PUBLIC DEUDA

Law 27249

Laws N ° 26.017, N ° 26.547, N ° 26.886 and N ° 26,984. Repeal. Law No 27.198. Amendment.

Sanctioned: March 31, 2016

Enacted: March 31, 2016


ARTICLE 1- Repeal laws 26.017, 26.547, 26.886, 26.984 and its regulatory and complementary rules, as well as any other law, decree or rule that is contrary to or incompatible with the provisions of this law.

ARTICLE 2- The ratification of the agreements referred to in Article 5, the authorisation granted to the Application Authority in Article 6, as well as the provisions of Articles 7 °, 8 °, 9 °, 10, 11, 12, 13 and 15, all of this Law, will enter into force on the basis of the confirmation by the Appeals Chamber of the Second Circuit of the United States of America of the effective lifting of all precautionary measures ("injunctions") issued against the Republic of Argentina.

ARTICLE 3- Amend Article 42 of Law 27.198, which shall be worded as follows:

Article 42: Authorize the national executive branch, through the Ministry of Finance and Public Finance, to continue the normalization of the services of the public debt referred to in Article 41 of this Law, in the terms of the Article 65 of the Law on Financial Management and the Systems of Control of the National Public Sector 24.156, and its amendments or the Law of Standardization of Public Debt and Recovery of Credit, with the power of the Executive Branch to continue with the negotiations and to carry out all the necessary acts for its conclusion .

The Ministry of Finance and Public Finance will report on a quarterly basis to the Honorable Congress of the Nation, the progress of the negotiations and the agreements to which it will be reached during the negotiation process.

This report shall include an updated database identifying the agreements reached, the judicial or arbitral proceedings terminated, the amounts of capital and the amounts cancelled or the cancellation of each agreement and the level of execution of the authorization of the level of indebtedness that is granted through article 7 ° of the Law of Standardization of Public Debt and Recovery of Credit.

In addition, certified copies of the agreements reached, as well as their translation into the Spanish language, should be accompanied.

At the same time, the Ministry of Finance and Public Finance must inform the progress of the management aimed at the normalization of the service of the public securities issued in the framework of the restructuring of the public debt. Decrees 1.735/2004 and 563/2010.

The firm judicial pronouncements, issued against the provisions of Law 25,561, Decree 471 dated March 8, 2002, and its accompanying rules, which are placed on those titles, are included in the dispute indicated in the Article 41 of this Law.

ARTICLE 4 °- Where the provisions referred to in Article 2 of this Law do not come into force for the reasons provided for in that Article, the Authority may carry out further negotiations with the holders of public securities. (and/or their representatives) who were eligible for the exchange provided for in Decree 1,734 dated December 9, 2004 and their supplementary rules, which would not have been submitted to such an exchange or to the provisions of Decree 563 of 26 April 2004. 2010 (Eligible Public Titles), with the agreement that the Application Authority subscribe to such creditors as well as the cancellation and/or restructuring proposals that the Application Authority will make subject to the approval of the Congress of the Nation.

ARTICLE 5- Ratify the cancellation agreements concluded between the Argentine Republic and the holders of Eligible Public Titles (and/or their representatives), which as Annex I, in English copy and their translation into the Spanish language, form part Member of the present law.

The Ministry of Finance and Public Finance, as the Enforcement Authority of this Law, is hereby authorized to extend the respective maturity periods set forth in the aforementioned cancellation agreements.

ARTICLE 6- Please allow the Application Authority to:

(i) to make amendments and/or amendments to the cancellation agreements referred to in the preceding article as long as they do not change their object, their economic conditions and their terms and conditions; and,

(ii) Carry out all the necessary acts to cancel the debt with the holders of Eligible Public Titles (and/or their representatives) who are not included in the cancellation agreements referred to in the preceding article, including the subscription of agreements and other instruments.

In order to implement the subscription of the agreements referred to in the preceding paragraph, the Application Authority may offer:

a) To all holders of Eligible Public Titles, a payment equivalent to the amount of capital owed from their securities with more than fifty percent (50%) of that amount of capital (Base Offer). In no case, the amount to be paid may be higher than the amount recognized for any sentence given in relation to those titles plus the legal update corresponding to the application of judicial interests to January 31, 2016.

The Base Offering will be implemented and implemented by:

i) The signing of debt cancellation agreements; and

(ii) a national and international cash payment offer against the delivery of Eligible Public Titles ("cash tender offer", according to their English language name).

With respect to the holders of Eligible Public Titles who have initiated claims before the District Court for the Southern District of New York, United States of America, grouped in a class action, is authorized to agree an additional sum to cover the administrative costs necessary to notify those included in the respective class, in accordance with the terms of the Agreement provided for in paragraph 4 of Annex I.

