BANCO CENTRAL DE THE REPUBLIC OF ARGENTINA

COMMUNICATION "A" 5 05/12/80
TO FINANCIAL ENTITIES, EXCHANGE HOUSES AND SECURITIES MARKETS:
Ref.: Circular NATIONAL PUBLIC SECURITIES - TINAC - 1.

We address you to send you attached the text ordered to date of the provisions issued by this Institution, which are applicable to the subject of reference.
We greet you very attentively.

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA
José Luis Machinea
Submanager of
Public Finances
Daniel E. de Pablo
General Submanager

ANNEX

BANCO CENTRAL DE LA REPÚBLICA ARGENTINA

CONTENT

Circular NATIONAL PUBLIC SECURITIES TINAC - 1
1.- Issuance, placement, negotiation, redemption and other aspects.
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BANCO CENTRAL DE LA REPÚBLICA ARGENTINA

CONTENT

I - Issuance, placement, negotiation, redemption and other aspects. TINAC - 1 1.- Loans with adjustment clause.
1.1. Adjustable National Securities.
1.2. Equity Bonds for Financial Entities.
2.- Loans with variable interest rate.
2.1. External Bonds.
2.2. National Variable Interest Bonds.
3.- National Treasury Bills.
4.- Other Aspects.
4.1. Rules for national public securities auctions.
4.2. Presentation for collection of national public securities, whose financial services have matured.
4.3. Retention of national public securities with opposition.
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BANCO CENTRAL DE LA REPÚBLICA ARGENTINA

ORDERED TEXT

Circular NATIONAL PUBLIC SECURITIES TINAC - 1
I - Issuance, placement, negotiation, redemption and other aspects.

1. Loans with adjustment clause.
   1.1. Adjustable National Securities.
   Securities from the 1975/85, 1976/86 and 1976/86 - 2nd Series issuances are in circulation.
   1.1.1. Characteristics and common provisions.
   1.1.1.1. Income and amortization: They enjoy an annual income of 7%, payable by semester due, and are amortized on each title in 8 installments of 12.5% each.
   1.1.1.2. Adjustment clause: The nominal value of the financial services is adjusted by means of a correction index that arises as a quotient of the following elements:
   a) Level of the National Non-Agricultural Wholesale Price Index, prepared by the I.N.D.E.C., corresponding to the second month prior to the date of each due date and the determined for the second month prior to the date of issuance of each series (Basic Level); and b) Level of an equivalent Decrease Index equal to five percent annually. If an amount lower than the current nominal values results, the latter are paid.
   1.1.1.3. Negotiation: They are quoted in all stock exchanges and securities markets in the country.
   1.1.1.4. Placement: The Government National's portfolio holdings can be placed through their sale in the securities markets, and also through public auctions at the time and for the amount that the Central Bank considers convenient.
   1.1.1.5. Early redemption: The National Government reserves the right to effect early redemption of the total or part of these titles at their adjusted value plus accrued interest at any time.
   1.1.1.6. Special provisions for financial and insurance entities:
   1.1.1.6.1. Financial Entities included in Law 21.526: They may acquire and hold "Adjustable National Securities" from the issuances in circulation. Investments in these titles, since they constitute easily liquidable placements, must have, except for commercial banks, the character of temporary, which establishes for such placements Law 21.526 in its articles 22 item f), item e), 24 item g), 25 item f) and 26 item d).
   1.1.1.6.2. Insurance entities subject to the legal regime of the Superintendence of Insurance of the Nation: They may acquire titles from the 1975/85 and 1976/86 series, up to an amount that does not exceed the value of the mathematical reserves of life insurance issued with inflation adjustment clauses.
   5.12.80 1

