2020 - YEAR OF GENERAL MANUEL BELGRANO

COMMUNICATION “A” 7047 18/06/2020

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
CAMEX 1 - 851
OPRAC 1 - 1039
OPASI 2 - 605
RUNOR 1 - 1578
LISOL 1 - 893
REMON 1 - 1020

Deposits and time investments. Minimum cash. Overall net foreign currency position. Spot transactions to be settled and forward transactions, repos, collateralized loans, other derivatives and with mutual investment funds. Credit policy. Update .

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We address you to send you the pages that, replacing those opportunely provided, should be incorporated into the reference standards based on the provisions disseminated through Communications “A” 7027, 7029 and 7034. Likewise, point 1.3.16. of the standards on “Minimum cash” is adjusted and the corresponding page of the index of the standards on “Credit policy” is attached; in both cases, by virtue of the update disclosed through Communication “A” 7036.

It is noted that on the page of this Institution www.bcra.gob.ar, by accessing “Financial System – LEGAL AND REGULATORY FRAMEWORK – Ordering and summaries – Ordered texts of general regulations”, you will find the modifications made with texts highlighted in special characters (strikethrough and bold).

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Matías A. Gutiérrez Girault
Darío C. Stefanelli
Issuance Manager of Standards
Principal Manager of Issuance and Regulatory Applications

ANNEX

B.C.R.A.
ORDERED TEXT OF THE STANDARDS ON
“DEPOSITS AND TIME INVESTMENTS”

• Index -

4.3. Currency.

4.4. Term.

4.5. Amount.

4.6. Remuneration.

4.7. Issuance of deposit certificates.

4.8. Restrictions.

4.9. Other provisions.

Section 5. Time deposits constituted or declared within the framework of Law 27.260 - Tax regularization regime - Book II - Title I.

Correlation table.

Version: 4th. COMMUNICATION “A” 7047
Effective:
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“CAICC” tc-1: adjustment coefficient for the “ICC”, of the business day prior to the date of constitution of the deposit.

The BCRA will periodically publish the daily value in pesos of the “UVA” and the “UVI”.

The principal amount to be received at the maturity date will be the equivalent in pesos of the amount of “UVA” or “UVI” deposited, calculated according to the value of the “UVA” or “UVI”, as applicable, at that date.

These deposits may only be captured and settled in pesos.

1.10. Deposits with incentives or remuneration –total or partial– in goods or services.

Holders must be advised about the nature of the remuneration for tax purposes.

In the body of the document that instruments the deposit, it must be recorded that this requirement has been complied with.

These deposits may only be made in pesos.

1.11. Remuneration.

1.11.1. Fixed-rate deposits.

According to the rate freely agreed.

In the case of deposits in pesos not adjustable by “UVA” or “UVI” in the name of private non-financial sector holders, a minimum passive rate will apply, which will depend on the type of financial institution that captures the placement:

1.11.1.1. Financial institutions included in Group “A” –for the purposes of the standards on “Minimum cash”– and branches or subsidiaries of foreign banks qualified as systemically important (G-SIB) not included in that group: the nominal annual rate may not be lower than the one that the BCRA will disseminate every Friday. This minimum nominal annual rate will be 79 % of the simple average of the rates of the auctions of BCRA Liquidity Bills (LELIQ) in pesos of the shortest term of the week prior to the one in which the deposits are made.

1.11.1.2. Remaining financial institutions: the nominal annual rate may not be lower than the one that the BCRA will disseminate every Friday. This minimum nominal annual rate will be 70% of the simple average of the rates of the shortest-term LELIQ auctions in pesos of the week prior to that in which the deposits are made.

These entities may choose to observe the minimum passive rate of point 1.11.1.1. The decision to exercise this option must be adopted by the highest responsible for the management of the entity's liquidity policy or by its Board of Directors or equivalent authority, implemented within the first 5 business days of the month and notified to the Superintendence of Entities

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Financial and Exchange Entities (SEFyC).

For these purposes, the renewals of these deposits will be considered as new operations.

Clients who are debtors of the financings provided in points 1.5.5. (financings within the framework of the health emergency established by Decree 260/2020 at a rate of up to 24%) and/or 1.5.7. (financings at a rate of up to 24% to MSMEs not reported in the “Central de deudores del sistema financiero”) of the rules on “Minimum Cash” are excluded from the minimum passive rate regime. For this purpose, financial entities must request a sworn statement from depositors when the deposited capital exceeds $ 1 million.

1.11.2. Deposits with variable interest clauses.

1.11.2.1. Basic remuneration.

It will be equivalent to:

i) The interest rate arising from any of the following surveys prepared and published daily by the BCRA through the respective Communication “C”:

a) Fixed-term deposits.

b) Fixed-term deposits of 30 to 35 days term and of more than one million pesos or dollars (“BADLAR”).

c) Accepted between private banks (“BAIBAR”).

ii) LIBOR for segments of 30 days or more.

iii) Any of the rates mentioned in subparagraphs i) and ii), plus the additional remuneration that may be agreed –point 1.11.2.2.–, or the fixed rate freely agreed, whichever is higher.

For such purposes, each entity may consider the average of the specified daily measurements of the period between 2 and 5 immediate previous banking business days prior to the start date of each computation subperiod, which may not be less than 30 days. This option will remain fixed for the entire term of validity of the deposit.

Once the level is determined, the rate must remain unchanged for a term not less than 30 days.

1.11.2.2. Additional remuneration.

The number of points –positive and negative– that the depository entities freely agree with the depositors, which must remain unchanged during the total agreed term.

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1.11.2.3. Record.

In the body of the document that instruments the deposit, the basic parameter used must be clearly determined (indicating, if applicable, whether it is a general average or corresponds to a specific type of financial entity –private, public banks or non-banking financial entities–, currency –pesos or US dollars– as well as the term of the chosen survey), the days prior to each computation subperiod that have been chosen for the calculation of the average of the rates in each operation, the additional points that will govern it, as well as the duration of the agreed subperiods.

1.11.3. Deposits of Acquisition Value Units “UVA” and Housing Units “UVI”.

According to the rate freely agreed.

1.11.4. Deposits with incentives or remuneration –total or partial– in goods or services.

When the incentives or remuneration in goods or services is partial, an additional incentive or remuneration may be freely agreed, which must remain unchanged during the total agreed term.

1.11.5. Settlement.

It must be made from the date of receipt of the deposit (or from the maturity of the previous agreed payment subperiod) until the day of maturity of the deposit (or of each subperiod).

1.11.5.1. In the case of deposits of securities, interest will be calculated on the nomi-

nal values, paid in the currency agreed upon making the deposit, at the maturity of the operation, converted according to the last closing quotation in pesos (immediate cash) in the securities market where they are listed.

1.11.5.2. In the case of deposits of “UVA” and “UVI”, interest will be calculated on the

peso equivalent of the amount of “UVA” and “UVI” deposited, as applicable, determined in accordance with the provisions of the penultimate paragraph of point 1.9.

1.11.6. Payment.

1.11.6.1. At maturity.

1.11.6.2. Periodic of accrued interest, before the maturity of the depo-

sit to the extent that it is made in arrears, with a frequency not less than 30 days.

