Minimum Cash. Minimum Application of Resources from Demand and Time Liabilities in Pesos. Modifications.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMUNICACIÓN “A“ 3905 21/03/2003
TO FINANCIAL ENTITIES:
Ref.: Circular
OPRAC 1 - 551
REMON 1 - 775
Minimum Cash. Minimum Application of Resources from Demand and Time Liabilities in Pesos. Modifications.

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

“1. Substitute, with effect from 1.3.03, in Section 1 of the rules on “Minimum Cash” the following point:
“1.1.3. Computation.
The obligations included shall be computed based on the balances of capital effectively transacted, including, where applicable, quotation differences (positive or negative) and, in the case of reprogrammed deposit certificates “CEDROS”, the amount accrued by applying the “Reference Stabilization Coefficient” (“CER”). Therefore, interests and premiums accrued, due or to become due, for the included obligations are excluded, insofar as they have not been credited to an account or made available to third parties, and the amount accrued by applying the “CER”, in the case of fixed-term deposits with that clause.”

2. Replace, with effect from 1.3.03, in Section 1 of the rules on “Minimum Cash” the following point:
   “1.3. Minimum Cash.
   The minimum cash amounts resulting from applying the following rates shall be integrated:

Concept Rate in %
1.3.1. Current account deposits. 22
1.3.2. Savings account deposits. 22
1.3.3. Pupillary usury, special accounts for closed circles,
“Unemployment Fund for Construction Industry Workers”, “Payment of Remuneration”, special current accounts for legal entities and pension savings accounts. 22

1.3.4. Other demand deposits and obligations, pension benefits credited by ANSES pending cashing, and immobilized balances corresponding to obligations included in these rules. 22
1.3.5. Unused balances of formalized current account advances. 22
1.3.6. Demand placements - regardless of the imposition form - that, as a minimum, must constitute the credit of common investment funds (in accordance with what is provided in the Rules of the National Securities Commission). 100
1.3.7. Deposits in current accounts of non-bank financial entities, computable for the integration of their minimum cash. 100
1.3.8. Fixed-term deposits (including “CEDROS” and with “CER” clause), obligations for “acceptances” - including liabilities for sale or assignment of credits to subjects other than financial entities -, passive repos, guarantees and passive stock market repos, constant-term investments, with option for early cancellation or renewal for a determined term and with variable remuneration, and other time liabilities, 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. 12 ii) From 30 to 59 days. 9 iii) From 60 to 89 days. 8 iv) From 90 to 179 days. 6 v) From 180 to 365 days. 4 vi) More than 365 days. 0
1.3.9. Obligations for foreign financial lines, regardless of their instrumentation. 0
1.3.10. Debt securities (including bond issues).
a) Debt issued from 1.1.02, including those from restructured obligations, according to their residual term:
i) Up to 29 days. 12 ii) From 30 to 59 days. 9 iii) From 60 to 89 days. 8 iv) From 90 to 179 days. 6 v) From 180 to 365 days. 4 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 Fund for Assistance to Financial and Insurance Entities. 0
1.3.13. Demand and fixed-term deposits made by order of the
Justice 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
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 demand accounts in foreign currency. 100”

3. Incorporate, with effect from 1.3.03, in Section 1 of the rules on “Minimum Cash” the following point:
   “1.4. Residual Term.
   1.4.1. Determination.
   1.4.1.1. General Case.
   The residual term of each time obligation is equivalent to the number of days remaining until its maturity.
   1.4.1.2. Time Investments.
   In the case of time investments, the following criteria shall apply:
   i) Constant term.
   The remaining term until maturity shall be considered, taking into account the automatic extension or, where applicable, the term resulting from the exercise of the option to revoke it. ii) With option for early cancellation. The remaining term until the date on which the investor can exercise the option for early cancellation shall be taken into account, insofar as they are the holder of the right, or the originally agreed term, in case the entity is the holder of that right. iii) With option for renewal for a determined term. The remaining term until maturity shall be considered, taking into account for this purpose the term that would result from the eventual exercise of the extension option by the entity, insofar as it is the holder of the right. When the investor is the holder of that right, the originally agreed term shall be taken into account or, where applicable, the term resulting from the renewal if the option had been exercised.

