Circular Foreign Exchange Operations and Movement of Funds and Securities with the Abroad - CAMEX 1 - 69. Circular National Public Securities - TINAC 1 - 17

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 404 04/11/83
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- 69. Circular National Public Securities - TINAC- 1 - 17

We address you and through you to the interested sectors to inform you that the Board of this Institution has approved the Resolution transcribed below, incorporating the provisions of Law No. 22.910 - whose text is added as an Annex - for the settlement of maturities of foreign exchange insurance contracts concluded under the regimes of Communications "A" 31 and "A" 137 and their respective complementary norms.

I - Dispositive Part of the Board Resolution No. 417 of 3.11.83.

1 - Issued, on date 1.10.83, the second series of "REGISTERED BONDS IN UNITED STATES DOLLARS" (BONOD), in accordance with the characteristics foreseen in Decree No. 1334 of 26.11.82, for a nominal value amount of US$ 100,000,000.

2 - The issuance of United States Dollar-denominated obligations of the National Government (Decree No. 1336 of 26.11.82) is authorized, with dates from 1.10.83 to 31.12.83, which will accrue the interest rate defined in point 3 of the present and whose first amortization service will occur 42 months counted from the date of issuance.

3 - The securities foreseen in points 1 and 2 of the present will accrue an annual interest rate equal to that prevailing for 180-day eurodollar deposits in the London interbank market, established by the Central Bank of the Republic of Argentina based on the arithmetic average of the LIBO rates reported by its correspondent banks in that location at the close of operations of the business day immediately preceding the start of each interest period, plus a surcharge of 2 percentage points annually.

4 - 9 series of "REGISTERED BONDS IN UNITED STATES DOLLARS - prime rate" (BONOD - prime rate) are issued, in accordance with the characteristics foreseen in Decree No. 1334 of 26.11.82. The interest rate will correspond to that defined in point 6 of the present, as authorized by Law No. 22.910. The amount for each series will be US$ 100,000,000 nominal value. The issuance dates for the series will be:

BONOD - rate - "prime" - 1st Series 26.11.82
" " “ - 2nd “ 15.1.83
" " " - 3rd “ 1.3.83
" " " - 4th “ 15.4.83
" " " - 5th “ 1.6.83
" " " - 6th “ 15.7.83
" " " - 7th “ 1.9.83
" " " - 8th “ 15.10.83
" " " - 9th “ 1.12.83

Amortizations will be carried out in 4 semi-annual installments of 25% each, with the first maturing 42 months counted from the issuance date of each series.

5 - The issuance of United States Dollar-denominated obligations of the National Government (Decree No. 1336 of 26.11.82) is authorized, with dates from 26.11.82 to 31.12.83, which will accrue the interest rate defined in point 6 of the present and whose first amortization service will occur 42 months counted from the date of issuance.

6 - The variable basic interest rate of the United States credit market (denominated "prime" rate) applicable to the securities foreseen in points 4 and 5 of the present is defined as the corresponding to the average (rounded to the nearest 1/16% annually) of the basic credit rates reported by banks of the United States of America, for which each change occurring in these variable rates from the day it is announced that such changes are effective will be valid. The rate corresponding to each day will result from that reported by banks for the seventh business day prior to the application date. To this rate, a surcharge equal to 1 7/8 percentage points annually will be added.

The reference banks will be those chosen by the Central Bank from three among its correspondent banks in that location.

7 - The "REGISTERED BONDS IN UNITED STATES DOLLARS", at the option of the holders regarding whom as of the date of the present, commitments arising from foreign exchange insurance under Communications "A" 31 and "A" 137 and complementary norms have not yet been regularized, will be subscribed according to the following correlation:

B.C.R.A. COMMUNICATION “A” 404 04.11.83
Maturity Date of the exchange group
"BONOD - LIBO Rate" "BONOD - Prime Rate"
26.11.82 to 14. 1.83 1st Series 1st Series
15. 1.83 to 28. 2.83 " " 2nd "
1. 3.83 to 14. 4.83 " " 3rd "
15. 4.83 to 31. 5.83 " " 4th "
1. 6.83 to 14. 7.83 " " 5th "
15. 7.83 to 31. 8.83 " " 6th "
1. 9.83 to 30. 9.83 " " 7th "
1.10.83 to 14.10.83 2nd " 7th "
15.10.83 to 30.11.83 " " 8th "
1.12.83 to 31.12.83 " " 9th "

8 - Holders of United States Dollar-denominated obligations of the National Government (Decree No. 1336/82), regarding whom as of the date of the present, commitments arising from foreign exchange insurance under Communications "A" 31 and "A" 137 and complementary norms have not yet been regularized, may opt for them to be issued with the interest rate foreseen in point 3 or in point 6, both of this Resolution.

9 - The issuance of the Bonds and Obligations in the name of the debtor (beneficiary of the foreign exchange insurance) is authorized, who must instruct this Institution to deliver them as collateral to his creditor, covering the renewal of the loan.

10 - The payment, charged to the "Foreign Exchange Operations Result Account", of the amount of the Income Tax and the additional emergency tax foreseen in Law No. 22.915, applicable regarding the interest amounts of the securities, when these are issued as guarantee or collateral under the obligations arising from renewed loan contracts, is authorized.

The tax obligation will be assumed in cases where the payment of the tax had conventionally remained the responsibility of the debtor".

