Circular Passive Operations - OPASI 2 - 40. Measures to Achieve Monetary Stability

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMUNICACIÓN "A" 1603 03/01/90
TO FINANCIAL ENTITIES:
Ref.: CIRCULAR PASSIVE OPERATIONS - OPASI - 2 -
40. Measures to Achieve Monetary Stability.

We address you to inform you that this Institution has adopted the following resolution:

1. Savings deposits in special accounts, time deposits in australes - adjustable or not - acceptances, passive repos, and guarantees for loans and between third parties resident in the country that are registered on 12/28/89 will be returned to their holders or investors by the value of the capital, adjustment, and interest as of that date under the following terms for each operation:

• Up to A 1,000,000, in cash or in External Bonds - 1989, at the option of the holder. The deadline to exercise the option will be 72 business hours from the originally agreed maturity date or the resumption of banking activities - whichever is later - not exceeding 1/15/90. For special savings accounts, this deadline will be calculated from 1/4/90.

In the event that the relevant option is not submitted, it will be considered that the exchange of the entire operation for the aforementioned titles is accepted.

Likewise, the restitution of deposits in australes for amounts exceeding A 1,000,000 will be admitted, provided that it is used exclusively for the payment of salaries, wages, annual complementary salary (excluding extraordinary gratuities), and social charges corresponding to December 1989 and pension moratorium installments whose due dates fall in January 1990.

It is an indispensable condition for the release of these funds that the holders credibly demonstrate their need and the effective cancellation of the social charges corresponding to December 1989. Financial entities will be directly responsible for verifying strict compliance with the aforementioned requirements, and in case of deviation from the provisions, they will be subject to the application of Article 41 of Law 21.526.

• For the excess of A 1,000,000, in External Bonds - 1989, except for fractions lower than the equivalent value of the sheet of US$ 100, which will also be liquidated in cash.

The exchange for External Bonds - 1989 will be carried out at their technical value on 12/28/89, for which effect the exchange rate of A 1800 per each US dollar will be considered.

-2-

When liquidating the operations covered by the exchange, which will be considered mature on 12/28/89, financial entities will deliver to their holders a receipt for each of them stating the amounts of the following concepts, as applicable:

• capital
• adjustment
• interest
• withheld taxes
• net liquidation
• cash delivered
• balance to be liquidated in External Bonds - 1989

The document representing the original transaction will remain in the possession of the investor, duly endorsed by the amount paid in cash, if applicable, unless its total cancellation is verified, and until sufficient evidence of the accreditation of their holdings or sheets of Bonds is delivered.

2. Exclude from the exchange referred to in the previous point the concepts mentioned in the Annex.

3. Suspend the collection of time deposits in australes, adjustable or not (including renewals) and in special savings accounts. Operations of acceptances and granting of guarantees for loans and between third parties resident in the country linked to public bonds may not be contracted.

Deposits referred to in Communication "A" 1460 are excluded.

4. Replace point 1.6. of Chapter I of Circular OPASI - 2 with the following:

"1.6. Interest.
Interest may be recognized on current account balances under the conditions freely agreed upon with clients."

5. Replace points 1.1.1., 2.1.1. and 4.1. of Annex I to Communication "A" 1465 with the following:

"1.1.1. Minimum Term.
30 days. Early cancellations may be admitted from 30 days of the validity of the operations and provided that a period not less than the minimum established for each tranche of minimum cash requirement has elapsed.

2.1.1. Minimum Term.
30 days.

4.1. Minimum Term.
30 days. Early cancellations may be admitted from 30 days of the validity of the operations."

6. Replace points 1.1.1. and 3.1. of Annex I to Communication "A" 1590 with the following:

"1.1.1. Minimum Term.
30 days. Early cancellations may be admitted from 30 days of the validity of the operations and provided that a period not less than the minimum established for each tranche of minimum cash requirement has elapsed.

3.1. Minimum Term.
30 days. Early cancellations may be admitted from 30 days of the validity of the operations."

7. State that any alteration that may be made regarding the situation registered on 12/28/89 concerning deposits and other operations covered by the measures referred to in this resolution will make financial entities subject to the application of the sanctions provided for in Article 41 of Law 21.526.

8. Establish that the provisions referred to in points 3, 4, 5, and 6 of this resolution will be effective from 1/4/90.

Furthermore, entities must submit to this Institution by 1/19/90 information related to the withdrawal of deposits to attend to remuneration and admitted concepts (4th paragraph of point 1. of the preceding resolution) which will contain the following data:

• Corporate name or denomination of the company or surname and names.
• Unique Tax Identification Key (D.G.I.) or identity document if no CUIT is possessed.
• Amount returned.
• Date of withdrawal.

At the appropriate time, the ordered text of the regulations issued by this Institution, whose modification results from these provisions, will be sent to them.

We salute you very attentively.
BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Alfredo A. Besio Rodolfo Caporalini
Manager of Standards for General Submanager
Financial Entities

ANEXO

B.C.R.A. DEPOSITS EXCLUDED FROM THE EXCHANGE FOR EXTERNAL BONDS - 1959
Annex to
Com. “A” 1603

• Usurious deposits.
• Deposits in "Unemployment Fund for Construction Industry Workers" accounts.
• Judicial deposits.
• Deposits whose ownership corresponds to social security entities registered in the National Institute of Social Works, to the extent that they are destined to make payments to providers and salaries.
• Deposits corresponding to the National Institute of Social Works.
• Import deposits - Decree 4070/84 - Resolution M.E. 23/89 (Communication "A" 1460).
• Deposits Communication "A" 1190.
• Special Deposits Communication "A" 327.
• Communication "A" 532.
• Communication "A" 459.
• Communication "A" 946.