REFORM OF PROVINCIAL STATES Decree 676/93 Dispose the issue of the Bonus for the Creation of Employment in the Provincial Private Sectors. Alcances a la Municipalidad de la Ciudad de Buenos Aires.

Bs. As., 7/4/93

VISTO the purpose of the National Government to assist in the Reform of Provincial Government Administrations and Law No. 24.130, and

CONSIDERING:

It is a common problem for the Provincial States and the Municipality of the City of Buenos Aires to oversize the occupied personnel plant, in many cases making public employment under cover of unemployment.

That the said is one of the determining factors in the inefficiency of States, which must be attacked with measures that tend to reduce their incidence by implementing incentives for the creation of jobs in the private sector and the voluntary withdrawal of State agents.

That such programmes should not be transformed into generators of excessive self-employed, with their sequelae of failed investments and personal discouragement, with the subsequent increase in poverty and migration to other centres of greater relative development.

In line with the above paragraph, it is necessary to create an instrument and mechanisms that encourage the creation of jobs by private companies, giving priority to the absorption of agents who voluntarily withdraw from the provincial and municipal public sector.

That, also, the critical financial situation in which most of the Provincial States and the Municipality of the City of Buenos Aires are going through makes it impossible to make available resources to guide them to the payment of financial compensation or compensation for voluntary retirement.

That, for the reasons stated, it is considered appropriate to issue, on the part of the National State, a title that will be called BONO FOR THE EMPLEMENTATION IN THE PROVINCIAL PRIVATE SECTORS, to be used in the compensation for the voluntary withdrawal of the agents who opt for this regime, compensation that will be calculated according to the age and the remuneration that the agent registers at the time of accepting the regime.

That, on the other hand, and as an incentive to private sector companies that absorb ex-public agents covered by the present, the same long-term and advantageous credits will be awarded, for amounts to be determined on the basis of their bond compensations and the amount of employed labour.

That, thus, the double objective is to clean provincial finances and establish an economic dynamization mechanism by facilitating access to credit to private companies that incorporate labour.

That, and for the purpose of achieving a better monitoring and evaluation of the fulfilment of the objectives of the creation of the Bonus, it is considered appropriate to designate the SECRETARIAT of the PUBLIC OFFICIAL MINISTERY of the INTERIOR, which, through the SUBSECRETARIA OF ASSISTANCE FOR THE REFORM OF THE PUBLICO SECTOR FOR

That competition should also be established in relation to the present regime of the Ministry of Labour and Social Security.

That this regime can be extended to the Companies and other agencies of the National State that implement Transformation Programs agreed with the MINISTERY OF WORK and SECURITY SOCIAL for the voluntary withdrawals of its staff, in such a case, to designate the authority of application to the SECRETARIAT OF HACIENDA of the MINISTERY OF ECONOMY and ARTWS and PUBLIC SERVICES.

It is also necessary to authorize the SECRETARIAT of the PUBLIC FUNCION of the MINISTERIO OF INTERIOR, in conjunction with the SECRETARIAT OF HACIENDA of the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES, to dictate the complementary norms to the present.

That the present is dictated in the use of the powers conferred by Article 86, paragraph 1, of the National Constitution.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

PART I. OF PROVINCIES.

Article 1 . OF THE EMISION. Disposal the issue of national public debt values called BONO FOR EMPLEMENTATION IN PROVINCIAL PRIVATE SECTORS (BOCEP), nominative and intransferable and called in pesos, with the characteristics set out in Annex I to this decree. The bonds shall be made available to the provincial governments by the SECRETARIAT OF THE PUBLIC FUNCION OF THE MINISTERY OF THE INTERIOR, through the SUBSECRETARIA OF ASSISTANCE FOR THE REFORM OF THE PUBLIC SECTOR PROVINCIAL, within the framework of their respective Programs of Transformation of the Provincial Public Sector to compensate for the MINISTERIO OF THE INTERIOR, to be used to be agents Also included in the present regime is the Municipality of the City of Buenos Aires, under the conditions established by the Ministry of the Interior in the framework of the agreement with the latter, which must be ratified by the Council of Deliberative. Art. 2o . VOLUNTARY COMPENSATION. Any provincial or municipal public employee who agrees to the voluntary retirement regime will receive BOCEP for a nominal value that will arise from multiplying by SESENTA (60) the percentage of his monthly liquid, according to the years of uninterrupted antiquity that registers at the time of his retirement and according to the following scale:

