Memoria Anual ABA 2004 Inglés

ANNUAL REPORT 2004 List ACTIVE MEMBERS

ABN AMRO Bank N.V. American Express Bank Ltd. S.A. Banca Nazionale del Lavoro S.A. Banco Bradesco Argentina S.A. Banco de la República Oriental del Uruguay Banco do Brasil S.A. Banco Itaú Buen Ayre S.A. Banco Río de la Plata S.A. Banco Société Générale S.A. BankBoston N.A. BBVA Banco Francés S.A. BNP Paribas Citibank N.A. Deutsche Bank S.A. HSBC Bank Argentina S.A. ING Bank N.V. (Sucursal Argentina) JP Morgan Chase Bank, Sucursal Buenos Aires Lloyds TSB Bank plc The Bank of Tokyo-Mitsubishi, Ltd.

ANNUAL REPORT 2004 List ASSOCIATED MEMBERS

Banco de la Naci贸n Argentina Banco de Inversi贸n y Comercio Exterior S.A. Banca di Roma Societ谩 per Azioni Banco BBA-Creditanstalt S.A. Banco Bilbao Vizcaya S.A. Banco de Chile Banco de Finanzas e Inversiones S.A. Banco Dibens S.A. Banco Latinoamericano de Exportaciones Banco Santander Central Hispano S.A. Bank LEU AG Bayerische Hypo-und Vereinsbank AG BSI Banca Della Svizzera Italiana Commerzbank AG Co枚peratieve Centrale Raiffeisen-Boerenleebank B.A. (Rabobank) Credit Agricole Indosuez Credit Suisse Dresdner Bank AG Dresdner Bank Lateinamerika AG First Union National Bank Natexis Banques Populaires Sanpaolo IMI S.p.A. Standard Bank London Limited Standard Chartered Bank The Bank of New York The Bank of Nova Scotia Union Bancaire Privee CBI-TDB

ANNUAL REPORT 2004 List BOARD OF DIRECTORS

President:

MARIO VICENS

1st. Vicepresident:

BANKBOSTON N.A. Manuel Sacerdote

2nd. Vicepresident:

CITIBANK N.A. Juan J. Bruchou

3rd. Vicepresident:

BANCO RÍO DE LA PLATA S.A. Enrique Cristofani

4th. Vicepresident:

BBVA BANCO FRANCÉS S.A. Jorge Bledel

Secretary:

HSBC BANK ARGENTINA S.A. Antonio Losada

Pro Secretary:

BANCA NAZIONALE DEL LAVORO S.A. Tullio Lanari

Secretary of Minutes:

BANCO SOCIÉTÉ GÉNÉRALE S.A. Marc Emmanuel Vives

Treasurer:

BANCO ITAÚ BUEN AYRE S.A. Rodolfo Corvi

Pro Treasurer:

DEUTSCHE BANK S.A. Luis Caputo

Members:

ING BANK N.V. (Sucursal Argentina) Fernando Tedín Uriburu JP MORGAN CHASE BANK, Sucursal Buenos Aires Marcelo Podestá BNP PARIBAS Philippe Joannier AMERICAN EXPRESS BANK Ltd. S.A. José María Zas ABN AMRO BANK N.V. José Oscar Fernández

ANNUAL REPORT 2004 List Alternate Members:

THE BANK OF TOKYO-MITSUBISHI, Ltd. Kazuhiro Miya

Honorary President:

Julio J. G贸mez

Audit of Accounts: Titular

BANCO BRADESCO ARGENTINA S.A. Arnaldo Silva

Alternate

BANCO DO BRASIL S.A. Alexandre Ronald De Almeida Cardoso

ANNUAL REPORT 2004 List SPECIAL COMMITTEES

FINANCIAL AFFAIRS AND CAPITAL MARKET Coordinating Secretaries Carlos D. Marí - BBVA Banco Francés S.A. Daniel Passaro - BankBoston N.A. (1) Gabriel E. Castelli - HSBC Bank Argentina S.A. (2) Alternate Coordinating Secretaries Sergio Lew - Banco Río de la Plata S.A. Jorge Fraga - Citibank N.A. Gabriel Martino - HSBC Bank Argentina S.A. Marcelo Castro - Banco Río de la Plata S.A. (3) LEGAL AFFAIRS Coordinating Secretary Analía Schnaidman - Banca Nazionale del Lavoro S.A. Alternate Coordinating Secretaries Fabián Montiel - BBVA Banco Francés S.A. Guillermo Cristiani - Banco Río de la Plata S.A. BANK AUDITING Coordinating Secretaries Jesús López García - Banco Río de la Plata S.A. Sergio Ems - BankBoston N.A. Eduardo José Zerega - BBVA Banco Francés S.A. Ramón Romero - Citibank N.A. (4) RETAIL BANKING Coordinating Secretaries Pío Rueda - Banco Río de la Plata S.A. Martín Lang - BankBoston N.A. (5) Guillermo Goldberg - Citibank N.A. (6) Luis Miguel García Morales – Banco Río de la Plata (6 bis) Until 6.9.04 Until february 2004 (3) Until 3.18.04 (4) Until 2.18.04 (5) From 6.17.04 till 10.19.04 (6) Until 2.4.04 (6 bis) Until 8.11.04 (1) (2)

ANNUAL REPORT 2004 List INSURANCE BANKING Coordinating Secretaries José Luis D'Alessio - BankBoston N.A. Guillermo Bronenberg - Citibank N.A.(7) Alternate Coordinating Secretary Manuel Germán García Nieto - Banca Nazionale del Lavoro S.A. PROCUREMENT Coordinating Secretary Miguel A. Bellino - Banco Société Générale S.A. Alternate Coordinating Secretaries Susana Kearney - Lloyds TSB Bank plc Luis M. Embrioni - Banco de la Ciudad de Buenos Aires (8) TRUST Coordinating Secretaries Atilio Serenelli - HSBC Bank Argentina S.A. Federico Kralj - BBVA Banco Francés S.A.(9) Alternate Coordinating Secretaries Eduardo Rodriguez Sapey - Banco Río de la Plata S.A. Hernán Carassai - HSBC Bank Argentina S.A. TAXATION Coordinating Secretary Luis Irigoyen - BBVA Banco Francés S.A. Alternate Coordinating Secretaries Carlos del Mauro - Banca Nazionale del Lavoro S.A. Fernando Alesón - Citibank N.A. Marcela B. de Lazzarini - BankBoston N.A. Claudio Di Lello - HSBC Bank Argentina S.A. ACCOUNTING AND REPORTING STANDARDS Coordinating Secretaries Juan José Pardo - Banca Nazionale del Lavoro S.A. Ana María Zorgno - Banco Itaú Buen Ayre S.A. Alternate Coordinating Secretary Guillermo Cisbani - Lloyds TSB Bank plc Until 2.4.04 Until 10.27.04 (9) Until 4.23.04 (7) (8)

ANNUAL REPORT 2004 List TRANSACTIONS Coordinating Secretary Hugo Vacca Núñez - BankBoston N.A. Alternate Coordinating Secretaries Pedro Telwak - Banco Río de la Plata S.A. Luis Gonzato - BBVA Banco Francés S.A.(10) FOREIGN TRADE TRANSACTIONS Coordinating Secretary Luis Martínez - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Hermine Espiñeira - Deutsche Bank S.A. Miguel A. Zarlenga - ABN AMRO Bank N.V. SECURITIES TRANSACTIONS Coordinating Secretary María Rosa Eiras - BankBoston N.A. PREVENTION OF MONEY LAUNDERING Coordinating Secretary Rubén J. Silvarredonda - Banca Nazionale del Lavoro S.A. Alternate Coordinating Secretary Graciela F. Rosich - BankBoston N.A. SMALL AND MEDIUM SIZED COMPANIES Coordinating Secretary Hernán Caballero - Banco Río de la Plata S.A. LABOR RELATIONS Coordinating Secretary Daniel Agudo - BBVA Banco Francés S.A. Alternate Coordinating Secretary Santiago Batlle - BankBoston N.A.

(10)

Until 3.18.04

ANNUAL REPORT 2004 List RELATIONS AND COMMUNICATIONS Coordinating Secretary Oscar Correa - Banco Río de la Plata S.A. Alternate Coordinating Secretary Carlos Martínez - Banca Nazionale del Lavoro S.A. CREDIT RISK Coordinating Secretaries Silvia Tobin - HSBC Bank Argentina S.A. José Dávola - Lloyds TSB Bank plc (11) Alternate Coordinating Secretaries Darío Mangano - Banca Nazionale del Lavoro S.A. Jorge Bertoni - BBVA Banco Francés S.A. BANK SECURITY Coordinating Secretaries Daniel Alí - Banco Itaú Buen Ayre S.A. Roberto Veltri - Banco Río de la Plata S.A.(12) Alternate Coordinating Secretaries Jorge D. Sande - BBVA Banco Francés S.A. Carlos Morán - Banca Nazionale del Lavoro S.A. TECHNOLOGY, ORGANIZATION AND SYSTEMS Coordinating Secretary Claudio Tróccoli - Banco Río de la Plata S.A. Alternate Coordinating Secretary Enrique Rubinstein - BankBoston N.A.

(11)

Until 4.30.04

(12)

Until 6.1.04

ANNUAL REPORT 2004 List INSTITUTIONAL REPRESENTATIVES NATIONAL CUSTOMS ADMINISTRATION Customs Consulting Board Luis Martínez - HSBC Bank Argentina S.A. (Titular) Salvador Ilaria - Deutsche Bank S.A. (Alternate) ARGENTINE SOY ASSOCIATION Pablo Bullrich - Banco Río de la Plata S.A.

ARGENTINE BANK MARKETING ASSOCIATION Mario Vicens - ABA President (Member)

CENTRAL BANK OF THE ARGENTINE REPUBLIC Interbank Commission for Means of Payment in the Argentine Republic Technical Committee: Titular Members Alternate Members Commercial Committee: Titular Members Alternate Members Legal Committee: Titular Members

Hugo Vacca Núñez - BankBoston N.A. Pedro Telwak - Banco Río de la Plata S.A. Javier Aníbal Michelesi - BBVA Banco Francés S.A. Alicia Echarri - Citibank N.A. Horacio Argento - Banco Río de la Plata S.A. Eduardo Bonifacini - BBVA Banco Francés S.A. Julia Langwagen - BankBoston N.A. Jorge Barnfather - Citibank N.A. Analía Schnaidman - Banca Nazionale del Lavoro S.A. Eduardo Ayerra - BankBoston N.A.

Standard Documents Subcommittee: Titular Members Alternate Members

Hugo Vacca Núñez - BankBoston N.A. Pedro Telwak - Banco Río de la Plata S.A. Javier Aníbal Michelesi - BBVA Banco Francés S.A. Alicia Echarri - Citibank N.A.

ANNUAL REPORT 2004 List Transactional Electronic Means of Payment Subcommittee: Titular Members

Renato Otmarich - Banco Río de la Plata S.A. Carlos Bestilleiro - BBVA Banco Francés S.A.

Checks Subcommittee: Titular Members Alternate Members

Hugo Vacca Núñez - BankBoston N.A. Pedro Telwak - Banco Río de la Plata S.A. Javier Aníbal Michelesi - BBVA Banco Francés S.A. Alicia Echarri - Citibank N.A.

Direct Debit Subcommittee: Titular Members

Julia Langwagen - BankBoston N.A.

BUENOS AIRES STOCK EXCHANGE Board: Mario Vicens - ABA President STAF COMMITTEE - B.C.R.A. Claudio Tróccoli - Banco Río de la Plata S.A. SOCIAL INCLUSION FAMILY LAW MANAGEMENT, ENFORCEMENT AND CONTROL NATIONAL COUNCIL Mario Vicens - ABA President (Titular) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) FELABAN Titular Governor: Mario Vicens - ABA President (1) Argentine Commission for Felaban María Elena Deligiannis - ABA Technical Manager (2) EXPORT. AR FOUNDATION Mario Vicens - ABA President (Titular)

(1) (2)

Until November 2004.

Until November 2004.

