Key Benefits:
Bs. As: 27/02/95
VISTO FEDERAL COVENANT FOR EMPLEMENTATION, PRODUCTION AND GROW-UP,
CONSIDERING:
That in the FEDERAL PACTO FOR EMPLEO, PRODUCTION AND CROWD the provinces assumed the commitment to advance in the reform of their administrations, propending on the privatization of the provincial banks and their public service companies.
This is essential to stimulate the improvement of provincial public accounts through coordinated measures with the national government.
That such a task entails an organizational and financial effort, which in many cases may exceed the possibilities of the provinces themselves, because of their limitations to access the voluntary credit markets in the present circumstances.
As long as this process delays the losses incurred by many banks and entrepreneurs of total or part provincial ownership, they aggravate a sensitive picture of local finances.
That, for its part, the public and notorious circumstances arising from the economic policy decisions adopted by the MEXICAN U.S. since 20 December 1,994, aggravated the financial difficulties faced by some provincial banks.
That this could harm the functioning of the economy as a whole, since at a time when some retraction of external credit is noticed, it is when greater tranquility must be given to investors, shareholders and depositors.
It should be noted in that regard that the important role of provincial banks in the interior of the country is important, with the only institutions providing financial services in many localities.
In the case of provinces that in all cases have sufficient assets and fiscal resources to make commitments to the Nation, with whom it binds an indissoluble and permanent relationship. And while the latter is in a position to compromise certain assets, of undeniable value, in order to channel financial resources for the fiscal reform of the provinces, the Nation has the duty to exhaust its efforts in this regard, without relegating the provinces to their responsibilities or to their constitutional powers, which is vetoed to it.
This will help to alleviate the financial situation of the interior, contributing to the fact that the productive and service units, the real recipients of the population's saving effort, can normally develop their activities. It will also allow the provincial banks themselves to normalize their relations with the rest of the financial institutions, re-establishing the BANCO OF THE NATION ARGENTINA funds that have advanced them.
That the present measure is in exercise of the powers conferred by article 99, paragraph 1 of the National Constitution.
Therefore,
THE PRESIDENT
OF ARGENTINA NATION
RIGHT:
Article 1 Artículo Constituense un FONDO FIDUCIARIO FOR PROVINCIAL DEVELOPMENT in order to assist provincial banks subject to privatization and promote the privatization of provincial enterprises, under the conditions provided for in this decree and in the trust contract to subscribe between the National State and the BANCO of the ARGENTINA NATION.
Art. 2° . The FIDUCIARY FUND FOR PROVINCIAL DEVELOPMENT will be integrated with the goods defined in the trust contract, will be able to acquire rights and contract obligations, and will be administered following the instructions given to it by the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES, through the SECRETARIAT OF FINANC, BANCOS and FOLLOWERS.
Art. 3° . The economic, financial, legal or technical advisers of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, of the BANCO CENTRAL OF THE ARGENTINA REPUBLIC, of the ARGENTINA NATION BANCO or of other State units shall dictate or advise at the request of the trustee on the matters required by the latter.
Art. 4° . The ARGENTINA NATION BANCO will act as a financial agent of the FONDO FIDUCIARIO FOR PROVINCIAL DEVELOPMENT, being able to advance to the SETEN BY SCIENT (70%) of the market value of the assets given in trust, as well as to facilitate the human and support resources for its operation; it will not receive any commission for its activity, but will recover all the expenses incurred.
Art. 5° . The ARGENTINA NATION BANCO will separately maintain the accounting record of the operations of the FIDUCIARY FUND for PROVINCIAL DEVELOPMENT, whose operation will be subject to the supervision of the SUPERINTENDANCE OF FINANCIAL ENTITIES of the ARGENTIN REPUBLIC.
Art. 6° 6 Once its object has been completed or within the period of DOS (2) years, what happens first, the FIDUCARY FUND for PROVINCIAL DEVELOPMENT will be dissolved, its liquidation and compliance with the existing conventions by the officials designated by the MINISTERY OF ECONOMY AND OURS AND PUBLIC SERVICES.
Art. 7° 7 Approve the draft trust agreement between the National State and the ARGENTINA NATION BANCO, which as Annex I is part of the present, authorizing Mr. Minister of Economics and Public Works and Services to sign it on behalf of the Nation.
Art. 8° Contact, post, give to the National Directorate of the Official Register and archvese. . MENEM. . Domingo F. CAVALLO.
Annex I
CONTRACT OF FIDEICOMISO
Between the NATIONAL STATE, represented in this act by Mr. Minister of Economics and Public Works and Services and the BANCO OF ARGENTINA NATION, represented by the President of the Board, agrees to conclude this trust contract, which shall be governed by the following clauses, and supplementally, by Title I of Law 24,441.
