Circular Foreign Exchange Operations and Movement of Funds and Securities with the Abroad - CAMEX 1 - 44

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 251 17/11/82
TO FINANCIAL ENTITIES AUTHORIZED TO OPERATE IN EXCHANGE AND FOREIGN EXCHANGE BROKERS:
Ref: Circular FOREIGN EXCHANGE OPERATIONS AND MOVEMENT OF FUNDS AND SECURITIES WITH THE ABROAD CAMEX - 1 - 44

We address you and through you to the interested sectors to inform you that due to the difficulties existing in the external sector and in light of the needs of the monetary program, the economic authorities have ordered the fulfillment of foreign exchange insurance contracts entered into pursuant to Communications "A" 31, of 5.6.81; "A" 54, of 14.8.81; "A" 61, of 24.9.81 and "A" 76, of 30.11.81, subject to the following rules:

1. Transformation of private external debt into public debt.
   1.1. The Central Bank of the Republic Argentina, on behalf of the National Government, prior to payment in pesos of the corresponding amount and after complying with the formality of point 5, will fulfill the obligations arising from the foreign exchange insurance referred to in this circular, whose holders have not presented by October 22, 1982, a request for extension, according to the following deadlines:
   a) Operations maturing between November 25, 1982, and March 31, 1983, shall be paid:
   1st amortization of 25% on May 25, 1986
   2nd amortization of 25% on November 25, 1986
   3rd amortization of 25% on May 25, 1987
   4th amortization of 25% on November 25, 1987 b) Operations maturing from April 1, 1983, shall be paid:
   1st amortization of 25% on October 1, 1986
   2nd amortization of 25% on April 1, 1987
   3rd amortization of 25% on October 1, 1987
   4th amortization of 25% on April 1, 1988

1.2. The implementation of the operations will be optional for the external creditor and may be carried out in any of the following forms:
a) Obligations ("Promissory notes") of the National Government issued in United States dollars, in the name of the creditor, for the corresponding amounts. b) Bonds of the National Government, registered, issued in United States dollars in sheets of US$ 5,000 and higher denominations.

c) As it is not the purpose of these measures to interfere with the loan contract between debtor and creditor, in the case that both prefer to maintain their direct relationship and implement it in any other form, different from the two indicated above, the Central Bank is willing to examine such proposals and conditions, provided that the deadlines indicated in section 1.1 are respected. The other main characteristics and conditions for the issuance of the promissory notes and bonds are known in point 4, sections 4.1 and 4.2.

1.3. The acceptance by the external creditor of the titles mentioned in section 1.2, items a) and b), will imply their acceptance regarding the substitution of the debtor and consequently the cancellation and discharge letter for the total of the original debt.

2. Extensions of insurance requested until October 22, 1982
   Holders of insurance entered into pursuant to the rules referred to in this circular who have extended or will extend the maturities of the obligations taking out new foreign exchange insurance as provided by Communication "A" 137 of July 5, 1982, by presenting the corresponding request to this Bank until October 22, 1982, inclusive, will have the treatment indicated below:
   Those who formalize or have formalized such operations, when making the compensation in pesos between the exchange rate of the expiring insurance and that of the new insurance, must apply the amount in the following order:
   a) Cancellation of credits imputed to the "Consolidated Loan" of the Central Bank, excluding those imputed to sub-limits at free interest rate; b) Cancellation of credits imputed to the "Consolidated Loan" of the Central Bank, sub-limits at free interest rate; c) Subscription of the "Monetary Absorption Bond", whose characteristics are known in point 4, section 4.3.

3. Interest
   Interest covered by foreign exchange insurance may be transferred at the insured exchange rate. Those not covered by foreign exchange insurance may be paid by the single exchange market, at the rate in effect at the time of payment, subject to general character rules.

4. Main characteristics of payment instruments
   4.1. Obligations ("Promissory notes") in United States dollars:
   Registered, transferable only abroad by assignment between banks. Variable interest rate that will be fixed and paid semi-annually. The amortization and interest services will be attended by paying agents abroad, who must receive notification of changes in ownership.

B.C.R.A. COMMUNICATION “A” 251 17/11/82
4.2. Bonds in United States dollars:
Registered, variable interest rate that will be fixed and paid semi-annually. The amortization and interest services will be attended by paying agents abroad, who must receive notification of changes in ownership. Not negotiable within the Argentine Republic, with entry into the country prohibited.

4.3. Monetary Absorption Bond:
Issued in pesos and its capital will be adjustable. Non-transferable. Interest services will be paid semi-annually.

5. Additional requirements
   In the cases indicated in point 1, section 1.2, debtors must present a sworn declaration - in Form No. 3886 provided by the Central Bank - regarding the origin and characteristic of the operation, authorizing, likewise, this Institution to verify the information before the external creditors and competent fiscal bodies of our country.

We salute you very attentively.
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Horacio A. Alonso Evaristo H. Evangelista
Deputy General Manager Deputy General Manager