1.4.1.3. Refinanciable Time Obligations.
When the financial entity enters into agreements or option contracts that ensure the total or partial refinancing of time obligations, for the purpose of establishing the residual term until the maturity of the obligations, the term resulting from making use of those facilities shall be considered, for the part of the liability included in the agreement. This criterion is applicable in case the agreement is carried out with a foreign bank that has at least an international risk rating of “A” or higher granted by any of the rating agencies admitted by the rules on “Evaluation of Financial Entities”, insofar as it is not the parent house or the controlling or controlled entity of the local entity.
1.4.1.4. Obligations for 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 term until the date on which the foreign entity is contractually expected 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 term remaining until maturity shall be taken into account insofar as early cancellation is explicitly excluded by any of the parties. Otherwise, they shall have the treatment of demand obligations.
1.4.2. Fixed-term Deposits.
In the case of fixed-term deposits in pesos and foreign currency, the established rates - according to the term structure fixed - shall be applied on the amounts resulting from multiplying the total daily balance of those obligations - which is registered in the month to which they correspond - by the percentages resulting from the structure of residual terms of the previous month, considering the number of days remaining in that period until the maturity of the obligation, counted from each of the days of that period. In the case of reprogrammed deposits “CEDROS” each amortization service shall be considered independently computing the number of days remaining until each established maturity.
1.4.3. Remaining Time Operations.
In these cases - including time investments and obligations with banks and foreign correspondents computable - the residual terms shall be equivalent to the number of days remaining until the maturity of each obligation, counted from each of the days of the same month to which the minimum cash corresponds. The requirement shall arise from applying the established rates on the daily balances of the aforementioned obligations based on the different residual term tranches fixed.

In the particular case of payment obligations in capital installments, the amounts of the amortization services that mature within the year, counted from each of the days of the month to which the minimum cash corresponds, shall be considered independently for the purpose of applying to them the rate that is appropriate based on the number of days remaining until the maturity of each of them.”

4. Substitute, with effect from 1.3.03, the first two paragraphs of point 3.1.1. of Section 3 of the rules on “Minimum Cash” with the following:
   “The deficiencies in the integration of minimum cash and minimum daily integration in pesos shall be subject to a charge equivalent to twice the nominal annual interest rate due that arises from the tenders of the Letters of the Central Bank of the Republic of Argentina in pesos. The deficiencies in integration in foreign currency are subject to a charge equivalent to twice the nominal annual interest rate due that arises from the tenders of the Letters of the Central Bank of the Republic of Argentina in US dollars or twice the LIBO rate for 30 days for operations in that currency, reported for the last business day of the pertinent month, whichever is higher. In the case of the Letters of the Central Bank of the Republic of Argentina, the accepted cut-off rate reported by this Institution shall be taken into account, which is expressed as a nominal annual rate due, corresponding to the last tender carried out in the period under report. If letters are awarded for different terms on the same date, the rate corresponding to the operation with the shortest term shall be considered.”

5. Incorporate, with effect from 1.3.03, in Section 5 of the rules on “Minimum Cash” the following points:
   “5.2. Responsibilities.
   The appointed officials shall be responsible for changes in the resource capture policy that imply a trick aimed at evading minimum cash requirements such as extending the term of operations associated with the early cancellation of obligations. The mechanisms or modalities that, in the judgment of the Superintendence of Financial and Foreign Exchange Entities, make the existence of undue conditions presumable, shall determine the obligation of the financial entity to provide explanations on the matter within a period of 5 business days, counted from the notification of the request. The Superintendence shall rule within the 30 business days following the receipt of the defenses.” “5.3. Sanctions. The verification of infractions shall determine the application of the following sanctions:
   5.3.1. Fine of 5 to 10% of the improperly computed amounts, accumulating the sums of the last 12 months.

The financial entity and the aforementioned persons shall be jointly and severally responsible for the fines imposed.
5.3.2. Disqualification of 5 to 20 years for the performance of functions in the financial activity by the persons responsible for the liquidity area.
The sanctions shall have immediate execution, without prejudice to the right to appeal granted by the Financial Entities Law.”

6. Replace, with effect from 1.3.03, point 1.1.3. of Section 1 of the rules on
   “Minimum Application of Resources from Demand and Time Liabilities in Pesos” with the following:
   “1.1.3. Computation.
   The obligations included shall be computed based on the balances of capital effectively transacted, including, where applicable, quotation differences (positive or negative) and, in the case of reprogrammed deposit certificates “CEDROS” the amount accrued by applying the “Reference Stabilization Coefficient”.”

7. Incorporate, with effect from 1.3.03, in Section 1 of the rules on “Minimum Application of Resources from Demand and Time Liabilities in Pesos” the following point:
   “1.4. Residual Term.
   The computation of the residual terms of the included obligations shall be carried out in accordance with what is established in point 1.4. of Section 1 of the rules on “Minimum Cash”.”

