LISOL - 1 - 300. Minimum liquidity requirements. Liquidity treatment. Treatment of obligations from foreign financial lines. Complementary rules

BANCO CENTRAL DE LA REPUBLICA ARGENTINA

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COMMUNICATION "A" 3126 I 29/06/00

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To FINANCIAL ENTITIES:
Ref.: LISOL - 1 - 300
Minimum liquidity requirements.
Treatment of obligations from foreign financial lines.
Complementary rules

We address you to inform you that this Institution adopted the following resolution:

"- Incorporate, effective from 1.10.00, in Section 1 of the norms on 'Minimum liquidity requirements', the following point:

'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 time until the date contractually planned for the foreign entity to be able to request early cancellation or the originally agreed term, when it is subject to a decision by the local entity, shall be taken into account.

ii) Without early cancellation clauses.

The time remaining until maturity shall be taken into account to the extent that early cancellation is explicitly excluded by either party. Otherwise, they shall have the treatment of demand obligations.'"

We clarify that, given the terms of the aforementioned resolution, the measure will also apply to included obligations originating from operations concluded prior to 1.10.00.

We salute you very respectfully.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Juan Carlos Isi Alfredo A. Besio
Submanager of Regulatory Norms Manager of Norms for Financial Entities