Circulares Active Operations - OPRAC 1 - 181, Passive Operations - OPASI 1 - 97 and Monetary Regulations - REMON 1 - 366. Rules on deposits, minimum cash and financial assets applicable to financial entities included in Annex V to Communication "A" 865

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMUNICACIÓN "A" 1099 14/10/87
TO FINANCIAL ENTITIES:
Ref.: Circulares ACTIVE OPERATIONS - OPRAC

• 1 - 181, PASSIVE OPERATIONS - OPASI - 1
• 97 and MONETARY REGULATIONS - REMON - 1 - 366. Rules on deposits, minimum cash and financial assets applicable to financial entities included in Annex V to Communication "A" 865

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

" 1. It is ordered that savings deposits in special and fixed-term nominative transferable and non-transferable non-adjustable accounts collected by financial entities included in Annex V to Communication "A" 865, from 15.10.87, may be remunerated at interest rates that do not exceed the passive rate determined based on the daily survey conducted by the Central Bank, corresponding to the third business day immediately preceding the date of the deposit. Balances of common and special savings deposits not subject to the minimum permanence requirement may be remunerated at rates that on no day exceed the aforementioned passive rate of the third business day immediately preceding. Additionally, they may collect savings deposits in special and fixed-term nominative transferable and non-transferable accounts, adjustable by financial index.

2. It is established that the average of fixed-term deposits collected by financial entities included in Annex V to Communication "A" 865 during the period 15.10./31.10.87, must not exceed the average of the same period of maturities of the same type of deposits (principal and interest), multiplied by 1.05.
   Regarding common savings deposits received by these entities, the average of daily balances for the period 15.10./31.10.87. may not exceed 105% of the balance recorded on 14.10.87.

3. It is authorized for financial entities included in Annex V to Communication "A" 865 to carry out, from 15.10.87, intermediation operations in financial transactions between third parties residing in the country ("acceptances" of non-adjustable documents issued in australes), subject to the current provisions contained in point 1. of Communication "A"
   925 and complementary.
   These entities must cease, from that date, the execution of adjustable "acceptances" referred to in Communication "A" 1033.

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4. It is established that public financial entities included in Annex V to Communication
   "A" 865, from 15.10.87, will constitute minimum cash due to the growth of deposits, capitals effectively traded in "acceptances" and other obligations in australes subject to fractional reserve, excluding those corresponding to the provincial and municipal public sector of the respective jurisdiction, which occurs on the average of these same concepts recorded in the period 1.10./14.10.87, observing the following requirements:

Concept Rate

• in % -
• Savings
• common 25
• special 1,5
• Fixed-term
• from 7 to 29 days 3
• from 30 to 89 days 1,5
• from 90 days or more 0
• "Acceptances" of non-adjustable documents 3
• Current account and other deposits and
  obligations at sight and fixed-term 88,5

These reserves will not be subject to compensation.
In October 1987, the requirements will be calculated on the growth of the average daily balances recorded in the period 15.10./31.10., with respect to the aforementioned base.

5. It is ordered that, from 15.10.87, financial entities included in Annex V to Communication "A" 865 must constitute a financial asset in the Central Bank, not countable for the integration of minimum cash, with adjustment to the provisions contained in Annex."

We inform you that for the purpose of making fund movements in the special account of the financial asset referred to in point 5. of the preceding resolution, the provisions disseminated through Communication "A" 641 will apply. In forms 4027 and 4028 to be submitted to the Treasury Department, or in case of "telex", the following data will be recorded:

• Financial Asset - Communication "A" 1099

• Special account number: the one corresponding to the financial asset "at unregulated rate" (Communication "A" 733), replacing the first two digits of the one assigned by Communication "B" 1737 with the number 71.

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  B.C.R.A. COMMUNICATION “A” 1099 14.10.87

• Operation codes: 330 (deposit) or 331 (withdrawal).
  We salute you very respectfully.
  BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
  Alfredo A. Besio Julio A. Piekarz
  Manager of Standards for General Submanager
  Financial Entities

ANEXO

B.C.R.A. COMMUNICATION “A” 1099 Annex to
Com. “A” 1099

1. Requirement
   It will be equivalent to the amount resulting from applying 50% to the growth of the monthly average of daily balances of common savings deposits with respect to the average recorded in the period 1.10./14.10.87. In October 1987, the requirement will be calculated on the growth of the average daily balances recorded in the period 15.10./31.10. with respect to the aforementioned base.

2. Remuneration
   The variation rate determined in the corresponding month to establish the index to update the special deposit - Communication "A" 1096 (point 2. of Annex I) will be applied. Interest will be calculated on the average deposited balance and credited, at the entities' option, in the current account or in the special account of the financial asset, with value on the first day of the month following that to which they correspond.

3. Integration
   It will be verified according to the monthly average of daily balances of the deposit account.
   In October 1987, the integration will be computed on the average of daily balances recorded in the special account in the period 15.10./31.10.
   Deficits will be subject to a charge equivalent to that established for minimum cash deficiencies.