Foreign Currency Resource Collection and Application Regime - LISOL 1-44, OPRAC 1-316, OPASI 2-72, REMON 1-629

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 1820 27/03/91
TO FINANCIAL ENTITIES:
Ref.: CIRCULARS LIQUIDITY AND SOLVENCY LISOL - 1 - 44, OPERATIONS ACTIVE - OPRAC - 1 - 316, OPERATIONS PASSIVE - OPASI - 2 - 72 AND MONETARY REGULATIONS - REMON

• 1 - 629. Regime for the collection and application of
  resources in foreign currency.
  We address you to inform you that this Institution has adopted the following resolutions:

1. Replace, effective from 1.4.91, the regime for the collection and application of resources in foreign currency established by Communication "A" 1493 and complementary ones, with that contained in Annexes I and II, which form an integral part of this resolution.
2. Repeal, with effect from 1.3.91, Resolution No. 126/91 of the Board of Directors made known by Communication "A" 1811.
   We clarify that the interbank loans mentioned in point 1.2. of Annex II refers to operations conducted between entities included in Law 21.526, based on the terms of article 27 which cover transactions in australs, public bonds or foreign currency. On the other hand, we point out that there are no quantitative limitations to apply the lending capacity of those deposits to prefinance the placement of negotiable bonds (point 1.1. of Annex II), while those acquired through secondary negotiation are subject to the restriction referred to in point 1.4 of the said annex. Finally, we remind you of the validity of Communication "B" 3947 related to banks designated as agents to receive the deposits corresponding to the integration of reserve requirements. We salute you very respectfully. BANCO CENTRAL DE LA REPÚBLICA ARGENTINA Alfredo A. Besio Eduardo G. Castro Technical Manager of Deputy General Manager Financial Entities

B.C.R.A. FOREIGN CURRENCY DEPOSITS Annex I to
Comm. “A” 1820

1. Demand deposits.
   1.1. Participating entities.
   Banks authorized to operate in foreign currency in Categories "B" and "C".
   1.2. Currency.
   United States Dollars. At the request of the entities, the Central Bank may authorize the collection of demand deposits in other currencies.
   1.3. Interest.
   1.3.1. Rate.
   The one freely agreed with its clients.
   1.3.2. Settlement.
   Interest will be settled and capitalized for expired periods not exceeding one year.
   Upon total withdrawal of deposited funds, upon account closure, interest will be settled up to the day prior to the withdrawal.
   1.4. Withdrawals.
   Requests for return, for partial or total amounts, of deposited funds must be satisfied at the time they are made, without requiring prior notice and in the same currency class in which they were constituted. The documents used for fund withdrawals must meet the characteristics of a receipt. Entities may also process instructions received in writing from account holders that signify a withdrawal of funds.
   1.5. Guarantee.
   These deposits are excluded from the guarantee established in article 56 of Law 21.526, text according to Law 22.051, an aspect that must be expressly stated in documents relating to the clientele.
   1.6. Minimum cash.
   1.6.1. Requirement. 30%
   1.6.2. Integration.
   It will be carried out in the corresponding collection currency, in the "Minimum cash" account opened at the Banco de la Nación Argentina (New York branch) or other banks abroad as indicated at the time. The calculation will be carried out according to the credit balances recorded in the said account. In aspects not provided for, the rules contained in Chapter II of Circular REMON - 1 will apply.
2. Savings accounts.
   2.1. Participating entities.
   Banks authorized to operate in foreign currency in categories "B" and "C".
   2.2. Holders.
   2.2.1. Natural persons.
   2.2.2. Legal persons of the private sector:
   2.2.2.1. Religious entities.
   2.2.2.2. Associations, foundations and unofficial entities, provided that their purpose is social assistance, public health, charity, beneficence, education and instruction, scientific, literary, artistic, union and physical culture or intellectual activities.
   2.3. Currency.
   United States Dollars. At the request of the entities, the Central Bank may authorize the collection of savings deposits in other currencies.
   2.4. Interest.
   2.4.1. Rate.
   The ones freely agreed with its clients.
   2.4.2. Settlement.
   Interest will be settled and capitalized for periods not less than 30 days, nor more than one year.
   Upon total withdrawal of deposited funds, interest will be settled up to the day prior to the withdrawal.