I - Issuance, placement, negotiation, redemption and other aspects. (Continuation) TINAC-1 In the particular case of the 1976/86-2nd Series- Series issuance, insurance companies may acquire them without the limitation established for those mentioned previously.
1.1.1.7. Payment of income and amortization services of Adjustable National Securities deposited in custody:
Financial entities that maintain the referred securities in custody and whose holders entrust their perception to them, must:
1.1.1.7.1. Control the oppositions of the titles and, if situations of that nature exist, follow the procedure established in point 4.3. (retention of national public securities with opposition).
1.1.1.7.2. Count the coupons that do not register oppositions and liquidate the amounts to be paid.
1.1.1.7.3. Pay, in cash or by crediting the holders' accounts, the resulting amounts on the due date and if it is a holiday, on the next business day.
For the purposes of minimum requirements, they may compute these payments, until they are matched by the Central Bank.
1.1.1.7.4. Send to the Central Bank all the coupons paid, detailed in form 421, which, after the rigorous controls, will credit the resulting amounts in the respective current accounts of the entities.
1.1.1.7.5. For the realization of the procedures mentioned above, the entities may not receive any additional amount, apart from that they have established for the collection of income and amortization of public titles deposited in custody.
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B.C.R.A
I- Issuance, placement, negotiation, redemption and other aspects. (Continuation) TINAC-1
1.1.2. Characteristics specific to each series in circulation:

Concepts	Issuance 1975/85	Issuance 1976/86	Issuance 1976/86 - 2nd Series
a) Legal emission provisions:	Law 20.954 and Decrees 2304/75; 2555/75; 4210/75 and 101/76	Law 20.954 and Dec. 754/76	Law 20.954 and Dec. 439/76
b) Amount issued (in millions):	v$n 50,000	v$n 50,000	v$n 50,000
c) Term:	10 years	10 years	10 years
d) Dates of:
1. Issuance:	11.9.75	20.2.76	26.4.76
2. Stock market quotation:	15.9.75	12.4.76	21.6.76
3. Financial Services:
3.1. Income:	11.3 and 11.9	20.2 and 20.8	26.4 and 26.10
3.2. Amortization	11.9 of each year from 1978	20.2 of each year from 1979	26.4 of each year from 1979

1.1. Bonuses Patrimoniales for Financial Entities.
They were issued for an amount of v$n 6,000 million, through Decree 3,236/75 and Resolution of the State Secretariat of Finance No. 155/75, to be placed - through the subscription of representative, non-transferable certificates - among the entities included in the regime of the Law of Financial Entities, to which it was prohibited to acquire and hold Adjustable National Securities. Of similar characteristics to the 1975/85 series of the mentioned securities, it differs from this in terms of placement (suspended from 4.7.77 by Resolution No. 468/77 of the State Secretariat of Finance), as well as regarding the negotiation of the subscribed certificates which can only be taken back by the Central Bank at the request of the holders. The corresponding operation is carried out at the closing stock market quotation (48-hour settlement) of the Adjustable National Securities 1975/85, registered in the Buenos Aires Stock Exchange on the business day immediately preceding the date of receipt of the request for cancellation of the subscribed nominal amounts.
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B.C.R.A.
I - Issuance, placement, negotiation, redemption and other aspects. (Continuation) TINAC-1
2. Loans with variable interest rate.
2.1. External Bonds.
Issued in accordance with the authorization agreed to the National Executive Power by Law 19.686, (text modified by Law 22.330), the issuances corresponding to the years 1976, 1977 and 1980 are in circulation.
2.1.1. Characteristics and common provisions.
2.1.1.1. Currency of issuance: United States dollars.
2.1.1.2. Interest rate: Variable, payable semi-annually, and equal to the rate for eurodollar deposits for a term of 180 days in the interbank market of London.
For the 1976 and 1977 issuances, the rate is established by the Central Bank based on the average that arises from the rates that its correspondent banks accept in that place, at the close of operations that are arranged on the fifth business day prior to the start of each income period. For the 1980 External Bonds, rates of the same nature are taken, but those corresponding to the close of the seventh business day prior to the start of each of the income periods.
2.1.1.3. Negotiation: They are quotable in the Argentine stock exchanges and securities markets.
Both their exit from the country and their re-entry can be carried out freely.
2.1.1.4. Placement: The 1976 and 1977 Series intended to be offered in payment of obligations with the exterior and others contracted prior to the date of issuance, respectively, can, in addition, according to their issuance rules, be placed through public subscription.
The 1980 External Bonds must be placed through public auctions.
2.1.1.5. Payment of income and amortization services: They are carried out by the Central Bank at the counter or by transfer on the New York, London, Frankfurt or Zurich places, at the option of the interested parties.
In both cases (payment in bills or by transfers), the operations can be carried out in United States dollars, British pounds, German marks or Swiss francs.
When opting for the transfer to one of the mentioned places, it is carried out only in the currency corresponding to that place.
2.1.1.5.1. The coupons must be presented 30 days before the due date, detailing in form 421A by value and serial number. One copy must be integrated for each series, type of currency, form of collection and due date.
When opting for the transfer abroad, the name and address of the bank, the name and number of the account to be credited and any other data that contributes to greater security in the procedure must also be indicated.
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I – Issuance, placement, negotiation, redemption and other aspects. (Continuation) TINAC-1 The presentations of the financial entities will give rise to a single transfer to their order, whose amount must be distributed by their correspondent among the accounts of their clients, according to the instructions that they must send independently.
2.1.1.5.2. Payments in currency other than the currency of issuance will be attributed to the closing exchange rate of the business day prior to the due date in the New York place or, in its defect, London, Frankfurt or Zurich.
Payments requested in foreign bills will be carried out in adjusted quantities to the unit, more or less, at the option of the holders. Unit fractions will be liquidated in pesos at the buyer exchange rate of the Bank of the Argentine Nation, corresponding to the close of the business day prior to the settlement date.
2.1.1.5.3. When the presentations are made with less advance than that mentioned in point 2.1.1.5.1., payment will be made only in the currency of issuance by transfer to New York.
2.1.1.6. Redemption: The National Government reserves the right to effect early redemption of the total or part of these Bonds at any time.
2.1.2. Characteristics specific to each issuance:

