Circular TINAC 1 - 221. Treasury Bonds

BANCO CENTRAL DE LA REPUBLICA ARGENTINA
__________________________________________________________________ COMUNICACION " A " 1956 I 11/05/92 __________________________________________________________________ TO FINANCIAL ENTITIES:
Ref.: Circular
TINAC 1 - 221.
Treasury Bonds.
We address you to inform you that, in accordance with the provisions of Executive Power Decree No. 211/92, modified by Decree No. 526/92, this Bank has proceeded to issue, on behalf of the National Government and in accordance with the request of the Secretariat of Finance, the National Public Debt securities listed below and with the characteristics indicated in each case:

1- "10-Year Treasury Bonds".
1.1. Issue Date: April 1, 1990
1.2. Currency of Issue: US DOLLARS
1.3. Amount: US$ 500,000,000 nominal value
1.4. Term: TEN (10) years
1.5. Amortization: It will be carried out in Thirty (30) successive quarterly installments, the first Twenty-nine (29) equivalent to 3.30% and the last one to 4.30% of the issued amount plus the capitalized interest accrued during the first Thirty (30) months.
The first amortization will take place on 01.01.93
1.6. Interest: They will accrue the interest rate prevailing in the London interbank market (LIBOR), for eurodollar deposits with a THREE (3) month term. This rate will be determined by the CENTRAL BANK OF THE REPUBLIC OF ARGENTINA, based on the average resulting from the rates reported by its correspondent banks in that location, at the close of operations arranged THREE (3) business days before the start of each income period. Interest will be capitalized quarterly during the first THIRTY (30) months.
Interest will be paid together with the amortization installments.

2- "5-Year Treasury Bonds".
2.1. Issue Date: April 1, 1991

2.2. Currency of Issue: US DOLLARS
2.3. Amount: US$ 300,000,000 nominal value
2.4. Term: FIVE (5) years.
2.5. Amortization: It will be carried out in FIFTEEN (15) successive quarterly installments, the first FOURTEEN (14) equivalent to 6.60% and the last one to 7.60% of the issued amount plus the capitalized interest accrued during the first FIFTEEN (15) months.
The first amortization will take place on 01.10.92
2.6. Interest: They will accrue the interest rate prevailing in the London interbank market (LIBOR), for eurodollar deposits with a THREE (3) month term. This rate will be determined by the CENTRAL BANK OF THE REPUBLIC OF ARGENTINA, based on the average resulting from the rates reported by its correspondent banks in that location, at the close of operations arranged THREE (3) business days before the start of each income period. Interest will be capitalized quarterly during the first FIFTEEN (15) months.
Interest will be paid together with the amortization installments.

3- Additionally, the Bonds referred to in points 1 and 2 above have the characteristics listed below:
3.1. Ownership and Negotiation: They will be book-entry, freely transferable and tradable on the Stock and Securities Exchanges of the country.
3.2. Tax Exemptions: As established in Art. 4 of Decree 211/92, the Bonds of this issuance will have the tax treatment provided for public titles in Art. 36 bis of Law 23.962.
3.3. Early Redemption: The Secretariat of Finance may order the early redemption of all or part of the Bonds, at their nominal value plus accrued interest.
3.4. Placement: The Bonds will be given in payment of the debts established in Decree 211/92. Such delivery will be made at par, taking into consideration the values on the date of issue of the Bonds. The conversion of the debt into US dollars will be carried out on the date of issue of the respective Bonds, at the selling exchange rate of the Bank of the Argentine Nation.
3.5. The Bond of lowest denomination for both issuances will be one US dollar (US$ 1.-). Any fraction of debt greater than FIFTY CENTS (US$ 0.50.-) will be paid by the delivery of a Bond of lowest denomination, eliminating fractions equal to or less than said amount.

We salute you very attentively.
BANCO CENTRAL DE LA REPUBLICA ARGENTINA
Cayetano I. Peroni Norma A. Riavitz
Supervisor of Supervisor General
Internal Public Debt of Public Debt