Circular OPASI 2 - 130. CONAU 1 - 172. Deposit Guarantee Insurance System. Application and Complementary Rules

BANCO CENTRAL DE THE REPUBLIC OF ARGENTINA
__________________________________________________________________ COMMUNICATION "A" 2337 19/05/95 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
OPASI 2 - 130.
CONAU 1 - 172.
Deposit Guarantee Insurance System. Application and Complementary Rules

We address you to bring to your knowledge that this Institution adopted the following resolution:
"1. Approve the application rules of the deposit guarantee system in the terms contained in the annexes that form part of this communication and that complement the provisions of Decree 540/95, regulatory of article 1° of Law 24.485.
2. Set May 24, 1995 as the due date for the first monthly
contribution to the Deposit Guarantee Fund."

We point out that together with the minimum cash positions that close on the last day of each month (Form. 3000) a note must be attached, in duplicate, stating the settlement of the contribution to the Guarantee Fund, according to the following detail:

1. Monthly average of deposits in pesos.
   1.1. In checking accounts.
   1.2. In savings and special accounts.
   1.3. In fixed-term deposits.

2. Monthly average of deposits in foreign currency (data in
   US dollars).
   2.1. In checking accounts in dollars.
   2.2. In savings accounts. ()
   2.3. In fixed-term deposits. ()

3. Total of the calculation base for the contribution (1+2)

4. Calculation of the contribution.
   (Total of 3.) * 0.03 * Ic =

5. Information on the correction index.
   5.1. Values of the numerator and denominator of the relation used
   to determine the indicator referred to in point 3.3.1. of Annex II.
   5.2. Indicator referred to in point 3.3.1. of Annex II
   5.3. Values of the numerator and denominator of the relation used
   to determine the indicator referred to in point 3.3.2. of Annex II.
   5.4. Indicator referred to in point 3.3.2. of Annex II
   5.5. Values of the numerator and denominator of the relation used
   to determine the indicator referred to in point 3.2. of Annex II.
   5.6. Indicator referred to in point 3.2. of Annex II.
   (*) In the case of currencies other than the dollar, their conversion to the latter will correspond according to the arbitrage rate of the Bank of the Nation Argentina in effect at the close of operations on the last business day of the corresponding month. Detail separately deposits by type of currency.

Regarding the first contribution, this information must be provided no later than the 31st of the current month, via a note directed to the Superintendence of Financial and Exchange Entities.

In Annexes III and IV, article 1° of Law 24.485 and Decree 540/95 are transcribed, respectively.

Finally, we inform you that the integration of contributions must be made in account No. 101-WA-384771-004 opened at Swiss Bank Corporation - New York Branch.

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Alfredo A. Besio Miguel A. Kiguel
Manager of Standards for Deputy General Manager Financial Entities Area of Economics and Finance

ANNEXES

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I GUARANTEE OF DEPOSITS. RULES	Annex I B.C.R.A. ID APPLICATION AND COMPLEMENTARY	I
	I THE PROVISIONS OF DECREE 540/95	Com. "A" 2337	I
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1. Shareholder trust of SEDESA.
   The initial participation in the trust that will act as shareholder of the society Seguro de Depositos S.A. (SEDESA) will arise from providing the contribution made by each entity with respect to the contributions collected from the entire system, corresponding to May 1995. The non-exercise of the option to participate by an entity will determine the proportional increase in the participation of the other entities. Similar criteria will be used at the end of each calendar year to determine the proportion corresponding to each entity, considering the contributions made during said period or lesser fraction in 1995.

2. Normal contribution.
   From May 1995, all financial entities included in Law 21.526 must allocate monthly to the Deposit Guarantee Fund a normal contribution equivalent to 0.03% of their monthly average of daily balances of the items listed in point 6.1., registered in the second immediate preceding month. The Central Bank may require the integration, as an advance, of the equivalent of up to twelve (12) normal contributions, with a minimum advance of thirty calendar days, to cover resource needs of the Fund.

