Time deposits and investments: adjustments to minimum rates and early cancellation rate

2020 - YEAR OF GENERAL MANUEL BELGRANO

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION “A” 7139
15/10/2020

TO FINANCIAL INSTITUTIONS:

Ref.: Circular
OPASI 2 - 624

Time deposits and investments. Adjustments.

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

“1. To provide, with effect for placements made as from 16.10.2020 inclusive, that the minimum rates for time deposits and the fixed early cancellation rate for deposits with an early cancellation option in Purchasing Value Units (“UVA”) provided for in points 1.11.1. and 2.8.2., respectively, of the rules on “Time deposits and investments”, shall be determined based on the rate of the BCRA Liquidity Bills (LELIQ) auction in pesos of the shortest term of the previous day, or the last one disclosed, as applicable, with respect to the day on which the deposits are made.

For these purposes, the BCRA shall disclose the corresponding rates daily.

2. To increase, with effect for deposits captured as from 16.10.2020 inclusive, the percentages applicable for the determination of the minimum rates for time deposits provided for in the rules on “Time deposits and investments”, to:

• 91.89 % for subsection i) of point 1.11.1.1.; and

• 86.49 % for subsection ii) of point 1.11.1.1.

  3. To increase, with effect for deposits captured as from 21.10.2020 inclusive, the percentages applicable for the determination of the minimum rates for time deposits provided for in the rules on “Time deposits and investments”, to:

• 94.44 % for subsection i) of point 1.11.1.1.;

• 88.89 % for subsection ii) of point 1.11.1.1.; and

• 73.89 % for point 1.11.1.2.

  4. To increase, with effect for deposits captured as from 21.10.2020 inclusive, to 0.7917 the coefficient that determines the fixed early cancellation rate for deposits with an early cancellation option in Purchasing Value Units (“UVA”), regulated in point 2.8. of the rules on “Time deposits and investments”.”

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Subsequently, we will send you the pages that, replacing those previously provided, shall be incorporated into the referenced rules.

We greet you attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Principal Manager of Issuance and Regulatory Applications

María D. Bossio
Deputy General Manager of Financial Regulation