Circular RUNOR 1-346. OPASI 2-212. Mandatory Issuance and Placement of Debt. Deferral of Effectiveness

"1999 - Year of Exportation"

BANCO CENTRAL DE LA REPUBLICA ARGENTINA __________________________________________________________________ COMMUNICATION "A" 2931 04/06/99 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
RUNOR 1 - 346.
OPASI 2 - 212.
Mandatory Issuance and Placement of Debt.
Deferral of Effectiveness

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

"1. Establish that the alternative procedure referred to in Section 4 of the regulations on mandatory issuance and placement of debt shall apply as of September 1, 1999. Until August 31, 1999, the failure to issue and place debt under the conditions established in that regime shall not be considered a breach of obligation.

2. Extend until December 31, 1999, the deadline referred to in the second paragraph of point 1 of this resolution in the case of entities that have complied with the issuance of debt corresponding to 1998 by December 31 of that year."

Attached, we send you the sheets that, due to the resolution transcribed above, must be incorporated into the consolidated text of the current regulations in this matter, replacing those previously provided.

We salute you very respectfully.

BANCO CENTRAL DE LA REPUBLICA ARGENTINA Juan Carlos Isi Alfredo A. Besio Deputy Manager of Regulations Deputy Manager of Regulations for Financial Entities for Financial Entities

ANNEX: 3 sheets

+------------+---------------------------------------------------+ ] ] Mandatory Issuance and Placement of Debt ] ] B.C.R.A. ]---------------------------------------------------] ] ] Section 4. Alternative Procedure. ] +------------+---------------------------------------------------+
4.1. Utilization.
Financial entities may opt not to issue debt, as provided in these regulations, with the effects established in point 4.2.

4.2. Effects.
4.2.1. Automatic increase of one percentage point of the minimum liquidity requirements, except for obligations with residual maturities greater than 365 days, starting from the day following the expiration of the maximum term provided in point 1.2 of Section 1 of these regulations.

4.2.2. Automatic increase of the minimum capital requirement for credit and interest rate risks that, if greater than the basic requirement, must be integrated starting from the last day of the month following the expiration of the maximum term provided in point 1.2 of Section 1 of these regulations. To this effect, the result of the expression referred to in point 3.1 of Section 3 of the regulations on minimum capital of financial entities shall be multiplied by 1.05.

These increased requirements shall expire the month following the month in which the entity effectively places debt as provided in these regulations, upon demonstration of such circumstance to the Superintendence of Financial and Exchange Entities.

+------------+------------------------+---------+----------------+ ]Version: 3rd.] Communication "A" 2931 ]Validity:] Page 1 ] ] ] ]1.9.99 ] ] +------------+------------------------+---------+----------------+

+-----------------------------------------------+---------------+ ] NEW CONSOLIDATED TEXT ] SOURCE REGULATION ] ]------------------------+----------------------] Observations ] ]Section] Point ]Paragraph]Comm. Point]Paragraph] ] ]-------+--------+-------+--------+-----+-------+---------------] ] 3. ]3.1.3. ] ]"A" 2494]4.3. ] ] ] ]-------+--------+-------+--------+-----+-------+---------------] ] 3. ]3.1.3.1.] ]"A" 2653]5. ] 1st ] Incorporates in- ] ] ] ] ] ] ] terpretative clar- ] ] ] ] ] ] ] ification. ]-------+--------+-------+--------+-----+-------+---------------] ] 3. ]3.1.3.2.] ]"A" 2653]5. ] 2nd ] ] ]-------+--------+-------+--------+-----+-------+---------------] ] 3. ]3.1.4. ] ]"A" 2494]4.4. ] 1st ] ] ]-------+--------+-------+--------+-----+-------+---------------] ] 3. ]3.1.5. ] ]"A" 2494]4.4. ] 2nd ] ] ]-------+--------+-------+--------+-----+-------+---------------] ] 3. ]3.2. ] ]"A" 2494]4. ] 4th ] According to Com. ] ] ] ] ] ] ] "A" 2653, ] ] ] ] ] ] ] point 4. ]-------+--------+-------+--------+-----+-------+---------------] ] 3. ]3.3. ] ]"A" 2494]4. ] 5th ] According to Com. ] ] ] ] ] ] ] "A" 2653, ] ] ] ] ] ] ] point 4. ]-------+--------+-------+--------+-----+-------+---------------] ] 3. ]3.4. ] ]"A" 2494]4. ]2nd and 3rd] ] ]-------+--------+-------+--------+-----+-------+---------------] ] 3. ]3.5. ] ]"A" 2653]5. ] 3rd ] ] ]-------+--------+-------+--------+-----+-------+---------------] ] 4. ]4.1. ] ]"A" 2886] ] ] Validity accord- ] ] ] ] ] ] ] ing to Comm. "A" ] ] ] ] ] ] ] 2931, pt. 1. ]-------+--------+-------+--------+-----+-------+---------------] ] 4. ]4.2. ]last ]"A" 2886] ] ] Validity accord- ] ] ] ] ] ] ] ing to Comm. "A" ] ] ] ] ] ] ] 2931, pt. 1. ]-------+--------+-------+--------+-----+-------+---------------] ] 4. ]4.2.1. ] ]"A" 2886] ] ] Validity accord- ] ] ] ] ] ] ] ing to Comm. "A" ] ] ] ] ] ] ] 2931, pt. 1. ]-------+--------+-------+--------+-----+-------+---------------] ] 4. ]4.2.2. ] ]"A" 2886] ] ] Validity accord- ] ] ] ] ] ] ] ing to Comm. "A" ] ] ] ] ] ] ] 2931, pt. 1. ]-------+--------+-------+--------+-----+-------+---------------]

+------------------------------------------------+--------------+ ] NEW CONSOLIDATED TEXT ] SOURCE REGULATION ] ]------------------------+-----------------------]Observations ] ]Section] Point ]Paragraph]Comm.]Point ]Paragraph] ] ]-------+--------+-------+--------+------+-------+--------------] ] 5. ]5.1. ]1st ]"A" 2494]5.3. ]1st ] Modified ] ] ] ] ] ] ] by Comm. ] ] ] ] ] ] ] "A" 2886, ] ] ] ] ] ] ] point 3. +-------+--------+-------+--------+------+-------+--------------+ ] 5. ]5.1. ]2nd ]"A" 2494]5.3. ]2nd ] Modified ] ] ] ] ] ] ] by Comm. ] ] ] ] ] ] ] "A" 2886, ] ] ] ] ] ] ] point 3. ]-------+--------+-------+--------+------+-------+--------------] ] 5. ]5.2. ]1st ]"A" 2494]5.3. ]3rd and 4th] Modified ] ] ] ] ] ] ] by Comm. ] ] ] ] ] ] ] "A" 2886, ] ] ] ] ] ] ] point 3. ]-------+--------+-------+--------+------+-------+--------------] ] 5. ]5.2. ]2nd ]"A" 2886] ] ] ] ]-------+--------+-------+--------+------+-------+--------------] ] 6. ]6.1. ] ]"A" 2494]7. ] ] ] ] ] ] ] ] ] ] ] ]---------------------------------------------------------------]