11 - Securities whose delivery has not been requested as of the date of the present will be delivered after the procedure foreseen in Communication "A" 278 and in the present has been completed and controlled.

At the time of requesting the delivery of the securities in addition to what is foreseen in the current norms, the person in whose name they must be issued will instruct this Institution, irrevocably, to apply the amount of the interest services to constitute a deposit at the Central Bank of the Republic of Argentina in the proportion and conditions detailed below:

a) Regarding interest services matured as of the place before 15.12.83:

• Deposit Amount: 100% of the amount of matured interest services.
• Deposit Restitution: 10% on 15.12.83 and 90% 180 days counted from the date of deposit constitution.

b) Regarding interest services matured as of the date of delivery of the securities, when this latter takes place from 15.12.83:

• Deposit Amount: 90% of the amount of matured interest.
• Deposit Restitution: 120 days counted from the date of its constitution.

c) Regarding accrued and non-claimable interest as of the date of delivery of securities:

• Deposit Amount: 90% of the accrued and non-claimable interest as of the delivery date.
• Deposit Restitution: 120 days counted from the date when the service immediately following the delivery date matures.

d) Common characteristics of deposits:

• Holder: the person indicated by the one in whose name the securities are issued.
• Constitution Date: the date of delivery of the securities in the cases foreseen in sections a) and b) and the maturity date of the current service at the delivery date in the case contemplated in section c).
• Interest: Each deposit will earn interest from the date of its constitution equal, at all times, to one percentage point per year plus the LIBO rate at 11:00 AM London time of the first business banking day of the month in which the deposit is constituted, corresponding to three-month deposits between international and representative first-line banks, which the Central Bank of the Republic of Argentina determines.
• Payment of interest services: For 180-day deposits, they will be payable quarterly and for those constituted at 120 days at their maturity, by transfer that, in a note that must accompany the request for delivery of the securities, indicates the holder of the deposit.

Transfers will be made without deduction for Argentine taxes, within 5 business days following the maturity date of each quarter.

• Instrumentation: deposit certificate issued by the Central Bank of the Republic of Argentina.

B.C.R.A. COMMUNICATION “A” 404 04.11.83

The settlement of the securities services through the constitution of deposits will mean, for all its effects, a payment in term according to the issuance conditions.

The Registered Bonds in United States Dollars will be delivered without the matured coupons and without the current coupon.

The United States Dollar-denominated obligations of the National Government will carry a legend noting the payment, through deposit, of the matured services and the instruction to effect a deposit for the amount foreseen in section c) regarding the current service"

II - The norms foreseen in Communications "A" 278 and "A" 272 will be applicable.

Form No. 3891 is rendered without effect, which will be replaced by Form No. 3891-B, which will be provided in practice form.

When operations are adjusted in all respects to the requirements and conditions established by the current norms, consultation to this Bank in Form No. 3892 referred to in section 1.4 of Communication "A" 272 will not be necessary. In these cases, Form No. 3891-B will be presented directly, accompanied by Forms No. 3189 or No. 3191.

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

B.C.R.A. LAW No. 22.910 Annex to
Com. “A” 404
Buenos Aires,

In exercise of the powers conferred by Article 5 of the Statute for the National Reorganization Process, THE PRESIDENT OF THE ARGENTINE NATION SANCTIONS AND PROMULGATES WITH THE FORCE OF LAW:

ARTICLE 1st. - The Central Bank of the Republic of Argentina is authorized, in addition to what is foreseen in Decrees of the Executive Power No. 1334 and No. 1336 -both of November 26, 1982- and No. 1603 of December 21, 1982, all ratified by Law No. 22.749, to:

1) Issue securities in the name of the debtor who had contracted foreign exchange insurance included in the Decrees mentioned above or in subsection 4) of this article, in cancellation of said insurance and subject to the following conditions:
a) That the obligation covered by foreign exchange insurance is renewed, under the conditions determined by the Central Bank of the Republic of Argentina. b) That the debtor agrees with his creditor the delivery of the securities as collateral and assumes the commitment to keep them in that state while the debt subsists.

The Central Bank of the Republic of Argentina will regulate the placement procedure, assignment as guarantee, and attention to the financial services of the securities..

2) Issue securities with the variable basic interest rate of the United States credit market (denominated "prime" rate), to be fixed according to the procedure determined by the Central Bank of the Republic of Argentina.

3) Assume payment obligations with fiscal destination, derived from loan contracts covered by the issuance as guarantee or delivery as collateral of the securities. The Central Bank of the Republic of Argentina will charge the payments it makes as a consequence of what is provided in this article to the "Foreign Exchange Operations Result Account", part of the balance sheet of the mentioned Institution.

4) Designate the securities to cancel foreign exchange insurance contracted by said Institution, whose maturity takes place until December 31, 1983, contracted under the regime of its Communication "A" 137 and complementary norms.

The placement of the securities will be carried out in accordance with the conditions and modalities established in the mentioned decrees and in this article.

ARTICLE 2nd. - The Central Bank of the Republic of Argentina is authorized to designate the security whose issuance was established by Decree of the Executive Power No. 1335 of November 26, 1982, for its placement among those debtors with the abroad who had contracted with said Bank foreign exchange insurance under the regime of its Communication "A" 137 and complementary norms to the extent that monetary policy reasons so advise.

ARTICLE 3rd. - Communicate, publish, to the National Directorate of the Official Register and archive.