Minimum Cash and Minimum Application of Resources from Sight and Time Peso Obligations. Bimonthly Position April/May 2003

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION “A” 3917 03/04/2003
TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1 - 554
REMON 1 - 776
Minimum Cash and Minimum Application of
Resources from Sight and Time Peso Obligations. Bimonthly Position April/May 2003.

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

“1. Establish that, for the April/May 2003 period, the requirement and integration of the minimum cash shall be observed based on the average resulting from dividing the sum of the daily balances of the included concepts registered during that period by the total number of days in the bimonth. Without prejudice thereto, for the purpose of determining the requirements in April and May 2003 on fixed-term deposits, as established in point 1.4.2. of Section 1. of the regulations on “Minimum Cash”, the residual maturity structures of March and April 2003, respectively, shall be considered. With respect to the aforementioned bimonthly position, the provisions currently in force regarding the general transfer of requirements referred to in point 1.6. of Section 1. of the regulations on “Minimum Cash” shall apply.

2. Establish that, for the April/May 2003 period, the requirement and integration of the regime for “Minimum Application of Resources from Sight and Time Peso Obligations” shall be observed based on the average resulting from dividing the sum of the daily balances of the included concepts registered during that period by the total number of days in the bimonth, taking into account what is established in the second paragraph of the preceding point.

3. Replace, with effect from 1.4.03, in Section 1. of the regulations on “Minimum Cash” the following point:

“1.3. Minimum Cash.
The amounts of minimum cash resulting from applying the following rates shall be integrated:

Concept Rate in %
1.3.1. Checking accounts. 18
1.3.2. Savings accounts. 18

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1.3.3. Usura Pupal, special accounts for closed circles,
“Unemployment Fund for Construction Industry Workers”, “Payment of Remuneration”, special checking accounts for legal entities and pension savings accounts. 18
1.3.4. Other sight deposits and obligations, pension benefits credited by ANSES pending confirmation, and immobilized balances corresponding to obligations included in these regulations. 18
1.3.5. Unused balances of formalized checking account advances. 18
1.3.6. Sight placements -regardless of the form of imposition that, at a minimum, must constitute the assets of common investment funds (as provided in the Regulations of the National Securities Commission). 100
1.3.7. Deposits in checking accounts of non-bank financial entities, computable for the integration of their minimum cash. 100
1.3.8. Fixed-term deposits (including “CEDROS” and those with “CER” clause), obligations arising from “acceptances” -including liabilities from the sale or assignment of credits to subjects other than financial entities-, passive repos, guarantees, and passive stock market repos, investments with constant term, with option for early cancellation or renewal for a determined term and with variable remuneration, and other time obligations, with the exception of deposits included in points 1.3.11. and 1.3.13., according to their residual term:
i) Up to 29 days. 11 ii) From 30 to 59 days. 8 iii) From 60 to 89 days. 7 iv) From 90 to 179 days. 5 v) From 180 to 365 days. 3 vi) More than 365 days. 0
1.3.9. Obligations from foreign financial lines, regardless of their instrumentation. 0
1.3.10. Debt securities (including debentures).
a) Debt issued from 1.1.02 onwards, including those arising from restructured obligations, according to their residual term:
i) Up to 29 days. 11 ii) From 30 to 59 days. 8 iii) From 60 to 89 days. 7

-3- iv) From 90 to 179 days. 5 v) From 180 to 365 days. 3 vi) More than 365 days. 0 b) Others. 0
1.3.11. Fixed-term deposits in US dollars payable in pesos. (Validity: 25.03.02) 0
1.3.12. Obligations with the Fiduciary Trust for Assistance to Financial and Insurance Entities. 0
1.3.13. Sight and fixed-term deposits made by order of the Judiciary with funds originating in the cases in which it intervenes, and their immobilized balances. 10
1.3.14. Special accounts in US dollars intended for the deposit of guarantees required in futures and options operations conducted in self-regulated markets subject to the control of the National Securities Commission. 100
1.3.15. Special sight accounts in foreign currency. 100”

4. Substitute, with effect from 1.4.03, point 1.3. of Section 1. of the regulations on “Minimum Application of Resources from Sight and Time Peso Obligations” with the following:

“1.3. Requirement.
The amounts of requirement resulting from applying the following rates shall be applied:

Concept Rate
In %
1.3.1. Checking accounts. 17
1.3.2. Savings accounts. 17
1.3.3. Usura Pupal, special accounts for closed circles,
“Unemployment Fund for Construction Industry Workers”, “Payment of Remuneration”, special checking accounts for legal entities and pension savings accounts. 17
1.3.4. Other sight deposits and obligations, pension benefits credited by ANSES pending confirmation, and immobilized balances corresponding to obligations included in these regulations. 17

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1.3.5. Unused balances of formalized checking account advances. 17
1.3.6. Sight placements -regardless of the form of imposition- that, at a minimum, must constitute the assets of common investment funds (as provided in the Regulations of the National Securities Commission). 0
1.3.7. Deposits in checking accounts of non-bank financial entities, computable for the integration of their minimum cash. 0
1.3.8. Fixed-term deposits (including “CEDROS” and those with “CER” clause), obligations arising from “acceptances” -including liabilities from the sale or assignment of credits to subjects other than financial entities-, passive repos, guarantees, and passive stock market repos, investments with constant term, with option for early cancellation or renewal for a determined term and with variable remuneration, and other time obligations, according to their residual term:
i) Up to 89 days. ii) More than 89 days
11
0
1.3.9. Obligations from foreign financial lines, regardless of their instrumentation. 0
1.3.10. Sight and fixed-term deposits made by order of the Judiciary with funds originating in the cases in which it intervenes, and their immobilized balances. 0
1.3.11. Debt securities (including debentures).
a) Debt issued from 1.1.02 onwards, including those arising from restructured obligations, according to their residual term:
i) Up to 89 days. ii) More than 89 days b) Others.
11
0
0
1.3.12. Obligations with the Fiduciary Trust for Assistance to Financial and Insurance Entities. 0”

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At the appropriate time, we will send you the sheets that should be incorporated into the ordered texts of the regulations on “Minimum Cash” and “Minimum Application of Resources from Sight and Time Peso Obligations”. We salute you very respectfully. BANCO CENTRAL DE LA REPUBLICA ARGENTINA Alfredo A. Besio José Rutman Manager of Emission Principal Manager of Norms of Norms