods and services included in said resolution and its complementary rules.
To this effect, the balance of financing achieved in the period prior to the computation of the requirement that meet the stated requirements shall be considered.

1.5.5.2. To non-financial companies issuing credit cards at an interest rate of 0%, to the extent that these companies have adhered to the “AHORA 12” Program.
To this effect, financing from the period prior to the computation of the requirement shall be considered, measured by the monthly average of daily balances. The financial entity must require and have documentation that certifies that the borrowing company has allocated the funds to grant financing under the conditions of the aforementioned Program. This deduction, furthermore, may not exceed 1% of the peso concepts subject to the requirement, on average, of the month prior to the computation. The total decrease in the requirement -resulting from considering what is provided in points 1.5.1. to 1.5.5. jointly- may not exceed the amount of the requirement previously determined.

1.6. Decrease in the average requirement in US dollars, with effect for fixed-term deposits captured from 27.1.14.
Prior to the determination of the requirement, the monthly average of daily balances of the net position of Internal Letters of the Central Bank of the Republic of Argentina in US dollars that the financial entity registers shall 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 regarding the integration of the minimum cash and/or the total deposits of the private sector in the entity.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 9th COMMUNICATION “A” 5638
Validity:
01/10/2014

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 8th COMMUNICATION “A” 5638
Validity:
01/10/2014

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 may not be less than 80% of the requirement resulting from the following expression:
EEMA (n) = EEF (n) + ENI (n-1)
Where
EEMA (n): adjusted minimum cash requirement corresponding to period “n”.
EEF (n): minimum cash requirement according to current rules corresponding to period “n”.
ENI (n-1): requirement not integrated in period “n-1”.
Period: month or quarter, as applicable.

1.8.2. Period of use.
The admitted transfer of the requirement not integrated in each period to the next position may be made up to a maximum of six periods, counted from the first period (inclusive) in which the option to use it is chosen according to the provision above or from the first immediate position subsequent to that in which the transferred defects are compensated or charge is paid on them. For its calculation, the transferred numerals from the period to which they correspond, divided by the number of days of the period to which the transfer is made, shall be computed.

1.9. Defect in the application of resources in foreign currency.
The defect in the application of resources corresponding to deposits in foreign currency that is determined in a month shall be computed by an amount equivalent in the calculation of the minimum cash requirement of that same period of the respective currency.

1.10. Increase in the requirement due to non-compliance with the rules on “Credit Line for Productive Investment”.
The defect in the application of the 2013 Quota verified -on 1.7.13 or 1.1.14, as the case may be, when it concerns the first tranche and 1.1.14 or 1.7.14, as the case may be, when it concerns the second tranche- shall be computed by an amount equivalent in the calculation of the minimum cash requirement in average in pesos, from said dates and for 24 months.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 3rd COMMUNICATION “A” 5638
Validity:
01/10/2014

The defect in the application of the 2014 Quota will generate an increase in the minimum cash requirement in average in pesos by an amount equivalent from the day following its verification (1.7.14 or 1.1.15) for 24 months.

1.11. Increase in the requirement due to non-compliance with the maximum rate level in financing subject to interest rate regulation by the B.C.R.A.
Non-compliance with the maximum limit for rates in financing subject to interest rate regulation by the B.C.R.A., according to what is established in point 6.4. of Section 6. of the rules on “Interest Rates in Credit Operations”, will generate an increase in the minimum cash requirement in pesos by an amount equivalent to that obtained according to point 6.6.1. of Section 6. of said rules. Without prejudice to this, financial entities may reverse that increase according to the procedure established in point 6.7. of Section 6. of the rules on “Interest Rates in Credit Operations”.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 1st COMMUNICATION “A” 5638
Validity:
01/10/2014

MINIMUM CASH
ORDERED TEXT SOURCE NORM
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 and
5623.
1.5.2. “A” 5471 1. According to Com. “A” 5623.
1.5.3. “A” 5623 2.
1.5.4. “A” 5524
1.5.5. “A” 5631 1. According to Com. “A” 5638.
1.5. last “A” 5623 4. According to Com. “A” 5631.
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 and
4449.
1.8.2. “A” 3274 II 1. 1.6.2. According to Com. “A” 3304 and
4449.
1.9. “A” 3498 unique 1. 1.8. According to Com. “A” 4147
1.10. “A” 5380 According to Com. “A” 5449 and
5516.
1.
1.11. “A” 5590 2.
2.1. “A” 3274 II 2. 2.1. According to Com. “A” 3498, 3597,
4716 (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.
2.2. “A” 3274 II 2. 2.2. According to Com. “A” 3498, 4449,
4716 and 5299.

