Regulation of Law on Disclosure of Foreign Currency

On June 12, 2013, the Central Bank of the Republic of Argentina ("BCRA") issued two communications regulating the procedure of the new financial instruments (Certificate of Deposit for Investment or “CEDIN”; Bond for Economic Development or “BAADE” and Promissory Note for Economic Development or “PADE”, collectively, the" Securities ") created by Law No. 26,860 (the" Law ") to be subscribed with foreign currency held locally and abroad, pursuant to the disclosure regime created by the Law. In turn, on June 13, 2013 the Ministry of Economy and Public Finance ("MEPF") issued Resolution No. 256/2013 (the "Resolution") providing for the issuance of BAADE and PADE.

The following is a brief summary of the main features of both Communications and the Resolution:

It establishes the exchange regulations applicable to the transfer of foreign currency from abroad within the framework of Section 4 of the Law and its regulations.

According to Communication "A" 5437, transfers to local financial entities must correspond to deposits held as of April 30, 2013 in banks or foreign financial institutions under the supervision of central banks or equivalent entities, or to foreign currency held in those entities originated from the sale or disposition of existing assets as of that date.

The currencies transferred from foreign institutions shall be settled in the Local Foreign Exchange Market ("FX Market"), under the concept "Repatriation of external funds of residents, subsection b) section 4 of Law No. 26,860”. Upon settlement of the foreign currency in the FX Market against pesos, such pesos shall be applied to purchase U.S. Dollars which in turn shall be applied to subscribe any of the Securities. It should be noted that the purchase of U.S. dollars made under this mechanism will not require prior approval of the BCRA.

It regulates the integration system by financial institutions of the Securities.

According to Communication "A" 5438, local financial entities may sell U.S. dollars, using the proceeds of the sales of foreign currency transferred to, and acquired by, the local financial entity, in order to be applied to the subscription of any of the Securities.

Performing these transactions will not require prior approval of the BCRA. FX tickets will be registered under the concepts of "Sale of foreign currency notes to the entity for the application of the proceeds to purchase U.S. dollars in connection with Law No. 26,860" and "Purchase of foreign currency in connection with the sale of dollars negotiated subsection a) Section 4 of Law No. 26,860” respectively for transactions of purchase and sale by the local financial entity to its client.

It provides the issuance of BAADE and PADE. The resolution sets forth the placement procedure of the BAADE and of the PADE. The resolution implements the ownership, minimum denomination, negotiation procedure, payment of interest and swap options. Among the main financial conditions of the BAADE and PADE are the following:

- Issuance date: July 17, 2013.
- Expiration date: July 17, 2016.
- Currency of subscription and payment: United States Dollars.
- Use of proceeds: financing of public investment in strategic sectors such as infrastructure and hydrocarbons.
- Amortization: bullet, at maturity.
- Interest: 4% per annum, payable semiannually.