2019 - YEAR OF EXPORT

COMMUNICATION “A” 6705
30/05/2019

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
REMON 1 - 970

Minimum cash. Update.

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We address you to send you in annex the sheets that, in replacement of those timely provided, should be incorporated into the reference regulations based on the resolution disseminated by Communication “A” 6703. Likewise, we point out that a formal error on page 6 of Section 1 has been corrected.

Finally, it is recalled that on the page of this Institution www.bcra.gob.ar, by accessing “Financial System – LEGAL AND REGULATORY FRAMEWORK – Compilations and summaries – Ordered texts of general regulations”, you will find the modifications made with texts highlighted in special characters (strikethrough and bold).

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Matías A. Gutiérrez Girault
Issuance Manager of Regulations
Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications

ANNEX

MINIMUM CASH B.C.R.A.
Section 1. Requirement.

Concept	Rates in % Group “A” and G-SIB not included in that group	Remaining entities
1.3.10. Deposits and time investments of “UVA” and “UVI” –including savings accounts and debt securities (including negotiable obligations) in “UVA” and “UVI”–, according to their residual term. i) Up to 29 days. ii) From 30 to 59 days. iii) From 60 to 89 days. iv) 90 or more.	7 5 3 0	7 5 3 0
1.3.11. Labor Cessation Fund for Workers of the Construction Industry in UVA.	7	7
1.3.12. Deposits and time investments constituted in the name of minors with funds received gratuitously.	0	0

1.3.13. In the case of operations in pesos, when the locality in which the operating office where they are made is located, in accordance with the provisions of the regulations on “Categorization of localities for financial institutions”, belongs to categories II to VI, the rates provided for demand placements shall be reduced by 2 percentage points and for time placements by 1 percentage point up to a minimum of zero (including point 1.3.11.). In both cases, it does not include impositions in securities.

1.3.14. Financial institutions included in Group “A” and branches or subsidiaries of G-SIBs not included in that group may integrate the requirement in pesos –of the period and daily– with “National Treasury Bonds in pesos at fixed rate maturing November 2020” up to:

a) 5 percentage points of the rates provided in points 1.3.1., 1.3.2.1., 1.3.3., subsections i) and ii) of point 1.3.5.1. and points 1.3.7.1. and 1.3.9.

b) 2 percentage points of the rate provided in subsection iii) of point 1.3.5.1.

1.3.15. Financial institutions included in Group “A” and branches or subsidiaries of G-SIBs not included in that group may integrate the requirement in pesos –of the period and daily– with BCRA Liquidity Bills (LELIQ) and/or BCRA Notes (NOBAC) up to 13 percentage points of the rate provided in subsection i) of point 1.3.5.1. and 1.3.9.; up to 10 percentage points of the rates provided by points 1.3.1., 1.3.2.1. and 1.3.3. and subsection ii) of point 1.3.5.1. and point 1.3.7.1.

Version: 16th. COMMUNICATION “A” 6705
Effective date:
01/02/2019
Page 6

Section 1. Requirement.

For the purposes of computing financings to MSMEs, to determine the participation percentage, it shall be taken into account whether they meet that condition at the time of granting the assistance, considering all outstanding financings. If the borrower ceases to meet the MSME condition, the financings granted up to that moment shall be computed.

The average mobile balance at the end of the last 12 months prior to the under report of the financings in pesos (Loans and Credits for Financial Leases) granted to MSMEs with respect to the total of those financings to the non-financial private sector of the entity shall be considered.

1.5.2. Based on the granting of financings within the framework of the “AHORA 12” Program.

The requirement shall be reduced by an amount equivalent to 20% of the sum of the financings in pesos that the entity grants:

1.5.2.1. As provided by the “AHORA 12” Program referred to in Joint Resolution No. 671/14 and 267/14 of the former Ministry of Economy and Public Finance and the former Ministry of Industry, respectively, whose purpose is the acquisition of goods and services included in the aforementioned resolution and its complementary regulations.

For this purpose, the balance of the financings reached from the period prior to the computation of the requirement that meet the indicated requirements shall be considered.

1.5.2.2. To non-financial companies issuing credit cards at an interest rate of up to 17% nominal annual, to the extent that those companies have adhered to the “AHORA 12” Program.

For this purpose, the financings of the period prior to the computation of the requirement, measured in monthly average of daily balances, shall be considered.

The financial institution must require and have documentation that proves that the borrowing company has allocated the funds to grant financings under the conditions of the aforementioned Program.

This deduction, moreover, may not exceed 1% of the concepts in pesos subject to requirement, on average, of the month prior to the computation.

1.6. Specific increases in requirement due to concentration of liabilities.

When an excessive concentration of liabilities (in holders and/or terms) is verified, which implies a significant risk with respect to the individual liquidity of the financial institution and/or has a significant negative effect on systemic liquidity, additional minimum cash requirements may be set on the included liabilities of the financial institution and/or those complementary measures deemed pertinent.