5.1. Syndicated Loans.
Entities may integrate this portfolio through loans granted in common with other entities, in the proportion that corresponds.

5.2. Early Cancellations.
In case early cancellations are admitted, the right to cancellation must be solely in favor of the borrowers.

5.3. Defect in the application of the credit quota that may be destined for clients who are not MiPyMEs - second tranche of the 2014 Quota.
Up to 15% of the amount corresponding to the second tranche of the 2014 Quota may be imputed with the amount effectively disbursed from the sum of:

5.3.1. The financing referred to in point 6.3.2. of the rules on “Interest Rates in Credit Operations” granted from 11.6.14 when incorporated by transmission by assignment or as claims regarding trusts, to the extent that the originator and transferor of the assigned or trust credits -as applicable- is a financial entity of Group II according to point 6.4.2. of those rules.
In the case of “bridge loans” to trusts whose trust assets, originators, and transferors are those provided in the preceding paragraph, the amount to be imputed shall be the simple average of the monthly averages of daily balances recorded between July and December 2014 of those loans.

5.3.2. Financing to non-financial companies issuing credit cards at an interest rate of 0%, to the extent that these companies have adhered to the “AHORA 12” Program.
The amount to be imputed shall be the simple average of the monthly averages of daily balances recorded between October and December 2014 of that financing. The financial entity must require and have documentation that certifies that the borrowing company has allocated the funds to grant financing under the conditions of the aforementioned Program. The Superintendency of Financial and Exchange Entities will carry out a specific verification of the operations contracted with affiliated entities -according to the definitions contained in point 2.2. of Section 2. of the rules on “Credit Risk Fractionation”- regarding compliance with the provisions applicable to this financing.

CREDIT LINE FOR PRODUCTIVE INVESTMENT
B.C.R.A.
Section 5. Other Provisions.
Version: 4th COMMUNICATION “A” 5638
Validity:
26/09/2014

B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “CREDIT LINE FOR PRODUCTIVE INVESTMENT” ORDERED TEXT SOURCE NORM Sec. Point Para. Com. Annex Sec. Point Para. OBSERVATIONS
1.1. “A” 5319 unique 1.
1.2. “A” 5380 According to Com. “A” 5449.
1.
1.3. “A” 5516 1. According to Com. “A” 5600.
2.1. “A” 5319 unique 2. According to Com. “A” 5380.
2.2. “A” 5380 According to Com. “A” 5449.
2.3. “A” 5516 2. According to Com. “A” 5600.
2.
2.4. “A” 5319 unique 2. According to Com. “A” 5380, 5419,
5449 and 5516.
3.1. “A” 5319 unique 3.1. According to Com. “A” 5338 and 5449.
3.2. “A” 5516 3.
3.2.1. “A” 5554 According to Com. “A” 5578, 5586 and
5600.
3.2.1.1. “A” 5554 According to Com. “A” 5578, 5586 and
5600.
3.2.1.2. “A” 5600 3.
3.2.2. “A” 5516 3.
3.2.2.1. “A” 5516 3. According to Com. “A” 5534 and 5609.
3.2.2.2. “A” 5516 3. According to Com. “A” 5600.
3.2.2. last “A” 5516 3.
3.3. “A” 5319 unique 3.2. According to Com. “A” 5338, 5380,
5449, 5516 and 5600.
3.4. “A” 5319 unique 3.3. According to Com. “A” 5449 and 5516.
3.5. “A” 5319 unique 3.4. According to Com. “A” 5449.
3.5.1. “A” 5319 unique According to Com. “A” 5380.
3.5.2. “A” 5380 According to Com. “A” 5449.
3.5.3. “A” 5516 3. According to Com. “A” 5600.
3.
3.6. “A” 5570 1.
4.1. “A” 5319 unique 4.1.
4.2. “A” 5319 unique 4.2.
4.3. “A” 5319 unique 4.3.
4.4. “A” 5319 unique 4.4.
4.
4.5. “A” 5319 unique 4.5.
5.1. “A” 5319 unique 5.1.
5.2. “A” 5319 unique 5.2.
5.
5.3. “A” 5600 4. According to Com. “A” 5609 and 5638.
6. “A” 5319 unique 6.
7. “A” 5319 unique 7.
8.1. “A” 5319 unique 8. According to Com. “A” 5380.
8.2. “A” 5380 According to Com. “A” 5449, 5516 and
5600.
8.
8.3. “A” 5319 unique 8. According to Com. “A” 5380.