1.11.6.3. Incentives or remuneration in advance in goods or servi-

ces –point 1.11.4.– are admitted.

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1.12. Term.

1.12.1. Deposits at fixed interest rate.

1.12.1.1. In pesos or foreign currency.

Minimum: 30 days.

1.12.1.2. Of public and private securities.

The one freely agreed.

1.12.2. Deposits with variable interest clauses.

Minimum: i) For deposits whose basic remuneration is that contemplated in subparagraphs i) and ii) of point 1.11.2.1.: 120 days.

ii) For deposits whose basic remuneration is that contemplated in subparagraph iii) of point 1.11.2.1.: 180 days.

Longer terms must be multiples of the computation subperiod chosen to determine the applicable rate, in accordance with point 1.11.2.1.

1.12.3. Deposits of Purchasing Value Units "UVA" and Housing Units "UVI".

Minimum: 90 days for deposits in "UVA" and 180 days for deposits in "UVI".

1.12.4. Deposits with incentives or remuneration –total or partial– in goods or services.

Minimum: 180 days.

1.13. Cancellation of the transaction.

1.13.1. The documents used to formalize the cancellation of a transaction must have the characteristics of a receipt which, in the case of certificates, may be inserted in the same form. At the request of the interested party, a duplicate of the document shall be delivered.

When the deposits are formalized by crediting to an account or in a non-personal form, the credit in the account indicated by the client shall constitute satisfactory proof.

1.13.2. Non-transferable deposits may not be withdrawn, totally or partially, before their maturity.

1.13.3. "UVA" deposits that are constituted within the framework of a prior savings for obtaining "UVA" loans –point 6.1. of the rules on "Credit Policy"– whose destination is the acquisition, construction or refurbishment of housing, may be cancelled early, on the date of granting of the aforementioned assistance to be applied to that destination or in case the user withdraws from the savings plan.

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1.14. Automatic renewal.

1.14.1. Holders of non-transferable nominative fixed-term deposits may authorize the reinvestment of the principal deposited for successive predetermined periods, equal or not, in accordance with the rules in force at the time of renewal.

1.14.2. The reinvestment may include accrued interest which shall be capitalized. If not included, the interest must be credited, at the end of each period, to the account indicated by the client.

1.14.3. The authorization for automatic renewal must be extended in writing at the time of constitution of the deposit.

When the certificate remains in custody at the entity, the renewal may be ordered by other means (telephone, Internet, electronic, etc.). Entities must have implemented computer security mechanisms that guarantee the genuineness of the operations.

1.14.4. The authorization shall be valid until further notice, in writing or by other agreed means, or until the holder presents it for collection, at the corresponding maturity.

1.14.5. The entity shall adequately keep the records linked to the orders given by the client.

1.14.6. No deposit certificates shall be issued nor new fund entries registered for renewals.

1.15. Transfer.

The transferable nominative certificates issued in accordance with the provisions of Law 20.663 and these rules shall be transferable by endorsement that precisely indicates the beneficiary and the date on which the transfer takes place. Endorsements to bearer or in blank shall not be valid.

1.16. Secondary negotiation.

1.16.1. Financial entities may intermediate or buy the transferable certificates, provided that from the date of issuance or last negotiation or transfer, whatever the reason for their origin, a period –as it appears from the document itself– of not less than 30 days has elapsed, except in the case of operations between entities.

1.16.2. The certificates acquired by the issuing entities themselves shall be acquired against the respective deposit, which must be cancelled.

1.16.3. Financial entities that make use of rediscounts or advances from the BCRA for temporary illiquidity situations may not acquire fixed-term deposit certificates or term investment certificates –in pesos, in foreign currency or securities–, issued by them, even if the minimum period of 30 days from the date of issuance or last negotiation or transfer has elapsed, while those facilities remain in force.

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Effective date:
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1.17. Prohibitions.

1.17.1. No deposits shall be admitted:

1.17.1.1. Constituted in the name of other financial entities included in the Law of Financial Entities.

1.17.1.2. With automatic renewal (except that provided in point 1.14.) with indefinite term or with the obligation to return them before their maturity.

1.17.1.3. With maturities that fall on non-business days. When the maturity date is declared non-business after the date of deposit, it may be renewed with value to said day, or extend its maturity and corresponding interest settlement at the agreed rate, until the first following business day.

1.17.1.4. Of residents or non-residents in the country that, under any modality of arrangement and through associated agreements –formalized or not–, imply that the return of the deposited funds is guaranteed by another financial entity, except in cases specifically admitted by the BCRA.

1.17.2. Participations.

Financial entities may not issue participations –whatever their concept– on one or more deposit certificates.

1.18. Publicity of the rules.

Financial entities shall display, for public knowledge and in places visible to them, the rules in force on fixed-term deposits.

1.19. Deposits in fixed-term deposit certificates from credits in savings accounts repatriation of funds - Personal Assets Law 27.541.

The amounts from credits in those savings accounts may be applied to the constitution of fixed-term deposits, in the foreign currency of that credit and whose holder must be the holder of the aforementioned savings account.

For the purposes of complying with the duty to inform the Federal Administration of Public Revenue (AFIP), financial entities must keep track of the permanence of the deposits –in accordance with the procedure and guidelines established by the aforementioned agency– from the dates and for the amounts originally deposited at the time of the repatriation of funds, without interrupting the calculation of the periods in the cases of constitution of fixed terms with funds credited in "Caja de ahorros repatriación de fondos - Bienes Personales Ley 27.541", renewals of these fixed terms at their maturity or deposits in those accounts originating from the collection of the aforementioned fixed terms.

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Section 2. Term investments.

It may be fixed during the original term of the placement, and the rate at which it will be renewed when the right to extension is exercised must also be agreed upon.

Pre-established margins calculated on financial indicators of broad national or international dissemination may be applied.

2.4.4. Option price.

The fixed sum of money to be disbursed at the time the investment is constituted must be specified in the contract, as an increase or decrease of the capital placed.

Alternatively, it may be expressed as a decrease or increase, as applicable, with respect to the interest rate for the initial period.

2.5. Term with variable remuneration.

2.5.1. Term.

Minimum: 60 days.

They may not be cancelled early.

2.5.2. Holders.

2.5.2.1. All investors.

With yield determined by any of the assets and other indicators provided in point 2.5.6., except for the cereals and oilseeds included in point 2.5.6.4 and the United States dollar –point 2.5.6.6.–.

2.5.2.2. Persons –natural or legal– with agricultural activity.

They may make term investments with variable remuneration with yield determined based on the value of the cereals or oilseeds provided in point 2.5.6.4. and the quotation of the United States dollar –point 2.5.6.6.–, for an amount of up to 2 times the total value of their sales of cereals and/or oilseeds recorded as of 1.11.19.

2.5.3. Remuneration.

2.5.3.1. Variable.

Based on the proportion agreed upon with respect to the positive or negative variations recorded in the price of the assets or indicators included in the list contained in point 2.5.6., and remuneration that takes into account price variations of assets different from those listed therein may not be agreed upon.

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Effective:
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TERM DEPOSITS AND INVESTMENTS B.C.R.A.
Section 2. Term investments.