8. Substitute, with effect from 1.3.03, points 1.3.8. and 1.3.12. of Section 1 of the rules on “Minimum Application of Resources from Demand and Time Liabilities in Pesos” with the following:
   “1.3.8. Fixed-term deposits (including “CEDROS” and with “CER” clause), obligations for “acceptances” - including liabilities for sale or assignment of credits to subjects other than financial entities -, passive repos, guarantees and passive stock market repos, constant-term investments, with option for early cancellation or renewal for a determined term and with variable remuneration, and other time liabilities, according to their residual term:
   i) Up to 89 days. 12 ii) More than 89 days. 0” “1.3.12. Debt securities (including bond issues). a) Debt issued from 1.1.02, including those from restructured obligations, according to their residual term:

i) Up to 89 days. 12 ii) More than 89 days. 0 b) Others. 0”

9. Render ineffective, with effect from 1.3.03, points 1.3.11. and 1.3.14. of Section 1 of
   the rules on “Minimum Application of Resources from Demand and Time Liabilities in Pesos” regarding the requirement on deposits included in the “Regime for Reprogramming of Deposits” (“CEDROS”) and fixed-term deposits with “CER” clause. We send you attached the sheets that, in replacement of those previously provided, correspond to be incorporated into the ordered texts of the rules on “Minimum Cash” and “Minimum Application of Resources from Demand and Time Liabilities in Pesos”. 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
   ANNEX

B.C.R.A. ORDERED TEXT OF THE RULES ON “MINIMUM CASH” Version: 11th COMMUNICATION “A“ 3905 Validity:
01/03/2003
-IndexSection 1. Requirement.
1.1. Included Obligations.
1.2. Application Base.
1.3. Minimum Cash.
1.4. Residual Term.
1.5. Point increases in requirement due to concentration of liabilities.
1.6. Transfers.
1.7. Defect of application of resources in foreign currency.
1.8. Defect of application of resources in pesos.
Section 2. Integration.
2.1. Admitted Concepts.
2.2. Computation.
2.3. Minimum Daily Integration.
Section 3. Non-compliance.
3.1. Charge.
3.2. Framing Programs.
3.3. Regularization and Sanitation Plans.
Section 4. Base of Observance of the Rules.
4.1. Individual Base.
Section 5. Responsible Parties and Sanctions.
5.1. Responsible for Liquidity Policy.
5.2. Responsibilities.
5.3. Sanctions.
Section 6. Transitional Provisions.
6.1. Amount Deductible from the Requirement.
6.2. Minimum Daily Integration of Minimum Cash in Foreign Currency.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 8th COMMUNICATION “A“ 3905
Validity:
01/03/2003
1.1.2.3. Obligations with foreign banks - including parent houses and controlling entities of local entities and their branches - for lines that have as destination the financing of foreign trade operations.
1.1.2.4. Obligations for spot purchases to be settled and forward.
1.1.2.5. Spot sales to be settled and forward, linked or not to active repos.
1.1.2.6. Demand obligations for drafts and transfers from abroad pending
payment and for correspondent operations abroad.
1.1.3. Computation.
The obligations included shall be computed based on the balances of capital effectively transacted, including, where applicable, quotation differences (positive or negative) and, in the case of reprogrammed deposit certificates “CEDROS”, the amount accrued by applying the “Reference Stabilization Coefficient” (“CER”). Therefore, interests and premiums accrued, due or to become due, for the included obligations are excluded, insofar as they have not been credited to an account or made available to third parties, and the amount accrued by applying the “CER”, in the case of fixed-term deposits with that clause.
1.2. Application Base.
The minimum cash requirement shall be applied on the monthly average of the daily balances of the included obligations, registered at the close of each day during each calendar month. The averages shall be obtained by dividing the sum of the daily balances by the total number of days of each month. The days on which no movement is registered shall repeat the balance corresponding to the immediate preceding business day. The requirement shall be observed separately for each of the currencies in which the obligations are denominated.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 12th COMMUNICATION “A“ 3905
Validity:
01/03/2003
1.3. Minimum Cash.
The minimum cash amounts resulting from applying the following rates shall be integrated:

Concept Rate in %
1.3.1. Current account deposits. 22
1.3.2. Savings account deposits. 22
1.3.3. Pupillary usury, special accounts for closed circles,
“Unemployment Fund for Construction Industry Workers”, “Payment of Remuneration”, special current accounts for legal entities and pension savings accounts. 22
1.3.4. Other demand deposits and obligations, pension benefits credited by ANSES pending cashing, and immobilized balances corresponding to obligations
included in these rules. 22
1.3.5. Unused balances of formalized current account advances. 22
1.3.6. Demand placements - regardless of the imposition form - that, as a minimum, must constitute the credit of common investment funds (in accordance with what is provided in the Rules of the National Securities Commission). 100
1.3.7. Deposits in current accounts of non-bank financial entities, computable for the integration of their minimum cash. 100
1.3.8. Fixed-term deposits (including “CEDROS” and with “CER” clause), obligations for “acceptances” - including liabilities for sale or assignment of credits to subjects other than financial entities -, passive repos, guarantees and passive stock market repos, constant-term investments, with option for early cancellation or renewal for a determined term and with variable remuneration, and other time liabilities, 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. 12 ii) From 30 to 59 days. 9 iii) From 60 to 89 days. 8 iv) From 90 to 179 days. 6 v) From 180 to 365 days. 4 vi) More than 365 days. 0