Concept	BONEX 1976	BONEX-1977	BONEX-1980
a) Legal provisions of issuance:	Decrees 1,229/76, 2,210/76 and 1119/78	Decrees 2,043/77 and 1,119/78	Decree 1,504/80 and Res. B.C.R.A 455/80
b) Amount issued (in millions):	u$s 200	u$s 50	u$s 500
c) Term:	5 years	5 years	10 years
d) Dates of:
1. Issuance:	1.8.76
2. Financial services:	26.5.77	27.11.80
2.1. Income	1.2 and 1.8.	26.5 and 26.11	27.5 and 27.11
2.2. Amortization	1.2 and 1.8. of each year from 1.2.79 (1)	26.5 and 26.11 of each year from 26.11.79 (1)	27.11 of each year from 27.11.83 (2)

(1) On each bond: in 6 semi-annual installments of 16% for the first five, and 20% for the last.
(2) On each bond: in 8 annual installments of 12.5% each.

2.2. National Variable Interest Bonds.
The issuance of these titles is ordered by the State Secretariat of Finance, in accordance with the authorization granted to it by Decree 1,101/76. That Secretariat authorizes the Central Bank to issue them in series. The 5th Series of the 1979 issuance (Resolution S.E.H. No. 446/79) and the first eight series of the 1980 issuance (Resolutions S.E.H. Nos. 92/80 and 597/80) are in circulation. The characteristics and common provisions of the National Variable Interest Bonds are set out below:
2.2.1. Term: 1 year.
2.2.2. Nominal value of the sheets: v$n 1,000,000; v$n 10,000,000 and v$n 20,000,000.
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B.C.R.A.
I - Issuance, placement, negotiation, redemption and other aspects. (Continuation) TINAC-1
2.2.3. Interest rate: Variable, payable quarterly. It results from applying a quarterly rate equivalent to the average of the effective annual interest rates that apply to transferable time deposits for ninety (90) days in the local banking market, according to the sample prepared for this purpose by the Central Bank during the three (3) first days of the nine (9) business days prior to the start of each income period.
To this average, a surcharge is added which is fixed by the Central Bank at the time of proceeding to the issuance, which applies to the four income periods corresponding.
2.2.4. Amortization: Total at maturity.
2.2.5. Placement: In the form and conditions established by the Central Bank.
2.2.6. Payment of income and amortization services: They are attended exclusively by banks and the National Savings and Insurance Fund, with adjustment to the Operational Regime of the Clearing House of the Federal Capital established for this purpose.
Both for the collection of coupons of bonds deposited in custody, and for those presented with the necessary advance required by the geographic location of the receiving bank, authorized entities must:
2.2.6.1. Control the oppositions of the titles and, if situations of such nature exist, follow the procedure indicated in point 4.3. (retention of national public securities with opposition).
2.2.6.2. Arrange the necessary means so that the values that do not register oppositions, are in the possession of the Clearing House of the Federal Capital 72 business hours before the due date of each service, to make the payment effective on that day.
Presentations made by holders after that time will be liquidated by the Central Bank 72 business hours after the authorized entities put them in the possession of the Clearing House of the Federal Capital.
2.2.6.3. Withdraw from the Central Bank, 48 business hours before the due date, the lists corresponding to the values that must be paid on that occasion.
2.2.6.4. Keep available to the holders the amount of the financial services not withdrawn, up to 6 months after each due date. After that period has elapsed, they must inform the Central Bank about it so that it debits their current accounts for the amounts not collected by the holders.
The information must reach the Central Bank, at the latest 5 business days after the expiration of the mentioned period, by note with the following data:

