2021 - YEAR OF TRIBUTE TO THE NOBEL PRIZE IN MEDICINE DR. CÉSAR MILSTEIN

COMMUNICATION “A” 7295
28/05/2021

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
LISOL 1-943,
OPRAC 1-1105,
REMON 1-1044:

Minimum cash. Financing to the non-financial public sector. Clarification.

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We address you to send you in annex the sheets that, replacing those previously provided, should be incorporated into the reference rules, in order to clarify in points 1.3.7.1., 1.3.16. and the last paragraph of point 1.3. of the rules on “Minimum cash” and in point 9.2. of the rules on “Financing to the non-financial public sector” the national public securities included in accordance with the resolution disseminated by Communication “A” 7290.

It is recalled that on the page of this Institution www.bcra.gob.ar, accessing “Financial System - LEGAL AND REGULATORY FRAMEWORK - Compilations 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

María N. Prieto Mazzucco
Deputy Manager of Issuance of Rules a/c

Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications

ANNEX

Concept	Rates in %
	Group “A” and G-SIB not included in that group	Remaining entities
1.3.7. Demand and time deposits made by order of the Justice with funds originating in the cases in which it intervenes, and their immobilized balances.
1.3.7.1. In pesos, according to their residual term, being able to be integrated with LELIQ and/or NOBAC and/or national public securities in pesos –including those adjustable by the Reference Stabilization Coefficient (CER) and excluding those linked to the evolution of the US dollar– with a residual term (at the time of subscription) not less than 180 days nor greater than 450 calendar days acquired by primary subscription from 1.6.21 –those that will continue to be computed until their maturity, while their integration is maintained– the requirement arising from time placements, except in the maximum proportion admitted for integration in “National Treasury Bonds in pesos at fixed rate maturity May 2022”.
i) Up to 29 days.	29	10
ii) From 30 to 59 days.	22	7
iii) From 60 to 89 days.	4	2
iv) From 90 days or more.	0	0
1.3.7.2. In foreign currency.	15	15
1.3.8. Special deposits linked to the entry of funds from abroad - Decree 616/05.	100	100
1.3.9. Time investments instrumented in non-transferable registered certificates, in pesos, corresponding to holders of the public sector that have the right to exercise the early cancellation option within a term less than 30 days counted from their constitution.	32	11
1.3.10. Deposits and time investments of “UVA” and “UVI” –including savings accounts and debt securities (including negotiable obligations) in “UVA” and “UVI”–, according to their residual term.
i) Up to 29 days.	7	7
ii) From 30 to 59 days.	5	5
Concept	Rates in % Group “A” and G-SIB not included in that group	Remaining entities
iii) From 60 to 89 days.	3	3
iv) Of 90 or more.	0	0
1.3.11. Labor Cessation Fund for Construction Industry Workers in UVA.	7	7
1.3.12. Time deposits and investments constituted in the name of minors with funds received gratuitously.	0	0
1.3.13. Demand deposits in pesos constituting the assets of money market mutual funds (“money market”).	0	0

1.3.14. In the case of transactions in pesos, when the locality in which the operating office where they are carried out is located, in accordance with the provisions of the rules on “Categorization of localities for financial institutions”, belongs to categories II to VI, the rates provided for demand placements shall be reduced by 2 percentage points and for time placements by 1 percentage point up to a minimum of zero (including point 1.3.11.). In both cases, it does not include deposits in securities. Time deposits in pesos arranged remotely (e.g. via “home banking”, online time deposit, etc.) shall receive the same treatment as those captured in categories II to VI.

1.3.15. Financial institutions included in Group “A” and branches or subsidiaries of G-SIBs not included in that group may integrate the peso requirement –for the period and daily– with “National Treasury Bonds in pesos at fixed rate maturing May 2022” up to:

a) 5 percentage points of the rates provided in points 1.3.1., 1.3.2.1., 1.3.3. and 1.3.9. and in subsections i) and ii) of points 1.3.5.1. and 1.3.7.1.

b) 2 percentage points of the rates provided in subsection iii) of points 1.3.5.1. and 1.3.7.1.

1.3.16. Financial institutions may integrate the peso requirement –for the period and daily– with BCRA Liquidity Bills (LELIQ) and/or BCRA Notes (NOBAC) and/or national public securities in pesos –including those adjustable by the CER and excluding those linked to the evolution of the US dollar– with a residual term (at the time of subscription) of no less than 180 days nor more than 450 calendar days acquired by primary subscription since 1.6.21 –which will continue to be computed until their maturity, as long as their integration is maintained– in accordance with the following:

1.3.16.1. Time deposits and time investments made by holders of the non-financial private and non-financial public sectors, and those provided in point 1.3.11.: the entire requirement, except for the maximum proportion admitted for integration in “National Treasury Bonds in pesos at fixed rate” (point 1.3.15.).

