Subscribe to a Global-Regulation Premium Membership Today!

PUBLIC DEUDA

Law 27249

Acts No. 26.017, No. 26.547, No. 26.886 and No. 26,984. Derogation. Act No. 27.198. Modification.

Sanctioned: March 31, 2016

Promulgated: March 31, 2016


ARTICLE 1 — Default of laws 26,017, 26,547, 26,886, 26,984 and their regulatory and complementary standards, as well as any other law, decree or rule that is contrary or incompatible with the provisions of this Act.

ARTICLE 2 The ratification of the agreements provided for in Article 5, the authorization granted to the Authority of Implementation in Article 6, as well as the provisions of Articles 7°, 8°, 9°, 10, 11, 12, 13 and 15, all of this Law, shall enter into force from the confirmation by the Appeals Chamber of the Second Circuit of the United States of America of the effective lifting of all the precautionary measures (“injunctions Argentina”).

ARTICLE 3 — Amend article 42 of Law 27.198, which shall read as follows:

Article 42: Authorize the national executive branch, through the Ministry of Finance and Public Finance, to continue the standardization of the public debt services referred to in article 41 of the present law, in the terms of article 65 of the Financial Administration and Public Sector Control Systems Act 24,156, and its amendments or the Law on the Standardization of Public Debt and the Recovery of Credit, with all the necessary powers of national completion.

The Ministry of Finance and Public Finance will report quarterly to the Honorable Congress of the Nation, the advance of the trades and the agreements reached during the negotiation process.

The report should incorporate an updated database identifying the agreements reached, the judicial or arbitral proceedings completed, the amounts of capital and the amounts cancelled or canceled in each agreement and the level of enforcement of the level of indebtedness granted through article 7 of the Law on the Standardization of Public Debt and Credit Recovery.

In addition, certified copies of the agreements reached, as well as their translation into the Spanish language should be accompanied if appropriate.

Similarly, the Ministry of Finance and Public Finance shall report on the progress of management aimed at the standardization of the service of public securities issued in the framework of the restructuring of public debt provided for by decrees 1.735/2004 and 563/2010.

The final judicial pronouncements, issued against the provisions of Act No. 25,561, Decree No. 471 of 8 March 2002, and its supplementary rules, which are governed by those titles, are included in the dispute set out in article 41 of this Act.

ARTICLE 4 In the event that the provisions provided for in Article 2 of this Law do not enter into force for the cases provided for in that Article, the Authority of Application may carry out further negotiations with the holders of public titles (and/or their representatives) that are eligible for the exchange provided for in Decree 1.734 of 9 December 2004 and its complementary rules, which would not have been submitted to such a Canje or to the provisions of Decree 563

ARTICLE 5 — Please refer to the cancellation agreements between the Argentine Republic and the holders of Eligible Public Titles (and/or their representatives), which as Annex I, in English-language copy and their translation into the Spanish language, are an integral part of this law.

The Ministry of Finance and Public Finance, as the Authority for the Application of this Law, is authorized to extend the respective deadlines set out in the above-mentioned cancellation agreements.

ARTICLE 6 Authorize the Application Authority to:

(i) To make amendments and/or amendments to the cancellation agreements referred to in the preceding article as long as they do not modify their object, economic conditions and terms and conditions; and

(ii) To perform all necessary acts to cancel the debt with the holders of Eligible Public Titles (and/or their representatives) that are not covered by the cancellation agreements referred to in the preceding article, including the subscription of agreements and other instruments.

In order to implement the subscription of the agreements referred to in the preceding paragraph, the Implementation Authority may offer:

(a) To all eligible holders of public securities, a payment equivalent to the amount of capital owed from their titles with more than one CINCUENTA per CENTO (50%) of that amount of capital (base offer). For eligible public titles subject to Argentine law, the base offer will be determined taking into account the original currency of such titles. In cases where there is a judgement handed down by foreign courts, the amount to be paid may not exceed the amount recognized by that judgement plus the legal update for the application of judicial interests as at 31 January 2016. For cases in which there is a final and final judgement handed down by the courts of the Argentine Republic, the amount to be paid may not exceed the amount recognized by that judgement, if appropriate, the judicial interests computed as at 31 January 2016. (Replaced paper) by art. 51 of the Act No. 27.467 B.O. 4/12/2018)

The Base Offer will be implemented and implemented by:

(i) The signing of debt cancellation agreements; and

(ii) A national and international cash payment offer against the delivery of Eligible Public Titles (“cash tend offer”, according to its English language name).