• Series No. and year of issuance.
• Denomination and numbering of the corresponding sheet.
• Quality of the coupon: Income or Amortization. In the case of income coupons, the number of the service.
• Amount to be debited for each coupon and accumulated total.
  2.2.6.5. Holders who, having completed the aforementioned procedure, present themselves to withdraw the amounts not collected in their opportunity, must, through the respective intermediary entity, request payment from the Central Bank, by note or telex, of those accompanying the same data detailed in point 2.2.6.4. above.
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I- Issuance, placement, negotiation, redemption and other aspects. (Continuation) TINAC-1 Once the legitimacy of the request is proven, the amounts will be made effective by crediting them to the current account of the intermediary entity in the Central Bank.
2.2.6.6. For the attention of the financial services of the National Variable Interest Bonds, authorized entities may not receive any additional amount apart from the commissions established by the Central Bank when issuing each series of these values.
2.2.7. Negotiation: The titles are bearer and quotable in the stock exchanges and securities markets of the country.
2.2.8. Format of the sheets: Based on the payment system indicated in point 2.2.6., the titles representing these bonds and their respective coupons have the shape and size required for their adequate processing through the Clearing House of the Federal Capital, as derived from the following diagram:

```
I------25 cms------I
(2)
Titulo Representativo del
Capital o Cupón de Renta
I------7,5 cms------I
7,5 cms
(3)
Banda Magnetizada (1)
I ------ 17,5 cm.------I
```

(1) Income coupon or title representing capital that must be presented on the occasion of the corresponding due date in any of the authorized entities to attend the financial services. Such presentation must be made with the advance that the receiving entity considers necessary - based on its geographic location - so that the holder can collect the income or amortization on the due date. (2) Stub for the holder that must be stamped by the receiving entity at the moment of presentation of the attached value (1) and that it must deliver at the moment of collection. (3) Control stub that must remain in the possession of the receiving entity.
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Concepts	1979 5th Series	1980 1st Series	1980 2nd Series	1980 3rd Series	1980 4th Series	1980 5th Series	1980 6th Series	1980 7th Series	1980 8th Series
a) Legal provisions of issuance	Res. SEH 446/79 Res. BCRA 669/79	Res. SEH 95/80 Res. BCRA 63/80 and 89/80	Res. SEH 92/80 Res. BCRA 110/80	Res. SEH 92/80 Res. BCRA 154/80	Res. SEH 92/80 Res. BCRA 190/80	Res. SEH 92/80 Res. BCRA 190/80	Res. SEH 92/80 Res. BCRA 323/80	Res. SEH 92/80 Res. BCRA 417/80	Res. SEH 92/80 Res. BCRA 450/80
b) Amount issued (in millions of pesos)	125,000	76,500	75,000	75,000	75,000	75,000	100,000	100,000	100,000
c) Surcharge referred to in Resolution SEH 446/79	5%	5%	5%	5%	5%	5%	5%	5%	5%
d) Dates of:
- Issuance	12.12.79	17.03.80	14.04.80	12.05.80	26.06.80	21.07.80	04.09.80	30.10.80	20.11.80
- Placement	7.12.79 and 08.02.80	13.03.80	10.04.80	80.05.80	24.06.80	17.07.80	02.09.80	28.10.80	18.11.80
- Stock Market Quotation	28.12.79	21.04.80	22.5.80	13.6.80	17.07.80	28.07.80	17.10.80	-	-
- Income Services	12.03.80 12.06.80 12.09.80 12.12.80	17.06.80 17.09.80 17.12.80 17.3.80	14.07.80 14.10.80 14.01.81 14.04.81	12.08.80 12.11.80 12.02.81 12.5.81	26.09.80 26.12.80 26.03.81 26.06.81	21.10.80 21.01.81 21.04.81 21.07.81	04.12.80 04.03.81 04.06.81 04.09.81	30.01.81 30.04.81 30.07.81 30.10.81	20.02.81 20.05.81 20.08.81 20.11.81

