Minimum Cash Requirements. Modifications.

"2004 - Year of the Argentine Antarctic"
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 4179 30/07/2004
TO FINANCIAL ENTITIES:
Ref.: Circular
REMON 1 - 787
Minimum Cash. Modifications.

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We address you in order to adapt the minimum cash requirement within the framework of what is provided in point 2 of the resolution disseminated through Communication "A" 4147. Likewise, we take this opportunity to homogenize the wording of the second paragraph of point 1.4.1.3. of Section 1. of the regulations on "Minimum Cash" in accordance with what is provided in subsection ii) of point 5.6.1.2. of Section 5. of the regulations on "Minimum Capital of Financial Entities", thereby incorporating the term "branches". We send you attached the sheets that, in replacement of those previously provided, correspond to be incorporated into the ordered text of the regulations on "Minimum Cash". We salute you very attentively. BANCO CENTRAL DE LA REPUBLICA ARGENTINA Alfredo A. Besio José Rutman Manager of Issuance Manager of Norms Main Manager of Norms

ANNEX

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 19th COMMUNICATION "A" 4179
Validity:
01/08/2004

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 account deposits. 18
1.3.2. Savings account deposits.
1.3.2.1. In pesos. 18
1.3.2.2. In foreign currency. 30
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 accounts.
1.3.3.1. In pesos. 18
1.3.3.2. In foreign currency. 30
1.3.4. Other demand deposits and obligations, pension benefits credited by ANSES pending cashing, and immobilized balances corresponding to obligations included in these regulations.
1.3.4.1. In pesos. 18
1.3.4.2. In foreign currency. 30
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 what is provided in the Norms of the National Securities Commission). 100
1.3.7. Deposits in checking accounts of non-banking financial entities, computable for the integration of their minimum cash. 100
1.3.8. Time deposits, obligations for "acceptances" - including liabilities for sale or assignment of credits to subjects other than financial entities -, passive swaps, sureties, and passive stock market swaps, investments with constant term, with option for early cancellation or renewal for a determined term and with variable remuneration, and other term obligations, with the exception of deposits included in points 1.3.12. and 1.3.15., according to their residual term:

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 19th COMMUNICATION "A" 4179
Validity:
01/08/2004

1.3.8.1. In pesos.
i) Up to 29 days. 18 ii) From 30 to 59 days. 14 iii) From 60 to 89 days. 10 iv) From 90 to 179 days. 5 v) From 180 to 365 days. 3 vi) More than 365 days. 0 Deposits with "CER" clause and those included in the "Deposit Reprogramming Regime" are included in this point - without excluding those reached according to their point 6.5., in their entirety or partially if appropriate based on the nature of the judicial decision.

1.3.8.2. In foreign currency.
i) Up to 29 days. 35 ii) From 30 to 59 days. 28 iii) From 60 to 89 days. 20 iv) From 90 to 179 days. 10 v) From 180 to 365 days. 6 vi) More than 365 days. 0

1.3.9. Obligations for foreign financial lines (not instrumented through time deposits or debt securities to which the requirements provided in points 1.3.8. and 1.3.10., respectively, apply). 0

1.3.10. Debt securities (including negotiable obligations).
a) Debt issued from 1.1.02, including those from restructured obligations, according to their residual term:
In pesos. i) Up to 29 days. 18 ii) From 30 to 59 days. 14 iii) From 60 to 89 days. 10 iv) From 90 to 179 days. 5 v) From 180 to 365 days. 3 vi) More than 365 days. 0

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 11th COMMUNICATION "A" 4179
Validity:
01/08/2004

In foreign currency. i) Up to 29 days. 35 ii) From 30 to 59 days. 28 iii) From 60 to 89 days. 20 iv) From 90 to 179 days. 10 v) From 180 to 365 days. 6 vi) More than 365 days. 0 b) Others. 0

1.3.11. Obligations with the Fiduciary Fund for Assistance to Financial and Insurance Entities. 0

1.3.12. Demand and time deposits made by order of the Justice with funds originating in the cases in which it intervenes, and their immobilized balances.
1.3.12.1. In pesos. 10
1.3.12.2. In foreign currency. 15

1.3.13. Special accounts in US dollars destined 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

1.3.14. Special demand accounts in foreign currency. 100

1.3.15. Deposits - regardless of their modality - that constitute the credit of common investment funds (except those included in point 1.3.6.).
1.3.15.1. In pesos. 25
1.3.15.2. In foreign currency. 40

1.4. Residual Term.
1.4.1. Determination.
1.4.1.1. General case.
The residual term of each term obligation is equivalent to the number of days remaining until its maturity.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 2nd COMMUNICATION "A" 4179
Validity:
30/07/2004

1.4.1.2. Term Investments.
In the case of term investments, the following criteria shall be applied:
i) Constant term.
The remaining term until maturity shall be considered, taking into account the automatic extension or, if 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, to the extent that they are the holder of the right, or the originally agreed term, in case that 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, to the extent that 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, if applicable, the term resulting from the renewal if the option had been exercised.