ANNUAL REPORT 2004 List ARGENTINE FEDERAL POLICE FOUNDATION Board of Directors Mario Vicens - ABA President (Member) OTC MARKET 2nd. Vicepresident: Director Treasurer: Titular Directors: Alternate Directors:

Ricardo Lospinnato - Banco de la Nación Argentina Jorge Fraga - Citibank N.A. Carlos Mari - BBVA Banco Francés S.A. Gabriel Martino - HSBC Bank Argentina S.A. Pablo Cousido - Banca Nazionale del Lavoro S.A. Luis Castresana - Banco Itaú Buen Ayre S.A. Jaime Deane - ING Bank N.V. (Argentine Branch) José Fernández - ABN AMRO Bank N.V. Esteban Klein - Credit Suisse

MERCOSUR Group of Mercosur Bank Associations María Elena Deligiannis - ABA Technical Manager Link to Mercosur Work Subgroup N°4 "Financial Affairs" María Elena Deligiannis - ABA Technical Manager Money Laundering and Terrorism Financing Commission Rubén Silvarredonda - Banca Nazionale del Lavoro S.A. MINISTRY OF LABOR, EMPLOYMENT AND SOCIAL SECURITY Vital Minimum Salary Council Mario Vicens - ABA President (Alternate) Salary Agreement Negotiating Commission Julián Arturo de Diego - Labor Advisor María Elena Deligiannis - ABA Technical Manager Salary Agreement Interpretation Commission Titular Members: Daniel Agudo - BBVA Banco Francés S.A. José Luis Puiggari - BankBoston N.A. Sergio Scattolini - Banco Río de la Plata S.A. Alternate Members: Alejandro Ortíz - HSBC Bank Argentina S.A. Diego Sánchez - Citibank N.A. Horacio Rivas - Banca Nazionale del Lavoro S.A. Alba Rodríguez - Banco Itaú Buen Ayre S.A. Legal Advisors: Julián Arturo de Diego Javier Adrogué Enrique Gerber

ANNUAL REPORT 2004 List NATIONAL EXECUTIVE POWER Argentine Trademark Program Mario Vicens - ABA President (Titular) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) FINANCIAL INFORMATION UNIT Technical Commission for Amendment of Resolution N° 2 Rubén Silvarredonda - Banca Nazionale del Lavoro S.A. ARGENTINE UNION OF SERVICE ENTITIES Mario Vicens - ABA President (1st. Vicepresident)

ANNUAL REPORT 2004 List PRESIDENT´S LETTER

The stability of main financial variables, the consolidation of the equity and financial position of the public sector, and the consumption and investment growth recorded during 2004, set the bases for a very nurturing scenario for the development of virtually all economic sectors and activities.

The permanence of an international economic and financial context that continues to be favorable for the country had a positive effect on the country’s economic behavior.

Additionally, the government has continued to sustain a tax-discipline policy that has allowed it to reduce its foreign debt, pay the services of the new debt maturing during this period, and continue accumulating international reserves in the Central Bank.

The public debt in default was one of the most important issues in the governmental agenda. Authorities made their best effort to solve the restructuration of the debt in default, which turned out to be an extremely complex problem itself, due to the elements of the debt to be restructured and to economic and even political implications both at the national and international levels.

It was not until the year end that the official exchange proposal was ready, which ended up last February with a 76.15% acceptance of the eligible debt in default. Even though the State indebtedness level is still significant, the restructuration will allow to remarkably alleviating the State financial commitments undertaken for the next years within a context where most of the debt will make regular payments on account of principal and interest.

The 2004 governmental agenda also included other issues inherited from the 2001-2002 crisis. The most significant issues were the regulatory framework and the renegotiation of contracts entered into with private companies in the public utilities area, which are still part of the agenda, and also the judicial definition on the constitutional or unconstitutional nature of the compulsive conversion to Pesos of bank deposits denominated in US Dollars.

In this latter issue, the Attorney General and, then, the Supreme Court of Justice, issued opinions that, with some differences, justify the decisions made by the Government within the framework of the emergency posed by the crisis. Some exceptions included in the grounds stated by one of the Supreme Court’s Judges, who endorsed the constitutional nature of the pesification and the limited nature of the Supreme Court’s rulings to the particular case at hand, prevented the decision from determining the complete stop of the judicial injunctions (amparos) and a comprehensive solution to the problem from being achieved.

In this economic and exchange stability framework, the financial system consolidated its recovery through a higher deposit-raising and the reactivation of credits. Consumption credit continued to recover, while credit lines related to production and commerce started to register a more sustained growth.

ANNUAL REPORT 2004 List Personal loans, which registered almost an 80% increase, and credit card financing, which registered a 26% increase after having increased almost 17% in 2003, continued to expand favored by the rise of employment rates and salaries, and by the reduction of credit cost, which had already been registered during the previous year. It is worth mentioning that current interest rates of most lines of credit are below those in force during the convertibility period. Bank institutions in general, and those particularly adhering to ABA, have leaded this process by driving the generalized reduction of interest rates also in other segments of the loan market.

On the other hand, other lines of credit more related to working capital financing also registered a rapid expansion. Overdraft in current accounts and the discount of promissory notes increased 37.2% and 42%, respectively, thus turning into the new supports for the recovery of production.

In turn, pledges registered a 30.7% increase during the year, while monthly payments on account of principal amortization of mortgage loans increased more than new loans, in such a way that the stock ended up registering a 6% reduction during the year.

As regards deposits, private sector deposits increased 11.4% during the year, driven mainly by the behavior of fixed term deposits, among which those adjusted to the Reference Stabilization Ratio (CER - Coeficiente de Estabilización de Referencia) should be highlighted. This combination helped financial institutions to reduce the gap recorded in their balance sheets.

In this context, it is worth mentioning the key role played by international banks by concentrating 40% of new loans granted in Pesos and 40.2% of the private sector deposits.

Finally, ABA continued with its institutional support policy and its professional collaboration with the government administration –including the Central Bank-, in anything relating to the analysis and implementation of matters and initiatives relating to the financial activity and to the general economy. Likewise, the gradual normalization of the economic and financial situation allowed ABA to resume several institutional initiatives, which had been put aside due to the crisis, within the framework of a strategy that tries to relate ABA to activities beyond the financial focus and which add value to the future country growth.

Mario Vicens President

MEMORIA ANUAL 2004

Index Page Chapter 1: Evolution of Argentine Economy ...........................................................1 The Macroeconomic Context..................................................................................................1 The Agreement with the IMF..................................................................................................3 Debt Restructuration ................................................................................................................4 Chapter 2: Monetary Evolution and Amendments to Central Bank’s Regulations ..................................................................................6 Monetary Evolution ..................................................................................................................6 Central Bank’s Reserves............................................................................................................8 Deposits and Loans...................................................................................................................8 Interest Rates............................................................................................................................10 Deposits with Variable Return ..............................................................................................11 Measures to Facilitate Access to Credit by Small- and Medium-Sized Companies .......12 Federal Uniform Compensation ...........................................................................................13 Amendments to Central Bank’s Information Regulations ................................................13 Regulation of Credit Unions ..................................................................................................14 Chapter 3: Financial System.................................................................................. 15 Profitability and Efficiency.....................................................................................................15 Exposure to the Public Sector ...............................................................................................16 Liquidity ....................................................................................................................................17 Gaps...........................................................................................................................................17 Capitalization............................................................................................................................18 Portfolio Quality......................................................................................................................19 Judicial Injunctions (Amparos)................................................................................................19 Use of Current Accounts........................................................................................................21 Lower Number of Claims on the Financial System ...........................................................22 Compensation CER / CVS....................................................................................................23 Statistical Appendix: Tables 1 to 41 ................................................................. 24 - 65 Appendix.................................................................................................................66 Principal Measures of Banking, Exchange and Financing Policies ..........................66 - 78 Capítulo 1: La Evolución de la Economía Argentina El Contexto Macroeconómico

ANNUAL REPORT 2004 Evolution of Argentine Economy Chapter 1: Evolution of Argentine Economy

The Macroeconomic Context During the year 2004, the economic recovery that had commenced during the previous year was consolidated. During the first three year quarters, the GDP registered an 8.8% increase with regard to the previous year, while, according to the Market Expectations Survey (Relevamiento de Expectativas de Mercado - REM) carried out by the Central Bank among the main market analysts, the growth estimate for the entire year amounts to 8.6%.

In this process, the behavior registered in private consumption should be highlighted, which registered a 9.5% increase during the first nine months of the year. In turn, the fix gross domestic investment increased 39.1% within the same period and, even though it recovered at positive but decreasing rates, it constituted a very important factor.

In private investment, recovery in durable production equipment investment increased 61%, while construction investment increased 28.8% during the same period.

GDP Variation As a percentage 15 10 5 0 -5 -10 -15 -20

I

II

III IV

2001 (*)

I

II

III IV

2002 (*)

I

II

III IV

2003 (*)

I

II

III

2004 (*)

Contrary to what happened in 2003, 2004 growth was relatively more expanded to all sectors as a whole. The industry and construction leadership began to leave room to the service sector. The latter represent 61% of the GDP and were the main drivers of the recovery of this index during the first nine months of 2004. Service sectors account for 49% growth of the GDP during this period, while goods producers account for the remaining 39% growth (56% and 44% at producer prices).

It is also important to highlight the recovery registered in the industrial business, as it is observed in the information from the Industrial Monthly Estimate (Estimador Mensual

1

ANNUAL REPORT 2004 Evolution of Argentine Economy Industrial - EMI) released by the National Institute of Statistics and Census (Instituto Nacional de EstadĂ­stica y Censos - Indec). The results from such survey show that, during 2004, this index increased 10.7% as compared to the previous year. In this business recovery the increase registered in the utilization of the industry installed capacity should be highlighted, which amounted to 69.7% during last year, which accounts for a 7.4% increase with regard to the previous year and a 25.2% increase with regard to 2002.

The recovery of the economic activity also affected the employment level. Thus, in the third quarter of the year the unemployment rate was reduced to 13.2%, while the activity rate amounted to 46.2% and the employment rate amounted to 40.1%. It is worth mentioning that the effectiveness of the additional compensation amount in the event of dismissal was extended, even though as of January 1, 2005, such amount showed a 20% reduction. In the last extension, it was also added that, should the unemployment rate be less than 10%, this additional compensation amount would not apply 1.

The evolution of the international economy has continued to be favorable for the Argentine economy both in relation to the growth of world markets as in relation to interest rates, to evolution of exchange parities and of prices of commodities produced in the country.

This factor, together with the effort that the country has been making to improve its fiscal accounts, in a context of strong social and financial commitments, in addition to a monetary policy that paved the way for and accompanied credit recovery, allowed production and consumption to expand at a good pace in a context of decreasing interest rates, inflation in line with guidelines announced, and an exchange market systematically offered.

Balance of Payments During 2004, the private sector capital outflow was reduced significantly, even though it was partially offset by the reduction of the current account surplus and by the increase of Public Sector net payments. The current account surplus amounted to 2.6 billion US Dollars in the first nine months of 2004. The accumulation of international reserves of the Central Bank amounted to 4.1 billion US Dollars in that period.

International Trade The commercial balance of 2004 amounted to 12.133 billion US Dollars, which means a 23% reduction with regard to the 22.32 billion US Dollars recorded in the previous year.

This result was mainly due to the behavior of imports, which increased 61% during the year, while exports increased 17% during 2004.

The highest commercial exchange volume was recorded in Mercosur, even though the balance showed a deficit of 1.4 billion US Dollars. One of the factors contributing to this result is the growth of capital asset and intermediate asset imports. The European Union follows, where a surplus of almost 1.9 billion US Dollars was registered and, even though 1

Pursuant to Decree 2014/2004, published on 01/07/2005.

2

ANNUAL REPORT 2004 Evolution of Argentine Economy imports from this group increased 54% during last year, the significant volume of agricultural manufactured good exports to that group contributed to achieve such commercial surplus. A similar result is observed in the exchange with the NAFTA, where an approximate 700 million US Dollar surplus was obtained. The exchange with major Asian countries also showed a positive result, amounting to 2.2 billion US Dollars. The significant exchange with Chile should be highlighted, giving rise to a positive result of almost 4.3 billion US Dollars, mainly driven by fuel, energy and industrial manufactured goods exports.

Exchange Rate The exchange rate level played an important role in these results. During the past year, no significant variations have been registered in the nominal exchange rate with regard to the US Dollar. However, the highest inflation registered, together with the variations in the other currencies, made the actual multilateral exchange rate calculated by the Central Bank to fall with regard to the previous year. The 2003 mean amounted to 61.1 (in 1995 index=100), while for 2004, it amounted to 58.6. This did not have a significant impact on the competitiveness at the aggregate level, even though it played a determining role in the commercial trade balance.

Public Sector’s Income The national public sector registered a significant improvement with regard to the income obtained in the previous year. According to the savings-investment-financing scheme, the public sector obtained a primary income of 17.3 billion US Dollars in 2004.

The recovery of the tax revenue collection, which amounted to 36% during the year, played a very important role in obtaining this result. The behavior of the VAT should be highlighted. It increased almost 48% with regard to the previous year, and the income tax showed a 51% increase. Both taxes represent a significant share of revenue collection, as they amount to three quarters of the Argentine IRS income (excluding the social security system), and they account for a great part of the revenue collection increase. Therefore, the increase in the current income (36%) was so significant that it surpassed the increase in current expenses (21%), which shows the improvement in the primary income.