3. Additional contribution.
   In addition to the normal contribution referred to in point 2., the entities must make an additional differentiated contribution according to the result obtained from the weighting of the following factors, based on the methodology that is established in Annex II:
   3.1. the rating assigned to the entity according to the evaluation
   carried out by the Superintendence of Financial and Exchange Entities.
   3.2. the ratio of excess integration of computable equity
   responsibility with respect to the minimum capital requirement. To this effect and from the contributions that correspond to be made in October 1995, to the computable equity responsibility will be added the provisions for credit risk constituted

in excess of the minimums established in Communication "A" 2216.
3.3. the quality of the active portfolio measured by:
3.3.1. minimum provisions required for credit risk/financing.
3.3.2. computable assets to determine the minimum
capital required, weighted as established in
Communication "A" 2136/total assets.
The additional contribution resulting from the application of the aforementioned factors may not exceed once the normal contribution.

4. Integration of contributions.
   Until the society Seguro de Depositos S.A. (SEDESA) is constituted and the location of the account in which the contributions will be deposited is defined, the sums resulting from the monthly obligation will be transferred by the entities to a special account opened by the Central Bank, to its order, in the Swiss Bank Corporation (New York Branch). The remuneration agreed upon will be transferred timely to SEDESA. When SEDESA has taken charge of the administration of the resources of the Fund, the contributions will be deposited in the account indicated by said society. Contributions must be deposited no later than the 12th day of the month following the period that corresponds, according to the operating regime that is established. The Central Bank may debit ex officio, from the checking account opened at this Institution, the normal, additional or advance contributions that are not integrated timely. In the case that updated information is not available to establish the relevant calculation base, the amount will be determined based on the last available data, increasing by 10% the base obtained.

5. Placement of contributions.
   The investments that SEDESA makes with fund resources will be carried out maintaining adequate liquidity conditions in function of the objective for which this guarantee system has been created. The two ratings required regarding foreign banks or bonds of OECD countries must be granted by some of the international risk rating agencies according to the list contained in point 6. of Communication "A" 2269.

6. Scope of the guarantee and destination of resources.
   6.1. They will be covered by the coverage offered by the
   system, deposits in pesos and in foreign currency constituted in participating entities under the form of:
   i) checking account; ii) savings account; iii) fixed-term deposit, and iv) special (point 4. of Chapter I of Circular OPASI - 2).
   6.2. To determine the deposits made by persons linked to the entity, the
   guidelines defined in point 4.2. of Chapter I of the Circular OPRAC - 1 and in point 1.1. of Annex I to Communication "A" 2140 will be taken into account.
   6.3. The Central Bank will periodically disseminate, through the
   "STAF", the reference rates for fixed-term deposits and the balances of sight accounts (checking account and savings account), prepared based on the rates recognized by the Bank of the Nation Argentina, in order to determine the eventual exclusion from the guarantee of the operations in which, from July 1, 1995, interest rates higher than the reference rates are agreed.
   6.4. Fixed-term transferable deposits whose ownership has been
   acquired by way of endorsement will be excluded from the guarantee, even if the last endorsee is the original depositor.
   6.5. The guarantee will cover the return of the deposited capital
   and its interest, accrued up to the date of revocation of the authorization to operate or up to the date of suspension of the entity by application of
   article 49 of the Organic Charter of the Central Bank, if
   this measure had been adopted prior to that, without exceeding -for both concepts- the limits established in article 13 of Decree 540/95.
   6.6. When there are concurrently deposits for 90 or
   more days and deposits for terms less than and sight (checking account and savings account), the guarantee will be settled in first instance with respect to the set of deposits constituted by the deposits for terms less than 90 days and by the sight deposits. If the sum of those deposits for terms less than 90 days and sight is less than $ 10,000, the deposits for terms of 90 or more days will be guaranteed by the difference of unused coverage up to reaching the cap of $ 20,000.
   6.7. In accounts and deposits in the name of two or more
   persons, the guarantee limit will be $ 10,000 for sight deposits and for terms less than 90 days and of $ 20,000 for deposits for terms of 90 or more days, regardless of the number of titular persons, distributing the amount of the guarantee that corresponds among the titulars. The total guaranteed to a specific person, by accumulation of sums from the other accounts and deposits covered by the coverage, as provided previously, may not exceed the limits of article 13 of Decree 540/95, according to the type of deposit covered. In no case, the coverage per person may exceed $ 20,000, considering the total of accounts and deposits.
   6.8. SEDESA will reject the coverage request by application of
   this guarantee regime when the deposits do not meet the requirements established in the applicable rules or when the depositors do not exhibit titles materially and formally valid.
   6.9. SEDESA may require, prior to the settlement of the
   guarantee, that depositors justify the origin and availability of the deposited funds through records that demonstrate the verisimilitude of the same and/or that the effective entry of the funds into the entity has been verified with respect to each operation covered by the regime. Furthermore, said society must file the pertinent complaint when it detects irregularities or a criminal offense aimed at obtaining the improper payment of the guarantee.