The maturity of the contracted hedge must occur on the same date as or prior to the maturity of the transaction based on the contractual terms agreed upon, so that only with its proceeds, if any, the entity meets the payment of the variable remuneration of that deposit.

No exchange rate risk hedge shall be required for term investments with variable remuneration based on the United States dollar –point 2.5.6.6.–, which, because they are considered in the global net foreign currency position, have as counterpart the assets and other instruments and transactions for financial intermediation in foreign currency or linked to the evolution of the exchange rate, including electronic credit invoices.

2.5.5. Corrections in contractual clauses.

The need to introduce corrections in the agreed conditions –even if it is alleged that errors have slipped into the original version– will be considered –in the judgment of the BCRA– a deficient technical and administrative development of the operation, both in its instrumental and control aspects, which will be taken into account in the evaluation carried out by the SEFyC in the respective item that integrates the rating system.

2.5.6. Assets and other indicators accepted to determine the yield.

2.5.6.1. National public securities that have normal and habitual quotation for significant amounts in markets of the country.

2.5.6.2. Foreign public securities.

i) "Brady" series issued by Brazil ("C Bond", "Par", "Discount").

ii) Bonds issued by the treasuries of the central governments of Germany, United States of America, France, England and Italy.

2.5.6.3. Stock indices.

i) Merval (Buenos Aires).

ii) Burcap (Buenos Aires).

iii) Dow Jones (New York).

iv) Standard & Poor's (New York).

v) Bovespa (San Pablo).

vi) Ipsa (Santiago de Chile).

vii) FTSE (London).

viii) CAC (Paris).

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TERM DEPOSITS AND INVESTMENTS

CONSOLIDATED TEXT			SOURCE RULE					OBSERVATIONS
Sec.	Point	Parr.	Comm.	Annex	Cap.	Sec.	Point	Para.
	1.6.2.2.	1st	"A" 1913				2nd	S/Com. "A" 4809.
		2nd a	"A" 3323
		4th
	1.7.1.		"A" 1653		I	3.4.2.
			"A" 1913			2.	2nd
	1.7.2.		"A" 3043
	1.8.1.		"A" 1199		I	3.
	1.8.2.		"A" 1820	I		3.2.	2nd	S/Com. "A" 3293, 3527, 3682 (point 10.), 3827 (point 9.) and 4140.
	1.8.3.		"A" 1820	I		3.2.	1st
	1.8.4.		"A" 1465	I		2.		S/Com. "A" 4716 and "B" 9186.
		i)	"A" 2275			2.	1st
		ii)	"A" 2275			2.1.		According to Com. "A" 6327.
		iii)	"A" 2275			2.1.		According to Com. "A" 6327.
	1.9.		"A" 3660					S/Com. "A" 3827 (point 9.), 5945 and 6069.
	1.9.1.		"A" 3660					S/Com. "A" 3827 (point 9.), 5945 and 6069.
	1.9.2.		"A" 6069			1.
	1.9.	last	"A" 5945			1.		S/Com. "A" 6069.
	1.10.		"A" 4874			2.
	1.11.1.		"A" 1465	I		2.1.2.		S/Com. "A" 3660, 5640, 5651, 5654, 5659, 5781, 5786, 5849, 5853, 6980, 7000, 7018 and 7027.
			"A" 1653	I		3.1.1.2.
			"A" 1820	I		3.3.1.2.
						3.4.
	1.11.2.1.		"A" 2188			2.1.	1st	S/Com. "A" 2962 (item 2.1.), 3660, 4543, 4654 and 5257.
	1.11.2.2.		"A" 2188			2.1.	2nd	S/Com. "A" 2962 (item 2.2.), 3660 and 4543.
	1.11.2.3.		"A" 2188			2.3.		S/Com. "A" 2962 (item 2.2.), 3660, 4543 and 4654.
	1.11.3.		"A" 3660					S/Com. "A" 5945 and 6069.
	1.11.4.		"A" 4874			3.
	1.11.5.	1st	"A" 1199	I		5.3.2.		S/Com. "A" 3660.
	1.11.5.1.		"A" 1465	I		2.1.2.	2nd	S/Com. "A" 3660.
	1.11.5.2.		"A" 3660					S/Com. "A" 5945 and 6069.
	1.11.6.		"A" 3043					S/Com. "A" 6575 and 6587. Includes interpretive clarification.
	1.11.6.1.		"A" 1199	I		5.3.2.		S/Com. "A" 3660 and 6575.
	1.11.6.2.		"A" 2482			2.		S/Com. "A" 3660 and 6575.
	1.11.6.3.		"A" 4874			4.
	1.12.1.1.		"A" 1653	I		3.1.1.1.		S/Com. "A" 3485, 3527, 3660, 3682 (item 11.), 3827 (item 9.) and 4032.
			"A" 1820			3.3.
			"A" 2061			1.1.1.
1.	1.12.1.2.		"A" 1465			2.1.1.		S/Com. "A" 3660.
			"A" 1603			5.
			"A" 2275			2.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

TIME DEPOSITS AND INVESTMENTS

CONSOLIDATED TEXT			ORIGINATING RULE						OBSERVATIONS
Sec.	Point	Para.	Com.	Annex Chap. Sec.	Point	Para.
	2.2.2.		"A" 2482			1.A)2.	4th
	2.2.3.		"A" 2482			1.A)5.
	2.3.1.		"A" 2482			1.B)1.	1st		S/Com. "A" 4754 and 6579.
	2.3.2.		"A" 2482			1.B)1.	2nd		S/Com. "A" 4754, 5149, 5945, 6125 and 6494.
	2.3.3.1.		"A" 2482 "A" 2482			1.B)2.	1° 4°
	2.3.3.2.		"A" 2482			1.B)2.	2°		S/Com. "A" 4754.
	2.3.4.		"A" 2482			1.B)5.
	2.3.5.1.		"A" 2482			1.B)7. a)
	2.3.5.2.		"A" 2482			1.B)7. b)
	2.4.1.		"A" 2482			1.C)1.
	2.4.2.1.		"A" 2482 "A" 2482			1.C)2.	1° 4°
	2.4.2.2.		"A" 2482			1.C)2.	2°		S/Com. "A" 4754.
	2.4.3.		"A" 2482			1.C)5.
	2.4.4.		"A" 2482			1.C)7.
	2.5.1.		"A" 2482			1.D)1.			S/Com. "A" 3043, 4234, 4612, 5945, 6874 and "C" 40024.
	2.5.2.		"A" 7018			3.			S/Com "A" 7029.
	2.5.3.1.		"A" 2482			1.D)4.2.			S/Com. "A" 2617 and 4612.
	2.5.3.2.		"A" 2482			1.D)4.1.
	2.5.4.		"A" 2482			1.D)5.			S/Com. "A" 2617, 4234, 4612, 4742, 5671, 5740, 6232, 6846 and 7029.
	2.5.5.		"A" 2617			2.			S/Com. "A" 4612.
	2.5.6.1.		"A" 2617 único			1.			S/Com. “A” 3043, 3185, 4234, 4612, 6091 and 6327.
	2.5.6.2.		“A” 2617 único			2.			S/Com. “A” 4234.
	2.5.6.3.		“A” 2617 único			3.			S/Com. “A” 3090, 3185 and 4234.
	2.5.6.4.		“A” 2617 único			4.
	2.5.6.5.		“A” 2617 único			6.			S/Com. “A” 2961 (Anexo), 4234, 4612 and 5257.
	2.5.6.6.		“A” 4612
	2.5.6.7.		“A” 4612						S/Com. “A” 5945 and 6069.
	2.6.		“A” 6069			2.			S/Com. “A” 6170, 6494 and 6645.
	2.7.		“A” 6069			2.
2.	2.8.		“A” 6871			1.
3.	3.1.		“A” 3043
	3.1.1.		“A” 2885		1.
	3.1.2.		“A” 2885		2.	2.2.
	3.1.3.		“A” 2885		2.	2.3.

