2014 - YEAR OF HOMAGE TO ADMIRAL GUILLERMO BROWN, ON THE BICENTENNIAL OF THE NAVAL BATTLE OF MONTEVIDEO

COMMUNICATION "A" 5524
20/01/2014

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
REMON 1 - 881

Reduction of the minimum cash requirement in pesos for financings granted to Micro, Small and Medium Enterprises from
1.1.14 pursuant to the "Credit Line for
Productive Investment"
.

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

"- To incorporate, effective from 1.3.14, into Section 1. of the rules on "Minimum Cash" the following point:

"1.5.3. Based on the granting of financings to MiPyMEs from 1.1.14.

The requirement shall be reduced by an amount equivalent to 16% of the financings agreed to MiPyMES from 1.1.14, in accordance with the provisions of the rules on the "Credit Line for Productive Investment", to the extent that it is verified that the term of said financings at the time of their granting exceeds 5 years, without their average term being less than 30 months.

For this purpose, the monthly average of the daily balances of said financings -principals- for the month prior to the month of calculation of the requirement shall be taken into account.

This reduction shall also apply to financial institutions that, despite not being covered by point 1.3. of the rules on the "Credit Line for Productive Investment", grant financings to MiPyMEs under the conditions of this point."

Lastly, we are sending you the pages that are to be incorporated into the "Minimum Cash" rules, replacing those previously provided. It is also recalled that on this Institution's website www.bcra.gob.ar, by accessing "normativa" ("textos ordenados"), the modifications made will be found with the texts highlighted in special characters (strikethrough and bold).

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Yours faithfully,

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Chief Manager of Issuance and Regulatory Applications

Alfredo A. Besio
Deputy General Manager of Regulations

ANNEX

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

1.5.3. Based on the granting of financings to MiPyMEs from 1.1.14. The requirement shall be reduced by an amount equivalent to 16% of the financings agreed to MiPyMES from 1.1.14, in accordance with the provisions of the rules on the "Credit Line for Productive Investment", to the extent that it is verified that the term of said financings at the time of their granting exceeds 5 years, without their average term being less than 30 months.

For this purpose, the monthly average of the daily balances of said financings -principals- for the month prior to the month of calculation of the requirement shall be taken into account.

1.6. Point increases in requirement due to concentration of liabilities.

When an excessive concentration of liabilities (in holders and/or terms) is verified, which implies a significant risk with respect to the individual liquidity of the financial institution and/or has a significant negative effect on systemic liquidity, additional minimum cash requirements may be set on the liabilities included in the financial institution and/or those complementary measures deemed appropriate.

It shall be considered that this situation occurs when, among others, any of the following factors are present:

A high percentage of liabilities is concentrated in the same holder or holders.
In term obligations, the term is short.
The aforementioned liabilities represent a significant percentage with respect to the composition of the minimum cash and/or the total deposits of the private sector in the institution.

1.7. Transfers.

1.7.1. Admitted margin.

The composition of the minimum cash of the positions on a monthly or quarterly average of daily balances of the included obligations may not be less than 80% of the requirement resulting from the following expression:

EEMA (n) = EEF (n) + ENI (n-1)

Where

EEMA (n): adjusted minimum cash requirement corresponding to period "n".

Version: 4a. COMMUNICATION "A" 5524
Effective:
01/03/2014
Page 10

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

EEF (n): minimum cash requirement according to current rules corresponding to period "n".

ENI (n-1): requirement not composed in period "n-1".

Period: month or quarter, as applicable.

1.7.2. Period of use.

The admitted transfer of the requirement not composed in each period to the following position may be made up to a maximum of six periods, counted from the first period -inclusive- in which its use is opted for in accordance with the foregoing, or from the first position immediately following that in which the transferred deficiencies are offset or a charge is paid on them.

For its calculation, the numerals transferred from the period to which they correspond shall be counted, divided by the number of days of the period to which the transfer is made.

1.8. Defect in the application of foreign currency resources.

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

1.9. Increase in the requirement for non-compliance with the rules on "Credit Line for Productive Investment".

The defect in the application of the 2013 Quota verified - on 1.7.13 or 1.1.14, as applicable, when it concerns the first tranche and 1.1.14 or 1.7.14, as applicable, when it concerns the second tranche - shall be counted for an equivalent amount in the calculation of the average minimum cash requirement in pesos, from said dates and for 24 months.

The defect in the application of the 2014 Quota shall generate an increase in the average minimum cash requirement in pesos for an equivalent amount from the day following its verification (1.7.14 or 1.1.15) for 24 months.

Version: 3a. COMMUNICATION "A" 5524
Effective date:
01/03/2014
Page 11

CENTRAL BANK OF THE ARGENTINE REPUBLIC

MINIMUM CASH


ORDERED TEXT			SOURCE NORM				OBSERVATIONS
Sec.	Point	Par.	Comm.	Annex	Sec.	Point	Par.
1.	1.3.10.		"A" 3549			1.
	1.3.11.		"A" 3549			1.	Pursuant to Comm. "A" 4179, 4388, 4549, 4851 and 5356.
	1.3.12.		"A" 4179			2.	Pursuant to Comm. "A" 4406, 4449, 4707, 4851 and 5356.
	1.3.13.		"A" 4360			2.	Pursuant to Comm. "A" 5356.
	1.3.14.		"A" 4754			6.	Pursuant to Comm. "A" 5356.
	1.4.		"A" 3905			3.	Pursuant to Comm. "A" 4179, 4449 and 4473.
	1.5.		"A" 5356			2.	Pursuant to Comm. "A" 5471.
	1.5.1.		"A" 5356			2.	Pursuant to Comm. "A" 5471.
	1.5.2.		"A" 5471			1.
	1.5.3.		"A" 5524
	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 and 4449.
	1.7.2.		“A” 3274	II	1.	1.6.2.	According to Com. “A” 3304 and 4449.
	1.8.		“A” 3498	sole	1.	1.8.	According to Com. “A” 4147.
	1.9.		“A” 5380				According to Com. “A” 5449 and 5516.
2.	2.1.		“A” 3274	II	2.	2.1.	According to Com. “A” 3498, 3597, 4716 (includes interpretive clarification), 4815 and “B” 9186.
	2.1.1.		“A” 3274	II	2.	2.1.2.	According to Com. “A” 3304, 3498, 4016 and 4147.
	2.1.2.		“A” 3498	sole	2.	2.1.3.	According to Com. “A” 4147.
	2.1.3.		“A” 3274	II	2.	2.1.3.	According to Com. “A” 3498, 4147, 4276 and 5194.
	2.1.4.		“A” 3274	II	2.	2.1.4.
	2.1.5.		“A” 4016			1.
	2.1.6.		“A” 4716		2.		According to Com. “B” 9186.
	2.2.		“A” 3274	II	2.	2.2.	According to Com. “A” 3498, 4449, 4716 and 5299.
	2.3.		“A” 3365			2.	According to Com. “A” 3387, 3470, 3498, 3549, 3597, 3732, 3824, 4016, 4449, 4716, 5152, 5299, 5373 and “B” 9186.
	2.4.		“A” 4147			3.	According to Com. “A” 4276, 4449, 4509, 5152 and 5299.
	2.5.		“A” 4147			3.	According to Com. “A” 4393, 4509, 4716 and 5299.
3.	3.1.		“A” 3274	II	3.	3.1.
	3.1.1.		“A” 3274	II	3.	3.1.1.	According to Com. “A” 3326, 3365, 3498, 3549, 3905, 4276, 4449, 4473, 4707, 4716, 4862, 5356 and “B” 9186.