7. Instrumentation.
   In all documents representing passive operations (certificates, deposit slips, account summaries, etc.) it must appear, in a visible and printed form on the front or back of them, the following legend:
   "Deposits in pesos and in foreign currency are covered by a guarantee of $ 10,000. In fixed-term deposits of 90 days or more the guarantee is $ 20,000. In operations in the name of two or more persons, the guarantee will be prorated among their titulars. In no case, the total guarantee per person may exceed $ 20,000, regardless of the number of accounts and/or deposits. Law 24.485, Decree 540/95 and Com. "A" 2337 of the BCRA." In the case that the situation referred to in the last paragraph of point 6.3. arises, it will be necessary to place in a visible and printed form on the documents of the operations the legend:
   "Deposit without guarantee. The agreed rate exceeds the reference rate informed by the Central Bank." Entities must keep available to their clientele the complete texts of Law 24.485, Decree 540/95 and Communication "A" 2337 of this Institution. Furthermore, in the advertising that financial entities carry out, related to the deposits they collect, the existence of a limited guarantee for their return must be stated. On the boards where the rates offered to the clientele are informed, the scope of the guarantee must be transcribed in a visible manner (type of deposits included, percentage and amount guaranteed, exceptions, etc.). Until the new documents containing the legends in printed form are available, the requirement may be fulfilled by the placement of stamps with the following expressions: "Deposits have a limited guarantee for their return. Law 24.485, Decree 540/95 and Com. "A" 2337" or "Deposit without guarantee", for each of the situations, respectively.

8. Accounting registration.
   Contributions will be imputed by the entities, according to whether they correspond to deposits in pesos or in foreign currency, in the accounts "Financial Expenses - For operations in pesos - Contribution to the Deposit Guarantee Fund" or "Financial Expenses - For operations in gold and foreign currency - Contribution to the Deposit Guarantee Fund", respectively.

9. Validity.
   The coverage of this guarantee system applies to fixed-term deposits that are constituted from April 18, 1995 and with respect to the balances of sight deposits that are registered from the close of that day in financial entities in operation on April 18, 1995. Deposits constituted in entities whose operations, on April 18, 1995, are suspended by application of article 49 of the Organic Charter of the B.C.R.A. or to which the authorization to operate has been revoked are not covered by the guarantee. When the effects of the suspension cease and the entity resumes its activity, the guarantee will apply with respect to fixed-term deposits that are constituted from the day of reopening and on the balances of sight deposits that are registered from that day.