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 13th COMMUNICATION “A“ 3905
Validity:
01/03/2003
1.3.9. Obligations for foreign financial lines, regardless of their instrumentation. 0
1.3.10. Debt securities (including bond issues).
a) Debt issued from 1.1.02, including those from restructured obligations, according to their residual term:
i) Up to 29 days. 12 ii) From 30 to 59 days. 9 iii) From 60 to 89 days. 8 iv) From 90 to 179 days. 6 v) From 180 to 365 days. 4 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 Fund for Assistance to Financial and Insurance Entities. 0
1.3.13. Demand and fixed-term deposits made by order of the Justice 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 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 demand accounts in foreign currency. 100
1.4. Residual Term.
1.4.1. Determination.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 10th COMMUNICATION “A“ 3905
Validity:
01/03/2003
1.4.1.1. General Case.
The residual term of each time obligation is equivalent to the number of days remaining until its maturity.
1.4.1.2. Time Investments.
In the case of time investments, the following criteria shall apply:
i) Constant term.
The remaining term until maturity shall be considered, taking into account the automatic extension or, where applicable, the term resulting from the exercise of the option to revoke it. ii) With option for early cancellation. The remaining term until the date on which the investor can exercise the option for early cancellation shall be taken into account, insofar as they are the holder of the right, or the originally agreed term, in case the entity is the holder of that right. iii) With option for renewal for a determined term. The remaining term until maturity shall be considered, taking into account for this purpose the term that would result from the eventual exercise of the extension option by the entity, insofar as it is the holder of the right. When the investor is the holder of that right, the originally agreed term shall be taken into account or, where applicable, the term resulting from the renewal if the option had been exercised.
1.4.1.3. Refinanciable Time Obligations.
When the financial entity enters into agreements or option contracts that ensure the total or partial refinancing of time obligations, for the purpose of establishing the residual term until the maturity of the obligations, the term resulting from making use of those facilities shall be considered, for the part of the liability included in the agreement. This criterion is applicable in case the agreement is carried out with a foreign bank that has at least an international risk rating of “A” or higher granted by any of the rating agencies admitted by the rules on “Evaluation of Financial Entities”, insofar as it is not the parent house or the controlling or controlled entity of the local entity.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 1st. COMMUNICATION “A” 3905
Validity:
01/03/2003

1.4.1.4. Liabilities from foreign financial lines (not linked to the financing of foreign trade operations).
i) With early cancellation clauses.
To determine the residual term, the remaining term until the date on which the foreign entity is contractually expected to request early cancellation or the originally agreed term, when subject to a decision by the local entity, shall be taken into account. ii) Without early cancellation clauses. The term remaining until maturity shall be taken into account to the extent that early cancellation is explicitly excluded by either party. Otherwise, they shall be treated as demand liabilities.

In the case of fixed-term deposits in pesos and foreign currency, the established rates - according to the maturity structure fixed - shall be applied to the amounts resulting from multiplying the total daily balance of those liabilities - which are recorded in the month to which they correspond - by the percentages resulting from the residual maturity structure of the previous month, considering the number of days remaining in that period until the maturity of the obligation, counted from each of the days of said period.

1.4.2. Fixed-term deposits.
In the case of fixed-term deposits in pesos and foreign currency, the established rates - according to the maturity structure fixed - shall be applied to the amounts resulting from multiplying the total daily balance of those liabilities - which are recorded in the month to which they correspond - by the percentages resulting from the residual maturity structure of the previous month, considering the number of days remaining in that period until the maturity of the obligation, counted from each of the days of said period. In the case of reprogrammed “CEDROS” deposits, each amortization service shall be considered independently, computing the number of days remaining until each established maturity.

1.4.3. Remaining time operations.
In these cases - including time investments and liabilities with banks and foreign correspondents that are computable - the residual terms shall be equivalent to the number of days remaining until the maturity of each obligation, counted from each of the days of the same month to which the minimum cash requirement corresponds. The requirement shall arise from applying the established rates to the daily balances of the aforementioned liabilities based on the different residual maturity tranches fixed.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 1st. COMMUNICATION “A” 3905
Validity:
01/03/2003

In the particular case of payment liabilities in capital installments, the amounts of the amortization services that mature within the year, counted from each of the days of the month to which the minimum cash requirement corresponds, shall be considered independently for the purpose of applying the appropriate rate based on the number of days remaining until the maturity of each of them.

