PUBLIC TITLES

Law 27207

Basic Principles of the Sovereign Debt Restructuring Processes. Declaration. Sanctioned: November 04, 2015 Enacted: November 09, 2015

The Senate and Chamber of Deputies of the Argentine Nation, meeting in Congress, etc., are sanctioned by law:

ARTICLE 1 °-Public order declares the Basic Principles of the Sovereign Debt Restructuring Processes, approved on September 10, 2015 by UN General Assembly Resolution No. A/RES/69/319 in its Sixty-ninth session, which are part of the legal order of the Argentine Republic.

ARTICLE 2 °-The Principles referred to in the preceding article are accompanied by the Annex which forms an integral part of this Law.

ARTICLE 3 °-Commune to the national executive branch.

GIVEN IN THE SESSION HALL OF THE ARGENTINE CONGRESS, IN BUENOS AIRES, ON THE FOUR DAYS OF NOVEMBER OF THE YEAR TWO THOUSAND FIFTEEN.

-REGISTERED UNDER NO 27207-

BELOVED BOUDOU. -JULIAN A. DOMINGUEZ. -Juan H. Estrada. -Lucas Chedrese.

ANNEX TO THE BASIC PRINCIPLES OF THE PROCESSES FOR THE RESTRUCTURING OF SOVEREIGN DEBT 1. A sovereign State has the right, in the exercise of its discretion, to develop its macroeconomic policies, including the restructuring of its sovereign debt, which should not be thwarted or hindered by abusive measures. Restructuring must be done as a last resort, while retaining the rights of creditors. 2. The principle that the sovereign debtor and all its creditors must act in good faith implies their participation in constructive negotiations for the restructuring of the sovereign debt and at other stages of the process with the aim of restoring the debt. Debt sustainability and debt service in a rapid and lasting manner and to obtain the support of a critical mass of creditors through a constructive dialogue on the conditions of the restructuring. 3. The principle of transparency should be promoted to increase the accountability of the

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This can be achieved by the timely sharing of both data and processes related to the renegotiation of sovereign debt. 4. The principle of impartiality requires that all institutions and agents involved in the restructuring of sovereign debt, including at regional level in accordance with their respective mandates, be independent and refrain from exercise any undue influence on the process and on other stakeholders or to carry out acts that generate conflicts of interest or corruption or both. 5. The principle of equal treatment imposes on States the obligation to refrain from arbitrarily discriminating against creditors, unless the difference in treatment is justified in accordance with the law, is reasonable and corresponds to the credit characteristics, ensure equality between creditors and be examined by all creditors. Creditors have the right to receive the same treatment in proportion to their credit and the characteristics of the credit. No creditor or group of creditors should be excluded a priori from the process of restructuring sovereign debt. 6. The principle of sovereign immunity from jurisdiction and enforcement in matters of the restructuring of sovereign debt is a right of States to foreign domestic courts, and exceptions must be interpreted in a restrictive manner. 7. The principle of legitimacy implies that, in establishing institutions and carrying out operations related to the restructuring of sovereign debt, the requirements for inclusion and the rule of law must be respected at all levels. The terms and conditions of the original contracts shall remain valid until they are amended by a restructuring agreement. 8. The principle of sustainability means that sovereign debt restructurings must be carried out in a timely and efficient manner and create a stable situation and indebtedness in the debtor State, while preserving the rights of the debtor. creditors and at the same time promoting sustained and inclusive economic growth and sustainable development, minimizing economic and social costs, guaranteeing the stability of the international financial system and respecting rights human. 9. Restructuring by a majority means that sovereign debt restructuring agreements which are approved by a qualified majority of the creditors of a State shall not be affected, harmed or otherwise hindered by other States or a non-representative minority of creditors, who must respect the decisions taken by the majority of creditors. States should be encouraged to include collective action clauses in their sovereign debt issues.

Date of publication: 10/11/2015

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