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I FACTORS FOR WEIGHTING THE ADDITIONAL	Annex II B.C.R.A. ID DETERMINATION OF THE	I
	CONTRIBUTION. DETERMINATION OF THE	Com. "A" 2337	I
	TOTAL MONTHLY CONTRIBUTION		I
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1. The normal contribution will be corrected according to the result that it yields
   for each entity an index that will fluctuate between 1 and 2.
   This index will be constructed based on the factors indicated in point 3. of Annex I and will arise from the following expression:
   Ic = {(Ipr/f + Iar/a + 2*Icamel)/4} - Irpc/Kmin where Ipr/f : indicator referred to in point 3.3.1. of
   Annex I, which will take the value that arises from the
   following expression:
   Ipr/f = (Vi/0.04) * 1.20 where
   Vi : ratio between the minimum provisions for credit risk required according to the norms contained in Annex II to Communication "A" 2216 and the total of financing included (first paragraph of Annex I to said Communication). The value of the index will be bounded between 1 and 2.5. That is, in cases where the result of the expression is, respectively, less or greater than those lower and upper limits, 1 or 2.5 will be taken, as appropriate. Iar/a : indicator referred to in point 3.3.2. of
   Annex I, which will take the value that arises from the
   following expression:
   Iar/a = (Vi/0.70) * 1.30 where

Vi : ratio between the risk assets of the entity and the total assets. Defined as risk assets to the sum of the concepts "Ais", "Aif", "Vrf" and "Vrani" in the terms to which point 1.1. of Communication "A" 2136 refers and as total assets to the sum of the concepts "Ais", "Aif", "f" and of other non-immobilized assets not included in "f" -included in "Vrani"-. The value of the index will be bounded between 1 and 2. It means that in cases where the result of the expression is, respectively, less or greater than those lower and upper limits, 1 or 2 will be taken, as appropriate. Icamel : indicator referred to in point 3.1. of
Annex I. The value that arises from the
following table will be taken:
Rating Index
1 1.00
2 1.33
3 1.66
4 2.00
5 2.00
Irpc/Kmin: indicator referred to in point 3.2. of Annex
I. The value that arises from the following
table will be taken:
Ratio RPC/minimum capital requirement Index less than 0.90 - 0.50 more than 0.90 to 0.95 - 0.25 more than 0.95 to 1.00 - 0.10 more than 1.00 to 1.10 0.00 more than 1.10 to 1.20 + 0.05 more than 1.20 to 1.30 + 0.10 more than 1.30 to 1.50 + 0.20 superior to 1.50 + 0.30 The value of the index Ic will be bounded between 1 and 2. It means that in cases where the result of the expression is, respectively, less or greater than those lower and upper limits, 1 or 2 will be taken, as appropriate. For the calculation of the relations, the amounts corresponding to the third month prior to the date of due of the contributions will be considered.

2. Until the rating of the Superintendence of Financial and Exchange Entities ("CAMEL") is available, the
   calculation of the correction index will arise from the following expression:
   Ic = {(Ipr/f + Iar/a)/2} - Irpc/Kmin

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I B.C.R.A.	LAW 24.485 - Art. 1°	Annex III to the
(B.O. of 18.4.95)		Com. "A" 2337	I
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Article 1°: The Deposit Guarantee Insurance System is created, which will be limited, mandatory and onerous, with the object
of covering the risks of bank deposits, in a subsidiary and complementary manner to the system of privileges and protection of deposits established by the Law of Financial Entities, without compromising the resources of the Central Bank of the Argentine Republic nor of the National Treasury. The Central Bank of the Argentine Republic is authorized to organize and put into operation the system created by this article.

