Circular Foreign Exchange Operations and Movements of Funds and Securities with the Abroad - CAMEX 1 - 133. Circular External Collections and Payments - COPEX 1 - 121

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 1014 15/04/87
TO THE 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- 133. Circular EXTERNAL COLLECTIONS AND PAYMENTS COPEX - 1 - 121.

We address ourselves to you and through you to the interested sectors in order to communicate to you the provisions to which the settlement of obligations in foreign currency of the private sector will be adjusted, which are included in the agreement concluded between the Government of the Republic of Argentina and the Export-Import Bank of the United States (Eximbank), regarding the consolidation of external debts of the Republic of Argentina, within the framework of the Paris Club.

Obligations of the private sector that have guarantees from the Secretary of the Treasury of the Nation or from official banks are also included in this regime.

I. Scope of the provisions

These provisions cover maturities for principal, capitalized interest, compensatory interest, commitment communications, and credit application commissions that have operated until 12.31.85, corresponding to credits with terms greater than one year, which had been the subject of a contract or any other form of financial arrangement signed before December 10, 1983, and which are owed to Eximbank, have guarantees from Eximbank, or have been insured by the Foreign Credit Insurance Association (F.C.I.A.).

From the constitution of the deposit in australes by the debtor at the Central Bank, the Republic of Argentina irrevocably assumes, for the counter-value, the obligation to pay in the corresponding foreign currency. In each case, the norms referred to in Chapter II, point 1., sections a) and b) and point 2., section a) will apply.

The detail of the operations covered by this Communication will be delivered directly to the entities authorized to operate in exchange. Its classification by entity responds to the information registered by the debtor in the External Debt Survey (Form. 5003 or 5005). The entities authorized to operate in exchange must notify in writing to the debtors included in the previous list the present payment provisions and their execution deadlines.

If obligations for original interest or any other concept covered by this Communication according to the first paragraph of this Chapter are not found reported in said list, their incorporation and settlement will correspond separately from the obligations that for the same operation may be reported through the integration of an independent Form 4074-B, following the calculation procedure agreed between creditor and debtor. To this effect, the base rate Prime or Libor, as applicable, corresponding to each date according to the list that is added as an Annex must be taken. In said Form 4074-B, the internal and external references corresponding to the capital that generated the interest must be reported in the enabled box for this purpose.

Complementarily, within 10 calendar days counted from the maturity established in this Communication, the Entities must present to the Foreign Exchange Operations Department a copy of the detail of obligations referred to in the preceding paragraph indicating on each line the date of presentation and number of Form. 4074-B or mentioning "not settled".

The obligations that, included in the details referred to above, meet the following conditions are exempt from this treatment:
a) Up to US$ 3,000 for principal and interest corresponding to the same day of maturity, and b) Superior to said amount (or its equivalent in other currencies) when the sum of the unpaid maturities for principal and interest until 12.31.85, for the same debtor under the terms of this Communication does not exceed the amount of US$ 25,000.

The cases included in the previous exceptions, as well as their contractual interest accrued from their maturities, will be cancelled directly through the exchange market.

For the purpose of verifying the cancellation of the included obligations, the intervening entity must indelibly record in the space reserved for this purpose in Form 4074-B, the internal reference number established by the Central Bank and the external reference indicated by Eximbank, which in both cases appear in the detail of operations covered by these application norms.

II. Procedure rules

The settlement of each obligation included in this Communication will be adjusted to the following procedure, depending on whether it is covered by exchange insurance or not.

1. Obligations not covered by exchange insurance

a) When a deposit has not been constituted under the terms of Communication "A" 459 and complementary

The cancellation of the obligations (principal and interest, commitment commissions, and original credit application commissions) will be carried out through payment in australes of the equivalent of the sums in foreign currency owed. To this effect, the entities will apply the selling exchange rate to clients at the close of operations of the Bank of the Argentine Nation, of the day prior to the settlement by the debtor. In these cases, the integration of Chapter I of Form. 4074-B will correspond.