The Agreement with the IMF During last year, the Government made payments set forth in the last agreement entered into with the IMF in the second half of 2003. In spite of the transitory suspension of such agreement, due to the fact that some goals were met regarding terms set forth therein, compliance with these obligations prevented the country from incurring default, thus preventing complications that would have arisen from this situation.

Together with the foreign debt restructuring process commenced upon the proposal launched by the Government, it constitutes a decisive step to continue improving the relationships with multilateral credit organizations and with international investors.

3

ANNUAL REPORT 2004 Evolution of Argentine Economy Debt Restructuration In this context, the Government formally launched the proposal for the foreign debt restructuration amounting to 81.8 billion US Dollars, in default since the end of 2001.

This debt comprises 152 different bonds, extended to 178 financial products due to the coupon stripping. Bonds included in the offer will bear 12/31/2003 as issue date and they will be amortized semiannually during the last 10 years of maturity of each bond.

The bonds that will be issued in exchange for the debt in default are: Par Bond: it does not imply a nominal capital debt reduction and it is issued on a 35-year term basis (maturing in 2038) with a 25-year grace period as of which semiannual payments will be made (starting in 2029). These bonds will be issued in Pesos adjustable to CER, in Dollars or in Euros, up to a maximum of 10 billion US Dollars if the offer is less than 70%, and up to 15 billion US Dollars if the offer is more than 70%. Interest rates will vary according to the number of years elapsed and they will be between 0.63% and 2.48% for the option in Pesos; between 1.33% and 5.25% for the option in Dollars, and between 1.20% and 4.74%, for the option in Euros.

Quasi-Par Bond: it entails a 30.1% capital debt reduction, and it is issued on a 42-year term basis (maturing in 2045) with a 32-year grace period, as of which semiannual payments will be made. These bonds will only be issued in Pesos adjustable to CER for a maximum amount of 24.3 billion US Dollars (approximately 8.3 billion US Dollars). A 3.31% fixed interest rate will apply, capitalizing during the first 10 years, and then they will be paid in cash.

Discount Bond: it entails a 66.3% nominal debt reduction, issued on a 30-year term basis (maturing in 2033) with a 20-year grace period, as of which semiannual payments will be made. These bonds will be issued in Pesos adjustable to CER, in Dollars or in Euro, without a maximum issuance amount. A 5.83% interest rate will apply to the option in Pesos, an 8.28% interest rate will apply to the option in Dollars, and a 7.82% interest rate will apply to the option in Euros. Interest will be partially capitalized during the first 10 years.

Additionally, Units Tied to GDP Growth (Unidades Ligadas al Crecimiento del PBI) will be attached to each new bond issued, upon which payments will be made when the actual GDP evolution is higher than official forecasts in real terms. The aggregate payment amount will be 5% of the GDP surplus in the year of reference, payable on a year-byyear basis until 2035.

The results presented at the beginning of March 2005 show a high adhesion to the Government proposal, amounting to approximately 76%. This new public sector obligations program makes most of the public debt to be considered in a regular payment situation, which improves the debt profile, giving more certainty to the medium-term tax situation, particularly from the financial viewpoint.

4

ANNUAL REPORT 2004 Evolution of Argentine Economy Bonds to be Issued under the Debt Restructuration Bond

Par

Discount

Quasi-Par

Unit Tied to Growth

Issue amount (billions of US Dollars)

10 / 15

20.2 / 18.5

24.3

Amount of eligible debt effectively exchanged

Discount

0%

66.3%

30.1%

----

Annual coupon

Growing

8.28%

3.31%

5% of GDP surplus

Maturity

2038

2033

2045

2033

Term

35

30

42

30

Amortization

Semiannual and equal Semiannual and amortization equal amortization payments starting in payments starting in 2024 2029

Currency of issue

Pesos + CER US Dollars Euro

Observations

Does not capitalize interest

Pesos + CER US Dollars Euro

Semiannual amortization payments starting in 2036

Pesos + CER

Same as the bond to which it is tied.

Capitalization of Partial capitalization the interest coupon during the first 10 during the first 10 years years

5

ANNUAL REPORT 2004 Monetary Evolution and Amendments to Central Bank´s Regulations Chapter 2: Monetary Evolution and Amendments to Central Bank’s Regulations

Monetary Evolution One of the remarkable events of the year as regards monetary matters was that part of the Central Bank’s Board of Directors members were replaced, including its highest authorities. In the second half of September, the term of office of the Central Bank’s President, Alfonso Prat Gay, came to an end. Alfonso Prat Gay had been appointed under commission at the end of 2002. Martín Redrado who, until that time was Secretary of Trade and International Economic Relations of the Ministry of Foreign Affairs, International Trade and Worship, was appointed in his place. At the end of October, the Senate approved his appointment, and therefore he was ratified to be in office until September 2010. Together with Martín Redrado, the Vice president and four directors were also ratified in their positions.

In relation to the course of the monetary policy, it is worth mentioning that the new authorities have stated that they prefer to use reference interest rates as the main monetary instrument, in lieu of the inflation targeting scheme set forth by the previous authorities as the basis for their policy.

In 2004, the extended monetary base (including quasi-currencies) registered a 9.5% increase. As it can be observed in the chart, the main expansion factor was the foreign private sector, due to foreign currency purchases conducted by the Central Bank during the year to absorb the foreign currency offer, mainly from foreign commerce transactions. This flow of funds was partially offset by the effect of foreign payments made by the government, which produced a monetary contraction of approximately 13.2 billion Pesos. However, temporary advance payments used by the National Government increased approximately 6.7 billion Pesos, and therefore, the net effect due to the public sector was a contraction amounting to approximately 7.2 billion Pesos.

In order to maintain the monetary basis within the goals set forth, and to prevent an increase of the inflation, the Central Bank used other absorption mechanisms. Through repos, it absorbed around 5.5 billion Pesos, while through the placing of LEBAC and NOBAC it managed to additionally reduce the circulation around 3.9 billion Pesos. It is worth mentioning that the Central Bank started to invest actively in the repos market since May 2004, using again this tool that allows it to control the amount of money. To such end, it authorized new assets to operate, such as LEBAC and NOBAC indexed according to CER. In the first transactions, it managed to attract surplus liquidity from the financial system, mainly from public banks. In addition, this mechanism allowed the Central Bank to set a reference rate in the market due to the significant amount of transactions carried out, which at the end of October, amounted to a maximum of almost 7 billion Pesos.

6

ANNUAL REPORT 2004 Monetary Evolution and Amendments to Central Bank´s Regulations

EXPANDED MONETARY BASED EXPANSION FACTORS (In millions of Pesos) Factors

2003

2004

16,488

23,168

-620

-6,511

-1,608

-2,184

-122

-5,509

-4,849

-3,880

-473

-21

Others

1,089

847

Total

9,713

5,910

Foreign Private Sector Domestic Public Sector Rediscounts Repos Central Bank Bonds Quasi-currencies

Another factor of monetary contraction was rediscount payments by the financial system, which were reduced almost 2.2 billion Pesos in 2004. Most of this amount corresponds to the maturity of installments of the so called matching scheme. It is worth mentioning that 1.6 billion Pesos of the total payments were made by foreign banks, while approximately 600 million Pesos correspond to public banks.

During 2004, the creation of monetary resources was consistent with the inflation target set. Thus, the consumer price index registered a 6.1% increase during the entire year, while the wholesale price index rose 7.9%.

During January 2005, just at the beginning of the year, the Central Bank authorized new absorption mechanisms within the framework of an initiative intended to modify the composition of its bonds. It reduced reserves requirements in two percentual points, at the same time, it increased the repos interest rate in 25 basis points and it called for a bid for advance payment of rediscount installments maturing within the framework of the matching scheme. It is worth mentioning that institutions paying installments in advance within this scheme will maintain the right to require funds paid in advance on account of installments not yet matured. In this case, entities shall pay an equivalent interest rate to that of LEBAC in Pesos or the interest rate in force at that time. In addition, making such advance payments will not imply the release of bonds provided as security, which will be made as amounts paid in advance are applied to the payment of each installment upon maturity thereof. The Central Bank set the condition that the amount presented by financial institutions to the bids must be related to the growth of their loan portfolio during the last 12 months (excluding mortgage loans).

7

ANNUAL REPORT 2004 Monetary Evolution and Amendments to Central Bank´s Regulations Central Bank’s Reserves The Central Bank’s reserves showed a significant growth during 2004. This behavior was mainly due to the effect produced by the private sector, due to foreign currency settlements from the commercial exchange transactions. On this account, almost 7.9 billion US Dollars were accumulated in the Central Bank during the entire year.

However, approximately 3.6 billion US Dollars were used for payments made to international institutions, considering both the National Government flow and the Central Bank and rotary funds flow. The increase of minimum cash requirements for deposits in foreign currency produced an increase of approximately 700 million US Dollars in addition thereto.

With these results, the Central Bank's reserves increased approximately 5.5 billion US Dollars during 2004, reaching a total of 19.6 billion US Dollars at the end of December.

VARIATION OF CENTRAL BANK’S RESERVES (In millions of US Dollars) Factors

2003

2004

Private Sector with Monetary Effect

5,704

7,882

-2,608

-3,623

-105

19

372

684

62

207

218

356

3,643

5,527

International Institutions Other Public Sector Transactions Minimum Cash Requirement Exchange Rate Valuation Others Total Deposits and Loans

In 2004, the growing trend of private sector loans was consolidated, growing at a significant and sustained pace. The recovery of lines of credit for consumption started in 2003, while during 2004 the evolution of lines of credit related to production and commerce was emphasized. In this sense, advance payments in current accounts and discounts in certificates of deposit increased 37.2% and 42%, respectively in that year, thus contributing to significantly improve the working capital financing required by the increase in production registered during 2004.

With regard to lines of credit for consumption, an increase of almost 80% was verified in personal loans and an increase of 26% was verified in credit card financing, which also favored the recovery of the level of activity from the demand viewpoint.

8

ANNUAL REPORT 2004 Monetary Evolution and Amendments to Central Bank´s Regulations Loans to Private Sector In millions of Pesos 40,000 38,000 36,000 34,000 32,000 30,000 28,000 26,000 Jan.

Mar.

May

Jul.

2003

Sep.

Nov.

Jan.

Mar.

May

Jul.

Sep.

Nov.

2004

In 2004, the granting of pledge and mortgage loans also gained importance. Pledges registered a 30.7% increase during the year while, as already mentioned, monthly payments on account of mortgage loan capital amortization were higher than new loans, in such a way that there was a 6% decrease in the stock. However, there has been a significant increase in new mortgage loans granted during the year.

In addition, there was a 22% increase in foreign currency loans during 2004, mainly driven by export financing.

On the other hand, there was an 11.4% increase in private sector deposits during the year, mainly driven by the behavior registered in fixed term deposits. In this latter group, the performance of fixed terms deposits adjustable to CER should be highlighted, as it helped financial institutions to reduce the gap registered in their balance sheets. This type of deposits amounted to almost $5 billion Pesos at the year end, much higher than the 700 million Pesos registered at the end of the previous year. In addition to small investors, who have turned to this instrument, the role of deposits made by institutional investors, such as Pension and Retirement Trust Funds (AFJP), should also be mentioned.

9

ANNUAL REPORT 2004 Monetary Evolution and Amendments to Central Bank´s Regulations Total Deposits In millions of Pesos 120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000

Jan.

Apr.

Jul.

Oct.

Jan.

Apr.

2003

Jul.

Oct.

2004 Private Sector

Public Sector

Finally, it is worth mentioning that another clear sign of the normalization of the financial system can be observed in the fact that CEDROS alone amounting to $1.15 billion Pesos which, once adjusted to CER, amount to $1.75 billion Pesos, remain in the system, and this represents 1.7% of the total deposits at the end of 2004.

Interest Rates The credit cost continued its downward trend during 2004, even though it had registered a significant decrease during the previous year. If we compare the rates in force at the end of 2004 to those in force a year earlier, it can be observed that current account advance payments show the most significant interest rate reductions, amounting to a 13.8% decrease in December 2004. Interest rates applicable to personal loans register a similar situation, as they have been reduced from 34.2% observed in the previous year to 26.7% during this year. These figures coincide with the two credit lines that showed the most significant growth in the last 12 months.

Interest Rates for Loans in Pesos As an annual nominal percentage

Type of Loan Overdrafts (*) Signature loans Mortgage loans Pledge loans Personal loans Credit Cards

Dec. 2003 21.6 11.5 14.2 16.0 34.2 34.8

Dec. 2004 13.8 10.6 11.5 11.7 26.7 30.0

Difference -7.8 -0.8 -2.7 -4.3 -7.5 -4.8

(*) Includes other advance payments.

