BANCO CENTRAL DE LA REPUBLIC ARGENTINA Decree 1860/92

Bs. As., 13/10/92

VISTO Draft Law No. 24.144, passed on 23 September 1992, and communicated by the HONORABLE CONGRESS OF NATION for the purposes provided for in Article 69 of the National Constitution, and

CONSIDERING:

That Article 4 (c) of the Organizational Charter of the Central Bank of the ARGENTIN REPUBLIC, insofar as it grants the CENTRAL BANCO of the ARGENTINA REPUBLIC functions of economic, financial, monetary and exchange consultant of the NACIONAL EXECUTIVE PODER, introduces a competition that contravenes the necessary functional autarchy that the draft law intends to give to the

It is appropriate to note in part Article 4 (d) of the Organizational Charter of the Republic of Armenia ARGENTINA, in order to give it greater expositive clarity, in relation to its nature as administrator of reservations in accordance with the provisions of Law No. 23.928, differing it from the mention of another of its functions.

That Article 4 (f) of the Organizational Charter of the CENTRAL BANCO OF THE REPUBLIC ARGENTINA, as soon as it confers functions of establishing the foreign policy, induces confusion with the provisions of Law No. 23.928 sanctioned by the HONORABLE CONGRESS OF NATION.

That Articles 5, 14 (c) and 38, first paragraph, of the Charter of the Republic of Armenia ARGENTINA envisages the capitalization of liquid and realized profits. These gains would mainly come from the investment and administration of the reserves of free availability that support the monetary base, the production of which surpasses the operating expenses of the BANCO CENTRAL OF THE ARGENTINA REPUBLIC and constitute an important income for the NATIONAL TESORO, without prejudice to the decisions that the NATIONAL EXECUTIVE PODER and the HONORABLE CONGRESS of the NATION This is consistent with the principle of speciality of the legislation, so that as well as the Law on Convertibility governs exclusively in monetary and exchange matters, whether the Annual Budget Law and the future Financial Administration Act, those that regulate in an integral way the allocation of income by the NATIONAL STATE, defining in each case the instruments and institutions that will aim to achieve the respective policies. In this regard, it is also appropriate to note Article 15 (c), since the annual budget of the bank, as soon as it requires the application of the provisions of the National Budget, shall be included by indirect means in the latter, governed by the procedure provided for in Articles 33 of Law No. 23,410 and 41 of Law No. 22,602, consistent with the principle of budgetary unity of the administration provided for in Article 67, paragraph 7.

That articles 7 and 36 of the Office of the BANCO CENTRAL OF THE ARGENTINA REPUBLIC, which establish the appointment of the members of the Board and the Syndic of the BANCO CENTRAL OF THE ARGENTINA REPUBLIC with the agreement of the Senate for the period of 6 years to be counted from the sanction of the Law, contravene the provisions of Article 86, paragraph 10, of the National Constitution, It should be borne in mind that Act No. 20,677 had already set aside the requirement of the NATION SENATE HONORABLE agreement for the appointment of officials in all agencies of the public administration, irrespective of their legal nature, whose rules of establishment, constitution and operation are established and whose designation is not so regulated by the National Constitution.

That article 10 (f) of the Organizational Charter of the CENTRAL BANCO OF THE REPUBLIC ARGENTINA deserves observation, as it contravenes the provisions of Articles 86, paragraph 20 and 87 of the National Constitution.

That the second paragraph of article 11 of the CENTRAL BANCO ORGANICA LETTER introduces a responsibility of the directors regarding decisions taken by the president for reasons of urgency without his participation, unless they express their opposition to the time of being informed, which would affect the proper institutional functioning of the BANCO CENTRAL DE LA REPUBLICA ARGENTINA, diluting the responsibilities of the acting officials.

That paragraph (b) of the United Nations Educational, Scientific and Cultural Organization ARGENTINA envisages the role of obtaining credit from abroad, which corresponds specifically to the NATIONAL STATE and which it is not appropriate for it to interfere in the case of the BANCO CENTRAL OF THE ARGENTINA REPUBLIC with its primary and fundamental function of preserving the value of the currency, or as the administrator of the reserves with the guarantees provided by Article 6 of the Law of Convertibility.