2.2.9. Characteristics specific to the series in circulation
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TINAC - 1
B.C.R.A

I - Issuance, placement, negotiation, redemption and other aspects. (Continuation) TINAC-1
3. National Treasury Bills.
3.1. The National Treasury Bills are issued by the State Secretariat of Finance in accordance with the valid legal authorizations (Decree 1101/76), with the intervention of the General Comptroller of the Nation for the purposes of their extension and registration, in accordance with the rules indicated below:
3.1.1. Term: It can be up to (1) one year.
3.1.2. Prices and yields: The Treasury Bills are placed based on a discount of nominal value (100) ONE HUNDRED, taking into account the respective price or monthly yield.
3.1.3. Placement regime: They can be placed indistinctly or jointly through auctions and public offerings in the form, conditions and with the frequency determined by the Central Bank.
In the auctions, the Central Bank is authorized to accept subscription offers in which only amount and term are proposed, recognizing in this case a yield equal to the weighted average of those accepted in each auction for the same term.
3.1.4. Amount: The Central Bank is authorized to fix the minimum amounts of the subscriptions that are made.
3.1.5. Ownership of the Bills: They are issued to the order of the financial entities and securities markets authorized to intervene in the placements carried out by the Central Bank, which acquire them for their own account or for the account of their clients. In the latter case, they must take the necessary precautions to be able to reliably individualize their clients, since any problem derived from the loss, theft or unavailability of the participation vouchers that they are authorized to deliver to them, must be resolved between the respective entity and the effectuated.
3.1.6. Financial services: They are attended by the Central Bank. To this end, the Treasury Bills, prior to their withdrawal by the taking entities, must be deposited by them at maturity in the Central Bank, which, in turn, must credit the corresponding amount in the current account indicated by each entity.
3.1.7. Secondary negotiation: The requirements established by the respective applicable rules must be taken into account.
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B.C.R.A.
I - Issuance, placement, negotiation, redemption and other aspects. (Continuation) TINAC-1
4. Other aspects.
4.1. Rules for national public bond auctions.
4.1.1. Submission of proposals.
4.1.1.1. They must be presented by financial entities and by securities markets (on behalf of Stockbrokers). In the case of External Bond auctions, Exchange Houses may also present them.
4.1.1.2. They will be presented in firm under a sealed envelope and deposited in the ballot box enabled for this purpose at the Central Bank. Presentations made outside the fixed hour will not be received, nor will those whose data contain errors or do not adjust to the integration formulas provided by the Central Bank.
4.1.1.3. The offers are free of all expenses and must be made by the entities in the forms enabled for each loan.
4.1.1.4. If, due to distance, entities located in the interior cannot deliver their proposals in time, they will advance them by telex or, failing that, by the means they deem appropriate, with all the information requested in the forms enabled for each loan.
4.1.1.5. In the subscription proposals for Adjustable National Securities, Variable Interest National Bonds, External Bonds, and National Bonds with Financial Adjustment, the requested nominal amounts and the price in percentage with two decimals expressed in multiples of ten hundredths will be recorded. Several offers at different prices may be made in each presentation. In the auctions for Adjustable National Securities, "non-competitive" proposals will be received simultaneously with the submission of offers for amounts and prices, in which only the intended nominal amounts will be recorded. These offers will be awarded at a price equal to the weighted average of the prices of the "competitive" proposals accepted in each auction. The maximum amount of each "non-competitive" presentation may not exceed the minimum set to participate in the auctions by offering amounts and prices.
