CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION "A" 663 31/05/85

TO FINANCIAL INSTITUTIONS AUTHORIZED TO OPERATE IN FOREIGN EXCHANGE

Ref.: Circular EXCHANGE OPERATIONS AND MOVE-
MENTS OF FUNDS AND SECURITIES WITH THE
ABROAD - CAMEX - 1 - 99. Circular PAS-
SIVE OPERATIONS OPASI - 1 - 61. Circular
ACTIVE OPERATIONS - OPRAC - 1 - 69

We address you to communicate the rules that, complementarily, must be observed in relation to the provisions established by Communication "A" 652 of 17.5.85.

1. DEPOSITS MADE IN AUTHORIZED INSTITUTIONS

For foreign currency deposits whose maturity is automatically extended until 16.9.85, the issuance of new certificates will not be necessary. For the amount of principal plus accrued interest up to the original maturity, the institutions will pay interest at the LIBO rate that the Central Bank will report daily, applying the rate corresponding to the term resulting from the deposit's permanence, counting from the original maturity.

For this purpose, the rates will be applied according to the following brackets:

Rate to be supplied	Term of the deposit extension
120 days	More than 104 days
90 days	104 to 75 days
60 days	74 to 45 days
30 days	44 to 20 days
14 days	19 to 10 days
7 days	9 to 1 day

2. SUBSCRIPTION OF EXTERNAL BONDS - 1984

The option to subscribe External Bonds in whole or in part of the deposit may be made at any time between the deposit's maturity date or 20.5.85 - in the case of demand balances - and the end of the 120-day term provided in point 1 of the Resolution annexed to Communication "A" 652 and up to the amount resulting from adding to the principal and original interest, the interest corresponding to the elapsed suspension period. The request will be made by submitting form 3046 - 3, in accordance with standard procedures, accompanied by a note stating that the funds are deposited in the Central Bank account "DEPOSITS IN US DOLLARS - COMMUNICATION "A" 652".

For fractions less than US$ 100.- nominal value, the institutions will return to the depositors the corresponding amount in foreign currency, in banknotes or by transfer, as agreed with them.

3. CONSTITUTION OF DEPOSITS IN THE CENTRAL BANK

3.1. Daily, through the exchange switchboard, each institution will report the amount in foreign currency that it transfers to this Bank for the credit of the account indicated by Telephone Notice No. 5186 of 20.5.85. In all cases, they must indicate the assigned value date.

3.2. On the same day, they will confirm the operations by note - whose model is attached in Annex I - which must be delivered to the Department of Exchange Operations (Office 104, 3rd floor, Central Building), until 15 hrs.

The deposits will accrue interest at the rate that this Central Bank will report daily, in accordance with the procedure of point 1.1., applying the rate corresponding to the term resulting from the deposit's permanence.

4. CREDIT SUPPORT TO INSTITUTIONS, TO FACILITATE THE SUBSCRIPTION OF EXTERNAL BONDS OF THE ARGENTINE REPUBLIC BY THE HOLDERS OF THE DEPOSITS

In cases where the deposits referred to in section 3. are insufficient to attend the return of deposits of holders who opt to subscribe External Bonds - 1984, the institutions may request from this Institution a loan in US dollars with guarantee of their active portfolio, according to the following procedure:

a) It will be requested by note signed by the President and General Manager or their legal representatives.

b) The loans will have a term of 120 days

c) The LIBO interest rate will be applied to such operations, for the 120-day term, which the Central Bank of the Argentine Republic will communicate daily. Interest will be settled at the end of each period.

d) As guarantee of these loans, the institutions will assign, in the first instance, public securities in foreign currency, continuing with the longest-term credit instruments of the active portfolio, supported by foreign currency deposits. For this purpose, they will sign the guarantee letter in original and two copies, according to the model attached as Annex II. This document will be sent only once together with the request for funds, accompanied by forms 2894 stating the detail of the documents given as guarantee.

e) The applications must be submitted at the Department of Exchange Operations, Office 304, 3rd floor, Central Building, until 14 hrs and will be resolved by credit to the account "Deposits in US dollars - Communication "A" 652", on the business day following their submission.