TIME DEPOSITS AND INVESTMENTS

CENTRAL BANK
OF THE ARGENTINE REPUBLIC

CONSOLIDATED TEXT ORIGINAL RULE
Sec. Point Para. Com. Annex Chap
.
Sec
.
Point Para
.
OBSERVATIONS
4.1. “A” 4360 1.
4.2. “A” 4360 1.
4.3. “A” 4360 1.
4.4. “A” 4360 1. S/Com. “A” 6305.
4.5. “A” 4360 1. S/Com. “A” 6305.
4.6. “A” 4360 1.
4.7. “A” 4360 1.
4.8. “A” 4360 1.
4.
4.9. “A” 4360 1. S/Com. “A” 4874 and 6462.
5. 5.1. “A” 6022 6.

1.3.16.2. Term investments with variable remuneration made by clients with agricultural activity in accordance with point 2.5.2.2. of the rules on “Deposits and term investments”–: the entire requirement.

1.3.16.3. Other placements.

i. Entities included in Group “A” and branches or subsidiaries of G-SIBs not included in that group:

a) up to 16 percentage points of the rate provided for in subparagraph i) of point 1.3.5.1.;

b) up to 13 percentage points of the rate provided for in subparagraph ii) of point 1.3.5.1.;

c) up to 3 percentage points of the rates provided for in subparagraphs i) to iii) of point 1.3.10. and in point 1.3.11.; and

d) up to 2 percentage points of the rate provided for in subparagraph iii) of point 1.3.5.1.

ii. Entities not included in the preceding subparagraph:

a) up to 3 percentage points of the rates provided for in subparagraphs i) and ii) of point 1.3.5.1., in subparagraphs i) to iii) of point 1.3.10. and in point 1.3.11.; and

b) up to 2 percentage points of the rate provided for in subparagraph iii) of point 1.3.5.1.

To be admitted, integration with “Bonos del Tesoro Nacional en pesos a tasa fija vencimiento noviembre de 2020”, “Bonos del Tesoro Nacional en pesos a tasa fija vencimiento mayo de 2022”, LELIQ and/or NOBAC as provided in points 1.3.7.1., 1.3.15. and 1.3.16., must be valued at market prices and deposited in Subaccount 60 cash minimum enabled in the Central de registro y liquidación de instrumentos de deuda pública, regulación monetaria y fideicomisos financieros (CRyL).

1.4. Residual term.

1.4.1. Determination.

1.4.1.1. General case.

The residual term of each term obligation is equivalent to the number of days remaining until its maturity.

1.4.1.2. Term investments.

In the cases of term investments, the following criteria shall apply:

Version: 23rd. COMUNICACIÓN “A” 7047
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i) Constant term. The remaining term until maturity shall be considered, taking into account the automatic extension or, where applicable, the term arising from the exercise of the option to revoke it.

ii) With early cancellation option. The remaining term until the date on which the investor may exercise the early cancellation option shall be taken into account, to the extent that the investor holds the right, except for deposits with early cancellation option in Unidades de Valor Adquisitivo updateable by “CER” - Ley 25.827 (“UVA”), or the originally agreed term, in the event that the entity holds that right.

iii) With renewal option for a determined term. The remaining term until maturity shall be considered, taking into account for this purpose the term that would result from the eventual exercise of the extension option by the entity, to the extent that the entity holds the right. When the investor holds that right, the originally agreed term shall be taken into account or, where applicable, the term resulting from the renewal when the option has been exercised.

1.4.1.3. Refinanceable term obligations.

When the financial entity enters into agreements or option contracts that ensure the total or partial refinancing of term obligations, for the purpose of establishing the residual term until maturity of the obligations, the term arising from making use of those facilities shall be considered, for the portion of the liability covered by the agreement.

This criterion is applicable in the event that the agreement is carried out with a foreign bank that complies with the provisions of point 3.1. of the rules on “Credit assessments” –requiring for that purpose at least an international risk rating of “investment grade”–, to the extent that it is not the parent company or the controlling or controlled company or branches of the local entity.

1.4.1.4. Obligations from foreign financial lines (not linked to the financing of foreign trade operations).

i) With early cancellation clauses. For the determination of the residual term, the remaining term until the date on which the foreign entity may require early cancellation is contractually provided for shall be taken into account, or the originally agreed term, when it is subject to a decision of the local entity.

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This criterion is applicable in the event that the agreement is carried out with a foreign bank that complies with the provisions of point 3.1. of the rules on “Credit assessments” –requiring for that purpose at least an international risk rating of “investment grade”–, to the extent that it is not the parent company or the controlling or controlled company or branches of the local entity.

ii) Without early cancellation clauses. The term remaining until maturity shall be taken into account to the extent that early cancellation by any of the parties is explicitly excluded. Otherwise, they shall be treated as demand obligations.

1.4.2. Fixed-term deposits.

In the case of fixed-term deposits in pesos, the established rates –according to the fixed term breakdown– shall be applied to the daily balances of the aforementioned obligations determined in accordance with point 1.2.

In the case of fixed-term deposits in foreign currency, the established rates –according to the fixed term breakdown– shall be applied to the amounts resulting from multiplying the total daily balance of those obligations –recorded in the corresponding month– by the percentages resulting from the residual term structure of the previous month, considering the number of days remaining in that period until the maturity of each obligation, counted from each of the days of that period.

1.4.3. Remaining term operations.

In these cases –including term investments and liabilities with banks and foreign correspondents that are computable–, the residual terms shall be equivalent to the number of days remaining until the maturity of each obligation, counted from each of the days of the period prior to the one corresponding to the integration of the minimum cash, when dealing with peso deposits, or of the same period in the case of foreign currency transactions or securities.

The requirement shall arise from applying the established rates on the daily balances of the aforementioned obligations based on the different residual term brackets established.

In the particular case of obligations payable in capital installments, the amounts of amortization services maturing within the year, counted from each of the days of the period prior to the one corresponding to the minimum cash in pesos or of the same period in the case of foreign currency obligations, shall be considered independently for the purposes of applying to them the rate that is applicable based on the number of days remaining until their maturity.

For fixed-term deposits and for the remaining term transactions, both in pesos, in September and February the residual terms of August and January shall be considered, respectively.

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1.5. Reduction of the requirement on average in pesos.