Source: ABA based on Central Bank’s data.

10

ANNUAL REPORT 2004 Monetary Evolution and Amendments to Central Bank´s Regulations

Taking into account the behavior registered in the last two years, rates applicable to credit card financing are the ones that registered the highest reduction, falling to less than half the percentage in force at the end of 2002, and being set at 30% at the end of 2004.

In accordance with the information prepared by the Consumer Defense Undersecretary, current credit card financing rates are below the levels registered during the convertibility period. This is derived from the efforts made by financial institutions to reduce rates and promote the recovery of consumer credit. As of September 2003, banking institutions were the main drivers of the reduction of these interest rates, then followed during 2004 by non-banking institutions.

This fact shows that the credit card market is highly competitive in a context of free interest rates, and this condition inevitably entails lower costs and additional benefits for consumers. The permanence of this framework will continue to drive new improvements, as it has done until today.

In turn, the reduction observed in borrowing rates is also significant. The higher stability presented by deposits with regard to those of previous years has affected the reduction registered in fixed term deposit rates. During 2004, the annual mean rate applicable to fixed term deposits in Pesos was 2.8%, significantly lower than the 10.8% registered in the previous year. Something similar happened with savings accounts deposit rates in Pesos, which were reduced from 1.3% to 0.7%.

It should also be mentioned the contribution to reducing the credit cost derived from the reduction of the normal contribution to the deposit insurance (SEDESA), determined by the Central Bank during 2004. This contribution was set, as of the contribution maturing in January 2005, at 0.015% of the deposits mean, at the same time and proportionately reducing the additional contribution that financial institutions must make in accordance with regulations in force.

Deposits with Variable Return In November, the Central Bank introduced amendments to the regime of term investments with variable interest rates (“DIVAS�), adding indexes that can be used to calculate their return, such as public bond prices, domestic and foreign stock exchange indexes, commodities (oil, gold, soy, corn, wheat, sunflower oil) and interest rates.

The possibility that institutions take up this mandatory insurance in domestic or foreign markets was also included, in addition to the existing option of taking up such insurance with foreign banks. This mandatory insurance of the variable performance of resources turns them into instruments with a predetermined cost.

These measures favor the raising of resources according to the needs and demands from investors, giving the institutions the possibility to obtain more stable funding.

11

ANNUAL REPORT 2004 Monetary Evolution and Amendments to Central Bank´s Regulations

Measures to Facilitate Access to Credit by Small- and Medium-Sized Companies The Central Bank adopted measures with the purpose of contributing to facilitate access to credit by companies, particularly, small- and medium-sized companies. The main measures adopted in November are the following:

Estimates for discount of debt instruments issued by companies whose credit rating makes this guarantee unnecessary were eliminated, increasing the margin from 85% to 100%. This will particularly favor small- and medium-sized companies using check and invoice discount to finance themselves, allowing them to calculate guarantees at their aggregate value.

The term of loans covered by self-liquidating guarantees implying a minimum risk for the similar evolution of the value of loans and guarantees was extended to one year. Also, applicants of loans covered by this type of guarantees should not be assessed according to their repayment capacity or rating.

Requirements for discount of atomized credit instrument portfolios were flexibilized, eliminating internal thresholds when the aggregate amount of the transaction is not higher than 15% of the institution regulatory capital and none of the issuers represents more than 10% of the discounted portfolio.

A series of measures were established, effective until December 2005, tending to give priority to the debtor's analysis based on his/her future repayment capacity, instead of considering exclusively their past performance. These measures are as follows:

The possibility of classifying debtors compliant with the conditions set forth by the Central Bank (among others, having a high payment capacity, not registering delays of more than 30 days, etc.) in a regular situation, even though they had to refinance their debts.

Consider the debtor payment capacity improvement in refinancing where capital debt reductions apply, which allows reducing the provisions and improving the debtor’s rating.

Admit the granting of new assistance, within certain thresholds, to debtors having good payment perspectives and capacity, even though they have equity issues.

These measures adopted by the Central Bank are in addition to bids called by the Smalland Medium-Sized Companies and Regional Development Undersecretary for credit quotas with premium rates, within the framework of the Growth Stimulation Program of Micro, Small- and Medium-Sized Companies.

12

ANNUAL REPORT 2004 Monetary Evolution and Amendments to Central Bank´s Regulations

Federal Uniform Compensation In November, Bankers Associations and the Central Bank entered into an agreement to implement the Uniform Federal Compensation. This agreement has the following implications:

From January 14, 2005, the term for retail electronic transfers within the National territory is reduced to 24 hours, from the 48-hour term that applied before;

The amount of checks maintained by the deposit institution is increased. The institution will only send electronic information, which significantly reduces the transfer of physical documents. This amount is increased from $2000 to $3000 starting on January 7, 2005, and it will be increased to $5000 as of July 7 of this year.

The adoption of this system all throughout the country requires significant investments in communication networks, information equipment, and the incorporation of advanced technology, based on state-of-the-art techniques used in developed countries.

Amendments to Central Bank’s Information Regulations In August 2004, the Central Bank implemented the Transparency Regime, by means of which financial institutions provide uniform information about products and services offered to customers. Through this initiative, an intent will be made to make the financial system even more competitive, allowing users to have certain information available to make their decisions. The information published allows having a general understanding of products offered by financial institutions, covering a wide range of data, including maintenance costs and current and savings account use, interest rates and mortgage and personal loans terms and conditions and ample information about credit cards, both for users and for member stores.

This initiative was supported by financial institutions, which collaborated by offering their technical resources available.

On the other hand, at the end of December, the Central Bank issued a series of measures tending to simplify information regimes, facilitating the transfer of information and preventing unnecessary duplication, orders and frequency, and providing multiple order and reception lines, in order to reduce some administrative costs payable by institutions.

Outside the Central Bank framework, it is worth mentioning that, during the first semester of 2004, an intense work was carried out on application of amendments to the existing regulations on abusive clauses. In accordance with this, institutions began to offer their customers the possibility of choosing among various companies to take up insurance associated to loans, as automobile civil liability insurance in the case of pledges, fire insurance in the case of mortgage loans, and life insurance in the case of debit balance to be covered.

13

ANNUAL REPORT 2004 Monetary Evolution and Amendments to Central Bank´s Regulations

Regulation of Credit Unions Act 25,782 amended the Financial Institutions Act in those aspects related to Credit Unions. In the month of August, the Central Bank regulated such Act and, according to such Act, credit unions should operate at a unique location and exclusively with their members, who must subscribe a minimum corporate stock of $200 and reside at the credit union district. In turn, the Act sets forth that credit unions may grant loans and other short- and medium-term financing to urban and rural small- and medium-sized companies, and also to sole proprietorships, professionals, artisans, workers, individuals and public welfare entities.

For such purpose, the Central Bank simplified the procedures required for their authorization and reduced the basic capital requirements, which currently amount to between $100,000 and $1 million, depending on the population of the credit union district. Requirements necessary to grant financing have also been significantly reduced, together with the determination of maximum amounts and terms applicable.

According to law, the funding of credit unions will be based on an atomized deposit structure. However, the Central Bank has increased the fixed-term deposit threshold from $10,000 to $12,000 to help them raise enough funds to start-up their operations.

The Central Bank also authorized these institutions to sell repos and interfinancing loans in their portfolio. The deposits of these institutions will be covered by the deposit insurance, under the same conditions as other financial institutions.

14

ANNUAL REPORT 2004 Financial System Chapter 3: Financial System

The recovery of the Argentine financial system continued during 2004, and this can be observed in the growth of the private sector credit, the improvement of the portfolio quality, the recovery of the income structure and the progressive reduction of balance sheet currency gaps. Capitalizations carried out after the crisis, mainly from private banks, confirm the degree of commitment of these institutions with the future financial system of the country. Even though there are yet some issues to be solved, these indicators constitute a group of very positive signs for the sector and for the economy.

Profitability and Efficiency In 2004, an important improvement was observed in the financial institutions income structure. Although the financial system as a whole registered losses for $530 million during last year, this result represents a substantial improvement with regard to the loss registered in 2003. On the other hand, it is worth mentioning that, if this result is corrected through the elimination of the deferred impact that the crisis had on balance sheets (amortization of judicial injunctions paid and assessment adjustments of public sector assets), it is observed that the financial system as a whole registered earnings for $1.7 billion.

In this process, the recovery of the financial margin should be highlighted, which in 2004 increased to 3.1% of the net assets. Although it is lower than the income observed before the crisis, these figures are way above those registered in 2003. The factor that most influenced this recovery is the income obtained on account of interest, due to the higher volume of loans granted by the financial system. Meanwhile, lower borrowing and lending rates levels had an influence and made the income on account of interest to be less than that registered before the crisis, even though the level achieved today is very heartening when compared with losses registered in 2002 and 2003 on this account.

Within the financial margin, the combination of the gap reduction in net assets adjustable to CER or CVS, together with a low inflation level, made the income accrued on this account to be reduced to 1% of the assets, compared to 1.3% in the previous year.

On the other hand, the higher level of activity and the effort made by financial institutions to obtain resources were reflected on net service income, which amounted to 2.0% of net assets and was an important source of income for the sector.

Thanks to new loans granted and to the improvement in the economic activity, the incidence of uncollectibility charges on the system profitability was significantly reduced.

In 2004, this charge amounted to 0.7% of net assets, which is significantly lower than the 1.1% registered in 2003 and than the historic record of 4.7% registered in 2002.

Finally, it is worth mentioning the adjustment made by banks to their structure as a consequence of the crisis. This was reflected in an improvement in the administration

15

ANNUAL REPORT 2004 Financial System expenses, which were reduced to 4.2% of net assets, while in previous years their mean amounted to 5.9%.

In this sense, it should be highlighted that the coverage of these expenses with income amounted to 127% in 2004, which shows the total coverage of expenses with income obtained from financial intermediation and from other services rendered by financial institutions. Even though these results are still below the values corresponding to years before the crisis, amounting to a mean of 144%, these results represent an important recovery compared to the 69% coverage obtained during 2003.

In summary, although the profitability of the financial system as a whole ended up with a negative result in 2004, the progressive recovery observed in the income structure constitutes heartening data with regard to the financial sector future.

Exposure to the Public Sector At the end of 2004, the financial system exposure to the public sector was 47.7% of the assets. These values comprised 26.2% of public bonds, 14.8% of public sector loans, and 6.8% registered in financial institutions assets as outstanding compensation. The financial system obligations to the Central Bank amounted to 13% of the assets.

Public Sector Exposure As a percentage of assets 60 50

Outstanding Compensation

40

Public Bonds

30 20

Oct. 2004

Dec. 2004

Aug. 2004

Jun. 2004

Feb. 2004

Apr. 2004

Dec. 2003

Oct. 2003

Jun. 2003

Aug. 2003

Apr. 2003

Feb. 2003

Oct. 2002

Dec. 2002

Jun. 2002

Feb. 2002

Apr. 2002

Oct. 2001

Dec. 2001

Jun. 2001

Aug. 2001

Feb. 2001

Apr. 2001

0

Dec. 2000

10

Aug. 2002

Loans to Public Sector

It is worth mentioning that, at the end of 2000, the financial system exposure to the public sector assets amounted to only 17.1% of the total assets while, at the end of 2001, this ratio had been increased to 22.8%. From such time, public assets holding was gradually and involuntarily increased due to measures such as debt exchanges and asymmetric pesification compensation.

As a counterpart, there is currently a clear trend towards the reduction of this exposure.

In the first place, the increase of the private sector loan portfolio will gradually decrease 16

ANNUAL REPORT 2004 Financial System the percentage of public assets. On the other hand, adjustments are being made to the valuation of public assets in accordance with the Central Bank regulations, in order to reduce the gap between the technical value at which most public bonds are accounted for, and their market value which reduces their book value. We should also mention the fact that several institutions have disposed of their public debt holdings during the last year. All these factors had an incidence in the observed reduction and, even though the recovery of the public bonds market value increased the amount of holdings for trading, its effect was not that significant.

Liquidity At the end of 2003, the financial system liquidity had reached an extraordinarily high level as a result of the recovery of deposits within the framework of a very weakened credit market. During 2004, the situation was reverted in such a way that, at the year end, the system liquidity was reduced from 27.4 to 23.2 per cent of deposits.

This reduction is an additional indicator of the normalization process undergone by the sector, as financial institutions reduced their liquid asset holdings and used these resources to fund private sector loans. Additionally, the Central Bank also contributed by reducing minimum cash requirements for deposits in Pesos.

