PUBLIC DEUDA

Decree 726/97

Authorize the issue of National Public Debt Values called "National Currency Consolidation Bonuses - Second Series" and "Consolidation Bonuses in American Dollars - Second Series", under the terms of Law No. 23.982, in order to meet the emerging obligation of Law No. 24.411.

Bs. As., 4/8/97

B.O.: 07/08/97

VISTO Issue No. 001-000945/97 of MINISTERY OF ECONOMY ARTWORKS AND PUBLIC SERVICES, Law No. 23,982, Law No. 24,411 and its amendments and Decrees No. 2140 of 10 October 1991 and No. 403 of 29 August 1995 and

CONSIDERING:

That Act No. 24.411 provides for the granting of a benefit that persons in situations of enforced disappearance shall have the right to receive through their cause, and that the amount of such benefit may be made effective in accordance with the terms of Act No. 23.982.

That Decree No. 403/95 provides that the payment of this benefit shall be made in accordance with the terms of Act No. 23.982.

That Law No. 23,982 provides, for the payment of consolidated obligations other than that of forecastal origin, the issue of Consolidation Bonuses in national currency, which accrue an interest equivalent to the average rate of the Common Savings Fund that publishes the BANCO CENTRAL OF THE ARGENTINA REPUBLIC, and of US Dollar Consolidation Bonuses, which accrue to the interest rate in London.

That Article 12 of the same Law establishes that bonds shall be issued to DIECISEIS (16) years of time and shall have a grace period of SETENTA and DOS (72) months during which interest shall be capitalized monthly, after which the accumulated capital shall be amortized monthly.

That the legal referral to the debt consolidation regime, in order to meet the emerging obligations of the benefit recognized by Law No. 24.411, entails the need to adapt the regime to the factual and legal situations arising from a rule following the entry into force of the Debt Consolidation.

Two new series of Consolidation Bonuses, in national currency and in United States dollars, should be issued under the terms of Act No. 23,982, with the date of issue of 28 December 1994, the date of promulgation of Act No. 24,411.

That any emerging obligations under Act No. 24,411 should be met with the amount of Consolidation Bonuses required to cover, at their technical value, the amount relevant to the date of recognition of profit.

That the present is given in the use of the power vested in the National Executive Power in article 99 (2) of the NATIONAL CONSTITUTION.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1La SECRETARIAT OF HACIENDA DE MINISTERIO DE ECONOMIA AND SERVICES PUBLICS will proceed to issue values of the National Public Debt in Weights called "CONSOLIDATION BODIES IN NATIONAL MONEDA - Second Series - as much as necessary, in accordance with the option exercised by the beneficiaries, to cancel the benefits provided by Act No. 24.411, which shall have the following conditions:

(a) Date of issue: 28 December 1994.

(b) Period: sixteen (16) years.

(c) Amortization: It will be made in VEINTE SCIENTY (120) monthly and successive quotas, equivalents the first DIECINUEVE SCIENTY (119) to the OCHENTA and CUATRO CENTESIMOS por CIENTO (0.84 %) and UNA (1) last to CUATRO CENTESIMOS por CIENTO (0.04 %) of the amount issued plus the capitalized interests during the first SETEN2) The first quota will expire on 28 January 2001.

(d) Interests: The average interest rate of the Common Savings Fund to publish the BANCO CENTRAL OF THE ARGENTINA REPUBLIC and to report officially the HACIENDA SECRETARIAT of the MINISTERY OF ECONOMY AND PUBLIC SERVICES. Interests will be capitalized monthly during the first SETENTA and TWO MESES (72) months and will be paid in conjunction with the amortization fees.

At the time of issuance, the SECRETARY OF HACIENDA of the MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICOS will determine the interest rate of the Bonuses.

(e) Ownership and negotiation: The titles shall be descriptors, freely communicable and contributory to the country ' s stock exchanges, stock markets and self-regulated markets.

(f) Tax exemptions: The Bonds shall have the tax treatment provided for in article 36 bis of Act No. 23,962, amending the Negotiable Obligations Regime established by Act No. 23,576, as amended by Decree No. 1076 of 2 July 1992. The titles are exempt from the tax set out in Law No. 23.966, Title VI, of Personal Property Tax, ordinated text 1997.

(g) Placement: The Bonds issued by this article shall be delivered in payment of the benefits provided by Law No. 24.411, to their technical value at the date of recognition of each benefit, in the amount necessary to cover the amount of the obligation to the same date.

(h) Minimum denomination: The lowest denomination bonus will be PESOS UNO ($ 1).

(i) Attention to financial services: Payments will be made through the banks established in the country, and the ANONIMA SOCIEDAD VALORES SOCIEDAD CAJA.

(j) Commissions and expenses: SECRETARIAT OF HACIENDA del MINISTERIO DE ECONOMIA AND ARTWORKS AND SERVICES PUBLICOS is authorized to pay fees to entities involved in the care of financial services and to meet the costs required by the placement.

Art. 2o-THE SECRETARIAT OF THE MINISTERY OF ECONOMY AND ARTWS AND SERVICES PUBLICS will proceed to issue National Public Debt Values called - CONSOLIDATION BODIES IN DOLARES STATUS - Second Series - as much as necessary, according to the option exercised by the beneficiaries, to cancel the benefits provided by Law No. 24.411.

The characteristics and conditions of these Bonuses will be the same as those set out in Article 1 for the National Currency Consolidation Bonuses "Second Series", with the exception of the following: Interests: Revenue the interest rate that runs in the London Interbank Market (LIBOR) for deposits in Eurodollars to TREINTA (30) days.

Art. 3o-Please refer to the SECRETARIAT OF HACIENDA of the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES, to provide the advance ransom of all or part of the bonds issued by this Decree to its technical values, as provided for in article 19 (k) of Decree No. 2140/91.

Art. 4o-Contact, post, give to the National Directorate of the Official Register and archvese.- MENEM - Jorge A. Rodríguez.- Roque B. Fernández.