With respect to the Eligible Public Title holders who have filed claims with the District Court for the South District of New York, the United States of America, grouped in class action, is authorized to agree on an additional amount to meet the administrative costs necessary to notify those included in the respective class, in accordance with the terms of the Agreement provided for in paragraph 4 of Annex I.

The national executive branch shall not assume any overexpenditure or charge for the remainder of the Eligible Public Title holders covered by the Base Offer;

(b) To those holders of Eligible Public Titles whose claims were included in the judicial orders issued by the District Court for the Southern District of New York, United States of America, on 23 February 2012, and modified on 21 November 2012 (the “Pari Passu” Original Order) and on 30 October 2015 (the “Pari Passu” Me Too” Order)

(i) To those holders of Eligible Public Titles who are reached by the Orders “Pari Passu”, who have a monetary judgment, issued prior to 1 February 2016, which recognises the debt derived from the Eligible Public Titles under their tenure, a payment equal to seventy per cent (70%) of the legal claim (which includes the amount recognized in that judgment and the legal interest date of the

(ii) To those holders of Eligible Public Titles that are reached by the Orders “Pari Passu” that do not have a monetary judgment, issued prior to 1 February 2016, that recognizes the debt derived from the Eligible Public Titles under their possession, a payment equal to seventy percent (70%) of the legal claim (which includes the interest rate due more than the amount of the interest rate of the United States).

ARTICLE 7 Disposal, through the Enforcement Authority and under this law, the issue of the National Treasury bonds and/or the hiring of other public borrowing operations up to an original nominal value of US dollars and/or its equivalent in other currencies, which is necessary to comply with the required payments under this law and to the extent that such payments do not exceed the amount of US$ 12.5 billion

The Implementing Authority shall allocate emissions from the preceding paragraph to debt cancellations provided for in this Act. If the amount of emissions exceeds the amount required under this law, the surplus shall be charged to the existing public debt authorization provided for in the General Budget of the National Administration for the year 2016, approved by law 27.198.

ARTICLE 8 — The holders of Eligible Public Titles wishing to participate in any cancellation operation carried out in the framework of the provisions of this law, including the creditors who signed the agreements of Annex I and those who accept the proposals provided for in Article 6 shall waive all the rights that correspond to them, by virtue of the aforementioned titles, including those rights that have been recognized by any court or administrative decision,

ARTICLE 9 — Authorize the Implementation Authority to include clauses establishing the extension of jurisdiction in favour of foreign courts, and to have the waiver of opposing the defence of sovereign immunity, exclusively, with respect to claims in the extended jurisdiction and with respect to the agreements that are signed and to the public debt emissions that are made, in accordance with the provisions of this law and subject to the inclusion of the so-called “collective” clauses

The waiver to oppose the defence of sovereign immunity shall not imply any waiver in respect of the immunity of the Argentine Republic in relation to the execution of the following assets:

(a) Any reservation by the Central Bank of the Argentine Republic;

(b) Any property belonging to the public domain located in the territory of the Argentine Republic, including those covered by articles 234 and 235 of the Civil and Commercial Code of the Nation;

(c) Any property located within or outside Argentine territory that provides an essential public service;

(d) Any property (in the form of cash, bank deposits, securities, obligations of third parties or any other means of payment) of the Argentine Republic, its government agencies and other governmental entities related to the execution of the budget, within the scope of articles 165 to 170 of the Permanent Supplementary Law on Budget 11.672 (t. 2014);

(e) Any asset achieved by the privileges and immunities of the 1961 Vienna Convention on Diplomatic Relations and the 1963 Vienna Convention on Consular Relations, including, but not limited to property, establishments and accounts of the Argentine missions;

(f) Any asset used by a diplomatic, governmental or consular mission of the Argentine Republic;

(g) Taxes and/or royalties owed to the Argentine Republic and the rights of the Argentine Republic to collect taxes and/or royalties;

(h) Any property of a military nature or under the control of a military authority or defence agency of the Argentine Republic;

(i) Any property that forms part of the cultural heritage of the Argentine Republic; and

(j) Property protected by any applicable sovereign immunity law.

ARTICLE 10. - Authorize the Implementation Authority to perform all those acts necessary to comply with the provisions of this law, including, without limitation,:

(a) Determining times and times of participation in debt cancellation offers;

(b) The determination of time, time, methods and procedures for issuing new public titles;

(c) The designation of financial institutions to participate in the placement of new public securities and the recruitment of other public credit loans;

(d) Subscription of agreements with financial entities that place new public securities to be issued, for this purpose, the payment of commissions in market conditions, which in no case may exceed the zero by twenty per cent (0.20%) of the emission amount;

(e) The preparation and registration of a public securities programme with the control agencies of major international capital markets;

(f) Subscription of agreements with trustees, payment agents, information agents, custodial agents, registration agents and risk-qualifying agencies that are necessary for both debt cancellation and issuance and placement of new public securities, with the provision of payment of corresponding fees and charges on market conditions; and

(g) Payment of other necessary expenses for registration, printing, distribution of prospects, translation and other associated expenses, which shall be in market conditions, in order to comply with the provisions of this Act.