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I B.C.R.A.	DECREE 540/95	Annex IV to the
(B.O. of 18.4.95)		Com. "A" 2337	I
+----------+-------------------------------------+---------------+ Bs. As., 12.4.95 SEEING Law 24.485, and CONSIDERING:
That it is necessary to regulate the organization and putting into operation of the deposit guarantee insurance system for bank deposits established in article 1° of the cited law. That said system must be subsidiary and complementary to the privileges and priorities of payment established in the law of financial entities, must not compromise the resources of the CENTRAL BANK OF THE ARGENTINE REPUBLIC nor of the National Treasury, will be mandatory and onerous for financial entities and will grant a limited coverage to depositors. That on its part, its adequate, efficient and economical administration must be provided for, so that it does not constitute an additional heavy burden for entities, nor give rise to the creation of bureaucratic agencies within the public sector. That for this, financial entities must contribute to a guarantee fund of deposits in a proportion that results adequate to the coverage of the risks that the fund will assume, and not signify a heavy burden for the clients of the financial system or the entities themselves. Likewise, the constitution of a society with the exclusive object of administering said fund must be provided for, the participation of the contributing entities being convenient in the proportion of their respective contributions, through a trust. This will result in lower administration expenses and in an incentive to their operational efficiency. That the characteristics, scope and limitations of the guarantee that is granted must be provided for, as well as the obligations and rights of the financial entities. That by the nature of the activity to which the regulation is directed, it is convenient that the CENTRAL BANK OF THE ARGENTINE REPUBLIC act as the applying authority of the present Decree.

That the present is issued by virtue of what is provided in article 99, paragraph 2°, of the National Constitution. Therefore, THE PRESIDENT OF THE ARGENTINE NATION DECREES:
Article 1°: The "DEPOSIT GUARANTEE FUND" (FGD) is created,
and the constitution of the society "DEPOSIT INSURANCE ANONYMOUS SOCIETY" is ordered with the exclusive object of administering it.
Article 2°: The APPROVAL of the Deed of Constitution and the
Bylaws of the society "DEPOSIT INSURANCE ANONYMOUS SOCIETY" (SEDESA) is delegated to the MINISTRY OF ECONOMY AND PUBLIC WORKS AND SERVICES, which will have as partners the National State with one share, at minimum, and a trust constituted by the financial entities authorized to operate in the ARGENTINE REPUBLIC that wish to participate, in the proportion that for each one is determined by the CENTRAL BANK OF THE ARGENTINE REPUBLIC based on their contributions to the FGD. Until the constitution of SEDESA, the contributions to the FGD will enter the account and entity that is determined by the CENTRAL BANK OF THE ARGENTINE REPUBLIC.
Article 3°: SEDESA will receive as remuneration for its performance
as administrator of the FGD the income derived from its investment; its operating expenses will be strictly necessary to operate; and it must distribute its profits in cash. The modification of said bylaws or of its capital will require at least the favorable vote of the National State.
Article 4°: The protocolization of the deed of constitution and
the bylaws of SEDESA is ordered, as well as of any act that is necessary to elevate to public deed, through the NATIONAL NOTARY OFFICE, without this implying any expenditure.
Article 5°: The GENERAL INSPECTORATE OF JUSTICE is instructed to
grant the respective conformities or authorizations and to take note of the registration of SEDESA in the register under its charge.
Article 6°: Financial entities
authorized to operate in the ARGENTINE REPUBLIC must integrate the FGD with a normal monthly contribution that will be determined by the CENTRAL BANK OF THE ARGENTINE REPUBLIC between a minimum of ZERO POINT ZERO THREE PERCENT (0.03%) and a maximum of ZERO POINT ZERO SIX PERCENT (0.06%) of the average of the daily balances of the deposits in pesos and in foreign currency constituted in the financial entities, and with the additional contributions that the CENTRAL BANK OF THE ARGENTINE REPUBLIC establishes for each entity based on the risk indicators it deems appropriate. In no case can the additional contribution of an entity exceed the equivalent to a normal contribution.

