Financing to the Non-Financial Public Sector: Energy Sector

2006- Year of homage to Dr. Ramón CARRILLO

CENTRAL BANK OF THE ARGENTINE REPUBLIC

COMMUNICATION “A“ 4581
29/09/2006

TO THE FINANCIAL INSTITUTIONS:

Ref.: Circular
OPRAC 1 - 597

Financing to the non-financial public sector. Energy sector.

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

“- Establish that the Central Bank of the Argentine Republic may grant the general treatment for persons of the non-financial private sector, for all purposes of the rules applicable in that matter, to companies of the public sector not constituted under Law 20.705 and that also comply with the following requirements:

a) Their creation has been ordered by national law.

b) Constitute a corporation subject to the regime of Chapter II, Sections V and VI of the Commercial Companies Law -Law 19.550-.

c) Have majority participation of the National State, direct or indirect, according to the provisions contained in that legal device.

d) Have as specific purpose the development of activities in the energy sector.

e) Be subject to the internal and external controls of the National Public Sector under the terms of the Financial Administration and Control Systems of the National Public Sector Law -Law 24.156-.

For the purposes of obtaining the general treatment provided for private sector companies, the aforementioned companies must:

i. Prior to the first financial assistance they request under this regime, they must petition by note signed by their legal representative and addressed to the Central Bank of the Argentine Republic, the general treatment provided for private sector companies, attaching for that purpose a sworn declaration signed by all members of its board of directors stating compliance with the conditions set forth above and a commitment to provide the information requested for that purpose, as well as to reliably notify the Central Bank of the Argentine Republic and the lending financial institution of any modification of the circumstances taken into account for their assimilation to private sector companies.

ii. In case the Central Bank of the Argentine Republic grants the general treatment provided for private sector companies, the company, when requesting any type of financing from a financial institution, must present before it an authentic copy of the resolution granting it, together with a sworn declaration signed by all members of its board of directors stating that it continues to comply with the conditions taken into account to grant it said treatment.

iii. The sworn declarations referred to in paragraphs i) and ii) above must be accompanied by certification of public accountant with signature legalized by the Professional Council of Economic Sciences competent in which that professional rules on compliance with the requirements previously established.

It will be the responsibility of the lending financial institutions to verify, prior to the granting of each credit assistance, the required intervention of this Institution and the maintenance at all times of the requirements set for the purposes of the treatment established above.

When a company ceases to observe the conditions taken into account to grant the general treatment provided for private sector companies, the provisions applicable to the non-financial public sector will be applied to the new financings granted to it, from the moment that circumstance is verified.

Consequently, the companies that receive the treatment established in this resolution will be excepted -for all their effects- from the application of the provisions on financial assistance to holders of the non-financial public sector.”

We greet you very attentively.

CENTRAL BANK OF THE ARGENTINE REPUBLIC

Darío C. Stefanelli
Issuance Manager of Norms a/c

José I. Rutman
Deputy General Manager of Norms