Liquidity / Deposits Ratio As a percentage of deposits 35 30 25 20 15 10

Oct. 2004 Dec. 2004

Jun. 2004

Aug. 2004

Feb. 2004

Apr. 2004

Oct. 2003

Dec. 2003

Jun. 2003

Aug. 2003

Apr. 2003

Feb. 2003

Oct. 2002

Dec. 2002

Jun. 2002

Aug. 2002

Feb. 2002

Apr. 2002

Oct. 2001

Dec. 2001

Jun. 2001

Aug. 2001

Feb. 2001

Apr. 2001

0

Dec. 2000

5

Gaps The crisis provoked a serious gap in the financial position of currencies in a significant number of banks. At the end of 2004, the financial system as a whole showed net assets adjustable to CER amounting to approximately $26.4 billion, 21% less than the amount registered at the end of the previous year. The improvement arose from the increase of free market interest rates loans to the private sector and from the maturity of adjustable

17

ANNUAL REPORT 2004 Financial System public debt amortization service fees held by banks. On the other hand, as mentioned above, there was an increase of term deposits adjustable to CER, even though part of this increase was offset by the payment of rediscount quotas under the matching scheme.

Gaps Billions of Pesos 60 40 20 0

-48.1

-32.1 -23.3 47.3

33.4

26.4

11.5

11.5

10.8

-20 -40 -60

Pesos

Pesos + CER or CVS Dec. 2002

Dec. 2003

Foreign Currency Dec. 2004

Foreign currency deposits present a relatively more stable situation. Even though during the last year the foreign debt of private banks was significantly reduced, this process did not produce any significant changes in the net holdings because it was accompanied by reductions in public bond holdings and foreign currency liquid assets. Ultimately, the counterpart of the improvement of the situation is represented by the reduction of the net debt denominated in Pesos and subject to floating interest rates.

Even though the situation has been significantly improved, the extension of the problem and the significance of these gaps, together with the scarce options available for institutions to reduce them have delayed the solution of this problem.

Capitalization After the crisis, several financial institutions decided to make capitalizations to strengthen their equity structure. In the past years, approximately $7 billion were capitalized, of which approximately 70% came from foreign banks.

As mentioned above, the reduction of financial institutions foreign debt in foreign currency has constituted one of the main capitalization and strengthening sources for the sector creditworthiness.

18

ANNUAL REPORT 2004 Financial System Portfolio Quality In the past years, a constant improvement in the quality of the private sector financing portfolio was also observed. At the end of 2004, the non-performing portfolio was reduced to 18.8% of financing, almost 15 percentual points less with respect to the previous year.

Non-performing commercial financing fell from 38.9% in 2003 to 22.1%, driven by the improvement of debtors’ payment capacity, which allowed for a restructuration of their obligations or for the total or partial payment thereof. On the other hand, the increase of new loans also led to a reduction in the incidence of non-performing in total financing.

In turn, the consumer portfolio also showed a significant improvement with regard to the previous year, and it fell from 28% at the end of 2003 to 11.5% in December of last year.

It is important to point out that private banks’ non-performing loans amounts to 15.4%, while, for the entire financial system, it is 18.8%. This is due to the higher level of public banks, which is still higher than the mean, even though it fell significantly during the past year.

Portfolio Quality As a percentage 40 35 30 25 38.6

20

33.5

15 10

14

16

19.1

18.8

5 0

Dec. 1999

Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Judicial Injunctions (Amparos) In September, the Supreme Court of Justice, in a split decision, pronounced favorable to the pesification of deposits. However, some characteristics limiting the decision and the limited scope to the particular case at hand of Supreme Court of Justice decisions,

19

ANNUAL REPORT 2004 Financial System prevented the pronouncement from stopping the drainage of funds from financial institutions, caused by first and second generation preliminary injunctions1.

Deposits Outflow on Account of Judicial Injunctions During 2004 In millions of Pesos 350

5,000 4,500

300

4,000

250

3,500 3,000

200

2,500

150

2,000

100

1,500 1,000

50

500 0

0 Jan. 2004

Feb.

Principal (1)

Mar.

Apr.

May

Jun.

Adjusted to CER

Jul.

Aug.

Sept.

Oct.

Exchange Rate Difference

Nov.

Dec.

Number of Cases

(1) Pesified at $ 1.4 per US Dollar.

Judicial Injunctions

Period

Number of Cases

Principal (1)

Adjustment to CER

Exchange Rate Difference

Total Paid

In Thousand of Pesos

In Millions of Pesos 2002 2003 2004 Total

168,478 83,415 40,329 292,222

5,854 2,370 1,031 9,255

1,389 1,028 503 2,919

6,493 1,916 941 9,349

Average Amount per Case

13,736 5,313 2,474 21,523

82 64 61 74

(1) Pesified at $ 1.4 per US Dollar Source: ABA based on Central Bank´s data.

During 2004, 40,800 cases were recorded, for which more than $2.5 billion were paid.

This produced an exchange difference of approximately $950 million. With these figures, “First generation judicial injunctions" are those that claim the restitution of deposits at the free exchange rate, while the "second generation judicial injunctions" are those injunctions requested after having accepted one of the exchanges proposed by the Government and that claim the difference between the collected amount and free exchange rate deposits.

1

20

ANNUAL REPORT 2004 Financial System the total preliminary injunctions paid amount to 292,600 cases, for which more than 21.5 billion Pesos were paid, which implies an exchange rate difference of almost 9.4 billion Pesos with regard to the pesified value of deposits at $1.4 per $1 US Dollar, plus the relevant adjustment to CER. Therefore, the mean amount paid amounts to approximately $74,000 per case, equivalent to approximately 23,000 US Dollars in original currency.

Most of these exchange differences are in the financial institutions balance sheets (approximately $8.8 billion) and they are amortized in 60 monthly and consecutive installments as of the date the difference is recorded, therefore, the net value accounted for in the asset at the end of 2004 is less than $6 billion.

Use of Current Accounts During the past years, a significant reduction in the use of current accounts as means of payment was observed. The use of these accounts fell significantly in 2001, upon imposition of the current account debit and credit tax in April of that year. Private sector current account debits fell from a mean of $124 billion per month in 2000 to less than $55 billion in 2001 and $60 billion in 2003.

On the other hand, the evolution of transactions carried out with deposited amounts allows concluding that the monthly rotation of deposits has fallen to one fourth the original amount between 2000 and 2004. This is due to the fact that taxpayers stop using bank payment means, which constitute the taxable basis, to replace them with other more complicated and less safe means.

Debits and Deposits in Current Accounts In millions of Pesos 160,000

22,000

140,000

19,000

120,000

16,000

100,000

13,000

80,000

10,000

60,000

7,000

40,000

4,000

20,000

1,000 -2,000

0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Monthly Debits Mean

Mean Dep. in Current Acc. (right axis)

This is an emergency tax that has a lot of contraindications. The substitution of bank payment means for other alternative means, such as cash, increase the economy transactional costs making it less competitive, and also weakens tax revenue collection, to the extent that the development of these means paves the way for an informal economy.

21

ANNUAL REPORT 2004 Financial System

On the other hand, this tax has clear distortional effects, as it affects fund transfers from current accounts and, therefore, production or distribution costs of those goods or services for which the use of bank accounts is essential.

Current Account Use and Debit and Credit Tax % 0.9

30

0.8

25

0.7 0.6

20 - 76 %

15

0.4

10

0.3 0.2

5 0

0.5

0.1 1991 1992 1993 1994

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Monthly rotation speed

0.0

Revenue Collection / Debits (right axis)

Lower Number of Claims on the Financial System There has been a significant reduction in claims and consultations on bank services received in the Consumer Defense Undersecretary. According to the statistics of such Undersecretary, in 2001, 5.3% of phone calls were related to bank services, increasing to 8.9% in 2002 as a result of the crisis.

As of 2003, there was a significant decreasing proportion of phone calls related to bank services, amounting to 7.9% this year and falling to 4.4% in 2004. This trend continued to be observed at the beginning of 2005.

Bank Service Claims As a percentage of total claims 9 8 7 6 5 4 3 2 1 0

2001

2002

2003

2004

2005 (Until January)

22

ANNUAL REPORT 2004 Financial System

Compensation CER / CVS In 2003, through Act Number 25,796, it was set forth that financial institutions should be compensated for losses resulting from the application of the Salary Variation Ratio (CVS) to adjust loans in lieu of the Reference Stabilization Ratio (CER) used for deposits, for a maximum amount of 2.8 billion Pesos. Through Decree 117/04 and Resolution 302/04, the Executive Power regulated such Act and set forth an optional mechanism for financial institutions through which this compensation would be carried out. A big majority of institutions rejected this option because the approach used, the conditions required by the resolution and the favorable evolution registered by the Salary Variation Ratio in the last months prior to the call significantly limited the compensation amount and the possibilities of having access to such compensation.

23

ANNUAL REPORT 2004 Statistical Appendix

TABLE 1: Deposits in Domestic Currency

Monthly average of daily balances (in millions of Pesos) Period

Current Accounts

Savings Accounts

Time Deposits

Total

(1)

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

December December December December December December December December December December December December

3,129 4,909 6,214 6,993 7,011 10,514 12,178 12,648 12,580 11,951 8,309 23,305

1,980 2,758 4,653 5,242 4,688 5,936 7,601 8,206 8,347 7,924 4,499 9,144

2,955 5,998 8,903 9,622 7,343 8,756 12,057 13,577 12,791 12,024 5,872 33,435

8,064 13,665 19,770 21,858 19,042 25,207 31,836 34,432 33,719 31,900 18,681 65,885

2003

January February March April May June July August September October November December

22,051 21,211 21,617 21,428 22,232 23,780 24,066 25,464 25,938 27,535 29,629 30,825

9,226 9,126 8,884 8,684 9,276 9,730 11,184 12,472 13,211 13,428 13,909 14,554

34,964 36,584 37,516 38,642 40,271 41,625 41,760 40,336 39,692 39,963 39,375 38,472

66,241 66,922 68,017 68,754 71,779 75,135 77,010 78,272 78,841 80,926 82,914 83,851

2004

January February March April May June July August September October November December

32,141 33,007 31,802 33,378 34,964 36,525 37,282 35,930 35,543 36,453 37,064 38,630

15,569 16,843 17,389 18,314 18,433 19,115 20,003 21,244 21,610 21,175 21,454 21,616

39,049 38,753 37,482 37,400 37,603 38,419 38,697 39,560 40,816 41,949 43,062 42,179

86,759 88,604 86,673 89,093 90,999 94,059 95,981 96,734 97,969 99,577 101,580 102,425

(1) Starting on March 2002, it includes redescheduled deposits.

Source: ABA based on “Statistical Bulletin”, “Daily Information on Deposits, Loans and Cash in Domestic Currency” and “Main Financial System Liabilities”, Central Bank.

24

ANNUAL REPORT 2004 Statistical Appendix

TABLE 2: Deposits in Foreign Currency

Monthly average of daily balances (in millions of US Dollars) Period

Current Accounts

Demand Deposits

Savings Accounts

Time Deposits

Deposits on Behalf of Central Bank

Total

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

December December December December December December December December December December December December December December December December December December

... ... ... ... ... ... ... ...

292 351 441 472 646 684 829 781 2,442 26

40 11 12 16 42 597 782 839 392 482 493 1,092 1,528 2,119 1,695 1,162 2,385 327

... ... ... ... ... ...

1,137 1,866 3,698 4,032 3,445 4,529 5,330 5,304 6,146 5,602 9,772 83

... ... ... ...

1,063 2,069 4,641 8,037 13,711 18,122 18,321 22,273 29,666 34,435 38,475 44,155 33,116 427

553 820 994 1,487 538 177 145 ... ... ... ... ... ... ... ... ... ... ...

593 831 1,006 1,503 1,644 2,843 6,705 10,742 18,093 22,986 22,699 28,366 37,169 42,542 47,145 51,700 47,715 863

2003

January February March April May June July August September October November December

26 26 26 33 35 37 46 51 50 52 48 52

298 314 369 352 349 359 344 344 332 349 361 349

62 86 104 141 196 221 267 316 370 404 427 457

456 491 514 536 598 684 729 786 838 876 906 1,041

... ... ... ... ... ... ... ... ... ... ... ...

842 917 1,014 1,062 1,178 1,302 1,386 1,496 1,590 1,681 1,742 1,899

2004

January February March April May June July August September October November December

51 44 44 47 50 43 32 28 27 29 26 25

381 372 397 394 438 429 430 420 419 432 427 417

522 526 577 720 1,006 1,431 1,746 1,854 1,852 1,796 1,817 1,848

1,208 1,165 1,117 1,247 1,364 1,443 1,464 1,485 1,519 1,576 1,619 1,646

... ... ... ... ... ... ... ... ... ... ... ...

