CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION “A“ 4159
24/06/2004

TO THE FINANCIAL INSTITUTIONS:

Ref.: Circular
CONAU 1 - 658

Informative Regime on Minimum Cash and Application of Resources (R.I. – E.M. and A.R.) Modifications.

We address you to send you the modifications introduced to the Informative Regime of the reference, as a consequence of the issuance of Communication “A” 4147, effective as of 1/06/04.

In this regard, it is noted that:

In Section 1. Minimum Cash:

In point 1.13., the procedure for calculating the remuneration of the balances of the accounts opened in the B.C.R.A. is incorporated.

The following codes are opened in order to allow correlation with the regime of “Application of the lending capacity in foreign currency”:

10127X / M	Other time deposits
10128X / M	Other time obligations
102070 / M	Other demand deposits
102080 / M	Other demand obligations

In Section 3. Application of the lending capacity in foreign currency:

The opening of the items by currency is carried out in order to determine the “Deficit in the application of the lending capacity in foreign currency” according to its origin.

Resources and applications are discriminated into principal and interest.

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Ricardo O. Maero
Manager of
Informative Regime

Rubén Marasca
Deputy General Manager of
Analysis and Audit

ANNEX

MONTHLY ACCOUNTING INFORMATIVE REGIME
B.C.R.A. 5- UPDATED CONSOLIDATED TEXT OF THE INFORMATIVE REGIME ON MINIMUM CASH AND APPLICATION OF RESOURCES (R.I.-E.M and A.R.)

-Index-

Section 1. Minimum cash

1.1. General instructions

1.2. Requirement of the period

1.3. Integration of the period

1.4. Transferable requirement

1.5. Minimum daily requirement and integration

1.6. Additional requirement and integration

1.7. Exemptions

1.8. Charges

1.9. Other information

1.10. Control totals

1.11. Information model

1.12. Correlation with accounts of the Balance of Balances.

1.13. Methodology to determine the remuneration of the balances of the accounts opened in the B.C.R.A.

Section 2. Methodology for calculating the Contribution to the Deposit Guarantee Fund

Section 3. Application of the lending capacity in foreign currency.

Section 4. Transitory provisions.

Version: 2nd. COMMUNICATION “A“ 4159
Effective:
01/06/2004
Page: 1

MONTHLY ACCOUNTING INFORMATIVE REGIME
B.C.R.A. 5- MINIMUM CASH AND APPLICATION OF RESOURCES (R.I.-E.M and A.R.)
Section 1. Minimum cash

Code 102090/M

Demand placements that, as a minimum, must constitute the assets of mutual funds shall be included, in accordance with the provisions of the National Securities Commission's Rules.

Code 102100/M

The unused balances of overdrafts on current accounts corresponding to formalized agreements that do not contain clauses enabling the entity to discretionarily and unilaterally cancel the possibility of using such margins shall be recorded.

Code 102150/M

Commercial banks shall report the total demand deposits of non-bank financial entities.

Codes 101500/M and 102160/M

Obligations for which specific increases in requirements due to liability concentration have been established shall be reported.

For its computation, the following methodology must be applied:

a) In the codes provided for deposits (demand and time) and other obligations, the monthly average of daily balances shall be recorded, including deposits that verify excessive concentration of liabilities (in holders and/or terms), on which the normal minimum cash rate for the period considered shall be calculated.

b) In codes 101500/M and 102160/M, the monthly average of daily balances of deposits and other obligations that verify any of the factors described in point 1.5. –Section 1- of the Consolidated Text on minimum cash shall be recorded. The requirement to be applied shall be that resulting from the difference between the one determined for these obligations and the normal one calculated according to point a). The entity shall report those items with the incremental requirement already calculated, which shall thus be considered for the calculation of the total requirement for the period.

Code 102400/M

The amount of the shortfall in the application of the lendable capacity corresponding to foreign currency deposits, determined in code 401/M, shall be reported, according to the instructions included in point 1.13 of this Section.