Article 7: THE CENTRAL BANK OF THE ARGENTINE REPUBLIC will determine the due date for the obligation to deposit contributions, which takes effect from the average of the deposits corresponding to the current month of April of the current year. All financial entities must deposit their contributions punctually as a condition for regular operation, and they will have the right to participate in the trust that acquires and holds the majority of the share capital of SEDESA in the proportion corresponding to them, as determined by THE CENTRAL BANK OF THE ARGENTINE REPUBLIC. To this effect, at the end of each calendar year, the Application Authority will establish said proportion for each financial entity, and the corresponding transfers to the nominal value of the shares must be made immediately. All financial entities that begin their operations in the ARGENTINE REPUBLIC may join the trust, and those that cease to operate will lose the condition to be part of it, ceding their rights to the nominal value of SEDESA shares.

Article 8: When the FGD reaches the sum of TWO BILLION PESOS ($ 2,000,000,000) or FIVE PERCENT (5%) of the total deposits of the financial system, if that proportion is higher, THE CENTRAL BANK OF THE ARGENTINE REPUBLIC may suspend or reduce the obligation to make contributions to the FGD, restoring said obligation totally or partially when the FGD decreases from that amount or proportion.

Article 9: At any time, THE CENTRAL BANK OF THE ARGENTINE REPUBLIC may require financial entities to advance the integration of up to one year of normal contributions, and they are obliged to do so. Likewise, THE CENTRAL BANK OF THE ARGENTINE REPUBLIC may directly debit financial entities that do not constitute their normal or additional contributions from the funds they have deposited in the institution.

Article 10: The resources of the FGD will be invested under conditions similar to those established for the placement of the foreign exchange reserves of THE CENTRAL BANK OF THE ARGENTINE REPUBLIC. The investments must be denominated in US DOLLARS or PESOS and will be made in banks abroad or invested in bonds of central governments of countries members of the ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT (OECD) that have at least TWO (2) "AA" ratings granted by international risk assessment agencies. SEDESA will inform the public and the SUPERINTENDENCY OF FINANCIAL AND EXCHANGE ENTITIES monthly of the FGD balance.

Article 11: The coverage offered by the system applies to deposits in PESOS and foreign currency constituted in participating entities in the form of checking accounts, savings accounts, fixed-term deposits, or other modalities determined by THE CENTRAL BANK OF THE ARGENTINE REPUBLIC, which meet the requirements established in this decree and those established by the Application Authority.

Article 12: The following are not covered by the guarantee system:
a) Deposits of financial entities in other intermediaries, including fixed-term certificates acquired through secondary negotiation. b) Deposits made by persons linked, directly or indirectly, to the entity according to the guidelines established or to be established in the future by THE CENTRAL BANK OF THE ARGENTINE REPUBLIC. c) Fixed-term deposits of securities, acceptances, or guarantees. d) Deposits constituted after July 1 of the current year, on which an interest rate higher than the passive interest rate for equivalent terms of THE NATIONAL BANK OF ARGENTINA corresponding to the day prior to the imposition by two percentage points annually has been agreed. THE CENTRAL BANK OF THE ARGENTINE REPUBLIC may modify the reference rate established in this subsection, communicating it FIVE (5) business days in advance. e) Other deposits that the Application Authority excludes in the future.

Article 13: The guarantee covers the return of demand or fixed-term deposits constituted for less than NINETY (90) days up to the sum of TEN THOUSAND PESOS ($ 10,000), or of fixed-term deposits constituted for NINETY (90) or more days, up to the sum of TWENTY THOUSAND PESOS ($ 20,000). Deposits for amounts higher than those mentioned are also included in the guarantee regime up to the maximum limit resulting from applying the previously provided provisions, according to the corresponding terms.

Article 14: Given the subsidiary nature of this regime with respect to the system of privileges and protection of deposits established by the Financial Entities Law, the coverage can only be made effective after the exercise of the privileges established in article 49, subsections d) and e) of the Financial Entities Law by its holder, complementing the reimbursements obtained by depositors through the application of the mechanisms provided in article 35 bis of the same law, until reaching the maximum coverage provided for the guarantee.

