It Authorizes The Granting Of The State To The Obligations It Indicates

Original Language Title: AUTORIZA OTORGAR LA GARANTIA DEL ESTADO A OBLIGACIONES QUE INDICA

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Article 1.-Authorizes the President of the Republic to grant the State guarantee of short-term liabilities arising from foreign currency financing, related to foreign trade operations, by such means as to be understood by such those awarded within 365 days, by foreign financial institutions to the entities referred to in Article 2 (a) and (b) of Law No 18,624 between 1 January 1990 and 31 December 1990.
With regard to the obligations referred to in the preceding subparagraph, the maximum amount of the guarantee of the State in force at any time may not exceed US$ 2,800,000,000 (2,800 million dollars from the United States of America), or its equivalent in other foreign currencies, plus interest, commissions, and other costs inherent in this type of transaction.
The guarantee of the State referred to in this article shall not be granted to the obligations of banks and financial corporations which are subsidiaries of a foreign financial institution, in the meaning of those obligations where one or more of the foreign financial institutions are jointly owned by more than 50% of their share capital.