Circular Foreign Exchange Operations and Movement of Funds and Securities with the Abroad - CAMEX 1 - 25

CENTRAL BANK OF THE ARGENTINE REPUBLIC
COMMUNICATION "A" 136 05/07/82
TO FINANCIAL ENTITIES AUTHORIZED TO OPERATE IN EXCHANGE AND EXCHANGE BROKERS:
Ref: Circular FOREIGN EXCHANGE OPERATIONS AND MOVEMENTS OF FUNDS AND SECURITIES WITH THE ABROAD - CAMEX - 1 - 25

We address you and through you to the interested sectors, to bring to your knowledge that a transitional foreign exchange insurance regime has been established, applicable to foreign currency loans that individuals or legal entities bring into the country and negotiate in the exchange market starting from 6.7.82.

1. Scope of the provision
   It is applicable to all foreign currency loans that are entered into and negotiated in the Financial Exchange Market starting from 6.7.82, with which swap operations can be entered into with the Central Bank. Financial entities have access to this regime, allocating the funds in Argentine currency to credits in the local market at a free rate.

2. Terms
   They must be entered into for 180 days, with their renewal, as a swap, subject to prior approval of the Central Bank.

3. Forward rate
   On the spot exchange rate at which the operation is formalized in the Financial Exchange Market, this Bank will apply an effective monthly rate that will be communicated daily.

4. Operational regime
   The authorized financial entities involved must negotiate at spot, in the Financial Exchange Market, the amount in foreign currency that borrowers bring in, surrendering the foreign exchange to the Central Bank at the same exchange rate. Simultaneously, they must enter into a respective forward exchange contract with this Institution for the same amount, plus the corresponding interest, for a term of 180 days, at the rate referred to in the preceding point 3. Operations with this Bank must be carried out in United States dollars and the forward contracts must be settled solely and exclusively at the established maturity.

5. Procedure
   Interested parties must request prior authorization from this Bank, in form 4008 F, integrated in all its parts, and mentioning in a visible place "Communication 'A' 136".

-2-
The activity developed by the borrowing company and the destination that will be given to the funds in pesos equivalent to the amount in foreign currency must be reported. The operations will be authorized by order of presentation, with the Central Bank reserving the decision to cease granting them when market conditions so advise.

6. Authorized entities involved
   Only financial entities authorized to operate in categories "B" and "C" may process these operations.

We salute you very attentively.
CENTRAL BANK OF THE ARGENTINE REPUBLIC
Antonio E. Conde Evaristo H. Evangelista
Principal Manager General Deputy Manager