OF FACULTIES Decree 1938/90 Refer to the Central Bank of the Argentine Republic the application of article 3 of Decree No.435/90.

Bs.As., 21/9/90

VISTO the provisions of Decree No. 435 of 4 March 1990, in connection with the implementation of the schedule of payments for the period April-September of the Australes debts of the financial entities as at 4 March 1990 in the BANCO CENTRAL OF THE ARGENTINA REPUBLIC, and

CONSIDERING

That Decree No. 435 of 4 March 1990 declares the debts of financial entities with the BANCO CENTRAL OF THE ARGENTINA REPUBLIC to expire, except foreign currency debts and those agreed in national currency linked to foreign trade.

That in the case of loans linked to the capitalization of the entities the fulfilment of such obligations is closely linked to the commitments made by the provincial governments formalized by laws of the relevant states and linked with predictable availability of resources to apply for those purposes.

That Resolution No. 503 of 20 October 1988, of the Directory of the BANCO CENTRAL OF THE ARGENTINA REPUBLIC consolidates and refinances the external debt of the Public Banks of Province for private sector operations without exchange insurance or official guarantee.

That resolution No. 430 of 27 June 1985 should also be considered in the relevant part of public sector operations and in the public and private sector with the support of the entity.

That these debts of origin were referred to the external sector and were assumed in foreign currency and that the BANCO CENTRAL OF THE ARGENTINA REPUBLIC assumed debt in Dollars and refined the provincial bank in Australes adjustable by exchange rate.

That the acceleration in the payment of such financing is likely to result in the impossibility of the provinces to meet such demands, while placing this Institution in the face of a situation of events that would occur in the respective current accounts when debits on insufficient or negative balances are made.

That for the above and for the serious and urgent public economic and social needs of the Nation, the EXECUTIVE POWER assumes the exercise of its statutory competences for reasons of necessity and urgency. It justifies such a measure, the urgency, the emergency, the exceptionality and the material impossibility of obtaining an expedited legislative pronouncement in time, by the premura that the circumstance requires, as it invariably endorses the constitutional doctrine and jurisprudence in the matter.

That the exercise of legislative functions by the EXECUTIVE PODER, when the need becomes present and the urgency justifies it with the support of the best constitutional doctrine. Thus Joaquín V. GONZALEZ said in his "Manual de la Constitución Argentina" that "can the EXECUTIVE PODER, in dictating general regulations or resolutions invading the legislative sphere, or in exceptional or urgent cases, believe necessary to anticipate the sanction of a Law" (Conforme en el mismo sentido Bielsa Rafael - Derechos Administrativo 1954 T° 1, page 309). Also in the case law of the Supreme Court of Justice of the Nation has given him acceptance (Fallos 11:405; 23:257).

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 To delegate to the CENTRAL BANCO OF THE REPUBLIC ARGENTINA the application of article 3 of Decree No. 435 of 4 March 1990 of the NATIONAL EXECUTIVE PODER authorizing it to exempt from its scope, where it deems appropriate, the official (provincial and municipal) banking and to the amounts charged to the following destinations exclusively:

Loans linked to the capitalization of these entities with the guarantee of funds of federal participation, ratified by law by the provincial legislatures and/or municipal ordinances, as appropriate, in the terms of the Resolution of the Board of the BANCO CENTRAL OF THE REPUBLIC ARGENTINA No. 351 of 7 July 1988.

Loans for conversion to local currency of debts in foreign currency, in the terms of the Resolutions of the Board of Directors of the ARGENTINA REPUBLIC No. 430 of 27 June 1985 . exclusively the operations of the public sector, and of the public and private sector with endorsement of the entities . and No. 503 of 20 October 1988.

Art. 2° . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM . Antonio E. González.