Access to the Foreign Exchange Market to Repay Principal of Foreign Financial Indebtedness

Through Communication "A" 5397, effective as from February 13, 2013, the Central Bank of the Republic of Argentina (the "Central Bank") reduced the term applicable to the financial sector and non-financial private sector debtors for access to the Argentine foreign exchange market (the "FX Market") to cancel principal before maturity of their foreign financial indebtedness. Previously this period was 30 calendar days prior to the expiration of the debt in question, as long as the applicable waiting period was fulfilled. As from the validity of Communication “A” 5397, access to the FX Market is allowed 10 business days prior to expiration of the debt, as long as the applicable waiting period is fulfilled.

In addition, the new regulation allows access to the FX Market before such 10-business-days term if:

1. the payment is entirely financed with funds destined to capital contributions, or
2. the payment is entirely financed with new foreign loans granted by international financial institutions and agencies, official foreign credit agencies and foreign banks, and to the extent that: a) such payment were expressly established as a condition to grant the new credits, and b) such payment does not imply an increase in the current value of the foreign indebtedness of the debtor.

Furthermore, Communication "A" 5397 excludes the following events for the timing of the calculation, in which the determination of the current value of the debt is based:

1. the date of execution of the mandate agreement to a financial institution for the placement of new debt in the local capital markets; and
2. the date of disbursement of the new debt in local currency granted by local financial institutions.

Finally, regarding access to the FX Market for the payment of interest accrued on unpaid debts or debts canceled simultaneously with the payment of interest, Communication "A" 5397 established that the purchase of foreign currency in the FX Market may be completed in a period not in excess of 5 business days prior to the due date of each installment of interest computed in arrears, excluding the possibility of calculating the amount on accrued interests.