Article 15: The guarantee applies on equal conditions for natural and legal persons. To determine the amount covered by the guarantee and its return to the depositor, the total of the deposits registered by each person in the entity on the date of revocation of its authorization to operate will be computed. In accounts and deposits in the name of TWO (2) or more persons, it will be understood that only one of them enjoys the guarantee, prorating it among the participants.

Article 16: When there are concurrently fixed-term deposits of NINETY (90) or more days, and demand or shorter-term deposits, the guarantee will be settled first with respect to the latter up to the maximum amount corresponding to them. If the sum of said deposits is less than TEN THOUSAND PESOS ($ 10,000), the remaining deposits will be guaranteed by the difference of unused coverage up to the maximum provided in article 13.

Article 17: The guarantee will be made effective in a subsidiary and complementary manner to the reimbursement of deposits through the application of the privileges established by the financial entities law, within THIRTY (30) business days counted from the day following the revocation of the authorization to operate of the entity, to the extent that depositants meet the established requirements and the FGD has liquidity. At the request of SEDESA, THE CENTRAL BANK OF THE ARGENTINE REPUBLIC may authorize the extension of said deadline when the number of beneficiaries in the settlement process justifies it. When the resources of the FGD are insufficient to cover the payment of the guaranteed sums, the reimbursement will be made pro rata of the available funds. The balance will be settled within THIRTY (30) days counted from the date the FGD reports the existence of financial liquidity. In these situations and when there is more than one entity whose authorization has been revoked, the priority for reimbursement will be governed by the chronological order resulting from the start of the calculation of the payment deadline for the guarantee. In no case will the FGD cover or recognize interest for the period between the original due date of the deposit and the date of payment of the guarantee.

Article 18: The payment of the guaranteed sums will be made in pesos or foreign currency, according to the proportion of each species resulting from the total of the deposited capital. To this end, and to homogenize the balances of the total deposited when it concerns deposits in foreign currency, their equivalent in pesos will be taken according to the selling exchange rate for bills of THE NATIONAL BANK OF ARGENTINA, corresponding to the day prior to the revocation of the authorization to operate of the included entity.

Article 19: SEDESA may reject the guarantee coverage request when the respective deposits do not meet the requirements established in this regulation or other provisions issued by THE CENTRAL BANK OF THE ARGENTINE REPUBLIC.

Article 20: SEDESA is subrogated in the rights and privileges established by the financial entities law in favor of depositants for the payments it makes effective due to the agreed guarantee. By virtue of this, it may exercise the corresponding judicial actions when, in its judgment, there are real possibilities of recovering the amounts disbursed.

Article 21: The regime established in this Decree will apply with respect to fixed-term deposits that are constituted or renewed from April 18, 1995, and with respect to demand deposits that are registered in the balances corresponding to the close of that day, constituted in financial entities that were not suspended by THE CENTRAL BANK OF THE ARGENTINE REPUBLIC nor had their authorization to operate revoked.

Article 22: THE CENTRAL BANK OF THE ARGENTINE REPUBLIC will be the Application Authority of the system created by Law 24.485 and regulated by this Decree, being empowered to issue interpretive and application rules that are necessary.

Article 23: The Board of Directors of SEDESA must communicate to the SUPERINTENDENCY OF FINANCIAL AND EXCHANGE ENTITIES dependent on THE CENTRAL BANK OF THE ARGENTINE REPUBLIC, its opinion regarding financial entities that, in its judgment, have credit or commercial policies that are considered to have risk higher than normal. Likewise, its opinion may be requested regarding authorization requests to operate or transformation that are under consideration by THE CENTRAL BANK OF THE ARGENTINE REPUBLIC.

Article 24: This Decree will enter into force from the same day of its publication in the Official Bulletin.

Article 25: Communicate, publish, send to the National Directorate of the Official Registry, and archive. MENEM. Domingo F. Cavallo.