Minimum Cash Requirement: Adjustments

The Malvinas are Argentine

COMMUNICATION “A” 7448
27/01/2022

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
REMON 1-1054:

Minimum cash. Adjustments.

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We address you to inform you that this Institution adopted the resolution that, in its pertinent part, establishes:

“- To provide, with effect for the financings that financial institutions grant as from 1.2.22 within the framework of the “AHORA 12” Program, that the percentage of those financings that will be deductible from the minimum cash requirement in pesos –provided for in point 1.5.2. of the rules on “Minimum cash”– will be 40 %.”

On the other hand, we send you the pages that, in replacement of those previously provided, should be incorporated into the reference rules. In this regard, it is recalled that on this Institution's page www.bcra.gob.ar, by 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
Darío C. Stefanelli
Principal Manager of Issuance and
Regulatory Applications

ANNEX

B.C.R.A.
MINIMUM CASH
Section 1. Requirement.

1.5. Reduction of the average requirement in pesos.

1.5.1. Based on certain financings.

The requirement will be reduced in accordance with the share in the total financings to the non-financial private sector in pesos at the entity of financings to micro, small and medium-sized enterprises (MSMEs) in the same currency –according to the definition contained in the rules on “Determination of the condition of micro, small or medium-sized enterprise”– considering that classification at the time of granting, according to the following table:

Share of financings to MSMEs with respect to total financings to the non-financial private sector, at the entity. In %	Deduction (on the total of the concepts included in pesos). In %
Less than 4	0,00
Between 4 and less than 6	1,00
Between 6 and less than 8	1,25
Between 8 and less than 10	1,50
Between 10 and less than 12	1,75
Between 12 and less than 14	2,00
Between 14 and less than 16	2,25
Between 16 and less than 18	2,50
Between 18 and less than 20	2,75
Between 20 and less than 22	3,00
Between 22 and less than 24	3,25
Between 24 and less than 26	3,50
26 or more	3,75

For the purposes of computing financings to MSMEs, to determine the percentage of participation, it will be taken into account whether they meet that condition at the time of granting the assistance, considering all outstanding financings. If the borrower ceases to meet the MSME condition, the financings granted up to that moment will be computed.

The average mobile balance at the end of the last 12 months prior to the under report of the financings in pesos (Loans and Credits for Financial Leases) granted to MSMEs with respect to the total of those financings to the entity's non-financial private sector will be considered.

1.5.2. Based on the granting of financings within the framework of the “AHORA 12” Program.

For those financial institutions that are adhered to that program, the requirement will be reduced by an amount equivalent to:

• 35 % of the sum of the peso financings granted up to 30.9.2020,

• 50 % of the sum of the peso financings granted from 1.10.2020 and up to 31.1.22, and

B.C.R.A. MINIMUM CASH
Section 1. Requirement.

• 40 % of the sums of the peso financings that they grant from 1.2.22.

In all cases:

1.5.2.1. As provided for by the “AHORA 12” Program referred to in Joint Resolution No. 671/14 and 267/14 of the former Ministry of Economy and Public Finance and the former Ministry of Industry, respectively, whose purpose is the acquisition of goods and services included in the aforementioned resolution and its complementary rules.

For this purpose, the balance of the covered financings of the period prior to the computation of the requirement that meet the indicated requirements shall be considered.

1.5.2.2. To non-financial companies issuing credit cards at an interest rate of up to 17 % nominal annual, to the extent that such companies have adhered to the “AHORA 12” Program.

For this purpose, the financings of the period prior to the computation of the requirement shall be considered, measured as a monthly average of daily balances.

The financial institution must require and have documentation that proves that the borrowing company has used the funds to grant financings under the conditions of the aforementioned Program.

This deduction may not exceed 8 % of the peso items subject to requirement, on average, of the month prior to the computation.

1.5.3. Based on cash withdrawals made through the institution's automated teller machines.

The requirement shall be reduced by the amount resulting from the following expression, and may not exceed the amount of the requirement previously determined, considering the provisions of the preceding point:

Σi=1^4 [(Msi × Psi) + (Mni × Pni)]

where:

Msi: monthly average of the total daily cash withdrawals from automated teller machines, corresponding to the previous month, located in the institution's operating offices, according to the jurisdiction in which it is located, in accordance with the provisions of the rules on “Categorization of localities for financial institutions”.

Mni: monthly average of the total daily cash withdrawals from automated teller machines, corresponding to the previous month, outside its operating offices (neutral) and according to the jurisdiction in which they are located, in accordance with the aforementioned categories.

Psi: weighting factor applicable to the amount Msi.

Pni: weighting factor applicable to the amount Mni.

MINIMUM CASH

TEXT AS AMENDED			ORIGINAL RULE				OBSERVATIONS
Sec.	Point	Para.	Comm.	Annex	Sec.	Point	Para.
	1.3.8.		“A” 4360			2.	According to Comm. “A” 5356 and 6616.
	1.3.9.		“A” 4754			6.	According to Comm. “A” 5356, 5980, 6195, 6526, 6532, 6616 and 6728.
	1.3.10.		“A” 5945			4.	According to Comm. “A” 6069, 6204 and 6616.
	1.3.11.		“A” 6341				According to Comm. “A” 6616.
	1.3.12.		“A” 6069			4.	According to Comm. “A” 6616.
	1.3.13.		“A” 6992
	1.3.14.		“A” 7429
	1.3.15.		“A” 5356			1.	According to Comm. “A” 6616 and 6706.
	1.3.16.		"A" 6526				According to Com. "A" 6532, 6550, 6587, 6616, 6706, 7016 and 7290.
	1.3.17.		"A" 6550				According to Com. "A" 6556, 6559, 6575, 6587, 6616, 6706, 6738, 6740, 6817, 7018, 7029, 7047, 7092, 7290, 7295, 7383 and 7432. Includes regulatory clarification.
1.	1.3.	Last	"A" 6526				According to Com. "A" 6532, 6556, 6569, 6575, 6587, 6616, 6628, 6740, 7016, 7290 and 7295. Includes 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, 6705 and 7432.
	1.5.2.		"A" 5631			1.	According to Com. "A" 5638, 6217, 6531, 6857, 6910, 6937, 7114, 7334 and 7448.
	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.	According to Com. "A" 7432.
	1.5.9.		"A" 7254			1.	According to Com. "A" 7287. Includes regulatory clarification.
	1.5.10.		"A" 7342			2.
	1.5.	last	"A" 6858			2.	According to Com. “A” 6965, 6993, 7006, 7140, 7155, 7161, 7254 and 7342.
		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.