1.5. Point increases in requirement due to liability concentration.
When an excessive concentration of liabilities (in titleholders and/or terms) is verified, which implies a significant risk regarding the individual liquidity of the financial entity and/or has an important negative effect on systemic liquidity, additional minimum cash requirements may be fixed on the liabilities comprised of the financial entity and/or those complementary measures deemed pertinent. It will be considered that this situation is configured when, among others, any of the following factors are present:

• A high percentage of liabilities is concentrated in the same titleholder or titleholders.
• In term liabilities, the term is short.
• The aforementioned liabilities represent a significant percentage with respect to the integration of the minimum cash and/or the total deposits of the private sector in the entity.

1.6. Transfers
1.6.1. Admitted margin.
The integration of the minimum cash of the positions in average monthly daily balances of the included liabilities shall not be less than 90% of the requirement resulting from the following expression:
EEMA (n) = EEF (n) + ENI (n-1)
Where
EEMA (n): adjusted minimum cash requirement corresponding to month “n”.
EEF (n): minimum cash requirement according to current regulations corresponding to month “n”.
ENI (n-1): requirement not integrated in month n-1.

1.6.2. Period of use.
The admitted transfer of the requirement not integrated in each month to the next position may be carried out for a maximum of six months, counted from the first month (inclusive) in which it is opted to use it according to the provisions previously stated or from the first immediate position subsequent to that in which the transferred defects are compensated or charges are paid on them.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 1st. COMMUNICATION “A” 3905
Validity:
01/03/2003

1.7. Defect in the application of resources in foreign currency.
The defect in the application of resources corresponding to deposits in foreign currency that is determined in a month shall be computed by an equivalent amount in the calculation of the minimum cash requirement for that same period.

1.8. Defect in the application of resources in pesos.
The defect of “minimum application of resources from demand and time liabilities in pesos” that is determined in a month shall be computed by an equivalent amount in the calculation of the minimum cash requirement in pesos for that same period.

MINIMUM CASH B.C.R.A.
Section 3. Non-compliance.
Version: 6th. COMMUNICATION “A” 3905
Validity:
01/03/2003

3.1. Charge.
3.1.1. Deficiencies in the integration of the minimum cash and the minimum daily integration in pesos shall be subject to a charge equivalent to twice the nominal annual interest rate due that arises from the tenders of the Letters of the Central Bank of the Argentine Republic, in pesos.
Deficiencies in integration in foreign currency are subject to a charge equivalent to twice the nominal annual interest rate due that arises from the tenders of the Letters of the Central Bank of the Argentine Republic in US dollars or twice the 30-day LIBO rate for operations in that currency, reported for the last business day of the pertinent month, whichever is higher. In the case of the Letters of the Central Bank of the Argentine Republic, the accepted cut-off rate reported by this Institution shall be taken into account, which is expressed as a nominal annual rate due, corresponding to the last tender carried out in the period under report. If letters are awarded for different terms on the same date, the rate corresponding to the operation with the shortest term shall be considered. When deficiencies in the average position and in the minimum daily integration are verified concurrently in the same month, the higher resulting charge shall be paid. To determine the deficiencies in the average position, the following shall be considered:
i) those for which the option of transfer is not used. ii) those that are not susceptible to be transferred to the next month by exceeding the admitted margin.

3.1.2. Charges may be reduced in exceptional cases, when mitigating circumstances are present and weighing the causes that originated the non-compliance.

3.1.3. Charges not paid in time and form shall be subject, during the period of non-compliance, to an interest equivalent to the rate resulting from adding 50% to the rate applicable to the deficiency, as provided in point 3.1.1.

3.1.4. The charge shall be calculated with the following expression:
c = D * TNA / 36500
Where c: amount of the charge.

MINIMUM CASH B.C.R.A.
Section 3. Non-compliance.
Version: 3rd. COMMUNICATION “A” 3905
Validity:
01/03/2003

D: deficiency subject to charge, expressed in numerals.
TNA: nominal annual rate applicable to the non-compliance, as a percentage.
To determine the interest on charges not paid in time and form, the following expression shall be applied:
i = [(1 + TEA)^(n/365) - 1] * 100 where i: interest rate corresponding to the delinquency period, as a percentage, with two decimals.
TEA: effective annual rate during the delinquency period, as a unit. n: number of calendar days between the due date fixed for the effective realization and the day prior to the presentation of the pertinent debit note for the pertinent current account opened at the Central Bank of the Argentine Republic. For the purposes of rounding the magnitudes of “c” and “i”, the values shall be incremented by one unit when the third digit of the fractions is equal to or greater than 5, discarding these latter if they are lower.