1.5.1. Based on certain financings.

The requirement shall be reduced in accordance with the participation in the total financings to the non-financial private sector in pesos in the entity of the financings to micro, small and medium-sized enterprises (MiPyMEs) in the same currency –in accordance with the definition contained in the rules on “Determination of the condition of micro, small or medium-sized enterprise”– considering that classification at the time of granting, according to the following table:

Participation of financings to MiPyMEs with respect to the total financings to the non-financial private sector, in the entity. In %	Deduction (on the total of the concepts included in pesos). In %
Less than 4	0.00
Between 4 and less than 6	0.75
Between 6 and less than 8	1.00
Between 8 and less than 10	1.25
Between 10 and less than 12	1.50
Between 12 and less than 14	1.75
Between 14 and less than 16	2.00
Between 16 and less than 18	2.20
Between 18 and less than 20	2.40
Between 20 and less than 22	2.60
Between 22 and less than 24	2.80
Between 24 and less than 26	3.00
Between 26 and less than 28	3.20
Between 28 and less than 30	3.40
30 or more	3.60

For the purposes of computing the financings to MiPyMEs, to determine the participation percentage, it shall be taken into account whether they meet that condition at the time of granting the assistance, considering all outstanding financings. If the borrower ceases to meet the condition of MiPyMEs, the financings granted up to that moment shall be computed.

The moving average balance at the end of the last 12 months prior to the reporting of the financings in pesos (Loans and Credits for Financial Leases) granted to MiPyMEs with respect to the total of those financings to the non-financial private sector of the entity shall be considered.

1.5.2. Based on the granting of financings within the framework of the “AHORA 12” Program.

For those financial entities that are adhered to that program, the requirement shall be reduced by an amount equivalent to 35 % of the sum of the financings in pesos that the entity grants:

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1.5.2.1. As provided by the “AHORA 12” Program referred to in Joint Resolution No. 671/14 and 267/14 of the former Ministry of Economy and Public Finance and the former Ministry of Industry, respectively, whose purpose is the acquisition of goods and services included in the aforementioned resolution and its complementary rules.

For this purpose, the balance of the financings covered from the period prior to the computation of the requirement that meet the indicated requirements shall be considered.

1.5.2.2. To non-financial companies issuing credit cards at an interest rate of up to 17 % nominal annual, to the extent that those companies have adhered to the “AHORA 12” Program.

For this purpose, the financings of the period prior to the computation of the requirement shall be considered, measured in monthly average of daily balances.

The financial entity must require and have documentation that proves that the borrowing company has allocated the funds to grant financings under the conditions of the aforementioned Program.

This deduction may not exceed 6 % of the concepts in pesos subject to requirement, on average, of the month prior to the computation.

1.5.3. Based on cash withdrawals made through the entity's automated teller machines.

The requirement shall be reduced by the amount resulting from the following expression, without being able to exceed the amount of the requirement previously determined, considering the provisions of the preceding point:

where:

Msi : monthly average of the total daily cash withdrawals from ATMs, corresponding to the previous month, located in the entity's operating premises, according to the jurisdiction in which it is located, in accordance with the provisions of the rules on “Categorization of localities for financial entities”.

Mni : monthly average of the total daily cash withdrawals from ATMs, corresponding to the previous month, outside its operating premises (neutral) and according to the jurisdiction in which they are located, in accordance with the aforementioned categories.

Psi : weighting applicable to the amount Msi .

Pni : weighting applicable to the amount Mni .

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Weightings applicable based on the categories in which the ATMs are located
i	Psi	Pni
1 (categories I and II)	0,95	1,65
2 (categories III and IV)	4,25	7,05
3 (categories V and VI)	7,50	14,80

For these purposes, those ATMs that – at a minimum – allow users to make cash withdrawals regardless of the entity of which they are clients and of the network administering those machines and that – on a monthly average, counting business and non-business days – have remained accessible to the public for at least ten hours per day shall be counted.

1.5.4. Special for entities included in Group “A”, in accordance with the provisions of Section 4. of the rules on “Authorities of financial entities” and the branches or subsidiaries of foreign banks qualified as systemically important (G-SIB) not included in that group.

The requirement shall be reduced by an amount equivalent to 30 % of the sum of peso financing to MSMEs – in accordance with the definition contained in the rules on “Determination of the status of micro, small or medium-sized enterprise” – granted at a maximum interest rate of:

• 40 % fixed nominal annual until 16.2.2020 inclusive (those that may continue to be counted until their cancellation).

− 35 % fixed nominal annual from 17.2.2020.

Financing granted to financial entities not included in the first paragraph may be included in that sum, provided that: i) within 10 business days from the date on which those entities receive the assistance they allocate the funds to granting financing to MSMEs under the conditions of this point and ii) they have a special report from an external auditor – registered in the “Registry of auditors” of the SEFyC – of the non-covered financial entity on its compliance.

The special report: i) must state the dates, amounts and borrower data of each application, in accordance with the model that will be made known for that purpose and ii) must not contain limitations on the scope of the tasks, nor an opinion with qualifications or an abstention of opinion.

The intervention of the external auditor in all aspects required in this operation falls within the provisions established in the Minimum Standards on External Audits.

The entity may likewise comply with the preceding requirement by submitting a special report from its Internal Audit whose procedures, scope and conclusions conform to the aforementioned conditions and model.

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The monthly average balance of the covered financing of the period prior to that of the computation of the requirement that meet the indicated conditions shall be considered.

This deduction may not exceed 2 % of the peso items subject to requirement, on average, of the month prior to that of computation.

1.5.5. Special within the framework of the health emergency provided by Decree 260/2020.

The requirement shall be reduced by an amount equivalent to 40 % of the sum of peso financing granted at a nominal annual interest rate of up to 24 % for the following purposes:

− MSMEs – in accordance with the definition contained in the rules on “Determination of the status of micro, small or medium-sized enterprise” –, with at least 50 % of the amount of that financing having to be allocated to working capital lines, such as salary payments and coverage of deferred checks;

− human health service providers, authorized by the competent body of the corresponding jurisdiction, not included above, to the extent that they provide inpatient services within the framework of the Health Emergency provided by Decree 260/2020 and it is allocated to the purchase of medical supplies and equipment.

The monthly average balance of the covered financing of the period prior to that of the computation of the requirement that meet the indicated conditions shall be considered.

Financing granted to other financial entities and to non-financial credit providers – registered in the corresponding registries authorized by the SEFyC – may be included in that sum, provided that: i) within 3 business days from the date on which those entities receive the assistance they allocate the funds to granting financing to MSMEs under the conditions of this point and ii) they have a special report from an external auditor – registered in the “Registry of auditors” of the SEFyC – that conforms to the provisions of point 1.5.4. of the rules on “Minimum cash”.

This deduction may not exceed 4 % of the peso items subject to requirement on average, of the month prior to that of computation.

1.5.6. Special within the framework of Decree No. 332/2020 (and amendments).

The requirement shall be reduced by an amount equivalent to 60 % of the sum of the “Zero Rate Credits” granted within the framework of article 9 of Decree No. 332/2020 (and amendments).

Its monthly average balance in the period prior to that of the computation of the requirement shall be considered.

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1.5.7. Financing to MSMEs not reported in the “Central de deudores del sistema financiero”.