The interest accrued from the maturity of the obligation until the date on which the payment is made will be calculated at the original rates and in the modality provided in the respective contract between debtor and creditor. Their settlement will be adjusted to the following instructions:

Calculation Modality	Payment Modality
i) Obligations whose original maturities occurred before 12.31.84 inclusive:<br>- from the original maturity until 12.31.84<br><br>- from 1.1.85 until the settlement date.	It will correspond to settle the accrued interest on the obligation through the integration of Chapter III of Form No. 4074-B<br><br>It will correspond to directly transfer the accrued interest on the obligation, through the exchange market in favor of the F.C.I.A. to its account<br>Account Nº.. 05019620100<br>Barclays Bank of New York, N.A.<br>Wire Transfer Department<br>Scarsdale Routing No. 026008523
ii) Obligations whose original maturities occurred between 1.1.85 and 12.31.85, both dates included:<br>- from the original maturity until the settlement date	It will correspond to directly transfer the accrued interest on the obligation, through the exchange market in favor of the F.C.I.A. to its account<br>Account No. 05019620100<br>Barclays Bank of New York, N.A.<br>Wire Transfer Department<br>Scarsdale Routing No. 026008523

When transfers are made directly, it will be necessary to communicate to the F.C.I.A., by issuing a payment notice that carries as reference "Eximbank Restructuring Credits N° R-79"; the external reference number; name of the debtor; calculation period; interest rate; capital on which interest is paid; amount transferred; paying bank and payment date. This telex must be sent to the attention of:

Corporate Recovery 40 Rector Street - 11th. floor New York, New York 10006

The Forms 4074-B that report payments made directly to the creditor through transfers to the indicated account, must be presented accompanied by a copy of the telex referred to above.

b) When the constitution of a deposit intervenes under the terms of Communication "A" 459 and complementary

The deposit constituted by virtue of Communication "A" 459 of .29.2.a4 and complementary must be applied to the cancellation of the obligation for which it was constituted, according to the nominal values deposited at origin. Consequently, the entries for the constitution of those deposits as well as those corresponding to the accruals of their adjustments will be reversed; the amount of the latter must be included with a negative sign in Column 2 - row 1.3.- of Table B of Form. 3922 corresponding to the month in which the funds are applied.

If said deposit had been constituted in defect, the difference up to the total amount of the obligation (principal, interest, commitment commissions, and original application commissions), must be covered by applying the procedure provided in the first paragraph, section a) above, plus the interest accrued on this difference as provided in the second paragraph, section a) above.

In this last case, as well as in the case where the "Communication A 459" deposit was made after the maturity of the obligation, the cancellation of the interest accrued between said maturity and the date of its constitution falls on the debtor, according to the procedure indicated in section a) above.

2. Obligations covered by exchange insurance

a) The cancellation of obligations covered by exchange insurance, both of principal and interest, will be carried out through the application of the payment made on the day of the maturity of the exchange insurance. Maturities for interest not covered by exchange insurance must be settled in accordance with what is expressed in sections 1.b) and 1.a) above, depending on whether the counter-value in australes has been deposited or not, adjusted to what is provided by Communication "A" 459 and complementary.

b) According to the norms established by Communications "A" 31 of 5.6.81 and "A" 137 of 5.7.82 and complementary, it is an essential condition for the exchange insurance contract to have effect, the agreement of extension of the original obligation by the creditor or by achieving through the substitution of one or more creditors the coincidence of the maturity of the obligation and the exchange insurance.

In cases where the original maturity date supplied by Eximbank and F.C.I.A. does not contemplate the extension communicated to the Central Bank by the debtor when arranging the exchange insurance, the following procedures will apply:

b) 1. The debtor must obtain an extension from the external creditor or proceed to its replacement by another external creditor, giving rise to the necessary extension of the obligation. Depending on the case, it will correspond for Eximbank or F.C.I.A. to communicate to the Central Bank the extension of the maturity or report that the credit has been excluded from the Consolidation Agreement. In this latter situation, the attention of the exchange insurance must be adjusted to the norms provided by Communications "A" 404 of 4.11.83 and complementary or "A" 697 of 1.7.85, depending on whether they are maturities operated until 12.31.83 or subsequent.

b) 2. When the obligation with the external creditor subsists and the discrepancy between the date of the original maturity informed by it and the date communicated by the debtor to the Central Bank to arrange the exchange insurance persists, its cancellation will correspond.