Version: 5th. COMMUNICATION “A“ 4159
Effective date:
01/06/2004
Page: 4

MONTHLY ACCOUNTING REPORTING REGIME
B.C.R.A. 5- MINIMUM CASH AND APPLICATION OF RESOURCES (R.I.-E.M and A.R.)
Section 1. Minimum cash

1.11. INFORMATION MODEL

1.11.1. Requirement

CODE	CONCEPT	REFERENCES
100000/M	ITEMS INCLUDED
101078/M	Frozen balances of judicial deposits on demand and time
101081/M	Frozen balances of deposits subject to the Contribution to the Deposit Guarantee Fund and computable for Application of resources
101082/M	Frozen balances of deposits subject to the Contribution to the Deposit Guarantee Fund and not computable for Application of resources
101083/M	Frozen balances of deposits not subject to the Contribution to the Deposit Guarantee Fund and computable for Application of resources
101084/M	Frozen balances of deposits not subject to the Contribution to the Deposit Guarantee Fund and not computable for Application of resources
101130/010	Special guarantee deposit accounts for futures and options operations.
101140/M	Special demand accounts in foreign currency
10120X/M	Fixed-term deposits of securities	x = 1 to 6, where: 1= Up to 29 days 2= 30 - 59 days 3= 60 - 89 days 4= 90 - 179 days 5= 180 to 365 days 6= more than 365 days.
10121X/M	Obligations for “acceptances”
10122X/M	Passive repos of securities
10123X/M	Passive repos of foreign currency
10124X/M	Collateral and stock exchange repos of securities
10127X/M	Other time deposits
10128X/M	Other time obligations
101290/M	Liabilities with the Financial and Insurance Entities Assistance Trust Fund
10140X/M	Fixed-term deposits	x = 1 to 6, where: 1= Up to 29 days 2= 30 - 59 days 3= 60 - 89 days 4= 90 - 179 days 5= 180 to 365 days 6= more than 365 days.
10141X/M	Constant-term investments
10142X/M	Investments with early cancellation option
10143X/M	Investments with renewal option for a determined term
10144X/M	Term investments with variable remuneration
101450/M	Term liabilities for financial lines and foreign correspondents
101460/M	Judicial fixed-term deposits
101470/010	Deposits in US dollars payable in pesos

Version: 5th. COMMUNICATION “A“ 4159
Validity:
01/06/2004
Page: 11

MONTHLY ACCOUNTING INFORMATION REGIME
B.C.R.A. 5- MINIMUM CASH AND APPLICATION OF RESOURCES (R.I.-E.M and A.R.)
Section 1. Minimum cash

1.11. INFORMATION MODEL

1.11.1. Requirement

CODE	CONCEPT	REFERENCES
100000/M	ITEMS INCLUDED
101500/M	Term liabilities with increased requirement due to liability concentration
10171X/001	Reprogrammed deposits “CEDROS”	x = 1 to 6, where:
10175X/001	Fixed-term deposits with CER clause	1= Up to 29 days
10180X/M	Debt Securities issued from 01.01.2002	2= 30 - 59 days
		3= 60 - 89 days
		4= 90 - 179 days
		5= 180 to 365 days
		6= more than 365 days.
101850/M	Debt Securities issued before 01.01.2002
102010/M	Deposits in current accounts
102020/M	Deposits in special current accounts for legal entities
102030/M	Deposits in savings accounts and pupillary usury accounts
102035/M	Judicial deposits in demand accounts
102040/M	Special accounts for closed circles
102045/M	Deposits in pension savings banks and payment of remuneration
102050/M	Unemployment fund for construction industry workers
102060/M	Demand obligations for foreign financial lines
102070/M	Other demand deposits
102080/M	Other demand obligations
102090/M	Demand placements linked to mutual funds
102100/M	Unused balances of formalized overdrafts
102150/M	Deposits of non-bank financial institutions in commercial banks
102160/M	Demand obligations with increased requirement due to liability concentration
102400/M	Failure to apply resources in foreign currency