Until CINCO (5) years, the VEINTE FOR CENTO (20 %) of its monthly liquid, as defined below;

More than CINCO (5) years, the VEINTE FOR CENTO (20 %) of its monthly liquid plus the THREE FOR CENTO (3 %) for each additional year of antiquity, and up to a maximum of CINCUENTA per CENTO (50 %) of the monthly liquid, as defined below.

It will be understood by "make monthly liquid" the average of normal and usual assets of the last SEIS (6) months deducted the contributions and contributions that are obligatory by current rules.

In no case may the amount to be credited to BOCEP be less than TRES MIL PESOS ($ 3,000.-) or higher than TREINTA MIL PESOS ($ 30,000.-). If there are fractions below UN weight ($ 1.-), the procedure established in Article 5 of Decree No. 2128/91 shall apply.

This voluntary retirement regime may not be accepted by agents who are lacking CINCO (5) years or less to access regular retirement at the time of requesting voluntary retirement.

Art. 3o . OF THE OPTIONS OF BOCEP TENEDORES. BOCEP holders may choose one of the following alternatives:

(a) Deliver the voucher of ownership or balance of the account that the BANCO OF THE ARGENTINA NATION has given to the private company that agrees to give it employment, in order that it manages a credit in that Bank according to the specifications indicated in the following article; in such cases it must deposit in the BANCO DE LA NATION ARGENTINA the amount of the contributions used to remain accrued,

(b) To collect monthly the amortization fee while not used, or if it does so in a company that does not receive the present regime;

(c) Allow the amounts of the amortization fees in the ARGENTINA NATION BANCO only to be charged to the BOCEP maturity, with the corresponding interest;

(d) To establish a company by partnering or not with other workers in the form of a working cooperative or some type of commercial society, in order to discontinue BOCEP in the BANCO OF ARGENTINA NATION under the conditions set out in the following article.

In the cases of the options cited in (a) and (c) the ARGENTINA NATION BANK shall apply to the deposits of the amortization quotas the interest corresponding to the savings box, capitalized on a monthly basis.

Art. 4o . CREDITES. Any company that hires a BOCEP holder will be in a position to manage a loan from the BANCO OF THE ARGENTINA NATION for the period of validity of the Bonus and for an amount equal to that resulting from the value of the BOCEP holdings of the former public employee incorporated into the company, updated by the same rate of the loan to grant, in accordance with what is stated in Annex II to the present

To apply for the credit, the companies must submit a note from the employee in which it expresses that it delivers its balance sheet in BOCEP account, or from an authenticated copy of the same as it was delivered by the BANCO OF THE ARGENTINA NATION.

Credits shall be amortized in the amount of assessed contributions established by agreement between the SECRETARIAT OF THE PUBLIC FUNCTION OF THE MINISTERY OF INTERIOR and the BANCO OF ARGENTINA NATION.

BOCEP holders may discount their Bonds in the BANCO OF ARGENTINA NATION only in the event that they constitute companies forming or not other cooperative workers of work or some form of commercial society, to carry out enterprises that are evaluated as economically viable by the procedure and organism that are agreed with each Province and approved by the BANCO OF ARGENTINA NATION.

Art. 5o . OF CREDICT MONTS. The company that employs more than one BOCEP holder simultaneously will be able to manage loans from the BANCO of the ARGENTINA NATION according to the following scale:

by the second employee, the SCIENTI TEN (110 %) of the current value of its respective possession of BOCEP;

by the third employee, the CIENTO VEINTE BY CIENTO (120 %);

by the fourth employee, the TREINTA SCIENTY (130 %);

by the fifth employee, the CIENTA CENTER (140 %);

by the sixth employee and the following, the CIENTA CINCUENTA (150 %).

