Communication “A” 5237 issued by the Central Bank of Argentina on 10/28/2011

Communication “A” 5237 established as a general rule that in the case of repatriation of direct investments (including any participation of 10% or more in the capital stock of a company, reflecting a long term interest in the company and its activities) in local companies and/or real estate, maintained for at least 365 days (amounts collected for the following concepts: sale and/or final liquidation of the direct investment in Argentina, capital reduction and reimbursement of capital contributions by the local entity), from now on, the non-Argentine resident will be required to provide evidence of the transfer of the funds to Argentina to make such investment. If the non-Argentine resident executing the transfer does not comply with the above mentioned requirements, the transaction will be subject to the Central Bank’s prior authorization.