2,162 2,107 2,135 2,407 2,858 3,348 3,674 3,787 3,818 3,833 3,889 3,936

Source: ABA based on “Statistical Bulletin”, “Daily Information on Deposits, Loans and Cash in Domestic Currency” and “Main Financial System Liabilities”, Central Bank.

25

ANNUAL REPORT 2004 Statistical Appendix

TABLE 3: Judicial Injuctions Period

Number of Lawsuits

Principal (1)

Update According to CER

Exchange Rate Difference

Total Amount Paid

Average Amount per Lawsuit In Thousands of Pesos

In Millions of Pesos 2002

Until April May June July August September October November December

36,141 14,970 17,054 18,222 8,706 14,749 15,197 19,319 24,120

1,573 589 499 555 313 469 478 552 825

66 82 110 145 99 164 180 214 329

1,315 721 668 726 391 578 586 620 887

2,954 1,392 1,277 1,426 803 1,211 1,245 1,386 2,041

82 93 75 78 92 82 82 72 85

2003

January February March April May June July August September October November December

4,483 8,338 9,593 8,680 7,943 6,935 5,907 5,397 6,368 5,978 5,851 7,942

130 214 238 238 231 204 202 162 168 161 193 229

53 89 102 104 102 90 88 71 73 70 85 102

122 192 198 170 166 131 136 134 147 135 159 225

305 494 538 512 499 426 425 367 389 367 437 555

68 59 56 59 63 61 72 68 61 61 75 70

2004

January February March April May June July August September October November December

1,163 3,237 4,498 4,029 4,161 4,607 3,304 3,276 3,521 3,259 2,374 2,900

30 73 132 107 93 95 73 79 108 97 64 80

14 33 61 49 44 46 36 39 55 50 33 43

32 70 110 95 94 115 74 73 84 79 52 63

75 176 303 251 232 256 182 190 247 227 149 186

65 54 67 62 56 56 55 58 70 70 63 64

Year 2002 Year 2003 Year 2004

168,478 83,415 40,329

5,854 2,370 1,031

1,389 1,028 503

6,493 1,916 941

13,736 5,313 2,474

82 64 61

292,222

9,255

2,919

9,349

21,523

74

Total

(1) Pesified at $1.4 per US Dollar.

Source: ABA based on Central Bank´s data.

26

ANNUAL REPORT 2004 Statistical Appendix

TABLE 4: Monetary Aggregates (In millions of Pesos of December 2004) Period

M1

December December December December December December December December December

33,798 32,240 39,955 46,499 49,484 48,721 45,148 32,926 42,582

2003 January February March April May June July August September October November December 2004 January February March April May June July August September October November December

1994 1995 1996 1997 1998 1999 2000 2001 2002

M2

M1 + Foreign Currency Demand Deposits

M2 + Total Deposits in Foreign Currency

62,698 54,685 67,022 82,891 91,306 89,303 83,012 53,395 89,410

34,631 33,173 41,519 48,673 52,287 51,245 47,090 37,754 43,813

85,684 77,384 95,388 120,061 133,848 136,447 134,712 101,111 92,422

41,924 40,967 41,948 42,715 44,387 47,273 49,503 51,777 53,174 54,881 57,304 60,177

90,106 90,570 92,329 94,571 98,958 103,898 107,764 109,481 111,021 112,936 114,869 116,906

42,980 42,044 43,167 43,832 45,476 48,387 50,593 52,932 54,289 56,027 58,485 61,365

92,858 93,474 95,451 97,652 102,301 107,558 111,642 113,864 115,662 117,738 119,897 122,529

62,165 62,649 61,259 62,497 64,064 66,052 67,730 65,531 64,770 65,363 66,742 70,330

120,575 121,665 119,204 120,850 122,166 125,475 127,942 127,055 127,663 128,649 131,811 134,126

63,416 63,870 62,536 63,745 65,489 67,451 69,098 66,881 66,109 66,733 68,079 71,643

126,837 127,844 125,391 127,671 130,513 135,388 138,796 138,474 139,110 140,032 143,299 145,823

Note: Monetary aggregates include public sector´s deposits.

Source: ABA based on “Statistical Bulletin”, “Daily Information on Deposits, Loans and Cash in Domestic and Foreign Currency” and “Main Financial System Liabilities”, Central Bank and INDEC.

27

ANNUAL REPORT 2004 Statistical Appendix

TABLE 5: Monetary Aggregates

Annual averages (as a percentage of the GDP) Period

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

M1

M2

M1 + Foreign Currency Demand Deposits

M2 + Total Deposits in Foreign Currency

3.7 5.0 3.9 2.6 2.6 2.2 2.9 4.3 5.7 6.4 6.4 7.3 8.0 8.5 8.8 8.3 7.6 10.2 11.9 14.3

9.3 13.8 12.3 10.8 8.3 4.2 5.2 7.5 10.7 12.0 11.0 12.5 14.3 15.7 16.4 15.8 13.9 22.6 25.3 27.7

3.7 5.0 3.9 2.6 2.9 2.4 3.3 4.7 5.9 6.6 6.7 7.8 8.6 9.2 9.6 8.9 8.5 12.0 12.2 14.6

9.4 13.8 12.4 10.8 14.9 5.2 7.8 11.4 16.9 20.2 19.3 22.3 25.4 29.1 32.7 33.2 32.7 27.1 26.3 29.9

Source: ABA based on data from “Statistical Bulletin”, “Daily Information on Deposits, Loans and Cash in Domestic and Foreign Currency”, “Main Financial System Liabilities” and “Annual Estimates of Global Supply and Demand. Period 1980-1992”, Central Bank and “Economic Report”, Ministry of Economy and Production.

28

ANNUAL REPORT 2004 Statistical Appendix TABLE 6: Monetary Aggregates in Real Terms (1)

Monthly average of daily balances (in millions of Pesos of December 2004) Period

Cash Held by the Public

Current Accounts

M1

Savings Accounts

Time Deposits

M2

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

December December December December December December December December December December December December December December December December December December

9,497 10,873 9,077 7,912 6,417 6,980 10,816 14,218 18,600 20,202 19,161 20,584 23,953 25,200 24,571 22,463 16,527 16,951

12,237 10,814 7,079 5,539 6,580 4,109 7,170 10,320 12,694 13,597 13,079 19,371 22,546 24,284 24,151 22,685 16,400 25,631

21,734 21,688 16,157 13,451 12,997 11,089 17,986 24,538 31,294 33,798 32,240 39,955 46,499 49,484 48,721 45,148 32,926 42,582

7,372 7,387 6,408 4,694 1,939 5,801 4,537 5,797 9,505 10,192 8,746 10,936 14,072 15,755 16,025 15,040 8,879 10,057

23,046 32,856 29,067 36,800 15,203 5,319 6,772 12,609 18,185 18,707 13,699 16,132 22,321 26,068 24,556 22,824 11,590 36,771

52,152 61,930 51,632 54,945 30,138 22,209 29,296 42,944 58,984 62,698 54,685 67,022 82,891 91,306 89,303 83,012 53,395 89,410

2003

January February March April May June July August September October November December

17,880 17,950 18,477 19,235 19,900 21,052 23,020 23,952 24,812 24,941 25,294 27,200

24,043 23,018 23,471 23,480 24,487 26,221 26,483 27,825 28,362 29,940 32,010 32,978

41,924 40,967 41,948 42,715 44,387 47,273 49,503 51,777 53,174 54,881 57,304 60,177

10,059 9,903 9,646 9,515 10,216 10,728 12,307 13,628 14,445 14,601 15,027 15,570

38,123 39,699 40,735 42,341 44,355 45,898 45,954 44,076 43,401 43,454 42,539 41,159

90,106 90,570 92,329 94,571 98,958 103,898 107,764 109,481 111,021 112,936 114,869 116,906

2004

January February March April May June July August September October November December

27,792 27,612 27,675 27,537 27,811 28,327 29,488 29,176 28,962 28,817 29,361 31,700

34,373 35,037 33,584 34,959 36,253 37,724 38,242 36,356 35,808 36,546 37,381 38,630

62,165 62,649 61,259 62,497 64,064 66,052 67,730 65,531 64,770 65,363 66,742 70,330

16,650 17,879 18,363 19,182 19,113 19,743 20,518 21,496 21,772 21,229 21,638 21,616

41,760 41,136 39,582 39,172 38,989 39,680 39,693 40,028 41,121 42,057 43,431 42,179

120,575 121,665 119,204 120,850 122,166 125,475 127,942 127,055 127,663 128,649 131,811 134,126

(1) Deflated by the combined price index.

Source: ABA based on "Statistical Bulletin" and "Daily Information on Deposits, Loans and Cash in Domestic Currency", Central Bank and INDEC.

29

ANNUAL REPORT 2004 Statistical Appendix TABLE 7: Central Bank´s Monetary and Financial Liabilities Monthly average of daily balances (in millions of Pesos) Period

Currency

Financial Institutions Deposits in the Central Bank

Monetary Liabilities

Net Position of Repos

Financial Liabilities (1)

Government Deposits in the Central Bank

1994 1995 1996 1997 1998 1999 2000 2001 2002

December December December December December December December December December

12,346 12,025 13,131 15,174 15,520 15,048 14,205 10,173 17,766

3,872 716 27 47 31 91 88 6,703 10,953

16,218 12,741 13,158 15,221 15,551 15,139 14,293 16,876 28,719

...

1,494 4,961 6,315 9,347 9,662 9,248 -4,773 -233

...

15,010 18,137 21,536 24,898 24,802 23,541 12,109 28,486

...

456 1,049 478 1,620 1,827 1,016 171 79

2003

January February March April May June July August September October November December

18,755 18,818 19,280 19,947 20,425 21,671 23,656 24,711 25,560 25,793 26,331 28,717

11,850 11,760 12,562 12,455 14,673 16,746 16,735 17,027 17,177 19,156 20,427 20,396

30,604 30,578 31,842 32,402 35,098 38,417 40,390 41,738 42,737 44,949 46,758 49,112

-199 -215 -204 -201 -127 -58 -58 -56 -48 -48 -45 -46

30,405 30,364 31,639 32,201 34,971 38,359 40,333 41,682 42,689 44,901 46,713 49,066

165 820 936 345 429 660 1,149 2,221 2,870 569 540 559

2004

January February March April May June July August September October November December

29,205 28,935 29,265 29,581 29,978 30,759 32,167 32,112 32,023 32,121 32,442 35,838

21,646 22,106 19,604 21,337 23,655 24,933 22,697 23,186 23,242 23,648 23,496 22,988

50,852 51,041 48,868 50,918 53,632 55,692 54,864 55,298 55,265 55,769 55,938 58,826

-45 -44 -45 -40 5 535 3,604 3,928 4,703 5,513 5,748 5,491

50,807 50,997 48,823 50,878 53,637 56,227 58,468 59,226 59,968 61,282 61,686 64,317

184 372 699 521 233 309 335 187 336 324 366 486

(1) Financial liabilities do not include the stock of LEBAC and NOBAC. Source: ABA based on “Statistical Bulletin” and “Central Bank´s Monetary Liabilities”, Central Bank.

30

ANNUAL REPORT 2004 Statistical Appendix TABLE 8: Central Bank´s Reserves (1) Monthly average of daily balances Period

Liquid Reserves

Government Securities

(2)

(3)

Total

Monetary Liabilities (4)

In millions of Pesos

In millions of US Dollars 1996 1997 1998 1999 2000 2001 2002

December December December December December December December

17,503 20,871 24,975 24,910 24,077 14,815 10,265

1,793 1,746 1,683 1,456 1,314 4,534 ...

19,296 22,618 26,658 26,366 25,391 19,349 10,265

14,059 14,190 15,551 15,139 14,293 16,876 28,719

2003

January February March April May June July August September October November December

9,933 9,652 10,373 10,588 11,087 11,763 12,774 13,402 12,454 13,247 13,285 13,820

... ... ... ... ... ... ... ... ... ... ... ...

9,933 9,652 10,373 10,588 11,087 11,763 12,774 13,402 12,454 13,247 13,285 13,820

30,604 30,578 31,842 32,402 35,098 38,417 40,390 41,738 42,737 44,949 46,758 49,112

2004

January February March April May June July August September October November December

14,484 15,009 13,507 15,255 16,252 17,240 17,922 18,062 18,200 18,388 18,720 19,310

... ... ... ... ... ... ... ... ... ... ... ...

14,484 15,009 13,507 15,255 16,252 17,240 17,922 18,062 18,200 18,388 18,720 19,310

50,852 51,041 48,868 50,918 53,632 55,692 54,864 55,298 55,265 55,769 55,938 58,826

(1) Market values.