The national executive branch shall not assume any expense or surplus charge in respect of the remaining holders of Eligible Public Titles covered by the Base Offer;

b) To those holders of Eligible Public Titles whose claims are included in the court orders issued by the District Court for the Southern District of New York, United States of America, on 23 February 2012, and as amended on 21 November 2012 (the "Order" Pari Passu "Original") and on 30 October 2015 (the "Order" Pari Passu "Me Too" and in conjunction with the Order "Pari Passu" Original, the "Pari Passu Orders"), the provisions of the Base Offer provided for in (a) above or, at its choice, the following proposal (the "Pari Passu" offer):

(i) to those holders of Eligible Public Titles who are affected by the "Pari Passu" Orders, which shall have a monetary judgment, issued before 1 February 2016, which shall recognise the debt arising from the Titles Eligible Public under their tenure, a payment equivalent to seventy percent (70%) of the legal claim (which includes the amount recognized in such sentence and the court interest accrued from the date of the judgment until January 31, 2016), and

(ii) to those holders of Eligible Public Titles who are affected by the "Pari Passu" Orders which do not have a monetary judgment, issued prior to 1 February 2016, which recognised the debt arising from the Titles Eligible Public under their tenure, a payment equivalent to seventy per cent (70%) of the legal claim (including the capital owed plus the amounts due under the contractual interest rate and the statutory interest rate ' statutory interest rate " on the contractual interest rate up to 31 January 2016, in accordance with the laws of the State of New York, United States of America).

ARTICLE 7- The issuance of the Treasury of the Nation and/or the contracting of other public borrowing operations by up to an original nominal value of US dollars and/or the issuance of the Treasury's securities, through the Application Authority and under this law its equivalent in other currencies, which is necessary to comply with the payments required under this law and to the extent that such payments do not exceed the amount of twelve thousand five hundred million US dollars (U$S 12,500,000,000) and/or its equivalent in other currencies, the general budget of the European Union being extended. National Administration for the Financial Year 2016, approved by law 27.198.

The Application Authority shall direct the production of the emissions referred to in the preceding paragraph to the debt cancellations provided for in this law. In case the amount of the issue exceeds the amount of payment required under this law, the surplus will be charged to the existing authorization of public debt provided for in the General Budget of the National Administration for the financial year 2016, adopted by law 27.198.

ARTICLE 8- Holders of Eligible Public Titles who wish to participate in any cancellation operation carried out within the framework of the provisions of this Law, including the creditors who signed the agreements in Annex I and those who accept the proposals provided for in Article 6, shall give up all the rights which correspond to them under those titles, including those rights which would have been recognised by any court judgment or administrative, arbitral award or decision of any other authority, issued in any jurisdiction; and to renounce and to release the Argentine Republic of any judicial, administrative, arbitral or other action initiated or which may be initiated in the future in relation to those securities or the obligations of the Republic Argentina that arise from them, including any action aimed at perceiving capital services or interests of such securities or any other accessory or expense.

ARTICLE 9- Authorize the Application Authority to include clauses establishing the extension of jurisdiction in favor of foreign courts, and to provide for the waiver to oppose the defense of sovereign immunity, exclusively, in respect of claims in the the jurisdiction to be extended and in relation to the agreements to be signed and the public debt issues to be carried out, in accordance with the provisions of this law and subject to the inclusion of the so-called "collective action clauses" and "pari passu" clause, in accordance with current international market practices of capital.

The waiver of the defence of sovereign immunity shall not imply any waiver of the immunity of the Argentine Republic in relation to the execution of the goods described below:

(a) Any reserve of the Central Bank of the Argentine Republic;

(b) Any property belonging to the public domain located in the territory of the Argentine Republic, including those covered by Articles 234 and 235 of the Civil and Commercial Code of the Nation;

(c) any property located within or outside the territory of Argentina which provides an essential public service;

(d) Any property (in the form of cash, bank deposits, securities, third party obligations or any other means of payment) of the Argentine Republic, its government agencies and other governmental entities related to the execution of the budget, within the scope of Articles 165 to 170 of the Permanent Supplementary Law of Budget 11,672 (t.o. 2014);

e) Any good achieved by the privileges and immunities of the Vienna Convention on Diplomatic Relations of 1961 and the Vienna Convention on Consular Relations of 1963, including, but not limited to, goods, establishments and accounts of the Argentine missions;

(f) Any goods used by a diplomatic, governmental or consular mission of the Republic of Argentina;

(g) Taxes and/or royalties due to the Argentine Republic and the rights of the Argentine Republic to collect taxes and/or royalties;

(h) any good of a military nature or under the control of a military authority or defense agency of the Republic of Argentina;

(i) any good that forms part of the cultural heritage of the Republic of Argentina; and

(j) Goods protected by any applicable sovereign immunity law.