It is appropriate to observe the first paragraph of Article 22, Article 23, the last paragraph of Article 26, from the previous organizational charter of the CENTRAL BANCO OF THE REPUBLIC ARGENTINA and related to the financing of the NATIONAL STATE and its operational and information aspects, so that they do not interfere with the primary and fundamental function assigned to the BANCO CENTRAL OF THE ARGENTINA REPUBLIC to preserve the value of the currency, nor with the custody and administration of the reserves, that the HONORABLE CONGRESS OF the NATION defines and emphasizes in this new CENTRAL CARTA

That Article 49 of the Organizational Charter of the ARGENTIN REPUBLIC BANCO and Articles 41 and 42 of the Financial Institutions Act are partially inconsistent, from a functional point of view, with the deconcentration of the Superintendence of Financial Institutions and Changes promoted by the Bill.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 las Observe the following provisions of Article 4 of the Organizational Charter of the CENTRAL BANK OF THE REPUBLIC ARGENTINA sanctioned in Article 1 of the Draft Law registered under No. 24.144: (a) The part of subparagraph (c) that reads: "economic, financial, monetary and exchange of the national executive branch",

(b) The part of subparagraph (d) that reads: "as a financial agent of the National State",

(c) The part of subparagraph (f) that reads: "establish and".

Art. 2o el Note the second paragraph of Article 5 of the Organizational Charter of the Republic of Armenia ARGENTINA sanctioned in Article 1 of the Bill registered under No. 24.144, which states: "At the end of each year the directory will proceed to its adjustment, capitalizing on the liquid and realized profits, if any."

Art. 3o (Article Derogated by Article 1 of the Decree No. 1887/92 B.O. 22/10/1992)

Art. 4o el Note Article 10 (f) of the Organizational Charter of the Central Bank of the RePUBLIC ARGENTINA sanctioned in Article 1 of the Bill registered under No. 24.144.

Art. 5o el Note the second paragraph of Article 11 of the Organizational Charter of the CENTRAL BANK OF THE REPUBLIC ARGENTINA sanctioned in Article 1 of the Bill registered under No. 24.144.

Art. 6th el Note Article 14 (e) of the Organizational Charter of the Central Bank of the RePUBLIC ARGENTINA sanctioned in Article 1 of the Bill registered under No. 24.144.

Art. 7o la Note the part of Article 15 (e) of the Organizational Charter of the CENTRAL BANK OF THE REPUBLIC ARGENTINA sanctioned in Article 1 of the Bill registered under No. 24.144, which reads: "the Honorable Congress of the Nation."

Art. 8o el Note article 18 (b) of the Charter of the Organization of the BANCO CENTRAL OF THE REPUBLIC ARGENTINA sanctioned in Article 1 of the Bill registered under No. 24.144.

Art. 9th el Note the first paragraph of Article 22 of the Organizational Charter of the Central Bank of the RePUBLIC ARGENTINA sanctioned in Article 1 of the Bill registered under No. 24.144.

Art. 10. el Observe Article 23 of the Organizational Charter of the CENTRAL BANCO of the RePUBLIC ARGENTINA sanctioned in Article 1 of the Bill registered under No. 24.144.

Art. 11. la Note the part of Article 26 of the CENTRAL BANCO OF THE REPUBLIC ARGENTINA sanctioned in Article 1 of the Draft Law registered under No. 24.144, which states: "and of the national product and income, formulating in each case the considerations it deems appropriate".

Art. 12. (Article Derogated by Article 2 of the Decree No. 1887/92 B.O. 22/10/1992)

Art. 13. el Note the first paragraph of Article 38 of the CENTRAL BANK OF THE REPUBLIC ARGENTINA sanctioned in Article 1 of the Bill registered under No. 24,144, and the part of the third paragraph that reads: in which case the national government must make the corresponding contribution to restore it during the following fiscal year."

Art. 14. la Note the part of the third paragraph of article 49 of the ORGANICA CENTRAL BANK OF THE REPUBLIC ARGENTINA sanctioned in Article 1 of the Bill registered under No. 24.144, which reads: "through the President of the Bank."

Art. 15. ". Note the second paragraph of Article 41 of the Financial Entities Act sanctioned by Article 3 of the Bill registered under No. 24.144, in the part that reads: "the President of the Central Bank of the Argentine Republic".

Art. 16. ". Note the first paragraph of Article 42 of the Financial Entities Act sanctioned by Article 3 of the Bill registered under No. 24.144, in the part that reads: "Before the President of the Central Bank of the Argentine Republic".

Art. 17. . With the salvedades set out in the preceding articles, please fill in, promute and tengase by National Law the Bill registered under No. 24.144.

Art. 18. . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Domingo F. Cavallo.