The requirement will be reduced by an amount equivalent to 40% of the peso financings to MSMEs –in accordance with the definition contained in the rules on “Determination of the status of micro, small or medium-sized enterprise”– that are agreed at a nominal annual interest rate of up to 24%, measured on a monthly average of daily balances of the previous month, provided that said MSMEs are not reported in the “Central de deudores del sistema financiero” administered by the BCRA.

Financings granted to other financial institutions and to non-financial credit providers –registered in the corresponding registries authorized by the SEFyC– may be included in that sum, provided that: i) within 3 business days from the date on which they receive the assistance, those institutions allocate the funds to granting financings to MSMEs under the conditions of this point and ii) they have a special report from an external auditor –registered in the “Registro de auditores” of the SEFyC–, which complies with the provisions of point 1.5.4.

Financings counted for the deduction of points 1.5.1. and 1.5.4. to 1.5.7. may only be counted in one of the aforementioned points.

1.6. Specific increases in the requirement due to liability concentration.

When an excessive concentration of liabilities (in holders and/or terms) is verified, which implies a significant risk with respect to the individual liquidity of the financial institution and/or has a significant negative effect on systemic liquidity, additional minimum cash requirements may be set on the included liabilities of the financial institution and/or those complementary measures deemed pertinent.

This situation shall be considered to arise when, among others, any of the following factors is present:

− A high percentage of liabilities is concentrated in a single holder or holders.

− In term obligations, the term is short.

− The aforementioned liabilities represent a significant percentage with respect to the integration of the minimum cash requirement and/or the total private-sector deposits in the institution.

1.7. Transfers.

1.7.1. Allowed margin.

The integration of the minimum cash requirement of the average position for the period may not be less than 80% of the requirement resulting from the following expression:

EEMA (n) = EEF (n) + ENI (n-1)

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Where

EEMA (n): adjusted minimum cash requirement corresponding to period “n”.

EEF (n): minimum cash requirement according to current rules corresponding to period “n”.

ENI (n-1): requirement not integrated in period “n-1”.

Period: month or two-month period, as applicable.

1.7.2. Period of use.

The allowed transfer of the requirement not integrated in each period to the following position may be made up to a maximum of six periods, counted from the first –inclusive– in which its use is opted for in accordance with the provisions above or from the first position immediately following that in which the transferred defects are offset or a charge is paid on them.

For its calculation, the numerals transferred from the period to which they correspond shall be counted, divided by the number of days of the period to which the transfer is made.

1.7.3. Optional treatment for two-month periods.

It may be opted to integrate in the months of July and December of each year the transfers of the requirement not integrated in pesos from the previous month, maintaining the computation method in force for the requirement of each two-month period.

For this purpose, those responsible for managing the institution's liquidity policy must inform the SEFyC that they have exercised that option.

1.8. Defect in the application of resources in foreign currency.

The defect in the application of resources corresponding to foreign currency deposits, net of cash balances in the institutions, in custody in other financial institutions, in transit and in Transportadoras de Valores (TV), determined in a month, shall be counted by an equivalent amount in the calculation of the minimum cash requirement of that same period of the respective currency.

Those originating from exchange operations ordered by the National Executive Power are excluded, and consequently may not be offset with purchases of foreign currency.

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1.9. Increase in the requirement for non-compliance with the rules on “Línea de créditos para la inversión productiva”.

The defect in the application of Cupo 2013 verified –as of 1.7.13 or 1.1.14, as applicable, in the case of the first tranche and 1.1.14 or 1.7.14, as applicable, in the case of the second tranche– shall be counted by an equivalent amount in the calculation of the minimum cash requirement on average in pesos, from those dates and for 24 months.

The defect in the application of Cupo 2014 verified –as of 1.7.14 or 1.1.15, as applicable, in the case of the first tranche and as of 1.1.15 or 1.7.15, as applicable, in the case of the second tranche– shall be counted by an equivalent amount in the calculation of the minimum cash requirement on average in pesos, from those dates and for 24 months.

Non-compliance with the provisions of the second paragraph of point 3.5.3.2. of the rules on “Línea de créditos para la inversión productiva” (register as of 30.9.14 agreements for at least 50% of the total amount of the second tranche of Cupo 2014 and at least 50% to MSMEs) shall generate an increase in the minimum cash requirement on average in pesos by an equivalent amount from the day following its verification (1.10.14) for 3 months.

Failure to comply with the provisions of the third paragraph of point 3.5.4.1. of the rules on “Line of credit for productive investment” (register as of 31.3.15 agreements for at least 30 % of the total amount of the first tranche of the 2015 Quota) will generate an increase in the minimum cash requirement on average in pesos for an amount equivalent as from the day following its verification (1.4.15) for 3 months.

Failure to comply with the provisions of the third paragraph of point 3.5.4.2. of the rules on “Line of credit for productive investment” (register as of 30.9.15 agreements for at least 30 % of the total amount of the second tranche of the 2015 Quota) will generate an increase in the minimum cash requirement on average in pesos for an amount equivalent as from the day following its verification (1.10.15) for 3 months.

The shortfall in application of the second tranche of the 2015 Quota verified –as of 1.4.16 or 1.7.16, as the case may be–, will be computed for an equivalent amount in the calculation of the minimum cash requirement on average in pesos, as from said dates and for 24 months.

This, without prejudice to the provisions of point 8.3. of the rules on “Line of credit for productive investment”.

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MINIMUM CASH

CENTRAL BANK OF THE ARGENTINE REPUBLIC

	CONSOLIDATED TEXT			SOURCE RULE				OBSERVATIONS
Sec.	Point	Para.	Com.	Annex	Sec.	Point	Para.
1.	1.3.8.		“A” 4360			2.		According to Com. “A” 5356 and 6616.
	1.3.9.		“A” 4754			6.		According to Com. “A” 5356, 5980, 6195, 6526, 6532, 6616 and 6728.
	1.3.10.		“A” 5945			4.		According to Com. “A” 6069, 6204 and 6616.
	1.3.11.		“A” 6341					According to Com. “A” 6616.
	1.3.12.		“A” 6069			4.		According to Com. “A” 6616.
	1.3.13.		“A” 6992
	1.3.14.		“A” 5356			1.		According to Com. “A” 6616 and 6706.
	1.3.15.		“A” 6526					According to Com. “A” 6532, 6550, 6587, 6616, 6706 and 7016.
	1.3.16.		“A” 6550					According to Com. “A” 6556, 6559, 6575, 6587, 6616, 6706, 6738, 6740, 6817, 7018, 7029 and 7047.
	1.3.	Last	“A” 6526					According to Com. “A” 6532, 6556, 6569, 6575, 6587, 6616, 6628, 6740 and 7016.
	1.4.		“A” 3905			3.		According to Com. "A" 4179, 4449, 4473, 5671, 5740, 6232, 6349, 6719 and 6871.
	1.5.		"A" 5356			2.		According to Com. "A" 5471.
	1.5.1.		"A" 5356			2.		According to Com. "A" 5471, 5623, 6531, 6703 and 6705.
	1.5.2.		"A" 5631			1.		According to Com. "A" 5638, 6217, 6531, 6857, 6910 and 6937.
	1.5.3.		"A" 6740			1.
	1.5.4.		"A" 6858			1.		According to Com. "A" 6901 and 6907.
	1.5.5.		"A" 6937			2.		According to Com. "A" 6943.
	1.5.6.		"A" 6993			2.
	1.5.7.		"A" 7006			2.
	1.5.	last	"A" 6858			2.		According to Com. "A" 6965, 6993 and 7006.
	1.6.		"A" 3274	II	1.	1.5.		According to Com. "A" 3498.
	1.7.		"A" 3274	II	1.	1.6.
	1.7.1.		"A" 3274	II	1.	1.6.1.		According to Com. "A" 4405, 4449, 6349 and 6719.
	1.7.2.		"A" 3274	II	1.	1.6.2.		According to Com. "A" 3304, 4449, 6349 and 6719.
	1.7.3.		"A" 6728			2.
	1.8.		“A” 3498	único	1.	1.8.		According to Com. “A” 4147, 6537 and 7003.
	1.9.		“A” 5380					According to Com. “A” 5449, 5516, 5600, 5654 and 5771. Includes interpretive clarification.
2.	2.1.		“A” 3274	II	2.	2.1.		According to Com. “A” 3498, 3597, 4716, 4815, 6288, 6763 and “B” 9186.