Version: 7th. COMMUNICATION “A“ 4159
Effective date:
01/06/2004
Page: 12

MONTHLY ACCOUNTING INFORMATION REGIME
B.C.R.A.
5-
MINIMUM CASH AND APPLICATION OF RESOURCES (R.
I
.
-E.M and A.R.
)
Section 1
.
Minimum cash

1 .12. CORRELATION WITH BALANCE OF ACCOUNTS (Continued)

COD.	CONCEPTS INCLUDED	ACCOUNTS
10123X/M	Foreign currency passive repos	321174
10124X/M	Collateral and stock exchange repos of securities	321105/ 321132 / 321165 / 322101 / 322105 / 325138 / 325163 / 326101 / 326106
10127X/M	Other time deposits	311151 / 311154 / 311727 / 311751 / 311754 / 312151 / 312154 / 315151 / 315154 / 315751 / 315754 / 316151 / 316154
10128X/M	Other time obligations	321125 / 321143 / 321148 / 321154 / 321161 / 321162 / 321181 / 322107 / 322181 / 325107 / 325146 / 325148 / 325149 / 325162 / 325184 / 326108 / 326162 / 326184
101290/M	Obligations with the Trust Fund for Assistance to Financial and Insurance Entities	321181 / 325184
10140X/M	Fixed-term deposits	311131 /311140 / 311731/ 311740 / 312131/ 312140/315132 / 315137 / 315732 / 315737 / 316132 / 316137
10141X/M	Constant-term investments	311135 / 311155 / 311735 / 311743 / 312135 / 312143 / 315131 / 315146 / 315731 / 315746 / 316135 / 316143
10142X/M	Investments with early cancellation option	311136 / 311156 / 311736 / 311744 / 312136 / 312146 / 315133 / 315143 / 315733 / 315743 / 316136 / 316144
10143X/M	Investments with renewal option for a determined term	311137 / 311147 / 311737 / 311746 / 312147 / 312149 / 315135 / 315144 / 315735 / 315744 / 316138 / 316145
10144X/M	Term investments with variable remuneration	311138 / 311158 / 311738 / 311747 / 312138 / 312148 / 315136 / 315145 / 315736 / 315745 / 316139 / 316146

Version: 6th.
COMMUNICATION “A“ 4159
Validity:
01/06/2004
Page: 16

MONTHLY ACCOUNTING INFORMATION REGIME
B.C.R.A.
5-
MINIMUM CASH AND APPLICATION OF RESOURCES (R.
I
.
-E.M and A.R.
)
Section 1
.
Minimum cash

1 .12. CORRELATION WITH BALANCE OF BALANCES ACCOUNTS (Continued)

COD.
CONCEPTS INCLUDED
ACCOUNTS
102030/M
Deposits in savings banks and usuras pupilares 311718 / 312118 / 315718 / 316118 102035/M Judicial deposits in demand accounts 311113 / 311725 / 315113 / 315725 102040/M Special accounts for closed circles 311729 102045/M Deposits in pension savings banks and payment of remunerations 311726 102050/M Unemployment fund for workers in the construction industry 311730 102060/M Demand obligations for financial lines from abroad 326133 / 326148 102070/M Other demand deposits 311145 / 311148 / 311151 / 311154 / 311727 / 311745 / 311748 / 311751 / 311754 / 312145 / 312151 / 312154 / 315151 / 315154 / 315751 / 315754 / 316151 / 316154 / 102080/M Other demand obligations 131192 / 131792 / 132192 / 135192 / 135794 / 136192 / 141192 / 141196 / 142192 / 142196 / 145192 / 145196 / 146192 / 146196 321148 / 321154 / 321155 / 321161 / 321181 / 321182 / 322181 / 325148 / 325149 / 325184 / 326148 / 326184 / 351003 / 351009 / 355003 / 355009 102090/M Demand deposits linked to common investment funds 311706 / 311712 / 311718 / 311723 / 311724 / 315706 / 315712 / 315718 / 315723 / 315724 / 316106 / 316112 / 316118 / 316123 / 316124 102100/M Unused balances of formalized current account advances 721003 / 725001 102150/M Deposits of non-bank financial institutions in commercial banks 311406 / 311412 / 311423 / 311424 / 315406 / 315412 / 315423 / 315424