B.C.R.A. FOREIGN CURRENCY DEPOSITS Annex I to
Comm. “A” 1820
2.5. Withdrawals.
Requests for return, for partial or total amounts, of deposited funds must be satisfied at the time they are made, without requiring prior notice and in the same currency class in which they were constituted. The documents used for fund withdrawals must meet the characteristics of a receipt. Up to 5 withdrawals per calendar month will be admitted, with no limit on amount.
2.6. Guarantee.
These deposits are excluded from the guarantee established in article 56 of Law 21.526, text according to Law 22.051, an aspect that must be expressly stated in documents relating to the clientele.
2.7. Minimum cash.
2.7.1. Requirement. 30%.
2.7.2. Integration.
It will be carried out in the corresponding collection currency, in the "Minimum cash" account opened at the Banco de la Nación Argentina (New York branch) or other banks abroad as indicated at the time. The calculation will be carried out according to the credit balances recorded in the said account. In aspects not provided for, the rules contained in Chapter II of Circular REMON - 1 will apply.
3. Time deposits.
3.1. Participating entities.
Banks authorized to operate in foreign currency in Categories "B" and "C", which are not registered in the Registry of entities authorized to collect time deposits on behalf and order of the Central Bank of the Republic Argentina.
3.2. Currency.
United States Dollars. At the request of the entities, the Central Bank may authorize the collection of time deposits in other currencies.
Total or partial cancellations made at the maturity of each deposit must be effected in the same currency class in which it was constituted. When the deposit was made in bills, the depositor may opt, upon total or partial withdrawal, to receive bills or transfers.
3.3. Minimum term. 30 days.
3.4. Interest rate.
The one freely agreed with its clients.
3.5. Instrumentation.
Certificates representing these deposits will be issued, with the following denominations: "Negotiable certificate of time deposit in foreign currency" or "Non-negotiable certificate of time deposit in foreign currency".
3.6. Guarantee.
These deposits are excluded from the guarantee established in article 56 of Law 21.526, text according to Law 22.051, an aspect that must be expressly stated in documents relating to the clientele.
3.7. Minimum cash.
3.7.1. Requirement.
Term Rate
-in %-
30 to 365 days 5
366 days or more 0
3.7.2. Integration.
It will be carried out in the corresponding collection currency, in the "Minimum cash" account opened at the Banco de la Nación Argentina (New York branch) or other banks abroad as indicated at the time. The calculation will be carried out according to the credit balances recorded in the said account. In aspects not provided for, the rules contained in Chapter II of Circular REMON - 1 will apply.

B.C.R.A. FOREIGN CURRENCY DEPOSITS Annex I to
Comm. “A” 1820
3.8. Secondary negotiation.
Financial entities may intermediate or purchase transferable certificates, provided that a period of not less than 30 days has elapsed since the date of their issuance or last negotiation or transfer. For the purposes of this intermediation or purchase, endorsers must record the dates on which they formalize the endorsements. The purchased documents will be charged to unencumbered own resources, adjusted to the provisions contained in point 2. of Communication "A" 1465, and/or to the lending capacity of foreign currency deposits. Certificates acquired by the issuing entities themselves will be charged to the respective deposit, which must be cancelled.
4. Other provisions.
4.1. These deposits will be subject, within the relationship for deposits and other obligations, to a maximum daily limit of 3 times the net worth liability computable on the last day of the month immediately preceding the one in question.
4.2. The rules contained in point 5. of Chapter I of Circular OPASI - 2 will apply, where pertinent.

B.C.R.A. APPLICATION OF RESOURCES Annex II to
Comm. “A” 1820

1. Destinations.
   The lending capacity of the deposits referred to in Annex I must be applied, in foreign currency, indistinctly to the following destinations:
   1.1. Financing to residents in the country, in accordance with the provisions issued in matters of credit policy, mainly oriented to attend foreign trade operations and productive activities.
   Loan recipients will not be obliged to negotiate the relevant exchange in the foreign exchange market.
   1.2. Interbank loans.
   1.3. Certificates of time deposits in foreign currency issued under this regime, excluding those collected on behalf and order of the Central Bank, purchased through secondary negotiation.
   1.4. External Bonds of the Argentine Republic, negotiable bonds and other securities whose public offer in both cases has been authorized by the National Securities Commission, without exceeding 60% of the lending capacity.
   1.5. Demand placements at the Banco de la Nación Argentina (New York branch), exceeding 20% of the lending capacity.
2. Lending capacity.
   The lending capacity referred to in the previous point will result from the following expression:
   CP = D + PI - EM - E where
   CP: lending capacity.
   D: sum of the monthly averages of daily balances of demand, savings and time deposits.
   PI: interbank loans received.
   EM: sum of the minimum cash requirements on demand, savings and time deposits.
   E: cash in hand, in custody with other financial entities, in cash transport companies or in transit, in the country or abroad, not exceeding the sum of 12% of time deposits, in both cases for capitals and interests.
3. Defects in application.
   They will determine an increase in minimum cash requirements equivalent.
   For its integration, what is provided in point 1.6.2. of Annex I must be observed.
4. Investment excesses.
   They will be charged to unencumbered own resources, in accordance with the applicable rules in matters of net foreign currency position.
5. Determination of defects and excesses.
   It will be carried out based on the monthly average of daily balances (capitals and interests) of the items included.