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

1.3.16.3. Other placements.

i. Institutions 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 in subsection i) of point 1.3.5.1.;

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

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

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

ii. Institutions not included in the preceding subsection:

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

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

For the integration with “National Treasury Bonds in pesos at fixed rate maturing May 2022”, national public securities in pesos –including those adjustable by the CER and excluding those linked to the evolution of the US dollar–, LELIQ and/or NOBAC as provided in points 1.3.7.1., 1.3.15. and 1.3.16. to be admitted, they must be valued at market prices –regardless of the valuation criterion for their accounting registration– and be deposited in Subaccount 60 minimum cash enabled in the Central Registry and Settlement of Public Debt Instruments, Monetary Regulation and Financial Trusts (CRyL).

1.4. Residual term.

1.4.1. Determination.

1.4.1.1. General case.

The residual term of each time obligation equals the number of days remaining until its maturity.

B.C.R.A. ORIGIN OF THE PROVISIONS CONTAINED IN THE RULES ON “MINIMUM CASH”

CENTRAL BANK OF THE ARGENTINE REPUBLIC

CONSOLIDATED TEXT			SOURCE RULE				OBSERVATIONS
Sec.	Point	Parr.	Comm.	Annex	Sec.	Point	Parr.
1.
	1.1.		“A” 3274	II	1.	1.1.
	1.1.1.		“A” 3274	II	1.	1.1.1.		S/Com. “A” 3498.
	1.1.2.		“A” 3274	II	1.	1.1.2.		S/Com. “A” 3597, 4815, 6634 (includes interpretive clarification), 6706, 6719, 6745 and “B” 9186.
	1.1.3.		“A” 3274	II	1.	1.1.3.		S/Com. “A” 3498, 3905, 4473, 5945 and 6069.
	1.2.		“A” 3274	II	1.	1.2.		S/Com. “A” 3304, 3498, 3597, 4449, 4716 (includes interpretive clarification), 4815, 5471, 6288, 6327, 6349, 6719, 7046 and “B” 9186.
	1.3.		“A” 3274	II	1.	1.3.		S/Com. “A” 5356, 5980, 6209, 6616 and 7019.
	1.3.1.		“A” 3274	II	1.	1.3.1.		S/Com. “A” 3338, 3417, 3498, 3597, 3917, 3967, 4032, 4051, 4147, 4276, 4449, 4473, 4509, 4549, 4602, 4712, 5108, 5356, 5980, 6195, 6526, 6532 and 6616.
	1.3.2.		“A” 3274	II	1.	1.3.2., 1.3.3. and 1.3.4.		S/Com. “A” 3338, 3399, 3417, 3498, 3597, 3824, 3917, 3967, 4032, 4051, 4147, 4179, 4276, 4449, 4473, 4509, 4549, 4602, 4754, 4809, 4851, 5007, 5091, 5164, 5234, 5356, 5534, 5555, 5569, 5873, 5893, 5980, 6148, 6195, 6341, 6526, 6532 and 6616.
	1.3.3.		“A” 3274	II	1.	1.3.5.		S/Com. “A” 3338, 3417, 3498, 3597, 3917, 3967, 4032, 4051, 4147, 4276, 4449, 4509, 4549, 5356, 5980, 6195, 6526, 6532 and 6616.
	1.3.4.		“A” 3274	II	1.	1.3.7.		S/Com. “A” 5356, 6616 and 6350.
	1.3.5.		“A” 3498	único	1.	1.3.8. and 1.3.12.		S/Com. “A” 3506 (pt. 2.), 3549, 3732, 3824, 3905, 3917, 3925, 3967, 4032, 4140, 4179, 4276, 4360 (pt. 3.), 4449, 4549, 4602, 4754, 4851, 5356, 5534, 5555, 5569, 5873, 5893, 5945, 5980, 6195, 6519, 6526, 6532, 6616, 6728 and 6978.
	1.3.6.		“A” 3498	único	1.	1.3.11.		According to Com. “A” 3597, 3732, 4032, 5356, 6595, 6616 and 6776.
	1.3.7.		“A” 3549		1.			According to Com. “A” 4179, 4388, 4549, 4851, 5356, 5534, 5555, 5569, 5873, 5893, 5980, 6195, 6526, 6532, 6616, 6706, 6728, 6740, 6817, 7016, 7290 and 7295. Includes regulatory clarification.

MINIMUM CASH
ORDERED TEXT
SOURCE STANDARD OBSERVATIONS Sec. Point Par.
Com.
Annex Sec. Point Par.