Art. 6th . OF THE INTERRUPTION OF LABORAL RELATION. When the holder of BOCEP proves that his working relationship with the private employer has been interrupted, regardless of the case, he will have the right to charge monthly the amortization fee of the remaining unemployed months, being the unpaid assessed contributions payable with his interests at the BOCEP maturity. In such a situation the company must cancel the credit obtained within a period of NOVENTA (90) days unless, within that period, it replaces that employee by another Bonus holder. If the new employee's possessions were entitled to a lesser amount of the loan, the difference must be cancelled within a no greater period of SESENTA (60) days. Otherwise the company may choose to extend the amount of its credit.

The application authority may modify the time limits mentioned to adapt them to the characteristics of the voluntary withdrawal and the conditions of occupation of the respective area.

Art. 7o . OF THE IMPLEMENTATION OF LABORAL LEGISLATION. The discontinuation of the employment relationship, in terms of the rights and obligations of the parties, will result in the application of the legal rules in force for each case, and the companies may conclude with the BOCEP holders time contracts determined as a measure of employment promotion and the launching of new activity, for the time and other conditions set out in Act No. 24.013. Art. 8o . CREDITIC RISK. The administrator of the FONDO FOR TRANSFORMATION OF PROVINCIAL PUBLIC SECTORS shall guarantee to the NATION BANK ARGENTINA the loans that it grants under this regime to the limit of the remaining RESERVE FOR OPERATION AND GARANTIA specified in Article 10 of the present. However, the ARGENTINA NATION BANCO will be responsible for requiring the lending companies the guarantees and bonds it deems appropriate. The BANCO OF ARGENTINA NATION shall be subject to the rights of its holders in the case of BOCEP that are not in conformity with the conditions set out in Article 4o. Art. 9th . DELIVERY OF THE CREDICT. The SECRETARIAT OF THE PUBLIC FUNCTION OF THE MINISTERY OF INTERIOR, through the SUBSECRETARIA OF ASSISTANCE FOR THE REFORM OF THE PUBLIC SECTOR PROVINCIAL, administrator of the FONDO FOR TRANSFORMATION OF PROVINCIAL PUBLIC SECTORS, will provide the BANCO of the NATIONAL NATIONAL AND BAN

The applicable interest rates will be as follows:

for the loans of the ARGENTINA NATION BANCO to companies that are incorporated into this regime, and for the BOCEP discounts by its owners, which is established for this type of operations;

for the financing of the Fund to the Bank, which it applies to deposits in savings box;

for the financing of housing relocation credits the NATIONAL HIPOTECARY BANCO will set the respective rates according to similar operations and will recognize the similar rate for the ARGENTINA NATION BANCO.

Both financial institutions shall return to the Fund the resources obtained from the Fund as they are reimbursed.

Art. 10. . OF THE PROVINCIA OBLIGATIONS. The Province incorporated into this regime, and the Municipality of the City of Buenos Aires, in its case, is constituted as the principal debtor of the BOCEP that are accredited by the obligations that they cancel and must authorize the BANCO OF THE ARGENTINA NATION to retain, of its resources of Federal Coparticipation (Law No. 23.548 and modifications), the amounts of the amortization quotas. In addition, it must authorize the retention of an additional TEN FOR SCIENTY (10%) to constitute the OPERATION AND GARANTIA RESERVE of the loans granted by the BANCO OF ARGENTINA to the job creation companies. Art. 11. . OF THE CONTINUITY OF SOCIAL BENEFITS. The Provinces and the Municipality of the City of Buenos Aires will guarantee to their former BOCEP holders the continuity of the benefits of the corresponding social work during the term in which they remain unemployed within the period of validity of the BOCEP. Art. 12. . DEL CREDITO FOR VIVIENDA. Workers in this regime and who, on the basis of having obtained employment in a private company, must permanently change their residence to more than CIEN (100) kilometers from the previous one, will be able to manage a mortgage credit of up to QUINCE MIL pesos ($ 15,000.-) for relocation of housing and that can also be used for the acquisition of a land.