ARTICLE 11. - Explain to the operations covered by this law of the payment of all existing national taxes, fees and contributions and to be established in the future, and of the exchange restrictions that may apply to the operations covered by this Act.

ARTICLE 12. - Except for the operations covered by this law of the provisions of articles 7 and 10 of the law 23,928 and their amendments, and of the provisions of article 765 of the Civil and Commercial Code of the Nation.

ARTICLE 13. - The Implementing Authority, within sixty (60) days of compliance with the status of Article 2 of this Law, shall take all necessary measures to standardize the service of public securities issued in the framework of the restructuring of public debt provided by Decrees 1.735, dated 9 December 2004, and 563, dated 26 April 2010 (“Public titles: Restructured”),

(i) The regularization of the status of The Bank of New York Mellon as a trustee under the Trust Convention of 2 June 2005, as amended on 30 April 2010 (the “ Trust Convention”);

(ii) If necessary, the hiring of another institution that fulfils the functions of a trustee as provided for in the Trust Convention; and

(iii) The issuance of the necessary instructions for the transfer of funds deposited in the account “Law No. 26,984 Sovereign Restructured Debt Payment” of Trusted Nation Anonymous at the Central Bank of the Argentine Republic to the accounts corresponding to The Bank of New York Mellon, or of the entity that replaces it as a trust agent under the Central Bank of Argentina Convention to apply the payment of the Central Bank to Argentina. Until the contractual situation is normalized with The Bank of New York Mellon as a trust agent under the trust agreement, the Application Authority may transfer the funds corresponding to the future maturity of the Restructured Public Titles to the Trusted Nation Anonymous Society, an entity to which by this act is designated as a transitional payment agent, to which purpose the Application Authority shall agree with that trusteeship agreement

ARTICLE 14. - In the event that the provisions provided for in Article 2 of this Law do not enter into force for the cases provided for in that Article, the Applicable Authority may transfer the funds corresponding to the future maturity of the Restructured Public Titles to the Trusted Nation of the Anonymous Society as a transitory payment agent for subsequent transfer to the trustee under the Trust Agreement, without the provisions of this Article imposing any modification.

ARTICLE 15. - Please refer to the Ministry of Finance and Public Finance as the Authority for the Application of this Law, which may dictate the clear and complementary rules necessary to implement the implementation of this rule.

ARTICLE 16. - Please provide the Chief of Staff of Ministers with the necessary budgetary adjustments to implement the provisions of this Act.

ARTICLE 17. - The payments provided for in the present Act shall be met from the budget charge “Public Debt Commissions and Costs” for Jurisdiction 90.

ARTICLE 18. - Consider, within the framework of the Honorable Congress of the Nation, the Permanent Bicameral Commission for Monitoring and Control of the Management of Recruitment and Payment of the Foreign Debt of the Nation, which shall be composed of ten (10) Senators and ten (10) Deputies, appointed by the Presidents of the respective Chambers on the proposal of the parliamentary blocs respecting the proportion of the political representations, and which shall be governed by the internal effect.

The Commission may request information, documentation or data from national, provincial or municipal agencies, centralized, decentralized or automated as well as from national and international financial entities, private or public; and from any other agency that is necessary for the fulfilment of its tasks.

ARTICLE 19. - This law is of public order and shall enter into force from the date of its publication in the Official Gazette.

ARTICLE 20. - Contact the national executive branch.

IN THE SESSION OF THE ARGENTINE CONGRESS, IN GOOD AIRES, TO THE TREINTS AND A DAY OF THE MESSAGE OF THE YEAR DOS MIL DIECISEIS.


FEDERICO PINEDO. — EMILIO MONZÓ. — Eugenio Inchausti. — Juan P. Tunessi.

NOTE: The Annex/s that integrate/n this(a) Law is published in the web edition of BORA —www.boletinoficial.gob.ar — and can also be consulted at the Central Headquarters of this National Directorate (Suipacha 767 - Autonomous City of Buenos Aires).

(Note Infoleg: The annexes referred to in this rule have been extracted from the Official Gazette web edition. These are available in the following link: AnnexPart1, AnnexPart2, AnnexPart3)