1.4.1.3. Refinanciable Term Obligations.
When the financial entity enters into agreements or option contracts that ensure the total or partial refinancing of term obligations, in order to establish the residual term until the maturity of the obligations, the term resulting from making use of those facilities shall be considered, for the portion of the liability included in the agreement. This criterion is applicable in case that the agreement is carried out with a bank abroad that has at least one international risk rating of "A" or higher granted by one of the rating agencies admitted by the regulations on "Evaluation of Financial Entities", to the extent that it is not the parent house or the controlling or controlled entity or branches 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 of the local entity, shall be taken into account.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 2nd COMMUNICATION "A" 4179
Validity:
01/03/2003

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 have the treatment of demand obligations.

1.4.2. Time Deposits.
In the case of time deposits in pesos and in foreign currency, the established rates - according to the opening by terms 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 it corresponds - 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 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 Term Operations.
In these cases - including term investments and obligations with banks and correspondents abroad 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 the appropriate rate to them based on the number of days remaining until the maturity of each of them.

1.5. Point Increases in Requirement by Liability Concentration.
When an excessive concentration of liabilities (in holders 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 included in the financial entity and/or those complementary measures that are deemed pertinent. It shall 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 holder or holders.

MINIMUM CASH B.C.R.A.
Section 1. Requirement.
Version: 4th COMMUNICATION "A" 4179
Validity:
01/06/2004

• In term obligations, 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 obligations included 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 up to a maximum of six months, counted from the first month (inclusive) in which the option to use it is chosen in accordance with what is provided previously or from the first immediate position subsequent to that in which the transferred defects are compensated or charges are paid on them.

1.7. Defect of Application of Resources in Foreign Currency.
The defect of 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 of that same period of the respective currency.

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE REGULATIONS ON "MINIMUM CASH"

ORDERED TEXT ORIGIN NORM
Sec. Point Para. Com. Annex Sec. Point Para.
OBSERVATIONS
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 "A"
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, "A" 3597,
"A" 3917, "A" 3967, "A"
4032, "A" 4051 and "A" 4147.
1.3.2. "A" 3274 II 1. 1.3.2. According to Com. "A" 3338, "A"
3417, "A" 3498, "A" 3597,
"A" 3917, "A" 3967, "A"
4032, "A" 4051, "A" 4147 and
"A" 4179.
1.3.3. "A" 3274 II 1. 1.3.3. According to Com. "A" 3338, "A"
3399, "A" 3417, "A" 3498,
"A" 3597, "A" 3824, "A"
3917, "A" 3967, "A" 4032,
"A" 4051, "A" 4147 and "A"
4179.
1.3.4. "A" 3274 II 1. 1.3.4. According to Com. "A" 3338, "A"
3417, "A" 3498, "A" 3597,
"A" 3917, "A" 3967, "A"
4032, "A" 4051, "A" 4147 and
"A" 4179.
1.3.5. "A" 3274 II 1. 1.3.5. According to Com. "A" 3338, "A"
3417, "A" 3498, "A" 3597,
"A" 3917, "A" 3967, "A"
4032, "A" 4051 and "A" 4147.
1.3.6. "A" 3274 II 1. 1.3.6. According to Com. "A" 3365, "A"
3498, "A" 3967 and "A" 4179.
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.-, "A" 3549, "A" 3732, "A"
3824, "A" 3905, "A" 3917,
"A" 3925, "A" 3967, "A"
4032, "A" 4140 and "A" 4179.
1.3.9. "A" 3498 unique 1. 1.3.11. According to Com. "A" 3597, "A"
3732 and "A" 4032.
1.3.10. "A" 3498 unique 1. 1.3.12. According to Com. "A" 3905, "A"
3917, "A" 3967, "A" 4032 and
"A" 4179.
1.3.11. "A" 3549 1.
1.3.12. "A" 3549 1. According to Com. "A" 4179.
1.3.13. "A" 3566 5.
1.3.14. "A" 3583 3.
1.3.15. "A" 4179 2.
1.4. "A" 3905 3. According to Com. "A" 4179.
1.
1.5. "A" 3274 II 1. 1.5. According to Com. "A" 3498.

B.C.R.A.
ORIGIN OF THE PROVISIONS INCLUDED IN THE ORDERED TEXT OF THE REGULATIONS ON "MINIMUM CASH"