Circular Foreign Exchange Operations and Movement of Funds and Securities with the Abroad - CAMEX 1 - 2

CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION "A" 31 05/06/81
TO FINANCIAL ENTITIES AUTHORIZED TO OPERATE IN EXCHANGE AND EXCHANGE BROKERS:
Ref.: Circular Foreign Exchange Operations and Movement of Funds and Securities with the Abroad -CAMEX- 1

• 1.
  We address ourselves to you and through you to all interested parties, to bring to your knowledge that, in accordance with the economic policy guidelines announced by the authorities, this Bank has resolved to implement foreign exchange insurance - in US dollars - for the coverage of foreign currency financial loans of the private sector, which are contracted or renewed from this date, under the conditions detailed below and for terms not less than 540 days, taking as such effect the date of the first amortization:

1. New Contracts
   The authorized entities for operating in exchange intervening will negotiate at spot the amount in foreign currency that borrowers enter, ceding the foreign exchange to the Central Bank at the same exchange rate. Simultaneously they may contract with this Institution the foreign exchange insurance for the same amount.
2. Renewals
   This rule is also applicable to loans entered and negotiated in the exchange market and which by successive extensions their maturities operate or have operated from
   1.6.81 onwards.
   Exclusively at the maturity of the obligation, established originally or derived from renewals denounced in time and in form according to the applicable rules (exchange denunciations and permanent survey on obligations with the abroad), they may contract with this Bank the respective foreign exchange insurance for the amount of the renewal.
3. Terms of foreign exchange insurance
   They will be contracted according to the amortization dates established, not being able to be less than 540 days. Operations for terms greater than two years will be considered by this Bank in each case.

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4. Foreign exchange insurance rate
On the selling exchange rate that this Bank communicates daily to the opening of the market, for the first 180 days a fixed rate will be applied, which will also be communicated daily, and for the remaining period the rate resulting from the variation of wholesale prices, general level, minus international inflation. The payment of interest will be made per due semester.
5. Operational regime
The operations will be contracted directly with this Bank through the exchange switch.
6. Information and survey regime
Exchange transactions with clients must be denounced in form 4001A (spot purchase), 4002A (term sale) and 4004B (Settlement) and making sure in all cases in the space reserved for the concept the legend "Communication "A" 31". In new contracts forms 4001A and 4002A, must contain, inevitably, the number of form 3191 presented in compliance with the rules on survey of obligations with the abroad, proceeding to its return, attached to 4004B at the time of the Settlement. When it comes to renewals, they must comply with the information regime provided for financial loans and consigning in the denunciation forms the number assigned to the new form 3191 modifying the previous one, which will be added to form 400B at the time of the settlement. The counterparties with the Central Bank will be reported in form 116, in duplicate, separately from the other transactions between entities or with this Institution.
7. Authorized intervening entities
The operations referred to in these provisions can only be processed by means of entities authorized to operate in exchange, enabled according to the current rules to perform term operations. We salute you very attentively. CENTRAL BANK OF THE ARGENTINE REPUBLIC Antonio E. Conde Evaristo H. Evangelista Manager of Foreign and Exchange Deputy General Manager