B.C.R.A. COMMUNICATION "A" 663 31.05.85

f) The Central Bank of the Argentine Republic may request additional information necessary for the consideration of the requests for funds made in accordance with this regime.

5. INFORMATION REGIME

5.1. In order to comply with the information requested in point 4. - 1st paragraph of the Annex to Communication "A" 652, the institutions must classify their active portfolios by main items, according to the model attached as Annex III.

5.2. The maturity schedule of the deposits must contain the demand balances existing at the close of operations on 17.5.85 and the amounts to mature per statistical week. Complementarily, the classification of deposits according to the amount of the original deposit will be reported. In Annexes IV and V, the presentation models are attached.

5.3. The deadline to present this information is extended until 7.6.85.

6. OTHER PROVISIONS

To handle the repayment of the deposits referred to in point 3. of the Annex to Communication “A” 652, entities must use the deposits they hold at the Central Bank, for which purpose they shall request the return of the necessary funds by means of a note addressed to the Exchange Operations Department.

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Raúl O. Planes
Deputy Manager of
Foreign and Exchange
Néstor J. Taró
Deputy General Manager

B.C.R.A.
MODEL NOTE Annex I to
Com. “A” 663

Buenos Aires, of of 1985

To the Central Bank of the Argentine Republic
Exchange Operations Department

Ref.: Communication “A” 652

We address you to confirm the data, as detailed below, of the transaction carried out today under point 4) of the aforementioned Communication, for which amount we have made the transfer in accordance with Telephone Notice No. 5186 of 20.5.85.

We greet you very attentively.

Authorized Entity
Signature and seal

DETAIL:

Amount:
Value date:
Payer:

B.C.R.A. “MODEL LETTER OF GUARANTEE” Annex II to Com. “A” 663

Mr. President of the
CENTRAL BANK OF THE ARGENTINE REPUBLIC
S /
D

Ref.: Letter of Guarantee for the credit support re- gime in United States dollars, Communica- tion “A” 663.

We have the pleasure of addressing you in order to expressly state that we undertake and accept the following:

1. That as guarantee of the loan in United States dollars granted to us by the Central Bank of the Argentine Republic under the regime of Communication “A” 663, we pledge in favor of the Central Bank of the Argentine Republic the holding of public securities and/or documents in the same foreign currency from our portfolio originated in the application of the lendable capacity of deposits received in foreign currency, for a value that reaches or exceeds one hundred percent (100%) of the sums owed to the Central Bank of the Argentine Republic.

2 That the public securities and documents given as guarantee, which shall be endorsed with the legend: “Value as pledge guarantee in favor of the Central Bank of the Argentine Republic”, we undertake to keep them carefully separated from the rest of the portfolio and at the disposal of the Central Bank of the Argentine Republic in a determined and individualized area of the treasury of this Entity that we provide free of charge and to which the officials and inspectors of the Central Bank of the Argentine Republic shall have the pertinent access.

3. That we accept the role of depositaries of the securities and documents offered as guarantee, which we shall perform free of charge.

4. That we fully understand that any subsequent collection proceedings of the documents given as guarantee shall be at the exclusive expense and cost of this Entity, whether judicial or extrajudicial.

5. That when due to maturity of the documents or other circumstances the minimum guarantee established in Clause 1 may decrease, we undertake to replace them with other documents of the same nature as those cited in said clause, until covering the indicated minimum guarantee, within a period of 48 hours.

If such documents are not available to make the corresponding replacements, upon expiration of the indicated period and without need for any request, the cancellation of the guaranteed loan shall automatically become due, in the same currency in which it was granted, that is, in United States dollars.

6. That the list of public securities and documents offered as guarantee is detailed in form 2894, attached, numbered correlatively, which shall form an integral part of this guarantee.

When replacements of documents occur, as provided in clause 5, the pertinent substitutions shall be sent.

7. That the Central Bank of the Argentine Republic reserves the right to reject or require the replacement of any of the documents guaranteeing the corresponding loan, which must be done within 48 hours of receiving the communication from the Central Bank.

