Circular TINAC 1 - 104: Issuance of Adjusted Guaranteed Real Income Bonds - 1988

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
COMMUNICATION "A" 1246 12/08/88
TO FINANCIAL ENTITIES AND SECURITIES MARKETS:
Ref.: TINAC National Public Bonds Circular - 1 -
104. Issuance of "Adjusted Guaranteed Real Income Bonds - 1988."

We address you to inform you that, in accordance with the provisions of Executive Decree No. 183/88, this Bank proceeded to issue -at the request of the Treasury Secretariat- "Adjusted Guaranteed Real Income Bonds 1988", with the following characteristics:

1. Amount: nominal value 480 million
2. Issuance date: 19.8.88
3. Term: Three (3) years
4. Amortization: It will be carried out in SIX (6) successive semi-annual installments, equivalent to the first five (5) at SIXTEEN PERCENT (16%) and the last at TWENTY PERCENT (20%) of the nominal value of each bond.
   The first amortization will take place on February 1, 1989.
5. Clause and Adjustment: The nominal value of the capital will be adjusted by the variation experienced by the index detailed in 6, between the issuance date of the securities and the maturity date of each service.
6. Adjustment Index: The adjustment index indicated in 5 will be prepared by taking for each semi-annual period the variation experienced by the index prepared by this Bank based on passive interest rates (Communication "A" 793 - REMON I - 273, point 5 and complementary) or its replacement, between the fifth business day prior to the maturity of each period and the fifth business day prior to the start of each period, except that it were lower than the variation resulting from comparing the value of the Combined Price Index published by this Bank (Communication "A" 539 REMON 1-176) or its replacement, corresponding to the fifth business day prior to the maturity of each period, increased multiplicatively by one point five zero percent (1.50%) and the value of the same index corresponding to the fifth business day prior to the start of each period, in which case this will be applied.
7. Interest: The Bonds will accrue a rate of TWO PERCENT (2%) nominal annual applicable on the adjusted capital as indicated in the previous point.

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  Interest will be paid semi-annually on July 18 and August 19 of each year.
  In aspects not regulated by this communication, the provisions contained in Communication "A" 991 will apply.
  We salute you very respectfully.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
Miguel Mangeruga
Manager of
Public Finances
Julio A. Piekarz
Deputy General Manager