3.2. Framing programs.
Determining situations.
3.2.1. Integration defects, including the margin transferred to the next month, in the average position that exceed 20% of the adjusted requirements, for two consecutive months or four alternating months within a year.
3.2.2. Integration defects, regardless of their magnitude, computed in the manner mentioned in point 3.2.1., regarding which the entity pays charges, which are registered for three consecutive months or four alternating months within a year.
This as long as the determining situation provided for in point 3.2.1. is not configured.
The presentation of the framing program must be made within 20 calendar days following the closure of the period in which any of the situations provided for previously is registered.

3.3. Regularization and sanitation plans.
The requirement to present a regularization and sanitation plan, by determining that liquidity is affected by the registered defects, shall have the following consequences.

MINIMUM CASH B.C.R.A.
Section 5. Responsible parties and sanctions.
Version: 3rd. COMMUNICATION “A” 3905
Validity:
01/03/2003

5.1. Responsible for liquidity policy.
The financial entity shall inform the Superintendence of Financial and Exchange Entities of the names of the persons responsible for the management of the liquidity policy - which includes the adoption of precautions for the compliance with the integration of the minimum cash and the monitoring of the liquidity position - (officials and/or manager of the area), the General Manager, and the director or councilor or highest authority in the country in the case of foreign entities, to whom the function must be reported. When changes occur in this list, the information must be updated within 10 calendar days of the modification occurring.

5.2. Responsibilities.
The appointed officials shall be responsible for changes in the resource collection policy that imply a ruse intended to evade the minimum cash requirement, such as extending the term of operations associated with the early cancellation of liabilities. The mechanisms or modalities that, in the judgment of the Superintendence of Financial and Exchange Entities, presume the existence of undue conditions, shall determine the obligation of the financial entity to provide explanations on the matter within the term of 5 business days, counted from the notification of the request. The Superintendence shall issue a ruling within 30 business days following the receipt of the defenses.

5.3. Sanctions.
The verification of infractions shall determine the application of the following sanctions:
5.3.1. Fine of 5 to 10% of the improperly computed amounts, accumulating the sums of the last 12 months.
The financial entity and the aforementioned persons shall be jointly and severally responsible for the fines imposed.

5.3.2. Disqualification of 5 to 20 years for the performance of functions in the financial activity by the persons responsible for the liquidity area.
The sanctions shall have immediate execution, without prejudice to the right to appeal granted by the Financial Entities Law.

MINIMUM CASH B.C.R.A.
Section 6. Transitional provisions.
Version: 2nd. COMMUNICATION “A” 3905
Validity:
01/03/2003

6.1. Deductible amount of the requirement.
The deduction of the minimum cash requirement in pesos shall be admitted, in the proportions indicated below for the periods indicated, applicable to the theoretical integration deficiency or the increase in the deficiency, as appropriate, which would arise from recalculating the November 2002 position with the rates in effect for the December-January period. Position % December 2002/January 2003 80 February 2003 60 March 2003 30 From April 2003 0

6.2. Minimum daily integration of minimum cash in foreign currency.
Cash in foreign currency may be computed in entities, in transit and in cash transporters (validity 1.4.02).