The operator will be in charge of the BANCO of the ARGENTINA NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL NATIONAL BANCO, acting as a retail entity and in accordance with the regulations established by the NATIONAL BANCO HIPO TECH. This benefit will not reach the public ex-agents who radiate in the Federal Capital and the Gran Buenos Aires parties.

Art. 13. . OF THE COMPETENCE OF WORKING MINISTERY AND SOCIAL SECURITY. MINISTERY OF WORK AND SECURITY SOCIAL shall be responsible for monitoring the fulfilment of the obligations assumed by companies engaged in workers in accordance with the rules of this regime. In addition, in coordination with the provincial authorities, it will develop employment reintegration programmes for public officials seeking voluntary retirement, with the following characteristics:

(a) Registration of workers in the EMPLEO SERVICE RED;

(b) Development of vocational training activities with registered workers;

(c) Management of job relocation through the EMPLEO SERVICE NETWORK.

Art. 14. . DE LA INCORPORATION DE MUNICIPIOS. In the event that municipalities are included in the Programme, the respective Province shall ensure that all commitments arising from the implementation of the Programme are fulfilled. Art. 15. . OF THE CONVENTIONS WITH BANCO AND OTHER ENTITIES. The SECRETARIAT OF THE PUBLIC FUNCTION OF THE MINISTERY OF INTERIOR, through the SUBSECRETARIA OF ASSISTANCE FOR THE REFORM OF THE PUBLICO SECTOR PROVINCIAL, administrator of the FUND FOR TRANSFORMATION OF THE PROVINCIAL PUBLIC SECTORS, will hold with the BANCO OF THE ARGENTINE NATION the agreements that are required Art. 16. . OF IMPOSTITIVE EXENSIONS. Provinces hosting this regime should take appropriate measures to ensure that BOCEP-related credits are sealed free and all other charges. The same obligation applies to the tributes of the City of Buenos Aires. Art. 17. AUTHORITY OF APPLICATION Please refer to the SECRETARIAT of the PUBLIC FUNCION of the MINISTERIO OF INTERIOR as the authority for the application of the present, and must jointly dictate with the SECRETARIAT OF HACIENDA of the MINISTERIO OF ECONOMY AND OURS AND SERVICES PUBLICS the complementary norms of the present.

TOMO II. NATIONAL PUBLIC AND OTHER ORGANIZATIONS.

Art. 18. . BOCEP USE. The Companies of the National State and other agencies of the National State may avail themselves of this regime using BOCEP to compensate their agents who opt for voluntary withdrawal, the rules of Title I of this decree being applied, with the exceptions indicated below. Art. 19. . OF THE AUTHORITY OF APPLICATION. Follow the SECRETARIAT OF HACIENDA of the MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLIC authority for the implementation of this regime in all matters related to National Public Companies and other agencies of the National Administration. HACIENDA SECRETARIAT OF THE MINISTERY OF ECONOMY AND SERVICES PUBLICS shall make the BOCEP available to the aforementioned companies and agencies within the framework of their respective Transformation Programs agreed with the MINISTERY OF WORK and SOCIAL SECURITY. Art. 20. . OF AMORTIZAR OBLIGATIONS. Companies and agencies accepted to this regime are made up of major debtors of the BOCEPs and must monthly amortize the corresponding amounts, including the additional 10% SCIENTI TEN to constitute the OPERATION AND GARANTIA RESERVE. The BANK OF ARGENTINA NATION will agree with the General TESORRY of NATION the debits corresponding to these concepts. Art. 21. . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Gustavo O. Béliz. . Domingo F. Cavallo.