In this last case, the Central Bank will proceed to return to the authorized entity the amounts deposited, adjusted from the date on which the debit was made to the intervening entity until the day on which its credit is effective, according to the methodology established by Communication "A" 506 of 4.7.84, points i. or 2., as applicable. The amounts will be applied directly by the intervening entity to the cancellation of the obligation adjusted to the procedure established for obligations not covered by exchange insurance referred to in point 1. section a), of this Chapter. When the result is in defect, the debtor must cover the shortfall to reach the amount corresponding to the total of the obligation that is cancelled.

III. General provisions

The cancellation of consular expenses not included in the reported amounts will be carried out through direct transfer by the exchange market. Its detail must be reported in Form. 4002-A in which the exchange operation is declared.

The intervening entities, adjusted to the general nature norms in force, will verify, if applicable, the settlement of the original and overdue contractual interest, by applying the tables that are attached as an Annex. They must also verify the determination of the calculation period when deposits have been constituted under the terms of Communication "A" 459 and keep the supporting documentation that accredits what was done. In situations of doubt about the reasonableness of the rates to apply in the context of the operation in question, they must make the relevant consultation in the External Financing Department of this Bank (6th floor, office 603).

The interest transferred abroad for periods going from the original maturity of the obligation until 12.31.84 and which now correspond to be settled adjusted to the procedure indicated in point 1.a) i) of Chapter II, must be re-entered into the exchange market. Non-compliance with this provision is covered by the Criminal Exchange Regime.

The presentation of Form. 4074-B will be carried out independently of whether the debtor has presented a Form. 3891-B or 3892 for maturities with exchange insurance occurred until 12.31.83, and Form. 3993 for current interest. The first ones will be archived in this Central Bank, while for the last one, the transfer of foreign currency must not be processed.

When an obligation with exchange insurance with maturity operated until 12.31.83 has a Form. 3891-B or 389? pending settlement for being supposed covered abroad with insurance granted by the F.C.I.A. and is not found forming part of the list referred to in Chapter I. the debtor, after consulting the External Debt Department of this Bank, may opt to settle it adjusted to what is provided by Communications "A" 251 and complementary or "A" 697, depending on whether they matured until 12.31.83 or subsequently, or request the cancellation of the exchange insurance under the terms of Communication "A" 506. In both cases, debtors will have a period of 180 days counted from the date of this Communication to comply with all additional requirements.

For the purpose of settlement, for each original obligation in terms of principal and interest, jointly or separately, as stated in each line of the list that will be delivered to each intervening banking institution, the integration of a Form. 4074-B will correspond, except when it corresponds the application of two or more exchange insurances, which will give rise to individual presentations for each of them.

Form. 4074-B must be presented in original and 5 copies until 14:00, in the Foreign Exchange Operations Department, office 304, 3rd Floor Central Building, during a period of 30 days counted from the date of this Communication.

IV. Other provisions

1. The regime on the settlement of exchange insurance (principal payments and future rates) is maintained, so that the holders and the intervening banks must strictly adjust to the norms in force.

2. The cancellations that are carried out under this regime will give rise to the corresponding intervention of the entities of the Debt Declaration Forms (Form. 5003 or 5005), proceeding to return them when the cancellation is total, according to the norms in force.

We salute you very attentively.
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Raúl O. Planes Julio A. Piekarz
Submanager of
External and Changes

ANEXO

B.C.R.A. APPLICABLE INTEREST RATES ACCORDING TO CHAPTERS I, 4th PARAGRAPH; II, POINT 1. A) AND III, 2nd PARAGRAPH
Annex to
Com. "A" 1014

1. PRIME RATE
   Period Annual Rate
   From 8.10.81 to 14.10.81 18.50%
   15.10.81 1.11.81 18.00%
   2.11.81 8.11.81 17.50%
   9.11.81 11.11.81 17.00%
   12.11.81 23.11.81 16.50%
   24.11.81 1.2.82 15.75%
   2.2.82 7.2.82 16.25%
   8.2.82 16.2.82 16.50%
   17.2.82 22.2.82 17.00%
   23.2.82 7.3.82 16.50%
   8.3.82 15.3.82 16.00%
   16.3.82 19.7.82 16.50%
   20.7.82 28.7.82 16.00%
   29.7.82 1.8.82 15.50%
   2.8.82 15.8.82 15.00%
   16.8.82 17.8.82 14.50%
   18.8.82 22.8.82 14.00%
   23.8.82 6.10.82 13.50%
   7.10.82 12.10.82 13.00%
   13.10.82 21.11.82 12.00%
   22.11.82 27.12.82 11.50%
   28.12.82 27.2.83 11.00%
   28.2.83 7.8.83 10.50%
   8.8.83 18.3.84 11.00%
   19.3.84 4.4.84 11.50%
   5.4.84 7.5.84 12.00%
   8.5.84 24.6.84 12.50%
   25.8.84 26.9.84 13.00%
   27.9.84 15.10.84 12.75%
   16.10.84 28.10.84 12.50%
   29.10.84 6.11.84 12.00%
   7.11.84 26.11.84 11.75%
   27.11.84 19.12.84 11.25%
   20.12.84 14.1.85 10.75%
   15.1.85 19.5.85 10.50%
   20.5.85 17.6.85 10.00%
   18.6.85 6.3.86 9.50%
   7.3.86 20.4.86 9.00%
   21.4.86 13.7.86 8.50%
   14.7.86 25.8.86 8.00%
   26.8.86 31.3.87 7.50%
   1.4.87 15.4.87 7.75%