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON MINIMUM CASH ORDERED TEXT ORIGIN OF THE RULE OBSERVATIONS Sec. Point Para. Com. Annex Sec. Point Para.
1.1. “A” 3274 II 1. 1.1.
1.1.1. “A” 3274 II 1. 1.1.1. According to Com. “A” 3498.
1.1.2. “A” 3274 II 1. 1.1.2. According to Com. “A” 3597.
1.1.3. “A” 3274 II 1. 1.1.3. According to Com. “A” 3498 and
3905
1.2. “A” 3274 II 1. 1.2. According to Com. “A” 3304, “A”
3498 and “A” 3597.
1.3. “A” 3274 II 1. 1.3.
1.3.1. “A” 3274 II 1. 1.3.1. According to Com. “A” 3338, “A”
3417, “A” 3498 and “A” 3597.
1.3.2. “A” 3274 II 1. 1.3.2. According to Com. “A” 3338, “A”
3417, “A” 3498 and “A” 3597.
1.3.3. “A” 3274 II 1. 1.3.3. According to Com. “A” 3338, “A”
3399, “A” 3417, “A” 3498,
“A” 3597 and “A” 3824.
1.3.4. “A” 3274 II 1. 1.3.4. According to Com. “A” 3338, “A”
3417, “A” 3498 and “A” 3597.
1.3.5. “A” 3274 II 1. 1.3.5. According to Com. “A” 3338, “A”
3417, “A” 3498 and “A” 3597.
1.3.6. “A” 3274 II 1. 1.3.6. According to Com. “A” 3365 and
“A” 3498.
1.3.7. “A” 3274 II 1. 1.3.7.
1.3.8. “A” 3498 unique 1. 1.3.8. According to Com. “A” 3506 -
pt. 2.-, 3549, 3732, 3824 and 3905.
1.3.9. “A” 3498 unique 1. 1.3.11. According to Com. “A” 3597 and
3732.
1.3.10. “A” 3498 unique 1. 1.3.12. According to Com. “A” 3905.
1.3.11. “A” 3527 3.
1.3.12. “A” 3549 1.
1.3.13. “A” 3549 1.
1.3.14. “A” 3566 5.
1.3.15. “A” 3583 3.
1.4. “A” 3905 3.
1.5. “A” 3274 II 1. 1.5. According to Com. “A” 3498.
1.6. “A” 3274 II 1. 1.6.
1.6.1. “A” 3274 II 1. 1.6.1.
1.6.2. “A” 3274 II 1. 1.6.2. According to Com. “A” 3304.
1.7. “A” 3498 unique 1. 1.8.
1.
1.8. “A” 3597 1. According to Com. “A” 3660.

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON MINIMUM CASH ORDERED TEXT ORIGIN OF THE RULE OBSERVATIONS Sec. Point Para. Com. Annex Sec. Point Para.
2.1. “A” 3274 II 2. 2.1. According to Com. “A” 3498 and
“A” 3597.
2.1.1. “A” 3274 II 2. 2.1.1. According to Com. "A" 3304.
2.1.2. “A” 3274 II 2. 2.1.2. According to Com. “A” 3304 and
“A” 3498.
2.1.3. “A” 3498 unique 2. 2.1.3.
2.1.4. “A” 3274 II 2. 2.1.3. According to Com. “A” 3498.
2.1.5. “A” 3274 II 2. 2.1.4.
2.1.6. “A” 3311
2.1.7. “A” 3498 unique 2. 2.1.7.
2.2. “A” 3274 II 2. 2.2. According to Com. “A” 3498
2.
2.3. “A” 3365 2. According to Com. “A” 3387,
3470, “A” 3498, “A” 3549,
“A” 3597, “A” 3732 and 3824.
3.1. “A” 3274 II 3. 3.1.
3.1.1. “A” 3274 II 3. 3.1.1. According to Com. “A” 3326,
3365, “A” 3498, “A” 3549 and
3905.
3.1.2. “A” 3274 II 3. 3.1.2.
3.1.3. “A” 3274 II 3. 3.1.3. According to Com. “A” 3326.
3.1.4. “A” 3274 II 3. 3.1.4.
3.2. “A” 3274 II 3. 3.2.
3.2.1. “A” 3274 II 3. 3.2.2.1.
3.2.2. “A” 3274 II 3. 3.2.2.2.
3.3. “A” 3274 II 3. 3.3. According to Com. “A” 3498.
3.3.1. “A” 3274 II 3. 3.3.1.
3.
3.3.2. “A” 3274 II 3. 3.3.2.
4. 4.1. “A” 3274 II 4. 4.1.
5.1. “A” 3274 II 5. 5.1. According to Com. “A” 3498.
5.2 “A” 3905 5.
5.
5.3 “A” 3905 5.
6. 6.1. “A” 3824
6.2. “A” 3824

B.C.R.A.
ORDERED TEXT OF THE RULES ON MINIMUM
APPLICATION OF RESOURCES FROM LIABILITIES
DEMAND AND TIME IN PESOS
Version: 4th. COMMUNICATION “A” 3905
Validity:
01/03/2003
-Index
Section 1. Scope.
1.1. Included liabilities.
1.2. Application base.
1.3. Requirements.
1.4. Residual term.
Section 2. Application.
2.1. Destinations.
Section 3. Application defects.
3.1. Determination.
Section 4. Transitional provisions.

MINIMUM APPLICATION OF RESOURCES FROM LIABILITIES B.C.R.A. DEMAND AND TIME IN PESOS
Section 1. Scope.
Version: 4th. COMMUNICATION “A” 3905
Validity:
01/03/2003

1.1.2.3. Liabilities with foreign banks - including parent companies and controlling entities of local entities and their branches - for lines that have as their destination the financing of foreign trade operations.
1.1.2.4. Liabilities from spot purchases to be settled and forward.
1.1.2.5. Spot sales to be settled and forward, linked or not to active swaps.
1.1.2.6. Demand liabilities from drafts and transfers from abroad pending payment and from correspondent operations abroad.
1.1.3. Computation.
The included liabilities shall be computed by the balances of effectively transacted capitals, including, where applicable, quotation differences (positive or negative) and, in the case of reprogrammed deposit certificates “CEDROS”, the amount accrued by application of the “Reference Stabilization Coefficient”.