ARTICLE 10.- Authorize the Application Authority to perform all necessary acts to comply with the provisions of this Law, including without limitation:

(a) the determination of the periods and time limits for participation in the debt cancellation offers;

(b) the determination of the periods, time limits, methods and procedures for issuing the new public titles;

(c) the designation of financial institutions participating in the placement of new public securities and the hiring of other public credit loans;

(d) The subscription of agreements with financial institutions that place new public securities to be issued, thus providing for the payment of commissions on market conditions, which in no case will be able to exceed the zero point of 20%. (0,20%) of the amount of the issue;

(e) the preparation and registration of a programme of public titles to the control bodies of the main international capital markets;

(f) the subscription of agreements with fiduciary agents, payment agents, information agents, custody agents, registrants and risk rating agencies that are necessary for both debt and debt cancellation operations the issue and placement of new public securities, with the payment of the corresponding fees and charges on market conditions; and

(g) payment of other necessary expenses for registration, printing, distribution of prospects, translation and other associated expenses, which must be in market conditions, in order to comply with the provisions of this law.

ARTICLE 11- Exempt from the operations covered by this law the payment of all existing national taxes, fees and contributions and to be created in the future, and of the exchange rate restrictions which may be applied to the transactions referred to in the present law.

ARTICLE 12.- Except for the operations covered by this law of the provisions of Articles 7 and 10 of Law 23,928 and its amendments, and of the provisions of Article 765 of the Civil and Commercial Code of the Nation.

ARTICLE 13.- The Application Authority, within the period of sixty (60) days from compliance with the condition of Article 2 of this Law, shall take all necessary measures to standardise the service of public securities. issued in the framework of the restructuring of the public debt provided for by decrees 1,735 dated 9 December 2004 and 563 dated 26 April 2010 ('Structured Public Titles '), including:

(i) the regularization of the situation of The Bank of New York Mellon as a fiduciary agent under the Trust Convention dated 2 June 2005, as amended on 30 April 2010 (the "Trust Convention");

(ii) if necessary, the hiring of another institution that complies with the duties of a fiduciary agent as established in the Trust Convention; and

(iii) the issuing of the necessary instructions for the transfer of the funds deposited in the account "Fund Law No. 26,984 Sovereign Payment of Structured Debt" Of The Nation Trusts Sociedad Anonymous at the Central Bank of the Argentine Republic to the accounts of The Bank of New York Mellon, or of the entity that replaces it as a fiduciary agent under the Trust Agreement, in the Central Bank of the Argentine Republic in order to apply them to the payment of these titles. Until the contractual situation with The Bank of New York Mellon is normalized as a fiduciary agent under the trust agreement, the Application Authority may transfer the funds corresponding to the future maturity of the Titles. Public Restructured to Nation Trusts Company Anonymous, entity to which by this act is designated as a transitional payment agent, (for whose purposes the Application Authority will agree with that company the terms of such designation) for its subsequent transfer to the fiduciary agent under the Trust Convention, without (a) the provisions of this Article shall entail any amendment to the said Trust Convention.

ARTICLE 14.- Where the provisions referred to in Article 2 of this Law do not come into force for the reasons provided for in that Article, the Application Authority may transfer the funds corresponding to the future maturities of the Public Securities Restructured to Nation Trusts Company Anonymous as a transitional payment agent for subsequent transfer to the fiduciary agent under the Trust Agreement, without the provisions of this Article involving any amendment to the said Trust Convention.

ARTICLE 15.- Appoint the Ministry of Finance and Public Finance as the Enforcement Authority of this Law, and may dictate the clarifying and complementary rules that are necessary to implement this standard.

ARTICLE 16.- The Chief of the Cabinet of Ministers will be empowered to make the necessary budgetary adjustments to comply with the provisions of this law.

ARTICLE 17.- The payments provided for in this law will be dealt with by the budget allocation "Expenditure and Commissions of Public Debt" corresponding to Jurisdiction 90.

ARTICLE 18.- Create, within the ambit of the Honorable Congress of the Nation, the Commission Bicameral Permanent Monitoring and Control of the Management of Contracting and Payment of the Foreign Debt of the Nation, which will be composed of ten (10) Senators and ten (10) Members, appointed by the Presidents of the respective Chambers on a proposal from the parliamentary blocs, respecting the proportion of the political representations, and which shall be governed by the rules of procedure which for that purpose dictate and whose main purpose will be to monitor the development, management and payments of the external debt of the Nation.

The Commission may request information, documentation or data from national, provincial or municipal, centralised, decentralised or autarchic bodies, as well as national and international, private or public financial institutions; and any other body which is necessary for the fulfilment of its tasks.

ARTICLE 19.- This law is of public order and will enter into force from the date of its publication in the Official Gazette.

ARTICLE 20.- Contact the national executive branch.

GIVEN IN THE SESSION HALL OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, AT THE THIRTY-ONE DAY OF THE MONTH OF MARCH OF THE YEAR TWO THOUSAND SIXTEEN.


FEDERICO PINEDO. -EMILIO MONZO. -Eugenio Inchausti. -Juan P. Tunessi.

NOTE: The Annex/s that integrates this (a) Law are published in the web edition of the BORA -www.boletinofficial.gob.ar-and can also be consulted in the Central Headquarters of this National Directorate (Suipacha 767-Autonomous City of Buenos Aires).

( Note Infoleg: The annexes referred to in this standard have been extracted from the Official Gazette web edition. The same can be found in the following link: Annex Parte1 Annex Parte2 Annex Parte3 )