CONTRACTS Decree 1.386/94 Authorize the inclusion of clauses establishing the extension of urisdiction in favor of state and federal courts in New York, and the waiver of opposing the defense of sovereign immunity, in contracts that the Argentine Republic subscribes for operations defined by article 12 of Act No. 24.307.

Bs. As., 11/8/94

VISTO Issue No.001-002051/94 of the registration of MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES and Law No. 24,307, and

CONSIDERING:

It is appropriate for the ARGENTINA REPUBLIC to take advantage of possible favourable circumstances in international financial markets for public credit operations.

That Section 12 of Act No. 24.307 authorizes HACIENDA SECRETARIAT to conduct transactions of purchase or sale of NATIONAL TESORO liabilities, pass operations, options, conversions and any other type of usual market operation with the public credit instruments acquired through such operations.

In order to carry out such operations in the most favourable terms for the ARGENTINA REPUBLIC, it is necessary to include clauses that establish the extension of jurisdiction in favour of state and federal courts of NEW YORK, the United States of AMERICA and the waiver of opposing the defence of sovereign immunity.

That the NATIONAL EXECUTIVE POWER is entitled to the dictation of this measure in accordance with the provisions of article 16 of the 1994 Permanent Supplementary Budget Law.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 , Authorize, in contracts signed by the ARGENTINA REPUBLIC for operations defined in article 42, paragraph 1, of Law No. 11.672 Permanent Supplementary to Budget (T. 1999), the inclusion of clauses establishing the extension of jurisdiction in favor of the state and federal courts of the city of NUEVA YORK, the United States of America and the city of LONDINE OF THE NORTE, and the waiver of opposing the defence of sovereign immunity, should be preserved inembargobility with respect to:

(a) Assets that constitute reserves of free availability, within the framework of the Law on Convertibility, the amount, composition and investment of which is reflected in the General Balance and accounting statements of the ARGENTINA REPUBLIC BANCO, prepared in accordance with Article 5 of Law No. 23.928.

(b) The assets of the NATIONAL STATE affected to an essential public service.

(c) The funds, values and other means of financing affected to the presuppose execution of the Public Sector, whether it is cash, deposits in bank accounts, titles, securities issued, third-party obligations in portfolio and in general any other means of payment that is used to meet the erogations provided for in the National General Budget.

(Replaced by Art. 1 National Decree 1123/2000 B.O. 1/12/2000) Art. 2o . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Domingo F. Cavallo