1.2. Application base.
The requirement shall be applied to the monthly average of the daily balances of the included liabilities, recorded at the close of each day during each calendar month. The averages shall be obtained by dividing the sum of the daily balances by the total number of days of each month. On days where no movement is recorded, the balance corresponding to the immediate preceding business day shall be repeated.

1.3. Requirement.
The requirement amounts resulting from applying the following rates shall be applied:
Concept Rate
In %
1.3.1. Checking account deposits. 18
1.3.2. Savings account deposits. 18
1.3.3. Pupillary usury, special accounts for closed circles,
“Unemployment fund for construction industry workers”, “Payment of remuneration”, special checking accounts for legal entities and pension savings account. 18

MINIMUM APPLICATION OF RESOURCES FROM LIABILITIES DEMAND B.C.R.A. AND TIME IN PESOS
Section 1. Scope.
Version: 6th. COMMUNICATION “A” 3905
Validity:
01/03/2003

1.3.4. Other demand deposits and liabilities, pension benefits credited by ANSES pending effective realization and immobilized balances corresponding to liabilities included in these rules. 18
1.3.5. Unused balances of formalized checking account advances. 18
1.3.6. Demand placements - regardless of the form of imposition - that, at a minimum, must constitute the credit of common investment funds (in accordance with the provisions of the National Securities Commission Rules). 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 with “CER” clause), liabilities from “acceptances” - including liabilities for the sale or assignment of credits to subjects other than financial entities -, passive swaps, sureties and passive stock swaps, constant time investments, with option for early cancellation or renewal for a fixed term and with variable remuneration, and other time liabilities, according to their residual term:
i) Up to 89 days. 12 ii) More than 89 days.
0
1.3.9. Liabilities from foreign financial lines, regardless of their instrumentation. 0
1.3.10. Demand 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 negotiable bonds).
a) Debt issued from 1.1.02, including those from restructured liabilities, according to their residual term:
i) Up to 89 days. 12 ii) More than 89 days. 0 b) Others. 0
1.3.12. Liabilities with the Fiduciary Fund for Assistance to Financial and Insurance Entities. 0

1.4 Residual term.
The computation of the residual terms of the included liabilities shall be carried out in accordance with what is established in point 1.4. of Section 1. of the rules on “Minimum Cash”.

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE RULES ON “MINIMUM APPLICATION OF RESOURCES FROM LIABILITIES DEMAND AND TIME IN PESOS” ORDERED TEXT ORIGIN OF THE RULE OBSERVATIONS Sec. Point Para. Com. Annex Sec. Point Para.
1.1. “A” 3598 unique 1. 1.1.
1.1.1. “A” 3598 unique 1. 1.1. According to Com. “A” 3660,
3732 and 3824.
1.1.2. “A” 3598 unique 1. 1.1.
1.1.3. “A” 3598 unique 1. 1.1. According to Com. “A” 3905
1.2. “A” 3598 unique 1. 1.2.
1.3. “A” 3598 unique 1. 1.3.
1.3.1. “A” 3598 unique 1. 1.3.
1.3.2. “A” 3598 unique 1. 1.3.
1.3.3. “A” 3598 unique 1. 1.3. According to Com. “A” 3824.
1.3.4. “A” 3598 unique 1. 1.3.
1.3.5. “A” 3598 unique 1. 1.3.
1.3.6. “A” 3598 unique 1. 1.3.
1.3.7. “A” 3598 unique 1. 1.3.
1.3.8. “A” 3732 5. According to Com. “A” 3824
and 3905.
1.3.9. “A” 3598 unique 1. 1.3. According to Com. “A” 3732.
1.3.10. “A” 3598 unique 1. 1.3. According to Com. “A” 3824.
1.3.11. “A” 3824 According to Com. “A” 3905
1.3.12. “A” 3824
1.
1.4. “A” 3905
2.1. “A” 3598 unique 2. 2.1.
2.1.1. “A” 3598 unique 2. 2.1.1.
2.
2.1.2. “A” 3660 According to Com. “A” 3732,
“A” 3824 and “A” 3883.
3. 3.1. “A” 3598 unique 3. 3.1.
4. 4.1. “A” 3674 According to Com. “A” 3698,
3732, “A” 3824 and “A”
3883.