(2) Bills, deposits in current accounts, demand and time deposits, gold and ALADI. (3) It includes bonds used as collateral for repos transactions.

(4) Currency + Financial institutions deposits in Central Bank.

Source: ABA based on “Reserves and Monetary Base” and “Foreign Currency Assets and Monetary Liabilities”, Central Bank.

31

ANNUAL REPORT 2004 Statistical Appendix

TABLE 9: Central Bank´s Bills and Notes (LEBAC and NOBAC)

As of end of period

Stock In Pesos

In Foreign Currency

Average Rates

In Pesos Indexed to CER

Total

In Millions of Pesos 2002 March April May June July August September October November December 2003 January February March April May June July August September October November December 2004 January February March April May June July August September October November December

In Pesos

In Foreign Currency

Weighted Average Term

In Pesos Indexed to CER

In Pesos

As Annual Percentage

180 195 458 474 923 1,732 1,750 2,580 2,617 3,049

131 125 424 816 725 782 867 654 687 647

... ... ... ... ...

38 42 42 4 ...

311 55.2 320 83.7 882 65.3 1,290 67.5 1,648 107.6 2,552 66.9 2,659 46.4 3,277 50.4 3,308 40.7 3,696 42.5

4,138 4,159 4,231 4,311 4,610 5,447 6,777 6,925 7,250 8,064 8,080 8,151

710 646 557 459 539 352 340 439 399 282 245 242

...

63 192 450 713 729 891 1,010 1,127 1,211 1,557 1,897

4,848 4,868 4,981 5,220 5,862 6,528 8,008 8,374 8,776 9,557 9,882 10,291

8,649 9,194 9,148 9,434 9,359 8,425 8,002 7,313 6,969 7,146 7,255 7,698

225 210 223 223 223 176 176 176 132 132 160 160

2,466 2,567 3,087 3,574 4,098 5,329 5,985 6,307 6,970 6,996 7,007 7,050

11,341 11,972 12,459 13,231 13,680 13,931 14,164 13,797 14,072 14,275 14,422 14,908

In Foreign Currency

In Pesos Indexed to CER

In Days

41.6 29.7 20.5 10.2 1.0 2.9 0.5 ...

-0.0 -0.0

... ... ... ... ...

18.0 18.0 18.0 18.0 ...

8 2 6 7 5 12 13 41 65 103

19 7 6 7 5 8 6 10 13 8

... ... ... ... ...

83 54 23 9 ...

40.1 41.0 41.6 39.4 34.4 27.2 19.6 18.8 17.7 15.8 15.9 15.9

...

-0.0 -0.0 ... ... ... ... ...

-0.0 -0.0 -0.0 -0.0

...

13.8 13.4 13.0 11.9 11.8 11.3 11.0 10.6 10.4 9.4 8.7

136 122 127 128 122 202 189 173 205 238 238 220

11 8 10 5 17 21 15 16 10 12 47 18

...

46 304 367 408 380 371 350 330 303 305 348

13.9 13.4 11.9 11.7 11.7 11.2 11.1 11.1 10.9 9.0 8.8 7.7

-0.0 -0.0 ...

-0.0 -0.0 ... ... ... ... ... ... ...

7.6 7.0 6.2 5.8 5.4 4.6 4.1 3.8 3.4 2.7 2.6 2.4

226 213 216 207 187 179 181 176 188 198 185 184

45 18 76 47 16 77 46 15 57 26 78 47

385 390 410 437 419 362 408 400 389 395 391 385

Note: It includes Central Bank´s Notes (NOBAC).

Source: ABA based on Central Bank´s data.

32

ANNUAL REPORT 2004 Statistical Appendix

TABLE 10: Interest Rates

(Annual nominal, as a percentage)

On Deposits In Domestic Currency Period

On Loans

In Foreign Currency

Domestic Prime Rate

Interbank Rate

Savings Time Savings Time In In Foreign Accounts Deposits Accounts Deposits Domestic Currency (1) (1) Currency 30 30 90 Days Days Days

1995 1996 1997 1998 1999 2000 2001 2002

Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated

3.7 3.5 3.3 3.0 2.9 2.8 3.2 6.4

12.5 7.6 7.2 7.8 8.5 8.7 17.4 46.9

2.7 2.6 2.5 2.4 2.5 2.7 3.4 2.0

8.4 6.3 6.0 6.5 6.5 7.2 9.9 3.9

19.1 10.9 9.5 11.0 11.4 11.5 32.4 66.6

14.6 9.4 8.0 9.2 9.3 10.0 18.9 22.4

16.0 10.1 8.6 10.1 10.2 10.6 19.8 26.7

9.7 6.3 6.8 6.9 7.1 8.4 29.9 47.7

2003

January February March April May June July August September October November December

1.9 1.9 1.8 1.8 1.7 1.4 1.1 0.8 0.9 1.0 0.9 0.8

17.4 17.7 20.5 19.8 13.1 9.8 5.8 4.3 4.3 4.4 4.3 3.8

2.3 2.3 2.2 2.1 1.2 0.3 0.3 0.2 0.2 0.2 0.2 0.2

1.6 1.1 0.9 1.0 0.9 0.8 0.7 0.7 0.6 0.6 0.6 0.6

27.9 27.4 27.9 28.1 24.7 20.3 16.8 13.1 11.9 11.2 10.8 10.3

... ... ... ... ... ... ... ... ... ... ... ...

... ... ... ... ... ... ... ... ... ... ... ...

5.7 6.5 8.4 6.5 4.7 4.0 2.4 1.5 1.5 1.6 1.7 1.7

Accumulated

1.3

10.8

0.9

0.8

20.7

...

...

3.9

January February March April May June July August September October November December

0.8 0.7 0.6 0.6 0.7 0.7 0.8 0.8 0.8 0.8 0.8 0.8

2.9 2.3 2.4 2.2 2.4 2.6 2.6 2.9 3.0 3.3 3.2 3.3

0.2 0.2 0.2 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

0.6 0.6 0.6 0.6 0.6 0.4 0.3 0.3 0.3 0.3 0.3 0.4

9.9 9.5 7.8 6.6 6.3 6.0 6.0 5.8 5.8 5.9 5.8 5.8

... ... ... ... ... ... ... ... ... ... ... ...

... ... ... ... ... ... ... ... ... ... ... ...

1.4 1.3 1.2 1.2 2.9 2.2 1.9 2.2 2.3 2.3 2.3 2.3

Accumulated

0.7

2.8

0.1

0.4

6.9

...

...

2.0

2004

(1) Corresponds to average term.

Source: ABA based on “Survey on Interest Rates on Deposits”, “Domestic Prime Rate” and “Statistical Information on Interest Rates”, Central Bank.

33

ANNUAL REPORT 2004 Statistical Appendix

TABLE 11: Lending Rates

(Annual nominal, as a percentage)

In Domestic Currency Period

Current Promisory Mortgage Accounts Notes Loans Overdrafts

In Foreign Currency

Pledge Consumer Current Promisory Loans Loans Accounts Notes Overdrafts

Mortgage Loans

Pledge Consumer Loans Loans

1994 1995 1996 1997 1998 1999 2000 2001 2002

Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated

40.1 49.7 37.5 31.7 32.4 31.4 33.9 47.8 78.8

21.1 21.6 14.0 11.6 12.0 11.4 12.8 30.4 45.7

17.4 16.3 12.9 13.8 15.0 13.8 15.8 16.7 33.2

26.6 29.3 24.3 20.3 22.2 20.3 23.2 22.6 22.0

43.3 54.4 48.4 44.9 40.2 33.9 38.0 39.2 63.5

20.6 24.0 14.0 14.1 13.6 10.3 9.9 22.1 23.9

14.1 18.5 12.5 11.3 11.5 11.4 12.9 21.0 13.8

15.9 17.8 14.7 13.1 12.7 12.5 13.3 12.9 15.4

18.4 20.4 17.3 16.1 14.8 14.0 16.4 18.0 19.0

21.5 26.3 24.6 23.8 23.1 22.9 26.5 29.8 35.7

2003

January February March April May June July August September October November December

48.0 45.6 47.8 49.9 47.0 42.2 35.7 31.4 25.7 24.1 23.6 21.6

23.9 30.1 29.1 24.0 23.2 18.5 16.1 13.4 12.1 12.8 10.9 11.5

21.7 23.5 22.3 22.2 20.6 16.4 13.3 17.5 14.6 16.2 14.5 14.2

18.9 18.7 14.6 17.7 19.1 17.2 13.2 17.6 18.3 17.7 16.3 16.0

63.6 64.3 66.2 64.7 65.8 62.3 59.7 52.5 45.6 36.7 34.6 34.8

17.5 12.5 13.2 12.2 12.2 9.8 13.1 10.3 9.4 10.0 7.4 7.1

7.7 5.9 10.5 12.4 12.3 8.8 7.5 6.7 6.9 6.0 6.1 5.3

18.0 ... ... ...

6.8 ...

6.8 ... ...

8.9 4.8 6.2

16.0 16.0 16.0 15.9 16.0 16.0 15.1 16.0 16.0 15.8 15.7 15.7

32.5 32.9 32.6 32.3 32.6 32.6 30.4 27.7 23.6 23.0 21.1 22.4

Accumulate d

43.0

20.2

19.4

18.2

68.6

11.6

8.2

9.3

16.8

32.2

January February March April May June July August September October November December

21.0 19.4 16.3 15.3 15.7 15.6 15.2 15.2 14.9 14.7 14.0 13.8

11.6 10.8 10.2 10.2 11.0 10.6 11.6 10.7 11.9 10.3 10.3 10.6

13.4 12.3 13.0 12.7 12.2 11.8 11.0 11.5 11.7 11.9 11.2 11.5

16.2 14.6 14.4 13.7 13.4 13.6 12.9 13.0 13.4 11.7 11.3 11.7

33.9 33.4 32.8 32.2 31.7 31.1 30.7 30.1 29.4 30.1 29.4 29.3

5.2 6.7 4.5 6.9 5.3 4.3 5.8 3.7 4.0 4.4 4.3 4.7

5.1 6.5 5.2 5.4 5.1 5.3 4.5 4.9 4.7 4.6 5.0 4.7

6.0 9.2 12.0 17.0 14.2 10.3 7.0 6.3 6.4 7.2 6.3 7.4

12.9 12.9 13.0 12.9 12.5 12.0 11.3 10.8 12.5 7.1 6.5 12.0

21.5 21.6 21.4 20.2 21.9 21.1 20.2 20.7 21.5 20.6 22.4 21.6

Accumulated

16.9

11.2

12.5

14.0

35.5

5.0

5.1

9.4

11.8

23.1

2004

It corresponds to weighted averages of loans granted within the month of the report.

Source: ABA based on “Statistical Bulletin�, Central Bank.

34

ANNUAL REPORT 2004 Statistical Appendix

TABLE 12: Bank Loans

(In millions of Pesos)

To Public Sector End of:

In Domestic Currency

In Foreign Currency

To Private Sector Total

In Domestic Currency

In Foreign Currency

Total

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

December December December December December December December December December December December December December December

233 5,291 6,548 5,076 6,541 5,734 5,426 6,289 6,098 4,797 5,481 3,715 3,392 57,744

756 1,647 3,736 5,545 6,652 5,898 10,622 12,647 15,075 18,862 22,790 25,063 26,722 37,538

989 6,938 10,284 10,621 13,193 11,631 16,048 18,936 21,172 23,659 28,272 28,778 30,114 95,282

605 7,238 13,180 19,055 21,766 23,931 21,819 21,980 24,745 27,420 26,659 25,688 15,626 41,175

684 3,515 9,573 15,933 21,477 28,282 29,686 32,958 39,489 44,786 43,919 42,221 40,353 6,749

1,288 10,753 22,753 34,988 43,244 52,212 51,506 54,939 64,234 72,206 70,578 67,910 55,979 47,924

2003

January February March April May June July August September October November December

58,355 58,713 58,921 59,609 60,637 62,480 63,681 63,272 65,615 65,494 65,925 67,798

35,660 36,099 31,778 29,621 29,607 29,716 30,879 30,859 29,945 28,805 29,148 28,425

94,015 94,812 90,699 89,230 90,243 92,196 94,561 94,131 95,560 94,299 95,073 96,223

40,138 39,577 38,617 38,310 37,845 36,696 35,923 35,965 35,022 35,031 35,156 34,975

6,451 6,481 5,873 5,662 5,611 5,460 5,575 5,558 5,489 5,550 5,818 5,483

46,588 46,058 44,491 43,972 43,456 42,156 41,499 41,523 40,511 40,581 40,974 40,458

2004

January February March April May June July August September October November December

68,084 67,907 70,770 69,981 71,150 73,472 77,065 76,259 75,743 78,819 78,595 79,244

28,012 27,405 25,159 25,284 26,540 25,584 25,281 25,631 25,154 24,991 24,181 24,206

96,096 95,312 95,928 95,266 97,690 99,056 102,346 101,891 100,897 103,810 102,775 103,450

34,938 35,280 36,309 36,751 37,216 37,739 38,093 38,535 39,447 40,338 41,360 41,389

5,704 5,209 4,380 4,343 4,489 4,874 5,002 5,081 4,952 5,137 5,261 5,545

40,642 40,489 40,689 41,093 41,704 42,613 43,094 43,616 44,398 45,475 46,620 46,934

Source: ABA based on “Statistical Bulletin�, Central Bank.