GLOBAL NET FOREIGN CURRENCY POSITION B.C.R.A.
Section 1. Determination.

1.1. Included concepts.

In the global foreign currency position (PGNME), all assets, liabilities, commitments and other instruments and transactions for financial intermediation in foreign currency or linked to the evolution of the exchange rate shall be considered, including spot transactions, forward transactions and other derivative contracts, foreign currency deposits in accounts opened at the Central Bank of the Argentine Republic (BCRA), the gold position, the BCRA's monetary regulation instruments in foreign currency, subordinated debt in foreign currency and debt instruments in foreign currency.

Forward transactions entered into within a framework agreement in markets authorized by the National Securities Commission (CNV) with the modality of settlement by difference, without delivery of the underlying asset traded, shall also be computed.

Likewise, participation certificates or debt securities issued by financial trusts and credit rights with respect to ordinary trusts shall be considered, in the corresponding proportion, when their underlying asset consists of foreign currency assets.

The amount of the net position of transactions with raw materials or basic products –“commodities”– provided for in points 3.6. and 6.1.3. of the rules on “Spot transactions to be settled and forward, repos, collateralized loans, other derivatives and with mutual investment funds” shall be computed within the PGNME. For this purpose, all positions with opposite sign shall be netted regardless of whether they are different products, maturities or whether there is no legal possibility of contractual compensation between them.

The value of the position in currencies other than the United States dollar shall be expressed in that currency, applying the respective pass-through rate published by the BCRA.

The decrease in foreign currency assets due to early cancellations of local financing to clients of the private sector, as from 5.9.19, may only be offset in the PGNME up to the original maturity date with the net increase in holdings of National Treasury securities in foreign currency.

At the original maturity of the local financing in foreign currency, it may be offset with the purchase of any foreign currency asset computable in the PGNME.

1.2. Exclusions.

1.2.1. Deductible assets to determine the computable equity responsibility (RPC).

1.2.2. The included concepts recorded by the financial entity in its branches abroad.

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GLOBAL NET FOREIGN CURRENCY POSITION B.C.R.A.
Section 4. Transitional provisions.

4.1. Admit as from 18.6.18 that the positive PGNME may reach up to 30 % of the RPC, as long as the total excess over the general limit originates solely as a consequence of:

a) increase in the position in National Treasury bills in United States dollars with respect to those held as of 15.6.18; and/or

b) position in National Treasury bills in United States dollars as of 15.6.18 held as excess admitted to the limit in force at that date; and/or

c) increase in the position in Treasury bills linked to the United States dollar with respect to those held as of 13.5.19.

4.2. Exclude for the determination of the PGNME the peso loan contracts with variable remuneration based on the variation of the United States dollar exchange rate (Section 8. of the rules on “Credit policy”), agreed up to 27.5.2020, that are not covered with term investments with variable remuneration based on the United States dollar (point 2.5.6.6. of the rules on “Deposits and term investments”).

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B.C.R.A.
ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “GLOBAL NET FOREIGN CURRENCY POSITION”

TEXT AS AMENDED			SOURCE RULE				OBSERVATIONS
Sect.	Point	Para.	Com.	Annex	Sec.	Point	Para.
1.	1.1.		“A” 3889			1.		According to Com. “A” 4135, 4140, 4150, 4577, 6396, 6663 and 6776.
	1.2.		“A” 4350			2.		According to Com. “A” 5834, 5847, 5851 and 7029.
	1.2.1.		“A” 4350			2.
	1.2.2.		“A” 5847			1.		According to Com. “A” 5851.
2.	2.1.		“A” 3889			1.		According to Com. “A” 4577, 4598, 5834, 5851, 6128, 6233 and 6507.
	2.2.		“A” 3889			1.		According to Com. “A” 4350, 4598, 5536, 5611, 5627, 5834, 5851, 5891, 5917, 5935, 5997, 6128, 6233, 6501, 6507, 6526, 6735, 6754, 6759, 6763, 6770, 6774, 6775, 7003 and 7022.
3.	3.1.		“A” 3889			1.		According to Com. “A” 4350, 5356, 5550, 6091, 6638, 6754 and 6759.
	3.2.		“A” 5550			2.
4.	4.1.		“A” 6526			7.		According to Com. “A” 6699 and 6735.
	4.2.		“A” 6846			4.		According to Com. “A” 7029 and 7036.

CASH TRANSACTIONS TO BE SETTLED AND FORWARD, REPOS, GUARANTEES, B.C.R.A. OTHER DERIVATIVES AND WITH MUTUAL INVESTMENT FUNDS
Section 8. Daily net position in LELIQ.

8.1. Daily net position.

The daily net position that financial institutions record in BCRA Liquidity Bills (LELIQ) may not exceed the greater of:

8.1.1. Its computable equity responsibility (RPC) for the previous month.

8.1.2. 100 % of the monthly average of daily balances of total peso deposits –excluding those of the financial sector– and the residual value of its peso-denominated negotiable obligations –issued up to 8.2.19–, during the current month.

LELIQ included in passive repo transactions carried out by financial institutions with the BCRA are not counted within the aforementioned limit.

8.2. Special provisions.

8.2.1. From 17.4.2020 and until 30.4.2020, the net LELIQ position (without counting those admitted for the integration of the peso minimum cash requirement, provided in point 1.3.16. of the rules on “Minimum cash”) may not exceed 90 % of the excess holding recorded as of 19.3.2020.

From 11.5.2020, financial institutions must reduce their net LELIQ position by an additional 1 % of the excess holding recorded as of 19.3.2020.

In order to adapt, they must decrease their net position as they collect the LELIQ.

