Coordination Cabinet of Financial Regulation and Supervision

Within its sphere the Federal Government created the Coordination Cabinet of Financial Regulation and Supervision (the “Coordination Cabinet”) through Decree No 476/2004, published in the Official Gazette on April 21, 2004 and in force since such date (the “Decree”), in replacement of the Permanent Commission of Evaluation of Financial Regulations (the “Permanent Commission”).

In 1999 the Federal Government had created the Permanent Commission through Decree No 814/1999 in order to fulfill a condition under a loan granted by the Banco Internacional de Reconstrucción y Fomento and to favor the harmonization of financial regulations related to bank, insurance, capital market and pension fund activities. Decree No 814/1999 is abrogated by the Decree.

The whereas of the Decree mentione that it is necessary to extend the objectives foreseen by the Permanent Commission, to which effect it is convenient to create a Coordination Cabinet that incorporates the universe of financial regulation and includes new regulation and supervisory entities. In this sense, the Decree adds the following activities to those mentioned in the precedent paragraph: mutual investment funds, private medicine, saving and capitalization plans, assistance to mutual benefit societies and credit card systems.

The Coordination Cabinet will be chaired by the Finance Secretary of the Ministry of Economy and Production and integrated by the President of the Central Bank of the Republic of Argentina, the Deputy Secretary of Financial Services of the Secretary of Finance of the Ministry of Economy and Production, the President of the Argentine Securities Commission, the Superintendent of Insurance of the Superintendence of Insurance of Argentina, the Superintendent of the Superintendence of Pension Funds, the Superintendent of the Superintendence of Corporation of the City of Buenos Aires, the President of the National Institute of Associative and Social Economy, the Deputy Secretary of Defense of Competition and Consumer, the Superintendent of the Superintendence of Health Services, and the Superintendent of the Superintendence of Exchange and Financial Entities (the “Represented Entities”).

The Coordination Cabinet’s objectives will be to oversee the stability of the financial system, make financial intermediation more efficient and protect financial services consumers. To such ends, it will carry out the following duties:

a) to promote (i) the harmonization of regulations issued by the Represented Entities, (i) joint policies of regulation and supervision of the financial conglomerates that carry out their activities in sectors regulated by the Represented Entities, and (iii) the development of a common technological platform for all the Represented Entities;

b) to encourage the coordination of supervisory activities of the Represented Entities and the adoption of measures in accordance with international regulatory trends of sectors regulated by the Represented Entities; and

c) to identify and carry out recommendations regarding all financial areas which require a joint treatment by all or part of the Represented Entities.

These objectives and duties will not limit the autonomy and regulatory and supervisory faculties of the Represented Entities. However, each member of the Coordination Cabinet who has voted in favor of any issue approved by the Coordination Cabinet shall undertake the resulting criteria of the Coordination Cabinet decision in order to be approved by his or her Represented Entity within thirty calendar days as from the date of approval by the Coordination Cabinet. Furthermore, the reports and recommendations approved by the Coordination Cabinet shall be published in the internet sites of each Represented Entity. Such reports may be put under public consultation in accordance with the operative and internal regulation which shall be issued by the Coordination Cabinet within three months from when the Decree is in force.