Acquisition of Foreign Currency for Specific Purposes by using Funds from New External Issuances of Bonds and other Debt Securities

Through Communication "A" 5757 dated May 21, 2015, the Central Bank of Argentina (the "Central Bank") has established the possibility of purchasing foreign currency in the Foreign Exchange Market (the "FX Market") in order to deposit it in local banks, up to the amount liquidated in the FX Market and for no longer than 270 consecutive days. This occurs simultaneously with the liquidation of funds from new issuances of bonds and other debt securities with public offering and listed in stock exchanges issued by local governments and/or non-financial private sector which comply with the conditions established by the applicable regulations to be considered external ones. This mechanism used to be permitted up to the equivalent of 90% of the amount liquidated in the FX Market and for no longer than 180 consecutive days (pursuant to –Communication “A” 5604 dated July 10, 2014).

Foreign currency deposited in local banks in the above conditions may only be used to set up fix-term deposits or deposited in a special account in foreign currency. It may only be withdrawn for their sale in the FX Market.

In each of the calendar months following the month of entrance of the funds at least 80% of the net needs of accessing the FX Market for any concept should be covered by sales of the funds deposited in the special account or the fix-term deposit.

Any funds that are not used within 270 consecutive days of establishment shall be sold in the FX Market within 10 business days.

The sale of the funds created by this mechanism will be exempt from the requirements of the provisions of Decree No. 616/2005 (i.e., the registration of the transaction with the Central Bank. That principal can only be repaid after a mandatory waiting period of 365 days and a 365-day mandatory deposit in U.S. Dollars with a local financial institution equal to 30% of the financing proceeds settled in the FX Market).

Pursuant to Communication "A" 5643 dated July 10, 2014, this is also applicable to the liquidation of funds from foreign financial loans and direct investment contributions.