Version: 5th.
COMMUNICATION “A“ 4159
Effective:
01
.06.04
Page 18

MONTHLY ACCOUNTING INFORMATION REGIME
B.C.R.A. 5. MINIMUM CASH AND APPLICATION OF RESOURCES (R.I.-E.M. AND A.R.)
Section 1. Minimum Cash

1.13. Methodology to determine the remuneration of balances of accounts opened at the B.C.R.A.

ACCOUNTS IN PESOS

Interest shall be recognized on the monthly average of daily balances included in the following items:

( 205030/001 + 205040/001)

without exceeding the greater of:

1) (903000/001 + 750000/001 (n-1) – 651000/001) - (205010/001 + 205020/001 + 205025/001 + 205045/001+ 205050/001+ 205055/001)

2) (451000/001 – 6520xx/001) - (205045/001 + 205050/001 + 205055/001)

The deposited amount that is not needed to cover such requirements shall constitute the non-remunerable excess, which shall be that exceeding the greater of the requirements determined in points 1 and 2 above

ACCOUNTS IN FOREIGN CURRENCY

Interest shall be recognized on the monthly average of:

205035/M

without exceeding the greater of:

1) (903000/M + 750000/M (n-1) – 651000/M- 102400/M)- [( 205010/M + 205020/M + 205025/M) *A ] *1,50

2) [451000/M –6520xx/M- 102400/M (n-1) ] - [ (205010/M + 205020/M + 205025/M) * B ] *1,50

A = (903000/M -102400/M) / 903000/M B = [ 451000/M –(102400/M (n-1)* 0.50) ] / 451000/M

Version: 1st. COMMUNICATION “A“ 4159
Effective:
01.06.04
Page 20

MONTHLY ACCOUNTING INFORMATION REGIME
B.C.R.A. 5. MINIMUM CASH AND APPLICATION OF RESOURCES (R.I.-E.M. AND A.R.)
Section 3. Application of lending capacity in foreign currency

3.1. General instructions

Amounts shall be recorded in thousands of US dollars, without decimals.

In the case of other foreign currencies, they shall be converted to US dollars and the exchange rates to be applied shall be those communicated by the Operations Desk of the Central Bank of the Argentine Republic corresponding to each of the days of the period under report or the previous available day.

Notwithstanding the foregoing, all items shall be identified according to their currency of origin, in accordance with the coding provided in the Centralized System of Informational Requirements (SISCEN), table T0003, from which those not referenced with the SWIFT code shall be excluded.

For the purposes of rounding magnitudes, values shall be increased by one unit when the first digit of the fractions is equal to or greater than 5, discarding the latter if they are lower.

Data shall be calculated on the monthly average of daily balances (principal and interest) of the included items, recorded in the month under report.

Applications shall be reported net of allowances for doubtful accounts and impairment attributable to them.

3.2. Specific instructions

Codes 101/M and 102/M

Demand and time deposits in foreign currency and their frozen balances shall be declared, except those payable in pesos (the concepts recorded in codes 315100, 315700 and 316100 of the Balance of Balances shall be taken as reference). Deposits of securities are not included.

Code 103/010

Fixed-term deposits in US dollars payable in pesos and the attributable frozen balances shall be recorded.

Code 104/M

Interfinancial loans received shall be reported, provided that the granting entity has computed them as an application of these resources.

Code 106/M

The interest corresponding to the computable resources shall be recorded.

Version: 4th. COMMUNICATION “A“ 4159
Validity:
01.06.04
Page 1

B.C.R.A. 5. MINIMUM CASH AND APPLICATION OF RESOURCES (R.I.-E.M. AND A.R.) Section 3. Application of lending capacity in foreign currency

Code 201/M The totality of prefinancings and financings of exports directly or on behalf and by order of third parties shall be reported, taking into account the provisions of Communication “A” 3818 granted.

