Circular RUNOR 1 - 145. OPASI 2 - 123. OPRAC 1 - 375. REMON 1 - 704. LISOL 1 - 98. Intermediation operations with securities and foreign currency — BCRA — AR

BANCO CENTRAL DE LA REPUBLICA ARGENTINA __________________________________________________________________ COMUNICACION " A " 2275 28/11/94 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
RUNOR 1 - 145.
OPASI 2 - 123.
OPRAC 1 - 375.
REMON 1 - 704.
LISOL 1 - 98.
Intermediation operations with securities and foreign currency

We address you to bring to your knowledge that this Institution adopted the following resolution:

"1. Admit that in the stock exchanges and/or securities markets of the country operations of pledge and/or stock collateral with terms shorter than 30 days be carried out, provided that:

the amount of each transaction is equal to or greater than $
300,000, measured with respect to the capital effectively traded.
the transaction is carried out through a centralized system
for the settlement of operations in the guaranteed segment and the effective transfer or delivery of the traded securities is verified. Early cancellation of pledge and/or stock collateral operations of less than $ 300,000, originally contracted for terms of 30 days or more, will not be admitted.

Authorize banks and financial companies to carry out for the term they
freely agree upon the following operations:
2.1. acceptance of deposits of securities whose public offering
has been authorized by the National Securities Commission, and which have normal and habitual quotation in relevant transactions.
2.2. forward purchases and sales of foreign currency and securities, provided that:
2.2.1. the value of the contract at its maturity is equal to or
greater than $ 500,000.
2.2.2. they are not directly or indirectly linked
with spot transactions, with the same counterparties, that produce a similar economic-financial effect as a passive pledge operation.

2.2.3. the operations are agreed with maturity on the
last business day of the current month.
2.3. loans of the securities referred to in point
2.1. (public and private).
2.4. active pledges of the securities referred to in point
2.1. (public and private).
In matters of minimum cash, what is established in point 7. of the resolution disseminated by Communication "A" 2059 and in Communication "A" 2132 (0% reserve requirement) shall apply. Financial entities may not carry out stock operations of less than 30 days that directly or indirectly imply the acceptance of funds.

Repeal the regime for deposits and loans of securities
referred to in the resolution disseminated through Communication "A" 2246.
Provide that spot settlement operations of foreign currency
or securities that financial entities agree with their clients, must be settled through the effective transfer of the traded item and its counterpart, recording -if applicable- the movement of the values in any of the registration agents included in sections b), c) and d) referred to in point 1. of the resolution disseminated through Communication "A" 2263, as appropriate. In the case of operations with foreign exchange, there is an obligation to carry out transfers to the counterparty's account abroad, regardless of the settlement term or amount of the transaction.
Authorize financial entities to establish guarantee margins in
securities pledge operations, which they formalize among themselves, provided that the following conditions are observed:
5.1. the maturity of the operation may not exceed the
last business day of December 1994.
5.2. the coverage of each transaction may reach up to 20%
of the agreed forward purchase value, constituted in the traded item.
5.3. the total of the guarantees established by the set of
operations included may not exceed, at any time, 10% of the net worth computable registered on 10.31.94."

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA Juan Carlos Isi Alfredo A. Besio Submanager of Standards Manager of Standards for for Financial Entities Financial Entities