2020 – YEAR OF GENERAL MANUEL BELGRANO

COMMUNICATION “A” 6973 16 April 2020

TO FINANCIAL INSTITUTIONS:

Reference: Circular

OPASI 2 – 587

SINAP 1 – 101

Deposit Guarantee Insurance – Increase of the Coverage Ceiling

We address you to inform that this Institution adopted the resolution which, in its pertinent part, provides:

Establish, effective from 1 May 2020, an amount of $ 1,500,000 for the guarantee of the deposits referred to in points 5.3.1., 5.3.2., 5.3.3. and 6. of the rules on “Application of the Deposit Guarantee Insurance System”.
Allow the use of fixed‑term deposit certificates bearing an outdated guarantee‑amount legend, until they are exhausted and/or the instruments with the new legend are available, in accordance with point 1 of this communication.

For the use of such outdated certificates, a clarifying seal indicating the scope of the guarantee must be placed; if there is insufficient space, the depositor must be notified in writing on a separate sheet (original and copy) with the full legend text, which must be signed by the depositor.

Furthermore, we are sending you the pages that, in replacement of those previously provided, must be incorporated into the rules on “Application of the Deposit Guarantee Insurance System”. In this regard, it is reminded that on the Institution’s website www.bcra.gob.ar, accessing “Financial System – LEGAL AND REGULATORY FRAMEWORK – Orders and Summaries – Ordered Texts of General Regulations”, the modifications will be found with text highlighted in special characters (strikethrough and bold).

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Matías A. Gutiérrez Girault Darío C. Stefanelli

Manager of Norms Emission Senior Manager of Emission and Normative Applications

ANNEX

5.2.2.

Deposits on sight for which interest rates higher than the reference rates are agreed, and term deposits and investments that exceed 1.3 times that rate or the reference rate plus 5 percentage points – whichever is greater.

Reference rates are periodically disseminated by the BCRA through Communications “B”, determined according to the moving average of the last five banking business days of passive rates that, for fixed‑term deposits up to $ 100,000 (or equivalent in other currencies), arise from the survey conducted by the BCRA.

They will also be excluded when those interest‑rate limits are distorted by additional incentives or remunerations.

5.2.3.

Deposits of financial entities in other intermediaries, including fixed‑term certificates acquired through secondary market negotiation.

5.2.4.

Deposits made by persons linked, directly or indirectly, to the entity according to the guidelines defined in point 1.2.2. of the rules on “Large Credit‑Risk Exposures”.

5.2.5.

Fixed‑term deposits of securities, acceptances or guarantees.

5.2.6.

Immobilised balances originating from deposits and other excluded operations.

5.3. Coverage. Amount and Formalities.

5.3.1.

The guarantee will cover the return of the deposited capital, interest, updates – by the Reference Stabilisation Coefficient (CER) for deposits of Acquisition Value Units – Law 25.827 (UVA) and by the Construction Cost Index for Greater Buenos Aires (ICC) for deposits of Housing Units – Law 27.271 (UVI) – and quotation differences, as applicable, accrued up to the date of revocation of the authorization to operate or up to the date of suspension of the entity pursuant to article 49 of the BCRA Organic Charter, if that measure had been adopted prior to the former, without exceeding – for those concepts – $ 1,500,000.

That date will be considered for the determination of the CER and the ICC for allocations in UVA and UVI respectively, as well as for the determination of the “Reference Exchange Rate” for conversion to pesos of foreign‑currency deposits, for the purpose of establishing the amount reached by the coverage.

5.3.2.

In accounts and allocations constituted in the name of two or more persons, the guarantee limit will be $ 1,500,000 regardless of the number of account holders, with the guaranteed amount proportionally distributed among the holders.

5.3.3.

The total guaranteed to a given person, by accumulation of accounts and deposits covered as previously provided, may not exceed the limit of $ 1,500,000.

Version: 20a. COMMUNICATION “A” 6973

Effective: 01/05/2020

B.C.R.A. – APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

5.3.4.

SEDESA will reject or postpone, until judicial recognition, the request for coverage under this guarantee regime when the deposits do not meet the requirements established in the applicable rules or when depositors do not present material and formally valid titles.

5.3.5.

SEDESA may require, prior to the liquidation of the guarantee, that depositors justify the origin and availability of the deposited funds through documents demonstrating their plausibility and/or that the actual receipt of the funds by the entity has been verified for each operation covered by the regime.

Furthermore, the mentioned company must file the appropriate complaint when it detects irregularities or a criminal offence aimed at obtaining an undue collection of the guarantee.

6. Instrumentation.

In all representative documents of passive operations (certificates, deposit slips, receipts issued by ATMs, account statements, etc.) the following legend must appear, visibly and printed on the front or back of them:

“Deposits in pesos and in foreign currency are guaranteed up to $ 1,500,000. In operations in the name of two or more persons, the guarantee will be prorated among the holders. In no case may the total guarantee per person and per deposit exceed $ 1,500,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree No 540/95 and amendments and Communication “A” 2337 and its amendments and complements. Excluded are those attracted at rates higher than the reference rate according to the limits established by the Central Bank, those acquired by endorsement and those made by persons linked to the financial entity.”