Code 202/M The totality of interfinancial loans granted shall be reported, identified by the granting financial institution as originating from its lending capacity of foreign currency deposits.

Code 203/M The financings in foreign currency included in points 1.2. and 1.3. of the rule on application of lending capacity in foreign currency shall be recorded.

Code 204/M The holdings of Letters of the Central Bank of the Argentine Republic, issued in foreign currency, acquired in auctions or through secondary negotiation shall be recorded.

Code 205/M The debt securities or participation certificates in financial trusts -including other collection rights specifically recognized in the trust agreement to be constituted within the framework of the “IDB Loan No. 1192/OC-AR”- whose underlying assets are constituted by loans originated in financial institutions under the conditions referred to in points 1.1. to 1.3. of the rule on Application of lending capacity in foreign currency shall be recorded.

Code 206/M The financings that have different destinations from those reported in code 205/M, included in the credit program referred to in the loan of the Inter-American Development Bank No. 1192/OC-AR, shall be recorded.

For the amounts recorded in this code, the following shall be observed:

Code 206/M ≤ [( Code 100/M - Code 300/M) * 0.10]

Code 207/M

The interest corresponding to the computable applications shall be recorded.

Version: 3rd. COMMUNICATION “A“ 4159
Validity:
01.06.04
Page 2

MONTHLY ACCOUNTING INFORMATION REGIME
B.C.R.A. 5. MINIMUM CASH AND APPLICATION OF RESOURCES (R.I.-E.M. AND A.R.)
Section 3. Application of lending capacity in foreign currency

Code 300/M The minimum cash requirement corresponding to the month under report calculated on the computable resources for the present regime shall be indicated.

Code 400/M The total defect resulting from applying the following expression shall be recorded: Code 400/M = [(Code 100/M – Code 300/M) – Code 200/M]

Code 401/M Code 401/M = Code 400/M – Code 402/M This amount shall be recorded in code 102400/M of the Minimum Cash information regime.

Code 402/M The positive amount of the defect arising from the following expression shall be recorded: Code 402/M = Code 103/ M- Code 204/M (+)

Charges The charge shall be calculated as follows: [ Code 402/M * (TNA/36500) ]*1000

The amount of code 402/M shall be converted to pesos using the monthly average reference exchange rate of the US dollar reported by the Central Bank of the Argentine Republic during the period under report.

For the amount of the calculation, which is made on the basis of the reported data, a debit note (Form 3030) shall be accompanied indicating as the operation concept “Charge for defect in application of deposits payable in pesos”.

Version: 4th. COMMUNICATION “A“ 4159
Validity:
01.06.04
Page 3

MONTHLY ACCOUNTING INFORMATION REGIME
B.C.R.A. 5. MINIMUM CASH AND APPLICATION OF RESOURCES (R.I.-E.M. AND A.R.)
Section 3. Application of lending capacity in foreign currency

3.3. Information Model.

CODE	ITEMS INCLUDED	REFERENCES
100/M	RESOURCES
101/M	Demand deposits
102/M	Time deposits
103/010	Deposits in US dollars payable in pesos
104/M	Interfinancial obligations
106/M	Interest on computable resources

200/M	APPLICATIONS
201/M	Prefinancings and Financings linked to exports
202/M	Interfinancial loans
203/M	Other Financing
204/M	Letters of the Central Bank of the Argentine Republic
205/M	Debt securities or participation certificates in financial trusts (IDB Loan No. 1192/OC-AR)
206/M	(IDB Loan No. 1192/OC-AR) with purposes other than those set forth in Code 205
207/M	Interest on eligible investments

300/M	MINIMUM CASH REQUIREMENT

400/M	APPLICATION SHORTFALL
401/M	Shortfall in the application of lending capacity in foreign currency
402/M	Shortfall in application due to the acquisition of deposits payable in pesos

Version: 2nd. COMMUNICATION “A“ 4159
Effective date:
01.06.04
Page 4