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, 7016 and 7290.
1.3.16. “A” 6550 According to Com. “A” 6556, 6559,
6575, 6587, 6616, 6706, 6738,
6740, 6817, 7018, 7029, 7047,
7092, 7290 and 7295. Includes regulatory clarification.
1.3. Last “A” 6526 According to Com. “A” 6532, 6556,
6569, 6575, 6587, 6616, 6628,
6740, 7016, 7290 and 7295. In- cludes regulatory clarification.
1.4. “A” 3905 3. According to Com. “A” 4179, 4449,
4473, 5671, 5740, 6232, 6349,
6719, 6871 and 7046.
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, 6937 and 7114.
1.5.3. “A” 6740 1. According to Com. “A” 7254.
1.5.4. “A” 6858 1. According to Com. “A” 6901 and 6907.
1.5.5. “A” 6937 2. According to Com. “A” 6943, 7054,
7140 and 7155.
1.5.6. “A” 6993 2. According to Com. “A” 7082 and 7157.
1.5.7. “A” 7006 2.
1.5.8. “A” 7161 5.
1.5.9. “A” 7254 1. According to Com. “A” 7287. Includes
regulatory clarification.
1.5. last “A” 6858 2. According to Com. “A” 6965, 6993,
7006, 7140, 7155, 7161 and 7254. i) “A” 7132 According to Com. “A” 7140. ii) “A” 7140 2. According to Com. “A” 7157.
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, 6719 and 7046.
1.7.2. “A” 3274 II 1. 1.6.2. According to Com. “A” 3304, 4449,
6349 and 6719.
1.8. “A” 3498 sole 1. 1.8. According to Com. “A” 4147, 6537 and
7003.

B.C.R.A. FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR
Section 9. Transitional provisions.

9.1.3.4. Computation of the margin.

For the purposes of determining the status of the relations on credit risk diversification and the consequent observance of the admitted excesses, the amount of the declared margin –used or not– together with the other computable assets shall be taken into account.

9.1.3.5. Non-observance of the margin.

Non-observance of the margin shall have the treatment provided for in Section 2. of the rules on “Breaches of minimum capital and technical relations. Applicable criteria”.

For this purpose, the excess over the 25 % RPC limit or the lower limit chosen by the entity shall be considered.

9.1.4. Debt instruments issued by financial trusts or fiduciary funds for the financing of construction, in which the participation of the National State as settlor came to exceed the 50 % referred to in point 3.2.4., which for that reason became subject to the maximum limits established in point 6.1.1.1., without prejudice to the computation referred to in point 6.1.2.3.

9.1.5. Financing to public trusts or fiduciary funds.

For entities that register admitted excesses, the expanded individual maximum limits referred to in point 6.1.1.2. shall be equivalent to the positive difference between 15 % of the entity's RPC and the respective admitted excess.

This, without prejudice to the application of the amortizations collected admitted in point 9.1.2.

9.2. The “Bonos del Tesoro Nacional en pesos a tasa fija vencimiento mayo de 2022” and national public securities in pesos –including those adjustable by the Reference Stabilization Coefficient (CER) and excluding those linked to the evolution of the US dollar– with residual term (at the time of subscription) not less than 180 days nor greater than 450 calendar days acquired by primary subscription since 1.6.21 that are applied to the integration of the minimum cash in that currency (in accordance with the provisions of points 1.3.7.1., 1.3.15. and 1.3.16. of the rules on “Minimum cash”) shall be excluded from the limits provided for in these rules.

9.3. Within the period between 28.10.19 and 31.7.21 inclusive, it shall be considered –additionally– as an excluded concept for the purposes of computing the basic individual and global limits established in matters of credit risk diversification –points 6.1.1. and 6.1.2., respectively– the financial assistance destined to the payment of personnel salaries that comply with the requirements provided for in point 3.2.5., up to the amount equivalent to the basic individual limit provided for in point 6.1.1.1. by which the jurisdiction in question may be financed.

Advances that are in force as of 1.8.21 shall become subject to the credit limits indicated above.

FINANCING TO THE NON-FINANCIAL PUBLIC SECTOR

ORDERED TEXT		ORIGINATING RULE			OBSERVATIONS
Section	Point	Paragraph	Com.	Cap.	Point	Paragraph
6.	6.3.3.		“A” 6635
	6.3.3.1.		“A” 4725			According to Com. “A” 5472, 6635, 6978, “C” 50385 and 50828. Includes interpretive clarification.
	6.3.3.2.		“A” 4725			According to Com. “A” 5472, 6091, 6327 and 6635 and “B” 10185.
	6.3.4.		“B” 5902	10.		According to Com. “A” 5013, 5472 and 6635.
	6.3.5.		“A” 414 LISOL-1			According to Com. “A” 5472 and 6635. Includes interpretive clarification.
7.	1°		“A” 6635
	7.1.		“A” 2019			According to Com. “A” 2140, 5472 and 6635.
	7.2.		“A” 6635
	7.2.1.		“A” 4817	4.		According to Com. “A” 4876, 5472 and 6635.
	7.2.2.		“A” 5472			According to Com. “A” 6635.
	7.3.		“A” 414 LISOL-1			According to Com. "A" 817, 4093, 5472, 6167 and 6635. Includes interpretive clarifications.
8.	8.1.		"A" 6635
	8.2.		"A" 6635
9.	9.1.		"A" 3911			According to Com. "A" 4155, 4230, 4343, 4455, 4546, 4676, 4825, 4898, 4932, 4937, 4996, 5015, 5472, 6091, 6327, 6526, 6635 and "B" 9627.
	9.2.		"A" 6526	4.		According to Com. "A" 6635, 7016, 7290 and 7295. Includes regulatory clarification.
	9.3.		"A" 6816			According to Com. "A" 6852, 6919, 7075 and 7207.