8.2.2. From 1.5.2020, the net LELIQ position (without counting those admitted for the integration of the peso minimum cash requirement, provided in point 1.3.16. of the rules on “Minimum cash”), may not exceed –on a monthly average of daily balances– that arising from the following table, according to the financings computed for the previous period:

Financings as a percentage of potential credit to MSMEs	Excess net position admitted (as a percentage of the excess holding recorded as of 19.3.2020)
100 %	90 %
< of 100 % up to 75 %	85 %
< 75 % to 50 %	80 %
< 50% to 25 %	75 %
< 25 %	70 %

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SPOT TRANSACTIONS TO BE SETTLED AND FORWARD, REPOS, GUARANTEES, B.C.R.A. OTHER DERIVATIVES AND WITH MUTUAL INVESTMENT FUNDS
Section 8. Daily net position in LELIQ.

where “potential credit to MiPyME” is defined for this scheme as the sum of:

− 10 % of the holdings of LELIQ that exceed those admitted for the integration of the minimum cash requirement in pesos, provided in point 1.3.16. of the rules on “Minimum cash”, recorded as of 19.3.2020; and

− the amount of the reduction of the average minimum cash requirement in pesos provided in point 1.5.5. of the rules on “Minimum cash” or 4 % of the items subject to requirement, whichever is lower.

The amount of financing to be considered shall be the increase recorded between the average monthly balance of the previous period and the balance as of 19.3.2020 of the financing provided in the first paragraph of point 1.5.5. of the rules on “Minimum cash”. When they have been allocated to MiPyME for the payment of salaries – under the terms provided in that point and the financial institution is a payment agent for those salaries – they shall be computed at 130 % for the purposes of this point, for which the MiPyME must submit a sworn statement on the destination of the funds.

8.2.3. As of 1.6.2020, the admitted excess net position established in point 8.2.2. shall be increased, for financial institutions that from that date receive deposits at the minimum passive rate established in point 1.11.1.1. of the rules on “Deposits and time investments” – nominal annual rate equivalent to 79 % of the simple average of the rates of the LELIQ auctions –, by the amount equivalent to 18 % of the deposits and time investments in pesos constituted by the non-financial private sector and by the National, provincial, Autonomous City of Buenos Aires and/or municipal governments – in the case of official placements, only those that have paid a rate not lower than the minimum passive rate of the aforementioned point 1.11.1.1. –, measured as the monthly average of daily balances of the previous month.

8.2.4. As of 1.7.2020, the admitted excess net position shall be reduced according to the following scheme:

Percentage reached	Reduction to the admitted excess net position (point 8.2.2.)
100 %	1 %
< 100 % to 75 %	1,5 %
< 75 % to 50 %	2 %
< 50% to 25 %	2,5 %
< 25 %	3 %

where “Percentage reached” is defined as the amount of financing to be considered as a percentage of the sum of the reduction in the LELIQ position established in the second paragraph of point 8.2.1. and the reduction of the average requirement in pesos provided in point 1.5.7. of the rules on “Minimum cash”.

Version: 4th COMMUNICATION “A” 7047
Effective:
01/06/2020
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SPOT TRANSACTIONS TO BE SETTLED AND FORWARD, REPOS, GUARANTEES, B.C.R.A. OTHER DERIVATIVES AND WITH MUTUAL INVESTMENT FUNDS
Section 8. Daily net position in LELIQ.

The amount of financing to be considered shall be the monthly average of daily balances of the financing included of the previous period. For the month of July 2020, the average of daily balances recorded between 11.5.2020 and 30.6.2020 shall be used.

8.3. Non-compliances.

The excesses recorded over the limits provided in this section shall be subject to a charge, which shall be computed in accordance with the provisions of point 3.1. of the rules on “Minimum cash”, without prejudice to the application of article 41 of the Law on Financial Institutions.

Version: 1st COMMUNICATION “A” 7047
Effective:
19/6/2020
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“SPOT TRANSACTIONS TO BE SETTLED AND FORWARD, REPOS, GUARANTEES, OTHER DERIVATIVES AND WITH MUTUAL INVESTMENT FUNDS”

CONSOLIDATED TEXT			ORIGINAL RULE						OBSERVATIONS
Sect.	Point	Para.	Comm.	Annex	Chap.	Sect.	Point	Para.
7.	7.2.2.2.		"A" 2996	sole		2.	2nd		According to Com. "A" 6472. Includes interpretive clarification.
	7.2.3.	1st	"B" 6566			1.			According to Com. "A" 2996 (Annex, point 3.).
		2nd	"B" 6609
	7.3.1.		"A" 3027
	7.3.1.1.		"A" 2996	sole		4.1.	1st
	7.3.1.2.		"A" 2996	sole		4.1.	2nd		According to Com. "A" 3027.
	7.3.2.		"A" 2996	sole		4.2.			According to Com. "A" 3027.
	7.3.2.1.	1st	"A" 2953			1.	3rd		According to Com. "A" 2996 (point 4.2., para. 1st).
		2nd	"A" 2996	sole		4.2.	3rd
	7.3.2.2.		"A" 2953			1.	4th		According to Com. "A" 2996 (point 4.2., para. 2nd).
	7.4.1.		"A" 3323						According to Com. "A" 5728.
	7.4.2.		"A" 3323						According to Com. "A" 4875 and 6472.
8.	8.1.		"A" 6647			1.			According to Com. “A” 6661. Includes interpretive clarification.
	8.2.1.		“A” 6937			1.			According to Com. “A” 6979, 6993, 7006 and 7022. Includes interpretive clarification.
	8.2.2.		“A” 6937			3.			According to Com. “A” 6946, 6979, 6993, 6998, 7022 and 7047. Includes interpretive clarification.
	8.2.3.		“A” 7027			3.			According to Com. “A” 7034.
	8.2.4.		“A” 7006			4.			According to Com. “A” 7022.
	8.3.		“A” 6647			3.
9.	9.1.		“A” 6998			1.

B.C.R.A.
ORDERED TEXT OF THE RULES ON
“CREDIT POLICY”

-Index-

Section 1. General credit policy.

1.1. General criterion.

1.2. Included financings.

1.3. Credit management.

1.4. Financings in foreign currency.

1.5. Prohibition.

1.6. Treatment of certain financings.

Section 2. Application of the lending capacity of deposits in foreign currency.

2.1. Destinations.

2.2. Conditions.

2.3. Allocation of incorporated financings.

2.4. Financings to debtors classified in the “irrecoverable” category that are not recorded in assets.

2.5. Lending capacity.

2.6. Application defects.

Section 3. Application of liquid own resources.

3.1. Liquid own resources.

3.2. Application.

Section 4. Financing to the country's non-financial public sector.

4.1. Applicable rules.

Section 5. Financing to residents abroad.

5.1. General criterion.

5.2. Placements in foreign banks.

5.3. Holding of foreign securities.

5.4. Guarantees for credit lines and derivative products abroad.

5.5. Guarantees to residents abroad.

Section 6. Loans of Purchasing Value Units and Housing Units.

6.1. Loans of Purchasing Value Units adjustable by “CER” - Law 25.827 (“UVA”).

6.2. Loans of Housing Units adjustable by the “ICC” - Law 27.271 (“UVI”).

6.3. Publication of the Purchasing Value Units and the Housing Units.

6.4. Special treatment for “UVA” assistance.

Version: 18th. COMMUNICATION “A” 7047
Validity:
19/6/2020
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