Net Global Foreign Currency Position. Adjustments

"2015 - YEAR OF THE BICENTENNIAL OF THE CONGRESS OF THE FREE PEOPLES" COMMUNICATION "A" 5834 20/11/2015 TO FINANCIAL INSTITUTIONS:
Ref.: Circular
LISOL 1 - 648
Net global foreign currency position.
Adjustments.

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We address you to inform you that this Institution adopted the resolution that, in its pertinent part, provides:
"1. Replace, with effect from 30.11.15, point 1.2. of the rules on "Net global foreign currency position" with the following:
"1.2. Exclusions.
1.2.1. Assets deductible to determine computable net worth.
1.2.2. National public securities up to the amount of primary subscriptions made from 1.11.14."
2. Replace, with effect from 30.11.15, the first paragraph of point 2.1. of the rules on "Net global foreign currency position" with the following:
"This daily position - daily balance converted to pesos at the reference exchange rate - may not exceed 15% of the computable net worth of the month prior to the corresponding month."
3. Replace, with effect from 30.11.15, points 2.2.1. and 2.2.2. of the rules on "Net global foreign currency position" with the following:
"2.2.1. General limit.
This daily position - daily balance converted to pesos at the reference exchange rate - may not exceed 15% of the computable net worth of the month prior to the corresponding month or liquid own resources, whichever is lower. Liquid own resources means the excess of computable net worth over immobilized assets and other concepts, computable in accordance with the rules on the "Ratio for immobilized assets and other concepts".
2.2.1.1. Extension.
This limit shall be extended by the amount equivalent to the increase in the daily balances of financing received from abroad entered through the single and free exchange market, converted to pesos at the reference exchange rate, recorded between 31.1.14 and the day prior to the one to which the net global position refers." "2.2.2. Limit for the term position. The daily net positive foreign currency term position - daily balance converted to pesos at the reference exchange rate - may not exceed 7.5% of the computable net worth of the month prior to the corresponding month. To determine the net positive foreign currency term position, the pertinent concepts included in other credits for financial intermediation, other obligations for financial intermediation and derivatives recorded in memorandum accounts, denominated in foreign currency, must be considered, excluding concepts related to repo operations. Term sales agreed with counterparties related to the entity, according to the definitions contained in point 2.2. of the rules on "Credit risk fragmentation", shall not be computable, except in the case of term sales to companies providing complementary services to financial activity subject to consolidated supervision with the financial institution for hedging variations in the exchange rate originating from:
i) the balances of financing that these related persons receive from abroad from 1.12.15 and that are entered through the single and free exchange market; and ii) the balances of financing denominated in foreign currency obtained by these related persons that were in force as of 18.3.14 and until 30.11.15. Computable term sales may not exceed the amount of the negative net global foreign currency position of that related person, for which the entity must require each of these persons, for each period, to present a sworn declaration regarding their net global foreign currency position, certified by a public accountant. These sworn declarations must be kept available to the Superintendence of Financial and Exchange Entities. Their computation shall be made on the basis of the daily balances of the included concepts converted to pesos at the reference exchange rate."
4. Incorporate, with effect from 30.11.15, as point 2.3. of the rules on "Net global foreign currency position" the following:
"2.3. Admitted excesses.
Excesses to the limits that occur, on a temporary and circumstantial basis, shall be considered admitted when the excesses for all concepts total on no day exceed 10% of the limit (general or extended, as applicable) and are not verified on more than 3 business days per calendar month. Excesses that exceed the limit indicated above shall receive the treatment provided for in Section 3. (Non-compliances)."
5. Provide that the limit to the daily global position referred to in point 3. of this communication shall be, from 9.12.15 inclusive, 10% of the computable net worth of the month prior to the corresponding month or liquid own resources, whichever is lower.
6. Provide that the limit to the daily term position referred to in point 3. of this communication shall be, from 9.12.15 inclusive, 5% of the computable net worth of the month prior to the corresponding month or liquid own resources, whichever is lower.
7. Establish that until 8.12.15 inclusive financial institutions may not increase the daily balance of their net foreign currency position - general (point 2.2.1.) and term (point 2.2.2.)."
Likewise, we inform you that we will subsequently send you the pages that, in replacement of those previously provided, will correspond to be incorporated into the rules of the reference as a consequence of the measure adopted. We greet you attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC Darío C. Stefanelli Juan C. Isi Principal Manager of Issuance and Normative Applications Deputy General Manager of Norms