This situation shall be considered to be configured when, among others, any of the following factors is present:

Version: 17a. COMMUNICATION “A” 6705
Effective:
24/05/2019
Page 10

MINIMUM CASH B.C.R.A.
Section 6. Transitional provisions.

6.1. Minimum daily integration in foreign currency.

6.1.1. As of 1.11.11, the shortfall in the application of resources in that currency shall be excluded from the calculation base of the minimum daily integration requirement in foreign currency.

6.1.2. As of 1.6.12, the minimum daily integration requirement in foreign currency referred to in point 2.3 is suspended.

6.2. The reduction of the average requirement in pesos based on the financings referred to in point 1.5.1. shall operate, between the months of May and October 2019, on the greater proportion resulting from applying the provisions of that point and the ratio of financings maintained at the end of the previous period under report.

Version: 24a. COMMUNICATION “A” 6705
Effective:
24/05/2019
Page 1

CENTRAL BANK OF THE ARGENTINE REPUBLIC

MINIMUM CASH

CONSOLIDATED TEXT			SOURCE RULE					OBSERVATIONS
Sec.	Point	Para.	Com.	Annex	Sec.	Point	Para.
1.	1.3.8.		“A” 4360			2.		According to Com. “A” 5356 and 6616.
	1.3.9.		“A” 4754			6.		According to Com. “A” 5356, 5980, 6195, 6526, 6532 and 6616.
	1.3.10.		“A” 5945			4.		According to Com. “A” 6069, 6204 and 6616.
	1.3.11.		“A” 6341					According to Com. “A” 6616.
	1.3.12.		“A” 6069			4.		According to Com. “A” 6616.
	1.3.13.		“A” 5356			1.		According to Com. “A” 6616.
	1.3.14.		“A” 6526					According to Com. “A” 6532, 6550, 6587 and 6616.
	1.3.15.		“A” 6550					According to Com. “A” 6556, 6559, 6575, 6587 and 6616.
	1.3.	Last	“A” 6526					According to Com. “A” 6532, 6556, 6569, 6575, 6587, 6616 and 6628.
	1.4.		“A” 3905			3.		According to Com. “A” 4179, 4449, 4473, 5671, 5740, 6232 and 6349. Includes interpretive clarification.
	1.5.		“A” 5356			2.		According to Com. “A” 5471.
	1.5.1.		“A” 5356			2.		According to Com. “A” 5471, 5623, 6531, 6703 and 6705.
	1.5.2.		“A” 5631			1.		According to Com. “A” 5638, 6217 and 6531.
	1.6.		“A” 3274	II	1.	1.5.		According to Com. “A” 3498.
	1.7.		“A” 3274	II	1.	1.6.
	1.7.1.		“A” 3274	II	1.	1.6.1.		According to Com. “A” 4405, 4449 and 6349.
	1.7.2.		“A” 3274	II	1.	1.6.2.		According to Com. “A” 3304, 4449 and 6349.
	1.8.		“A” 3498	único	1.	1.8.		According to Com. “A” 4147 and 6537.
	1.9.		“A” 5380					According to Com. “A” 5449, 5516, 5600, 5654 and 5771. Includes interpretive clarification.
2.	2.1		“A” 3274	II	2.	2.1.		According to Com. “A” 3498, 3597, 4716 (interpretive clarification), 4815, 6288 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	sole	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.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

MINIMUM CASH

CONSOLIDATED TEXT
SOURCE STANDARD

Sec.	Point	Para.	Com.	Annex	Sec.	Point	Para.	OBSERVATIONS
2.	2.1.6.		“A” 4716		2.			According to Com. “A” 6628 and “B” 9186.
	2.2.		“A” 3274	II	2.	2.2.		According to Com. “A” 3498, 4449, 4716, 5299 and 6349.
	2.3.		“A” 3365			2.		According to Com. “A” 3387, 3470, 3498, 3549, 3597, 3732, 3824, 4016, 4449, 4716, 5152, 5299, 5373, 6288, 6349, 6575, 6616 and “B” 9186.
	2.4.		“A” 4147			3.		According to Com. “A” 4276, 4449, 4509, 5152, 5299 and 6349.
	2.5.		“A” 4147			3.		According to Com. “A” 4393, 4509, 4716 and 5299.
3.	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, 6349, 6638 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 and 6349.
	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 and 6275.
	3.3.2.		“A” 3274	II	3.	3.3.2.
	4.1.		"A" 3274	II	4.	4.1.
	5.1.		"A" 3274	II	5.	5.1.		According to Com. "A" 3498 and 5693.
	5.2.		"A" 3905			5.		According to Com. "A" 5356 and 5693.
	5.3.		"A" 3905			5.		According to Com. "A" 4449 and 6167.
	6.1.1.		"A" 5246			3.
	6.1.2.		"A" 5312					According to Com. "A" 5333.
	6.2.		"A" 6703			2.