PEQUEÑA AND MEDIANA EMPRESA Decree 908/95 Establish the Authority for the Application of Titles I and II of Law No. 24.467 and rule on articles of the aforementioned rule.

Bs. As., 11/12/95

VISTO Issue No. 080-003613/95 of the record of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, and Law 24.467, and

CONSIDERING:

It is necessary to designate the Authority for the Application of Titles I and II of Law 24.467, as laid down in articles 30 and 81, as well as to regulate articles 2o, 3o, 4o, 8o, 11, 12, 13, 14, 19, 20, 21, 22, 34, 42, 43, 45 and 46, also belonging to Titles I and II of the Law. As for Title III, its regulations were already implemented through Decree No. 737 of 30 May 1995.

That in relation to the characterization of the companies that will be qualified as small and medium, and until the Application Authority defines new parameters, it is considered appropriate to maintain the current regime established by the Resolution of the ex-MINISTERIO DE ECONOMIA No. 401 dated 23 November 1989 and its amendments.

It is also considered appropriate in terms of the use of existing institutions, to identify what needs to be understood as risk qualifiers for the purpose of evaluating the performance of small and medium-sized enterprises, and in this regard is provided by reference to the Decree No. 656 of 23 April 1992.

With regard to the formation of consortiums of small and medium enterprises, the current promotion regime of Decree No. 2586 of 22 December 1992 is maintained.

That, in relation to the limits set out in article 34, it is necessary for the statutes to rule on the modalities in which they will be unraveled, since if nothing was said in that regard, the mutual guarantee societies would be unable to operate as the first operation by logical necessity would exceed those limits by the fact that they were the only one.

That for the purposes of the authorization to operate to be granted by the Authority of Implementation pursuant to article 42 of Law 24.467, a dual system is established. On the one hand, the possibility of freely choosing the statutory clauses to be governed by the society and, in that case, the Application Authority will have a greater time to rule. On the other hand, the Implementation Authority is required to adopt a type of status so that the societies adopting it may be authorized to operate within a shorter period of time. It also provides for the creation of a registry for this purpose.

That article 31 of Act No. 19.550 (T. 1984) prohibits corporations in general, except those whose purpose is solely financial or investment, to take or maintain participation in one or other societies in excess of their free reserves and half of their capital and legal reserves, authorizing the NATIONAL EXECUTIVE PODER, in specific cases, to have exceptions to those limits.

That in order to give effect to the spirit of Law 24.467, orienting investments to mutual guarantee societies, it is appropriate to make use of the powers referred to in the above-mentioned article, except specifically to such societies of the limits set out in article 31 of the Companies Act, to the extent that they have the favourable opinion of the Implementation Authority.

That, finally, it is considered necessary to regulate certain aspects linked to the extents of tax exemptions to profits and the added value set out in article 79, subparagraphs (a) and (b) of Law 24,467, in order that exemptions comply with the promotional object proposed by the Law.

That the permanent legal service has taken the intervention that is within it.

That the present is dictated in the use of the powers conferred by article 99, paragraph 2, of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 . Please note that the Authority for the Application of Titles I and II of Law 24.467 will be the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES through the SECRETARIAT OF INDUSTRIA. The powers referred to in articles 2 and 3 of this decree can only be exercised by the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES. Art. 2o de For the purposes of Article 2 of Law 24.467, the definitions established by the Resolution of the Ex-MINISTERY of ECONOMY shall apply No. 401 of 23 November 1989 and its amendments to the Resolutions of the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES No. 208 of 24 February 1993 and No. 52 of 13 January 1994, while the Implementation Authority does not modify or replace them. Art. 3o . The bonuses of the interest rate to facilitate access to the credit referred to in articles 3 and 4 of Law 24,467 will continue to be implemented through the Triennial Programme for the Development and Development of Small and Medium-sized Enterprise established by Decree No. 2586 of 22 December 1992, as amended by Decree No. 991 of 7 May 1993, as well as through other mechanisms established by the Implementation Authority in a timely manner. Art. 4o La The special bonus of the interest rate referred to in Article 3 of Law 24.467 shall be determined according to any of the parameters set out in that article or a combination of both. Such determination shall be carried out by the Implementation Authority at each time that is convened for tendering in entities through which credits shall be awarded at unified rates. This decision shall be in conformity with the SECRETARIAT OF HACIENDA of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES. Art. 5o . The evaluations referred to in Article 8 of Law 24,467 may be carried out by the risk qualifiers inscribed in the registry provided for in Decree No. 656/92, and the approval by the NATIONAL VALORES COMMISSION under the SECRETARIAN OF FINANCIALS, BANCOS and SSERVERGUROS of the specific MINISTERIO OF ECONOMY, Art. 6o o The funds referred to in articles 11 of Act No. 24,467, as provided for in article 29 of the Act, shall be allocated to the Implementing Authority for specific programmes set out in Decree No. 1091 of 7 July 1994 (Strengthening of Small and Medium Enterprise Support Structures), Decree No. 1255 of 29 July 1994 (Programme for the Development of Suppliers, 1 August 1994). Art. 7o La The Implementation Authority will have the necessary actions to implement a Unique Integrated Information and Advice System for Small and Medium Enterprises. To this end, the agencies of the NATIONAL EXECUTIVE POWER shall have the necessary arrangements to provide the Implementation Authority by 30 October of this year, the necessary information that will form the database, in order to proceed with its unification. The service should be launched on 1 January 1996.