FIRST: The NATIONAL STATE henceforth the "fiduciant", transmits the fiduciary property of the goods described in Annex I to the BANCO OF THE ARGENTINA NATION, henceforth the "fiduciary", in order to constitute a " FIDUCIARY FUND FOR PROVINCIAL DEVELOPMENT" for the benefit of the provinces, or the Total or Partial Banks of the Property of the Provinces.
SECOND: With the Trusted Goods the "fiduciary" will perform the following functions:
(a) Provide funds to "beneficiaries" to deal with situations of transitory liquidity or arising from the excessive immobilization of portfolios, requiring the appropriate guarantees from the "beneficiary" or the Province.
(b) To pay the assets acquired by the banks in order to provide them with liquidity, discounting the value assumed for their subsequent realization.
(c) To advance resources to eligible provinces entrusted to them with the privatization of their enterprises or other assets, up to 70 per cent of their likely value of performance, requiring appropriate guarantees.
(d) finance human resources programmes or institutional strengthening of beneficiaries.
(e) issue circulatory titles, negotiable obligations or contract unionized loans, with or without special guarantees.
(f) To hire consultants or advisers to prepare the necessary documentation for the privatization of entities
(g) assume directly, by agreement with the provinces, the task of privatizing eligible banks.
(h) To hire with official or private financial entities the administration, co-administration or advice for the administration of "beneficiaries" until they are transferred to their acquirers.
(i) To perform as many acts as necessary for the fulfilment of the object of the trust.
THIRD: the "fiduciary" shall orderly carry out the goods it has acquired from the "beneficiaries", based on procedures based on criteria of transparency, equality of opportunity and efficiency, taking care not to affect the prices of the square. For the administration and liquidation of the acquired assets, the "fiduciary" may be used by competent firms and especially the financial entities based in the area where such assets should be made, paying the commission or remuneration to be agreed according to the nature of the commission.
FOURTH: The "fiduciary" may arrange mortgage loans with the NATIONAL BANCO HIPOTECARIO, on the properties acquired from the "beneficiaries" or received in payment of credits, in order to facilitate their sale to third parties, or to agree with it the realization of the mortgages that constitutes when granting financing to the acquirers of the properties.
FIFTH: The "fiduciary" shall hold a register for each beneficiary, which shall be held accountable to the "fiduciant" and the "beneficiary" or the respective Province, whose balance may be a creditor or debtor to the beneficiary, and shall be deemed to have expired. The "fiduciary" may agree with the respective Province the term, interest rate, guarantees and other conditions corresponding to the cancellation of such balances.
SEXTA: The total or partial ownership banks of the Provinces or Municipalities may be "beneficiaries" of the trust, provided the following conditions have been met
(a) May the constitutionally empowered authorities grant authorization for full privatization, or transfer to the private sector of the majority of the capital and control of the decisions of administration and government of such entities.
(b) To transfer to the "fiduciary", or to an entity acceptable to it, the powers to perform the necessary acts to privatize the bank, or to agree on a timetable for such privatization.
(c) The conditions under which the operations of the "beneficiary" are developed are agreed with the "fiduciary" until their privatization is completed.
(d) That the respective Province or Municipality commits the production of the Bank's privatization to the cancellation of the debt balance of the account with the "fiduciary".
(e) That the respective Province or Municipality ensures to the satisfaction of the "fiduciary" the return of the possible debt balances that may subsist after the affectation set out in the previous point, affecting for this purpose other assets or companies of provincial property and the resources derived from the FEDERAL POPULATION REGIMEN OF IMPESTS that are necessary.
SEPTIMA: In the administration of YPF S.A.'s "A" Class shareholder, the trustee must comply with the provisions of the last paragraph of Article 8 of Law No. 24.145
In Buenos Aires, the ___days of the month of ____ of 1995.
Inventory of Trusted Goods
1. SETENTA MILLONES QUINIENTS NOVENTA AND NUEVE MIL NOVENTS AND NEW (70,599,999) shares class "A" of YPF S.A. excluded the dividends corresponding to the year 1.995.
2. The resources that in the future come from loans granted by the INTERNATIONAL RECONSTRUCTION AND FOMENT BANCO, the INTER-AMERICAN DEVELOPMENT BANCO, or other multilateral or national credit institutions, for similar purposes to those provided for in the trust.
3. The resources to be allocated in the future by the national budget or the provincial budgets.
4. The production of your operations or the income of your assets.
