Monetary Regulations Circular - REMON 1 - 200. Rules applicable to operations at a rate regulated by the Central Bank

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
COMMUNICATION "A" 617 03/04/85
TO THE FINANCIAL INSTITUTIONS:
Ref.: Circular MONETARY REGULATIONS - REMON - 1 - 200. Rules applicable to operations at a rate regulated by the Central Bank We address you to communicate the new rules applicable to non-adjustable operations at a rate regulated by the Central Bank, which are attached as Annexes I and II and will govern as from 1.4.85. We greet you very attentively. BANCO CENTRAL DE LA REPÚBLICA ARGENTINA Carlos A. Endelman Submanager of Monetary Programming a/c Néstor J. Taró Departmental Manager c/f Deputy General Manager ANNEXES

B.C.R.A. RULES ON LENDING CAPACITY OF THE
REGULATED SYSTEM
Annex I to
Com. "A" 617

1. Deposits and other liabilities subject to fractional reserve shall observe - whatever their place of imposition - the following minimum cash requirements:
   Groups
   I II

• In % -
• Common savings account ……………… 9.0 10.0
• Special savings account ……………… 4.5 6.0
• Non-adjustable time deposit:
• from 7 to 14 days ……………… 13.0 14.0
• from 15 to 22 days ……………… 9.0 10.0
• from 23 to 29 days ……………… 6.5 8.0
• from 30 days or more ……………… 4.5 6.0
• Current accounts and other deposits and liabilities for financial intermediation …….. 96.5 97.5
  Group I includes provincial and municipal public financial institutions, cooperative banks, private banks from the interior with no more than one office in the Federal Capital and Greater Buenos Aires, and non-bank financial institutions. Group II includes the remaining financial institutions.

2. For the attention of non-adjustable financing operations subject to the maximum interest rate requirement established by the Central Bank and those adjustable by financial index and loan updating, the institutions shall have the following resources:
   2.1. The lending capacity of the deposits and other liabilities mentioned in the preceding point.
   2.2. Interfinancial liabilities, except those adjustable by United States dollar clause.
   2.3. Other sources of financing that do not have specific economic placement conditions.
   2.4. Own resources, net of immobilized assets.
3. The minimum cash reserves of time deposits and savings accounts referred to in point 1. shall not be compensated through the Monetary Regulation Account.

-2-
The lending capacity of demand deposits and other liabilities shall be exempt from charge within the mechanism of the aforementioned account.
4. With respect to the deposits mentioned in point 1., the deductions of adjustments and interest of the Consolidated Loan referred to in Communication "A" 153 and complementary ones are without effect.
5. This Institution shall arrange, when it considers it necessary for reasons of monetary policy, the mandatory subscription and integration of a financial asset of the Central Bank for the growth of savings and time deposits with respect to the balances in force as of 31.3.85 (principal and interest), in the proportions periodically determined, taking into account the characteristics and conditions that will be established separately.

B.C.R.A.
REGIME APPLICABLE TO OPERATIONS NOT
ADJUSTABLE AT A RATE REGULATED BY THE
CENTRAL BANK, IN FORCE AS OF 31.3.85
Annex II to
Com. "A" 617

1. For the difference between the lending capacity of the deposits and other liabilities referred to in point 1. of Annex I in force as of 31.3.85, determined from the minimum cash requirements at that date and that resulting from applying the coefficients provided in the aforementioned point, an unavailable deposit shall be constituted with value as of 1.4.85, which must be made effective no later than 22.4.85. Said deposit shall be increased by the outstanding settlement balance of the Monetary Regulation Account for adjustments and interest accrued as of 31.3.85 for deposits subject to fractional reserve (point 1. of Annex I) in force at that date, which shall be credited with value as of 1.4.85.
2. In order to attend to their operational needs, the institutions may defer the effective constitution of the unavailable deposit within the proportions of amount and maximum term determined by the Central Bank. The amount of the deferral shall increase the minimum cash requirement.
3. The unavailable deposit shall be applied first to the debt balances (principal and adjustments) as of 31.3.85 for the Consolidated Loan and the loan for the extension of terms of Communication "A" 22. Said amount shall accrue adjustments and interest under the same conditions established for the aforementioned loan lines and shall be released based on the enforceability of such lines. In the event that the amount of the unavailable deposit is less than the balance of the aforementioned loan lines, the release installments of said deposit shall keep the same percentage relationship as that arising from comparing the maturities that occur of the affected credits with respect to the debt balances of the referred loans.
4. The excess of the unavailable deposit with respect to the provisions of the preceding point shall be updated according to the variation experienced by the index set by the Central Bank. On the amount of the deferral requested referred to in point 2 - excluding the amount computable for the integration of the minimum cash for pension payment orders (line 4 of formula 3000 B) - the institutions shall pay a charge equivalent to 0.20% monthly.