Summary on foreign exchange and foreign trade regulations in force

1. Revenues

1.a. Proceeds from exports of goods and services

* The obligation to sell in the in the foreign exchange market (Mercado Único y Libre de Cambios, "MULC") all foreign currency proceeds resulting from exports of goods (FOB, CyF, DDP, EXW, FAS o FCA, as applicable) and services remains in force.

* The terms set forth by the Secretary of Industry, Commerce and Medium and Small Sized Companies of the Ministry of Economy and Production (the “Secretary”) for the repatriation and sale of foreign currency proceeds of exports of goods vary from 60 to 360 days depending on type of product. In addition to these terms, the Central Bank established a 90 day period to effectively sell the foreign currency proceeds in the MULC.

* Exports proceeds may be applied abroad to cancel advances and prefinancings (subject to certain exceptions).

1.b. Proceeds from exports of services

* The obligation to sell in the MULC all foreign currency proceeds resulting from exports of services must be complied with for 100% of the amount collected, net of withholdings or discounts made abroad, within 105 business days as from the date of collection (abroad or in Argentina), or as from the date in which the funds were credited in accounts abroad.

1.c. Incomes and current transfers

* There are no regulations establishing the obligation to sell them in the MULC.

1.d. Capitals

* Indebtedness incurred by private, financial and non-financial sectors with non-residents must be transferred to Argentina and sold in the MULC, an repayment can be made at least 180 days after such transfer.

* Securities issuances of the private, financial and non-financial sectors denominated in foreign currency, which principal and interest are not exclusively payable in Pesos in Argentina, must be subscribed in foreign currency and the funds collected thereunder must be sold in the MULC.

2. Payments

2.a. Payments of imports of goods

* New imports of goods may be totally paid in advance regardless of their type of product, provided that nationalization of such goods takes place within 360 days following the payment.

* Additionally, cancellation of import debts may be anticipated regardless of the due period.

2.b. Payment of services

* There are no restrictions for payment abroad of services rendered by non-Argentine residents.

2.c. Income (interests, profits and dividends)

* The Regulations authorize the purchase of foreign currency in the MULC to pay interest to foreign creditors within 15 days prior to the maturity date of each interest installment.

* In addition, the private non-financial sector may pay to foreign entities undue accrued interest under restructuring processes.

* The Regulations authorize the purchase of foreign currency in the MULC in order to transfer abroad payments of profits and dividends resulting from closed financial statements certified by external auditors.

2.d. Financial debts

* The Regulations authorize the purchase of foreign currency in the MULC in order to pay matured principal of financial debts.

* Access to the MULC can be brought forward 15 days to pay the nominal value of foreign debts of the private non-financial sector.

* The Regulations also authorize the private non-financial sector to advance payments for a longer term, provided that the value to be cancelled does not exceed the "current value" of the debt. This "current value" is calculated considering as discount interest rate, the effective annual interest rate () equal to the implicit interest rate (tasa de interés implícita) for exchange rates future agreements traded in regulated markets (mercados institucionalizados) for 180 days.

* Additionally, financial entities with no outstanding debts with Central Bank resulting from advances (redescuentos), may pre-cancel their financial debts with non-Argentine residents on the same terms than the private non-financial sector, except for debts corresponding to certain term-deposits).

2.e. Sales of currency to non-residents

* Non-Argentine residents may purchase foreign currency in the MULC up to an amount of US$ 5,000 per month. This limit is not applicable to International Organisms.

* Additionally, non-Argentine residents may purchase foreign currency in the MULC and transfer it to accounts held in foreign banks for the total amounts collected as principal payments under Government Bonds denominated in a foreign currency, provided that the funds were collected in Argentina in foreign currency.

2.f. Financial derivatives

* There are no restrictions for the private financial and non-financial sector to enter into future transactions traded in regulated markets and forward transactions, provided that they are settled in Argentina by netting in local currency.

* In addition, there are no restrictions to carry out any of the following transactions with foreign parties:

(i) Execution and transfer of funds abroad under hedge agreements executed by local financial entities in compliance with their foreign exchange position (Posición General de Cambios or “PGC”), and interest rate related to certain foreign debts set forth in the Central Bank’s Communication "B" 6912 and "A" 3602.

(ii) Execution and transfer of funds abroad under currency and interest rate swaps entered into by private non-financial sector with foreign counterparties in connection with obligations informed under Communication "A" 3602 of Central Bank.

(iii) Execution and cancellation of commodity prices' hedging agreements (hedging foreign trade transactions of Argentine residents).

(iv) Cancellation of future and forward transactions owed by local financial entities.

(v) Execution and cancellation of foreign financing transactions under the form of repurchase agreements (“Repos”), provided that they are executed for periods of more than 180 days.

* All other future, forward and derivative transactions require Central Bank's prior approval in order to be executed and to purchase foreign currency in the MULC subsequent cancellation.

2.g. Forming of foreign assets of Argentine residents.

* Argentine residents may purchase foreign currency in the MULC up to the amount of US$ 1,000,000 per calendar month for following transactions: foreign real estate investments of Argentine residents, loans granted to non-Argentine residents, foreign direct investments of Argentine resident, portfolio investments of individuals and legal entities, other investments of Argentine residents, . treasuring foreign currency bills in Argentina and purchasing travellers checks.

* Additionally, individuals and legal entities of the private non-financial sector may, until June 30, 2004, purchase foreign currency in the MULC in order to make portfolio investments abroad for an amount exceeding the above limit provided that the funds are used, before December 31, 2004, to repurchase and/or cancel -under the terms set forth by foreign exchange regulations in force at such moment- debts with foreign entities outstanding as of March 31, 2003, which are restructured as from August 15, 2003, provided further that: a) such portfolio investments do not exceed US$ 40 million (or its equivalent) on a monthly basis, b) the total amount of foreign currency purchased plus the outstanding balance (which application is still pending) of the trusts -established in accordance with Communication “A” 3872 and its implementing regulations- and/or by particular approvals by the Central Bank do not exceed, in the aggregate, 25% of the total amount of the outstanding principal of debt subject to restructuring nor the total amounts of accrued interests, due or undue, and outstanding principal of such above-mentioned debt.

3. Others

Transactions through cash machines

* Purchase of foreign currency in Argentina for treasuring purposes, sale of foreign currency bills held by Argentine residents, and foreign exchange transactions related to tourism and travel, can be carried out without time restrictions through cash machines and through electronic transfers between customers’ accounts held in local entities.