If any of the situations mentioned in the last sentence occur, the following legend must be placed visibly on the front of the documents:

“Deposit without guarantee”

This last requirement will not apply when operations are carried out through ATMs belonging to networks that enable operational interconnection of financial entities.

Entities must keep the full texts of Law 24.485, Decree No 540/95 (updated text) and the present regulations available to their clientele.

In addition, in any advertising carried out by financial entities related to the deposits they attract, the existence of a limited guarantee for their return must be stated.

B.C.R.A. – APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

Version: 14a. COMMUNICATION “A” 6973

Effective: 01/05/2020

ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM”

ORDERED TEXT OF SOURCE REGULATION

Punto	Párrafo	Com.	Anexo	Punto	Párrafo	OBSERVACIONES
1.	“A” 2337 I	1.	1°y 2°
1°	“A” 2337 I	2.	1°	S/Dec. N°1292/96, Com. “A” 2807, 3358, 4206, 4271, 5641 y 5943.
2.				2° “A” 2337 I	2.	2° S/Dec. N°1292/96.
3.	1° “A” 2337 I	3.	1°
3.1.	“A” 2337 I	3.1.
3.2.	“A” 2337 I	3.2.
3.3.	“A” 2337 I	3.3.
3.3.1.	“A” 2337 I	3.3.1.
3.3.2.	“A” 2337 I	3.3.2.
3.	2° “A” 2337 I	3.	2°
1°	“A” 2337 I	4.	2°y 3°	S/Com. “B” 5806 (8° párrafo), “A” 3068, 5710 y 5720.
4.				2° “A” 2337 I	4.	4°
5.	“A” 2337 I	6.
5.1.	1° “A” 2337 I	6.1.	1°
5.1.1.	“A” 2337 I	6.1.	i)
5.1.2.	“A” 5108
5.1.3.	“A” 2337 I	6.1.	ii)
5.1.4.	“A” 2337 I	6.1.	iii)
5.1.5.	“A” 2337 I	6.1.	iv)	S/Com. “A” 5091, 5108, 5164, 5234 y 6435.
5.1.6.	“A” 2482	1.	2°
5.1.7.	“B” 5806	3°	S/Com. “A” 2807.
5.2.	“A” 2337 I	6.4.	S/Com. “A” 2399.
5.2.1.	“A” 2337 I	6.4.1.	S/Com. “A” 2399.
5.2.2.	“A” 2337 I	6.3.	S/Com. “A” 2777, 3358, 5108, 5234, 5640, 5654, 5891, 6435 y 6460. Includes interpretative clarification.
5.2.3.	“A” 2337 IV	S/Dec. N°540/95, art. 12, inc. c).
5.2.4.	“A” 2337 I	6.2.	S/Com. “A” 5520 y 6639.
5.2.5.	“A” 2337 IV	S/Dec. N°540/95, art. 12, inc. c).
5.2.6.	“A” 2807	5.2.7.
5.3.	“A” 2337 I	6.	S/Dec. N°540/95.
5.3.1.	“A” 2337 I	6.5.	S/Com. “A” 4681, 5170, 5641, 5943, 6125, 6654 y 6973.
5.3.2.	“A” 2337 I	6.7.	1°	S/Dec. N°540/95 y Com. “A” 5170, 5641, 5943, 6654 y 6973.
5.3.3.	“A” 2337 I	6.7.	2°	S/Dec. N°540/95 y Com. “A” 5170, 5641, 5943, 6654 y 6973.
5.3.4.	“A” 2337 I	6.8.	S/Dec. N°540/95.
5.3.5.	“A” 2337 I	6.9.

APPLICATION OF THE DEPOSIT GUARANTEE INSURANCE SYSTEM

ORDERED TEXT OF SOURCE REGULATION

Punto	Párrafo	Com.	Anexo
6.	“A” 2337 I	7.	S/Com. “A” 2399, 3270, 4874, 5170, 5641, 5659, 5891, 5943, 6419, 6435, 6654 y 6973. Includes interpretative clarification Decree N°1292/96.
7.	1° “A” 2337 II	1.	S/Com. “A” 2561.
7.1.	“A” 2337 II	1.	S/Com. “A” 2561, 4040, 5369 y 5417.
7.2.	“A” 2337 II	2.	S/Com. “A” 2561.
8.	“A” 2807 II y III
8.1.	“A” 2807 II	S/Ley 25.089 y Com. “A” 6654.
8.2.	“A” 2807 III	S/Dec. N° 1292/99 y N° 1653/15 y Com. “A” 4206, 5816 y 6435.
9.	“A” 5710	2.