The costs required to maintain the Unique Integrated Information and Advice System for Small and Medium Enterprises should be charged to the budgetary provisions of the SECRETARIAT OF INDUSTRIA of the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES.

Provincial and Municipal Governments are invited to participate in the formation of the Integrated Unit Information and Advice System for Small and Medium Enterprise.

Art. 8o La The Implementing Authority shall coordinate with the agencies involved in the provisions of article 13 of Law 24,467, together with the institutes under its jurisdiction, the necessary actions and shall raise the proposals it deems relevant, in order to achieve the objectives of that article. Art. 9th . For the promotion of the formation of Small and Medium Enterprise Consortiums, which is part of Article 19 of Law 24.467, provide for the instruments and procedures set out in Chapter III of Decree No. 2586 of 22 December 1992 and their complementary standards.

Please also inform the Implementation Authority to propose alternative or complementary standards of that instrument, while the evolution of economic factors or the enhancement of this tool would make it necessary.

Art. 10. El The MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICOS will be responsible for coordinating the action of the various agencies competent in the field of foreign trade, in order to define the most appropriate policies for the implementation of articles 20 and 21 of Law 24.467. Art. 11. La The Implementing Authority will implement and coordinate with the different areas of the National, Provincial and Municipal governments and with the participation of the private sector including the business union entities, the development of the National Training Program for the Small and Medium-size Enterprises Management and Businesses created by article 22 of Law 24.467. Art. 12. . For the different programs and systems included in Law 24,467, which have been created prior to the date of its validity, keep the existing regulatory instruments, procedures and rules applicable to each of them.

Please also provide the Implementation Authority with a view to establishing or proposing alternative or complementary standards, depending on economic factors, the need for empowerment or correction, which each tool requires in the future.

Art. 13. The operating mode of the limits referred to in article 34 of Act No. 24,467 shall be regulated in the respective statutes of reciprocal security companies. Art. 14. In order to grant or deny authorization for the operation of a mutual guarantee company as provided for in article 42 of Law 24.467, the Application Authority shall have a term of TREINTA (30) working days when the requesting company does not opt for the procedure referred to in the following article. Art. 15. For the purposes of article 42 of Act No. 24,467, the Applicable Authority shall adopt a status for the establishment of reciprocal societies.

For the authorization of the operation of a mutual guarantee company, constituted according to the approved type of status, the Application Authority shall only verify the registration in the PUBLIC REGISTER of TRADE and the conformity with the type status indicated by the applicant and, within the period of TEN (10) working days, shall grant the authorization to which effect shall be sufficient the order of the competent agency of its unit.

Art. 16. . In relation to the authorizations referred to in the previous article, the Application Authority shall maintain a record in which the requested authorizations, the denials and the awards shall consist, filing a copy of the applications and the statutes submitted. Art. 17. Las The authorized mutual guarantee companies will be required to report each CUATRO (4) months to the Implementation Authority the data that will make it known their economic and financial situation. To that end, the Implementation Authority shall establish such criteria as it deems necessary. Art. 18. The revocation of the authorization to operate under article 43 of Act No. 24.467 shall be in accordance with the procedure set out in article 21 of Act No. 19.549, as amended by Act No. 21.686, without prejudice to the disciplinary regime established by the application authority. Art. 19. . Attempt for article 45 of Law 24.467, empower the Implementing Authority to establish the minimum social capital for the constitution of mutual guarantee societies. Art. 20. El The risk fund will have the main purpose of covering the guarantees given to the partners. In relation to article 46, paragraph 6, of Law 24.467, the statute of the mutual guarantee society shall specify a minimum period not less than DOS (2) years from which the protective partner may withdraw or reduce his contribution to the risk fund. Such reduction or withdrawal shall respect proportional equality within the mass of protective partners, and shall not be effective if the minimum relationship of risk coverage established by the statute is altered. Art. 21. Except for the limits set out in the first paragraph of Article 31 of Law 19.550 (t. 1984) to companies that are incorporated as partners of mutual guarantee companies. Art. 22.. With regard to deduction in profits taxable for the determination of the tax on profits, it reaches:

1. . The capital contributions made by the partners and protectors.

2. . Contributions to the risk fund of the protective partners.

3. . The amounts allocated by the partners to the risk fund as set out in section 53, item 2, subparagraph (b) of Law 24.467.

Art. 23. On the occasion of the recovery of the contributions made and deducted taxably, either by withdrawals, capital reductions, transfers of shares or other forms of disposition, the profit tax will be achieved the difference resulting from the amounts obtained, the value of the contributions made in a timely manner. Art. 24. With regard to the exemption in the profit tax under section 79, paragraph (a) of Law 24.467, the same includes the income obtained by the Society for the exercise of its main activity, i.e. the granting of guarantees in accordance with article 33 of Law 24.467. This exemption does not cover the results of the financial performance resulting from the placement of the risk funds provided for in article 46, paragraph 5, of Law 24.467. The calculation of these results will detract the costs associated with obtaining the above-mentioned financial performance. Art. 25. The exemption provided for in article 79 (b) of Act No. 24.467 covers only the retribution paid by mutual guarantee companies for the award of contracts referred to in article 68 of Act No. 24.467. Art. 26. PROVINCIAL GOVERNMENTS and MUNICIPALITY OF THE CIUDAD OF GOOD AIRES are invited to establish a similar tax treatment for the operations envisaged in Law 24.467 and in this regulatory decree. Art. 27. Contact, post, give to the National Directorate of the Official Register and archvese. . MENEM. . Carlos V. Corach. . Domingo F. Cavallo. Rodolfo C. Barra.