Annex I

CHARACTERISTICS OF BOCEP

(a) Currency of issue: Weights, convertible under the terms of Article 3 of Decree No. 2128/91, under the conditions established by Law No. 23.928.

(b) Date of issue: It will be determined for each series by Joint Resolution of the HACIENDA SECRETARIAT of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES and the SECRETARIAT of the PUBLIC FUNCTION of the MINISTERY OF INTERIOR.

(c) Amount: QUINIENT MILLIONS OF PESOS ($ 500,000.-) divided into DOCE (12) series to complete the indicated amount.

(d) Period: CINCO (5) years.

(e) Amortization: in SESENTA (60) equal and consecutive monthly contributions. Payment shall be made exclusively to the owner or, in the event of death, to the person who has appointed as a beneficiary or, where they do not exist, to his or her beneficiaries.

(f) Interest: no interest.

(g) Title: bonds shall be descriptive in the terms of Article 208 of Law No. 19.550 and Decrees No. 83 of 15 January 1986 and No. 289 of 12 February 1990, with the necessary caveats for being intransferable public values. The ARGENTINA NATION BANCO will carry the Scripture Registry in which the registration accounts that for this purpose indicates the BANCO CENTRAL OF THE ARGENTINA REPUBLIC shall be registered, in which the following mention shall be made:

I) Bonus nomination.

II) Original nominal value.

III) Date of issue.

IV) Legal provisions for issuance.

V) Data from the holder of the Bonus and its beneficiary, if any.

VI) The title of the bonds will be presumed by the records of the accounts opened in the Bonuses registry by the ARGENTINA NATION BANK, who must grant proof of opening the account and of any movement that is registered in it.

Account balance checks issued by the ARGENTINA NATION BANCO shall contain the requirements of Article 8 of Decree No. 83 of 15 January 1986, as amended by Decree No. 289 of 12 February 1990, with the necessary caveats for being intransferable public values.

(h) Placement: those who are accommodated in the voluntary retirement regimes established in the Provinces and the Municipality of the City of Buenos Aires under the PROVINCIAL PUBLIC SECTOR TRANSFORMATION PROGRAMME agreed with the MINISTERY OF INTERIOR.

The lower denomination Bonuses will be of UN weight ($1.-).

(i) Payment of financial services: to be paid by the BANCO CENTRAL OF THE ARGENTINA REPUBLIC, as a financial agent of the National Government, through the BANCO OF THE ARGENTINA NATION.

(j) Form of placement: by accreditation of the values in the writing record. For this purpose, the SECRETARIAT OF THE PUBLIC FUNCTION OF THE MINISTERY OF INTERIOR shall require the placement and provide the data of each of the holders that were necessary for the registration, in accordance with the regulations in force, to the CENTRAL BANCO of the ARGENTINA REPUBLIC so that, in its capacity as a financial agent, proceed to instruct the registration in the respective registry and report to the PUBLICS regarding the accredited Bonds.

Annex II

CALCULOS OF DEPOSITES AND CREDITS IMPORTS

1. Value to be charged to the BOCEP maturity if the holder does not charge any amortization fees and the interest rate remains constant during the SESENTA (60) months.

where the variables have the following meaning:

VF = value to be charged by BOCEP holder at the end of the month SESENTA (60).

C = monthly amortization fee paid by the Province or the agency that is the principal debtor.

i = interest rate of savings bank of the ARGENTINA NATION BANCO.

n = number of months of validity of the BOCEP, that is, SESENTA (60).

2. It matters of the loan that the company that hires the owner of BOCEP obtains from the BANCO OF THE ARGENTINA NATION, in the case that requests it at the beginning of the regime's validity.

where the variables listed in 1. have the same meaning and the others the following:

VP_or = loan value at the beginning.

r = interest rate charged by the NATIONAL BANCO for this type of operation.

3. Import of the loan at the time k, intermediate, in the assumption that the holder of BOCEP does not charge any amortization fees and interest rates do not vary in the respective periods.