Circulars on National Public Securities TINAC 1-186 and Exchange Operations and Movements of Funds and Securities with Abroad CAMEX 1-256

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION "A" 1759
07/11/90

TO FINANCIAL INSTITUTIONS AND EXCHANGE HOUSES:

Ref: Circulars NATIONAL PUBLIC SECURITIES -
TINAC 1-186 EXCHANGE OPERATIONS AND
MOVEMENTS OF FUNDS AND SECURITIES
WITH ABROAD - CAMEX 1-256.

We are pleased to address you in order to inform you that, given the imminent start-up of the new Operations desk of the Central Bank, the opening of the registry of institutions that will participate directly in exchange and open market operations with this Institution has been ordered.

To this end, category "B" and "C" banks, finance companies that are covered under the terms of Communication "A" 1289 of 1.12.88, and exchange houses, in the latter case with the exception of repurchase operations whose purpose is expansionary or contractionary, shall be authorized to carry out all kinds of operations. Banks not categorized as "B" or "C" and finance companies [may participate] in the arrangement of operations of public securities and bonds that have local currency as counterpart.

Given that participants will be limited to 55 banks, 10 finance companies and 15 exchange houses, the institutions that request it will be classified within each group, as arises from the evaluation of the following parameters:

Banks and finance companies.

1. Computable equity responsibility corresponding to the month of October 1990, in millions of australes with one decimal.

2. Total traded in the Free Exchange Market during the quarter August/October 1990, in thousands of United States dollars (purchases plus sales to customers and institutions, excluding arbitrage, swaps and repurchase agreements).

3. Number of tickets traded in the interfinancial market during the quarter August/October 1990, in millions of australes with one decimal (active plus passive operations).

4. Total traded in the Electronic Open Market during the quarter August/October 1990, in millions of australes with one decimal.

5. Total traded in the Securities Market during the quarter August/October 1990, in millions of australes with one decimal.

Exchange houses

1. Net equity as of 31.10.90, in millions of australes with one decimal.

2. Total traded in the Free Exchange Market during the quarter August/October 1990, in thousands of United States dollars (purchases plus sales to customers and institutions, excluding arbitrage, swaps and repurchase agreements).

3. Total traded in the Electronic Open Market during the quarter August/October 1990, in millions of Australes with one decimal.

4. Total traded in the Securities Market during the quarter August/October 1990, in millions of australes with one decimal.

Each parameter will be ordered separately, with the first place being occupied by the institution that, by adding the order number of its positions, obtains the lowest absolute number. The best score will be 5 for banks and finance companies, while for exchange houses it will be 4. In the event that two or more institutions have the same position in the classification, they will be reclassified based on Computable Equity Responsibility and, if the same situation continues, the same procedure will be followed with each of the following parameters in the order indicated above, until the tie is broken.

The Central Bank, through its Open Market Committee, reserves the right not to accept the requests of institutions or to proceed to their suspension, when situations arise in matters of technical ratios, restructuring plans, results of inspections, non-compliance in informational and statistical matters, etc., that make it advisable, as well as to be able to carry out operations with unclassified institutions on an exceptional basis, whose purpose is solely their direct application in the institution.

At the beginning of each calendar year, the classifications will be updated following the preceding criterion, at which time the performance of the institutions that request to continue in this operation will be evaluated qualitatively and quantitatively and the corresponding fees will be set.

Each institution will have the right to a direct line with the Central Bank. Institutions not classified to integrate the Exchange and Open Market Desk may connect free of charge with the Information Desk, with which they may arrange the operations in force in matters of agreements, public sector, etc., as well as receive telephone communications and obtain permanent information on the regulatory activity under the responsibility of this Institution.

B.C.R.A.
COMMUNICATION "A" 1759
7/11/90

In order to proceed with the connection to the Exchange and Open Market Desk, institutions must pay, quarterly, the fees informed below:

• Category "B" and "C" banks ............... US$ 10,000.- -

• Finance companies covered under the terms of Communication "A" 1289............. " 3,000.- -

• Exchange Houses .......................... " 3,000.- -

• Finance companies not covered under the terms of Communication "A" 1289........ " 1,000.- -

• Banks not categorized as "B" or "C" .... " 1,000.-

The current direct lines that are not transferred to the Exchange and Open Market Desk will be connected to the Information Desk free of charge for the institutions.

The information provided by the institutions to allow the selection, as well as the information corresponding to the Computable Equity Responsibility that must be updated by the accepted institutions as of the 15th of each month following the report or the following business day, will have the character of a sworn statement. This information will subsequently be considered by the Superintendency of Banks. Cases of irregularities that may be detected will be considered as "false information".

Banks, financial companies and exchange houses wishing to participate in this operation must submit a note, the model of which is attached as an Annex hereto, to the Department of Exchange Operators, Central Building, 4th floor - Office 401, on 16 November 1990, from 10:00 to 15:00.

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Raúl Omar
Exchange Manager

Planes José Agustín Uriarte
Deputy General Manager

B.C.R.A.
Model note ANNEX TO
Com. "A" 1759

Buenos Aires, 16 November 1990.

To the Department of Exchange Operators of the Central Bank of the Argentine Republic.

Ref.: Application for participation in the Exchange Desk and Open Market Desk of the Central Bank of the Argentine Republic.

We address you in order to request to operate directly with the Central Bank in exchange and open market operations.

To that effect, we comply with providing, as a sworn statement, the information required by Communication "A" 1759 of 7.11.90, of which we take due knowledge and agree to abide by all its terms.

CONCEPT	AUGUST	SEPT.	OCTOBER	TOTAL
1. Total traded in the Free Exchange Market during the August/October 1990 quarter, in thousands of US dollars (purchases plus sales to customers and entities, excluding arbitrage, swaps and repos).
2. Number of transactions in the interfinancial market during the August/October 1990 quarter, in millions of australes with one decimal (active plus passive operations). Exchange houses shall not report this concept.
3. Total traded in the Electronic Open Market during the August/October 1990 quarter, in millions of australes with one decimal. (1)
4. Total traded in the Securities Market during the August/October 1990 quarter, in millions of australes with one decimal. (1)
5. Computable equity responsibility corresponding to the month of October 1990, in millions of australes with one decimal. Exchange houses must report Net Equity as of 31.10.90, attaching a trial balance as of the same date.

[1] (1). The total traded in US dollars will be converted to australes applying the following average exchange rates corresponding to each month: August: A 6,028.63 per US$; September: A 5,805.50 per US$; and October: A 5,588.41 per US$.

We greet you very attentively.

Name of the Entity:
Group to be integrated (second paragraph of Communication "A" 1759):
Clarification of signatures:
Position held: