PRESTAM CONTRACTS

DECEMBER No. 1035/95

Apply a loan contract to join the International Bank for Reconstruction and Development for the financing of the Second Municipal Development Programme.

Bs. As., 7/7/95

VISTO the 3860-AR Loan Contract proposed to be subscribed between the ARGENTINA NATION and the INTERNATIONAL RECONSTRUCTION BANK and FOMENT for an amount of DOLARES STADOUNIDENSES DOSCIENTS DIEZ MILLONES (U$ 210,000), or its equivalent in other currencies and,

CONSIDERING:

Through the aforementioned Agreement, the International BANCO of Reconstruction and Promotion meets the ARGENTINA NATION in the financing of the SECOND PROGRAMME of MUNICIPAL DEVELOPMENT.

The purpose of the Programme to which resources are allocated is to support the process of decentralization of responsibilities in the provision of public services between the Nation, Provinces and Municipalities, improving the quality of life of the population.

In order to achieve such objectives, it is proposed to use resources in the conduct of works, the acquisition of equipment and the hiring of consultants to implement the components of investments, equipment and institutional strengthening of the participating municipalities and operation of the Programme.

That the implementation of the activities envisaged in the Programme requires the subscription of subsidiary loan agreements with the Provinces that accede to it.

That the general conditions, the periods of amortization, interest rates and other clauses contained in the proposed Contract to be subscribed are the usual ones that are agreed upon in this type of agreement and is appropriate to the purposes and objectives to which this loan is intended.

That the implementation of the Programme requires the creation of a National Executing Unit as well as the recruitment of experts and the acquisition of goods, which is expressly contained in clause 3.06 of the Loan Contract to subscribe between the ARGENTINA NATION and the INTERNATIONAL BANCO OF RECONSTRUCTION AND FOMENT.

That the constitution of the said Unit is a requirement for the validity of the Loan, as stated in Clause 6.01 (e) of the proposed Contract.

That the formalization of this operation requires that the ARGENTINA NATION, through the MINISTERY of ECONOMY AND ARTWORKS AND SERVICES PUBLICS subscribes to the Loan Contract for the SECOND MUNICIPAL DEVELOPMENT PROGRAMME.

That the Contract is covered by article 60 in fine of Law No. 24.156.

That in accordance with article 16 of the "Act No. 11.672, Supplementary Permanent Budget (T.O. 1995)" and article 99, paragraph 1, of the National Constitution, the NATIONAL EXECUTIVE PODER is empowered to approve such operations and to subject any disputes to the decision of the Arbitral Tribunals.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 Appropriate the 3860-AR Loan Contract for the SECOND MUNICIPAL DEVELOPMENT PROGRAMME, to subscribe between the ARGENTINA NATION and the INTERNATIONAL RECONSTRUCTION AND FOLLOW BANCO in the amount of DOLARES STADOUNIDENSES DOSCIENTS TYPE (US$ 210,000), or its equivalent in other currencies. The text of the Contract, in its original English version, is an integral part of this Decree as Annex I; the translation into Spanish of the Contract as Annex II and the General Conditions applicable to the Contracts of Loan and Guarantee of the INTERNATIONAL RECONSTRUCTION AND FOMENT BANCO, as Annex III. All documentation is duly authenticated.

Art. 2o.- Please refer to the Minister of Economics and Public Works and Services or to the official or officials designated by him to subscribe on behalf of and representation of the ARGENTINA NATION, the Loan Contract and all the documentation relating thereto, in accordance with the model approved by article 1 of this Decree.

Art. 3. Please refer to the Minister of Economics and Public Works and Services or to the official or officials designated by him to agree and subscribe to the Contract approved by article 1 of this Decree, provided that they do not constitute substantial changes to the object and destination of the Contract, nor do they result in an increase in the amount of the loan or modify the agreed arbitral proceeding.

Art. 4o.- Please refer to Mr. Secretary of Social Development of the NATIONAL PRESIDENCE, or to the official or officials who himself designate, to subscribe Subsidiary Loan Conventions with each of the Provinces that accede to the Programme.

Art. 5o.- The SUBSECRETARIA DE VIVIENDA de la SECRETARIAT de Desarrollo SOCIAL de la PRESIDENCIA DE LA NATION, as the executor of the SECOND PROGRAMME OF MUNICIPAL DEVELOPMENT, is designated as the National Director of the Programme.

Art. 6o.- Authorize the Assistant Secretary of Housing to create within the scope of the SUBSECRETARIA OF VIENDA of the SECRETARIAT FOR SOCIAL DEVELOPMENT of the PRESIDENCE OF NATIONAL, the NATIONAL EXECUTOR UNITY of the SECOND PROGRAMME OF MUNICIPAL DEVELOPMENT, which will be responsible for its implementation and the administration of the funds allocated to it. This unit will be composed of staff recruited in accordance with the standards agreed with the INTERNATIONAL BANCO OF RECONSTRUCTION AND FOMENT, making use of the resources provided for in the SECOND PROGRAMME OF MUNICIPAL DEVELOPMENT. To that end, allow the NATIONAL EXECUTOR UNITY sufficient legal capacity to hire.

Art. 7o.- Please refer to the Assistant Secretary of Housing of the SECRETARIAT for SOCIAL DEVELOPMENT of the PRESIDENCE OF THE NATIONAL to celebrate by himself or to delegate its realization in the NATIONAL EXECUTOR UNITY of the SECOND PROGRAMME OF MUNICIPAL DEVELOPMENT referred to in Article 6 of the present Decree, contracts for the location of work and services with third parties, without any relation of dependency, as well as to acquire the movable goods

Art. 8o.- Contact, post, give to the National Directorate of the Official Register and archvese.-MENEM - Domingo F. Cavallo.

NOTE: This Decree is issued without annexes.