Term deposits in Purchasing Value Units (UVA) have been growing since the end of last year, with a strong acceleration as of Marchwhen they reached 281,635 million pesos, positioning themselves at constant prices at a level similar to that of mid-2021, when they registered their maximum historical value, the Central Bank (BCRA) reported on Thursday.
These placements are instruments adjustable by the Reference Stabilization Coefficient (CER) that equates to the consumer price index surveyed by Indec. In the last month -30-day moving average-, increased by 7.8% for traditional placements and 12.8% for pre-cancelable loans, with data as of April 19.
There are currently two types of term instruments adjustable by the Reference Stabilization Coefficient, the traditional ones and the pre-cancellable ones.
In the last month they increased by 7.8% for traditional placements and 12.8% for pre-cancelable ones
The former are instrumented in pesos, converted into UVA at the time of placement and, at the end of the immobilization period, the accrued interest is calculated and the updated capital is converted according to the value of the UVA at the time, whose price is continuously updated in CER function.
The minimum placement term for this instrument is 90 days. On the other hand, time deposits in UVA with the option of early cancellation also have a term of 90 days, but the saver can make use of the pre-cancellation option as of the 30th.
In the event that it is pre-cancelled (after 30 days) the rate they pay is different than if it is maintained until maturity. In the first case, the annual nominal interest rate is fixed in pesos and is currently at 41% (the annualized effective rate is 49.66%) and, in the second case, and if it is human beings, it is paid a guaranteed minimum interest rate of UVA + 1% per year.