8. That for the purposes of recording the date of transfer of the securities given as guarantee, we undertake to record in the Minutes book (of the Board of Directors or Administrative Council) the number of documents and securities, the total amount, their order numbers and the date and numbering of the schedules in which they are itemized.

One copy of the aforementioned schedules shall remain in the possession of this Entity at the disposal of the Central Bank of the Argentine Republic. This Minutes shall be signed by all directors and statutory auditors.

9. That we undertake to satisfy the additional guarantees that the Central Bank of the Argentine Republic may require for the debt resulting from this loan regime.

NOTE: This letter of guarantee must be signed by those who are authorized to legally bind the entity (President, Vice President, Directors or officials with enabling power: in the latter case they must attach a photocopy of the respective power of attorney).

B.C.R.A.
Application of the balance at the close of operations of 17.5.85 Com. “A” 663
Annex III to

• In thousands of dollars -
  Maturities
  1985
  TOTAL Available Overdue
  May Jun Jul Aug Sep Oct Nov Dec
  Year 1986 and following
  Cash (banknotes) …………………………………… XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Banco Nación reserve account - New York… XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Accounts in local banks on demand ………… XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Accounts in foreign banks on demand ……. XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Accounts in foreign banks at term……... XXX BONEX…………………………………………... XXX XXX BONOD and Promissory Notes………………….. XXX XXX Own repurchase operations………………… XXX Customer repurchase operations…………….. XXX Pre-financing of exports…………….. XXX Financing of exports………………… XXX Financing of imports………………… XXX Financial loans with exchange insurance XXX Financial loans without exchange insurance own ………………………………………….. XXX Financial loans without exchange insurance of customers ………………………………………. XXX Interest pending authorization…………. XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Other investments ………………………………. TOTAL:

B.C.R.A.
DEPOSIT MATURITIES
SITUATION AT THE CLOSE OF OPERATIONS
OF 17.5.85
Annex IV to
Com. “A” 663

Period	Equivalent in US$
	Taxed capital	Interest at original maturity
Demand deposits ……………………..……
From 20 to 23.05.85 …………………..
From 24 to 31.05.85 …………………..
From 1 to 07.06.85 …………………..
From 8 to 15.06.85 …………………..
From 16 to 23.06.85 …………………..
From 24 to 30.06.85 …………………..
From 1 to 07.07.85 …………………..
From 8 to 15.07.85 …………………..
From 16 to 23.07.85 …………………..
From 24 to 31.07.85 …………………..
From 1 to 07.08.85 …………………..
From 8 to 15.08.85 …………………..
From 16 to 23.08.85 …………………..
From 24 to 31.08.85 …………………..
From 1 to 07.09.85 …………………..
From 8 to 15.09.85 …………………..
From 16 to 23.09.85 …………………..
From 24 to 30.09.85 …………………..
From 1 to 07.10.85 …………………..
From 8 to 15.10.85 …………………..
From 16 to 23.10.85 …………………..
From 24 to 31.10.85 …………………..
From 1 November onward …………….
TOTAL.

B.C.R.A.
CLASSIFICATION OF DEPOSITS
BY AMOUNT OF TAXED CAPITAL AT THE CLOSE
OF OPERATIONS OF 17.5.85
Annex V to
Com. “A” 663

Brackets	Number of certificates	Equivalent in thousands of US$
Up to US$ 500
From US$ 501 to US$ 750 ………………..
From US$ 751 to US$ 1.000 ………………..
From US$ 1.001 to US$ 1.500 ………………..
From US$ 1.501 to US$ 2.000 ………………..
From US$ 2.001 to US$ 3.000 ………………..
From US$ 3.001 to US$ 5.000 ………………..
From US$ 5.001 to US$ 7.000 ………………..
From US$ 7.001 to US$ 10.000 ………………..
From US$ 10.001 to US$ 15.000 ………………..
From US$ 15.001 to US$ 20.000 ………………..
From US$ 20.001 to US$ 30.000 ………………..
From US$ 30.001 to US$ 50.000 ………………..
From US$ 50.001 to US$ 100.000 ………………..
Over US$ 100.000 ……………………….
Total amount of deposits exempted by point 3. of the Annex to Communication “A” 652
TOTAL