2. LIBOR RATE
   Period Annual Rate
   From 1.1.85 to 31.5.81 17.00%
   1.6.81 30.6.81 17.38%
   1.7.81 31.7.81 18.75%
   1.8.81 31.8.81 18.88%
   1.9.81 30.9.81 18.25%
   1.10.8 31.10.81 16.00%
   11.11.81 30.11.81 12.75%
   1.12.81 31.12.81 14.94%
   1.1.82 31.1.82 15.06%
   1.2.82 28.2.82 15.25%
   1.3.82 31.3.82 15.56%
   1.4.82 30.4.82 14.88%
   1.5.82 31.5.82 14.44%
   1.6.82 30.6.82 16.00%
   1.7.82 31.7.82 13.94%
   1.8.82 31.8.82 12.44%
   1.9.82 30.9.82 12.00%
   1.10.82 31.10.82 10.19%
   1.11.82 30.11.82 10.06%
   1.12.82 31.12.82 9.63%
   1.1.83 31.1.83 9.69%
   1.2.83 28.2.83 8.87%
   1.3.83 30.4.83 9.75%
   1.5.83 31.5.83 9.00%
   1.6.83 30.6.83 10.00%
   1.7.83 31.7.83 10.69%
   1.8.83 31.8.83 9.79%
   1.9.83 30.9.83 9.99%
   1.10.83 31.10.83 10.75%
   1.11.83 30.11.83 11.88%
   1.12.83 31.12.83 11.88%
   1.1.84 31.1.84 9.83%
   1.2.84 29.2.84 10.02%
   1.3.84 31.3.84 10.36%
   1.4.84 30.4.84 10.81%
   1.5.84 31.5.84 11.48%
   1.6.84 30.6.84 11.68%
   1.7.84 31.7.84 12.15%
   1.8.84 31.8.84 12.30%
   1.9.84 30.9.84 12.07%
   1.10.84 31.10.84 11.37%
   1.11.84 30.11.84 10.09%
   1.12.84 31.12.84 9.65%
   1.1.85 31.1.85 9.15%
   1.2.85 28.2.85 9.03%
   1.3.85 31.3.85 9.72%
   1.4.85 30.4.85 8.48%
   1.5.85 31.5.85 8.70%
   1.6.85 30.6.85 7.95%
   1.7.85 31.7.85 8.13%
   1.8.85 31.8.85 8.42%

B.C.R.A. APPLICABLE INTEREST RATES ACCORDING TO CHAPTERS I, 4th PARAGRAPH; II, POINT 1. A) AND III, 2nd PARAGRAPH
Annex to
Com. "A" 1014
Period Annual Rate
From 1.9.85 to 30.9.85 8.45%
1.10.85 31.10.85 8.375%
10.11.85 30.11.85 8.25%
1.12.85 31.12.85 8.125%
1.1.86 31.1.86 8.175%
1.2.86 28.2.86 8.05%
1.3.86 31.3.86 7.625%
1.4.86 30.4.86 7.02%
1.5.86 31.5.86 6.95%
1.6.86 30.6.86 7.10%
1.7.86 31.7.86 6.762%
1.8.86 31.8.86 6.375%
1.9.86 30.9.86 6.668%
1.10.86 31.10.86 6.00%
1.11.86 30.11.86 6.065%
1.12.86 31.12.86 6.18%
1.1.87 31.1.87 6.02%