4.1.1.6. Regarding the subscription proposals for National Treasury Bills, the offered nominal amount and the expected effective yield (30 days) for each term will be recorded. More than one yield per term may be presented.
4.1.2. Acceptance of proposals and payment of awarded securities.
4.1.2.1. The Central Bank may accept or reject proposals in whole or in part.
4.1.2.2. The payment of accepted proposals in the auctions for National Treasury Bills; Adjustable National Securities, Variable Interest National Bonds, and National Bonds with Financial Adjustment, will be carried out as follows:
4.1.2.2.1. Financial entities:
Their current account at the Central Bank will be debited.
4.1.2.2.2. Securities markets:
By payment order to make it effective on the day or by indication of the current account number and name of the banking house where the subscription amount will be debited. They will use a single bank and must attach this bank's authorization to debit their account at the Central Bank.
4.1.2.3. The payment of accepted proposals in the auctions for External Bonds will be made by crediting the accounts of any of the Central Bank's correspondent banks in the U.S., with notice of receipt to the Central Bank referencing the name of the subscribing entity.
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I - Issuance, placement, negotiation, redemption and other aspects. (Continuation) TINAC-1 The order to credit the funds in the aforementioned correspondent banks must be sent by telegraph so that the aforementioned credit can be effected within three business days counted from the date of acceptance of the proposal. Upon receiving credit notices from the correspondents, the Bonds will be delivered as indicated in point 4.1.4.1 and the commission corresponding to third-party placements will be settled.
4.1.3. Recognition of commissions for third-party placements.
4.1.3.1. The corresponding commission will be recognized for presentations made on behalf of third parties. No commission will be paid when participating entities make placements on behalf of others that are also authorized to participate in public auctions.
4.1.3.2. To settle operations in accordance with the provisions of the previous point, bidders must indicate in the space designated for "Observations" on the form to be used to make the presentations, the nature of the third parties (financial entities, provincial or municipal departments, or individuals).
4.1.4. Delivery of titles.
4.1.4.1. Adjustable National Securities, Variable Interest National Bonds, External Bonds, and National Bonds with Financial Adjustment will be delivered as follows:
4.1.4.1.1. To authorized entities located in the Federal Capital, as well as to the Buenos Aires Securities Market, at the Central Bank.
4.1.4.1.2. To authorized entities and securities markets in the interior, in accordance with their detailed instructions in the subscription form.
4.1.4.2. National Treasury Bills must be withdrawn before their maturity from the Central Bank by participating entities, regardless of their location.
4.2. Submission for collection of national public bonds whose financial services have matured.
To collect the values under such conditions, the forms provided for this purpose by the Central Bank must be completed - either typed or handwritten legibly.
The serial number of the values will be transcribed consecutively on each copy. Both the titles and the coupons must be separated by loan, maturity, denominations, and in packages of 100 units.
The lists of oppositions will be verified, as well as the draw lists in the case of titles that are amortized through that system.
The procedure indicated does not apply to Variable Interest National Bonds, for which the rules established in point 2.2.6.2., second paragraph, must be followed.
4.3. Retention of national public bonds with opposition.
The titles and coupons of national loans whose legal and commercial effects are provisionally paralyzed, due to registered possession complaints, in accordance with what is established in articles 749 and 754 of the Commercial Code, must be delivered to the Central Bank, with a note in which they are duly identified, indicating the name and address of the owner. At this time, the corresponding receipt will be issued in which the cause of the retention and the name and address of the opponent will be recorded.
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