PUBLIC DEUDA Decree 341/96 Authorize the issue of Public Debt Titles called "Xternal Bonuses in Marcos Alemanes".

Bs. As., 1/4/96

VISTO the 001-001142/96 Records of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, Law No. 11.672 "Permanent Supplementary Budget" (T.O. 1995), Law No. 24.156, Law 24.624 "The General Budget Law of the National Administration for the Exercise 1996", and

CONSIDERING:

That the ARGENTINA REPUBLIC has made in recent years placements in the international financial markets, which have involved an expansion of the investment base and have established new references for private sector placements.

That during 1995, the National Government has successfully placed debt instruments on the German framework market.

That the MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICOS is assessing the possibility of placing financial instruments on the market, which includes financial transactions of derivatives for better management of the liabilities resulting from them.

That in the current financial circumstances it is appropriate for the National Government to contract a loan and that with the production thereof it can repurchase public debt to be kept in portfolio, within the framework of article 46 of Law No. 11.672 " COMPLEMENTARY LAW OF BUDGET" (T.O. 1995), as amended by Article 7 of Law No. 24.624 "The General Budget Law of the National Administration for the Exercise

It is appropriate to open the possibility of financial operations of products derived according to market practices for better management of the financial risks of the liability resulting from placement and/or rescue.

That article 36 bis of Law No. 23.576 and its amendments, as well as Law No. 23.966 with the amendment introduced by Law No. 24.468, establish tax treatment to apply to the credit instruments that review the characteristic of Public Titles.

That the provisions of article 61 of Act No. 24,156 have been complied with.

That the instruments to be issued are covered by the authorizations for public credit operations of Table 8, annexed to section 6 of Act No. 24,624.

That the NATIONAL EXECUTIVE PODER is empowered to submit disputes with foreign persons in non-Argentine courts, in accordance with article 16 of Law No. 11.672, "Permanent Supplementary Budget" (T.O. 1995).

That the present measure is determined by the provisions of Articles 6 and 41 of Law No. 24,624 "The General Budget Law of the National Administration for the Exercise of 1996", by Article 65 of Law No. 24,156 and Article 99, paragraphs 1 and 10, of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 al Fill the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES, through the SECRETARIAT OF HACIENDA to issue Public Debt Titles called " EXTERNAL BONOS IN SECRETARIAN ALEMANES", in one or several series with the addition of the year of maturity and of the applicable interest rate, for a nominal value of MARCOS ALEMANES A MIL MILLONES (V.N.DEM 1,000,000,-). On the other hand, it may carry out financial operations of products derived according to market practices for the administration of the liability resulting from placement.

Art. 2o El The MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES, through the SECRETARIAT OF HACIENDA, will adopt the respective decisions for the placement of such instruments, in accordance with the usual practices in the financial markets, and will subscribe on behalf of the REPUBLIC ARGENTINA the documentation that is necessary, to which effect it is empowered to:

(a) Designate the financial institutions that will represent and be responsible for the organization of the operations referred to in Article 1.

(b) Determine the nominal value of the Bonuses to be offered for sale within the limit of Article 1 , the times and times in which they will take place; and the markets of the outside in which they will be offered.

(c) Establish methods and procedures for the placement and/or sale of the respective Bonds, in accordance with existing practices.

(d) Agree and subscribe the contracts necessary for the placement and/or sale of the Bonuses, which will include the usual clauses for this purpose.

(e) To agree on conditions by which the positioners are obliged to acquire the Bonuses offered.

(f) Pay for all expenses to be incurred and the fees to be agreed upon in accordance with the contracts to be signed.

(g) Authorize certain officials to subscribe to the documentation required to implement these operations.

Art. 3o s With the production of disbursements for the placement of the public debt securities mentioned in Article 1, the MINISTERY OF ECONOMY AND ARTWS AND SERVICES PUBLICOS may proceed to repurchase securities issued by the National Government in order to be kept in portfolio. To the extent that they are kept in portfolio, without being used in pass operations, the amount of their purchase will be considered as included within the operations of Article 65 of Law No. 24.156, and will not be computed from the operations of the table No. 8 annexed to Article 6 of Law No. 24.624 "The General Budget Law of the National Administration for the Exercise 1996".

Art. 4o . Authorize the inclusion in the operations referred to in article 1 of clauses establishing the extension of jurisdiction in favor of courts located in the City of FRANCFORT DEL MENO, FEDERAL REPUBLIC OF ALEMANIA, and may extend the extension of jurisdiction to the state and federal courts located in the city of NUEVA YORK, the United States of AMERICA. It is also authorized to accept the waiver of opposing the defence of sovereign immunity in the documentation signed by the MINISTERIO DE ECONOMIA AND ARTWS AND SERVICES PUBLICOS by the financial operations approved by Article 1 of this Decree.

Art. 5o En In the documentation that is signed by the operations approved by this Decree, inembargobility must be preserved 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 Status of the ARGENTINA CENTRAL REPUBLIC BANCO, which is abolished in accordance with Article 5 of Law No. 23.928.

(b) Public domain assets located in the territory of the ARGENTINA REPUBLIC or property belonging to it, which are located in its territory and are intended for the purpose of an essential public service.

(c) The funds, values and other means of financing affected to the budget 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 General Budget of the Nation.

Art. 6th . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Eduardo Bauzá. . Domingo F. Cavallo.