35

ANNUAL REPORT 2004 Statistical Appendix

TABLE 13: Nominal Bank Loan by Currency

(In millions of Pesos)

In Domestic Currency End of:

In Foreign Currency

Loan

Resources Earned on Loans

Total

Loan

Resources Earned on Loans

Total

Total Financing

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

December December December December December December December December December December December December December December

426 5,822 12,179 18,729 23,693 25,824 24,402 26,916 29,479 31,540 31,541 28,848 18,560 84,510

412 6,707 7,549 5,402 4,614 3,840 2,844 1,353 1,364 677 599 556 459 14,409

838 12,529 19,728 24,131 28,307 29,664 27,246 28,269 30,843 32,217 32,141 29,404 19,018 98,919

1,330 4,768 12,548 20,642 27,338 33,202 39,147 44,575 53,485 62,542 65,574 66,073 65,730 44,080

109 394 761 835 791 977 1,161 1,030 1,079 1,106 1,135 1,212 1,344 207

1,439 5,162 13,309 21,478 28,129 34,179 40,308 45,605 54,564 63,647 66,710 67,285 67,075 44,287

2,277 17,691 33,036 45,609 56,436 63,844 67,554 73,874 85,406 95,865 98,850 96,688 86,093 143,206

2003

January February March April May June July August September October November December

84,038 83,558 83,671 83,832 84,042 84,774 85,645 85,897 88,350 88,876 89,328 90,727

14,455 14,731 13,867 14,087 14,440 14,402 13,959 13,340 12,286 11,649 11,753 12,045

98,493 98,289 97,539 97,919 98,482 99,176 99,605 99,237 100,636 100,525 101,081 102,773

41,916 42,385 37,477 35,119 35,056 35,019 36,308 36,275 35,306 34,224 34,832 33,804

195 195 174 164 161 157 147 142 129 131 134 105

42,111 42,581 37,651 35,283 35,218 35,176 36,454 36,417 35,435 34,356 34,966 33,908

140,603 140,870 135,190 133,202 133,699 134,352 136,059 135,654 136,071 134,881 136,047 136,681

2004

January February March April May June July August September October November December

90,876 90,975 94,302 93,838 95,224 97,951 101,845 101,496 101,896 106,867 107,602 108,418

12,146 12,213 12,777 12,894 13,141 13,259 13,313 13,299 13,294 12,289 12,352 12,215

103,022 103,187 107,079 106,732 108,366 111,210 115,158 114,795 115,190 119,157 119,954 120,633

33,607 32,505 29,447 29,533 30,933 30,354 30,169 30,598 29,996 30,011 29,329 29,656

110 108 91 93 95 105 113 114 110 117 112 95

33,716 32,613 29,538 29,627 31,029 30,458 30,282 30,712 30,105 30,128 29,442 29,751

136,738 135,801 136,617 136,359 139,394 141,669 145,440 145,507 145,295 149,285 149,396 150,384

Source: ABA based on “Statistical Bulletin�, Central Bank and INDEC.

36

ANNUAL REPORT 2004 Statistical Appendix

TABLE 14: Bank Loans in Real Terms (1) (In millions of Pesos of December 2004) In Domestic Currency End of:

In Foreign Currency

Loan

Resources Earned on Loans

Total

Loan

Resources Earned on Loans

Total

Total Financing

December December December December December December December December December December December December December December

19,085 22,499 27,908 39,372 48,397 50,207 45,524 49,587 54,575 60,554 60,551 54,756 36,630 92,942

18,426 25,918 17,298 11,357 9,425 7,466 5,306 2,493 2,526 1,300 1,151 1,055 905 15,847

37,511 48,416 45,206 50,729 57,822 57,673 50,829 52,080 57,101 61,854 61,702 55,811 37,535 108,789

59,538 18,427 28,754 43,395 55,843 64,551 73,032 82,119 99,019 120,075 125,887 125,414 129,726 48,479

4,892 1,523 1,744 1,756 1,615 1,899 2,166 1,898 1,997 2,123 2,179 2,300 2,653 227

64,430 19,950 30,498 45,151 57,458 66,450 75,198 84,018 101,016 122,198 128,066 127,714 132,379 48,706

101,941 68,367 75,704 95,880 115,280 124,123 126,027 136,098 158,117 184,053 189,768 183,526 169,914 157,495

2003 January February March April May June July August September October November December

91,631 90,674 90,849 91,858 92,564 93,475 94,247 93,861 96,606 96,640 96,506 97,064

15,761 15,986 15,057 15,436 15,904 15,880 15,361 14,577 13,435 12,666 12,697 12,887

107,392 106,660 105,906 107,294 108,468 109,354 109,609 108,438 110,040 109,306 109,202 109,950

45,703 45,995 40,692 38,481 38,611 38,613 39,954 39,639 38,605 37,214 37,631 36,164

213 212 189 180 178 173 161 155 141 143 145 112

45,916 46,207 40,881 38,661 38,789 38,786 40,116 39,794 38,746 37,357 37,775 36,276

153,308 152,866 146,787 145,955 147,257 148,141 149,724 148,232 148,786 146,663 146,978 146,227

2004 January February March April May June July August September October November December

97,186 96,569 99,586 98,283 98,736 101,168 104,468 102,698 102,657 107,141 108,524 108,418

12,989 12,964 13,493 13,505 13,626 13,694 13,656 13,456 13,393 12,321 12,458 12,215

110,175 109,532 113,079 111,788 112,362 114,862 118,124 116,154 116,049 119,462 120,982 120,633

35,940 34,504 31,097 30,933 32,074 31,350 30,946 30,960 30,219 30,088 29,580 29,656

117 115 97 98 99 108 116 116 111 117 113 95

36,057 34,619 31,193 31,030 32,173 31,459 31,062 31,076 30,330 30,205 29,694 29,751

146,233 144,151 144,272 142,819 144,535 146,320 149,186 147,230 146,379 149,667 150,676 150,384

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

(1) Deflated by the combined price index.

Source: ABA based on “Statistical Bulletin�, Central Bank and INDEC.

37

ANNUAL REPORT 2004 Statistical Appendix

TABLE 15: Number of Institutions End of:

December December December December December December December December December December December December December December December December December September December December December

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2002 2003 2004

Public Banks

Private Banks

Non-Banking Financial Institutions

Total Financial System

37 37 36 36 36 36 35 36 34 33 31 24 19 16 16 14 13 16 16 15 14

161 154 142 139 141 134 134 131 133 135 96 96 95 86 76 75 72 62 62 60 59

117 105 89 69 59 51 50 44 39 37 30 26 25 23 24 24 22 21 21 21 18

315 296 267 244 236 221 219 211 206 205 157 146 139 125 116 113 107 99 99 96 91

Source: ABA based on Central Bank´s data.

38

ANNUAL REPORT 2004 Statistical Appendix TABLE 16: Employees Period

Public Banks

Private Banks

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 (1)

79,714 78,973 78,346 79,409 80,710 81,200 80,380 80,581 81,680 82,666 75,710 67,706 58,984 56,169 56,127 53,483 48,434 40,696 40,041 40,042 39,986 38,302 44,289 40,903 41,295

66,426 63,106 62,543 65,496 67,877 63,788 60,741 57,880 61,171 64,365 57,876 54,375 58,464 62,660 65,126 56,331 57,384 62,557 63,571 61,976 60,597 57,971 60,318 40,928 41,507

Total

146,140 142,079 140,889 144,905 148,587 144,988 141,121 138,461 142,851 147,031 133,586 122,081 117,448 118,829 121,253 109,814 105,818 103,253 103,612 102,018 100,583 96,273 104,607 81,831 82,802

(1) It corresponds to September.

Source: ABA based on Central Bank´s data.

39

ANNUAL REPORT 2004 Statistical Appendix TABLE 17: Number of Accounts Period

Time Deposits

Savings Accounts

Current Accounts

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

December December December December December December December December December December December

914,703 821,084 786,613 1,064,878 1,176,916 1,318,297 1,304,517 1,521,687 1,643,408 1,848,985 1,928,096

4,590,900 5,550,187 4,530,047 4,191,733 4,861,662 5,931,610 6,059,221 6,712,506 8,742,034 12,084,360 13,196,919

1,567,078 1,507,362 1,536,493 1,755,346 1,744,156 1,861,979 1,703,932 1,881,238 2,286,945 2,908,606 3,221,887

2000

January February March April May June July August September December

1,987,476 2,045,397 2,085,972 2,072,864 2,104,440 2,096,682 2,120,157 2,078,196 2,185,508 2,080,318

13,279,593 13,402,482 13,560,055 13,375,758 13,297,456 13,457,859 13,687,007 13,834,316 13,869,520 13,790,783

3,123,083 3,144,236 2,985,086 2,993,834 3,006,814 3,036,235 3,055,902 3,079,223 3,093,634 3,204,233

2001

March June September December

2,152,510 2,160,467 2,067,024 1,593,350

14,337,212 13,979,224 14,918,087 17,764,496

3,214,171 3,363,541 2,977,100 3,260,707

2002

December

1,256,816

11,329,351

2,638,476

2003

March June September December

833,051 954,878 954,359 937,550

10,519,489 10,299,398 9,473,421 9,359,490

2,615,374 2,526,378 2,607,634 2,316,773

2004

March June September

921,478 885,881 877,320

9,251,986 9,238,629 9,363,388

2,541,736 2,426,956 2,413,480

Source: ABA based on "Financial System Indicators", "Statistical Bulletin" and "Information on Financial Institutions", Central Bank.

40

ANNUAL REPORT 2004 Statistical Appendix

TABLE 18: Number of Branches (1) End of:

December December December December December June December December December December December December December December December December December

1987 1988 1989 1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Public Banks

Private Banks

NonBanking Financial Institutions

Total Financial System

2,005 2,026 2,039 1,970 1,905 1,776 1,710 1,621 1,455 1,461 1,391 1,358 1,377 1,391 1,733 1,737 1,608

2,553 2,597 2,622 2,471 2,345 2,481 2,535 2,397 2,563 2,659 2,946 2,967 2,862 2,809 2,155 2,080 2,161

227 160 107 87 75 60 59 51 45 45 42 56 63 73 58 59 53

4,785 4,783 4,768 4,528 4,325 4,317 4,304 4,069 4,063 4,165 4,379 4,381 4,302 4,273 3,946 3,876 3,822

(1) Including head offices.

Source: ABA based on Central Bank´s data.

41

ANNUAL REPORT 2004 Statistical Appendix

TABLE 19: Branches Geographical Distribution (1) As of December 31, 2004 Provinces

Public Banks

Private Banks

Total Banking System

NonBanking Financial Institutions

Total Financial System

Capital Federal Provinces Buenos Aires Catamarca Córdoba Corrientes Chaco Chubut Entre Ríos Formosa Jujuy La Pampa La Rioja Mendoza Misiones Neuquén Río Negro Salta San Juan San Luis Santa Cruz Santa Fe Santiago del Estero Tierra del Fuego Tucumán

163 1,445 527 14 256 40 45 48 84 5 5 95 12 35 18 30 20 8 6 6 11 157 8 5 10

594 1,567 633 6 128 15 14 26 29 12 21 11 12 93 40 20 36 39 25 29 26 259 31 10 52

757 3,012 1,160 20 384 55 59 74 113 17 26 106 24 128 58 50 56 47 31 35 37 416 39 15 62

13 40 20 0 3 0 1 0 1 0 1 0 0 4 1 0 0 2 2 2 0 3 0 0 0

770 3,052 1,180 20 387 55 60 74 114 17 27 106 24 132 59 50 56 49 33 37 37 419 39 15 62

Total

1,608

2,161

3,769

53

3,822

(1) Including head offices.

Source: ABA based on “Information on Financial Institutions”, Central Bank.

42

ANNUAL REPORT 2004 Statistical Appendix

TABLE 20: ATM´s Geographical Distribution As of December 31, 2004 Provinces

Public Banks

Private Banks

Total Banking System

NonBanking Financial Institutions

Capital Federal Provinces Buenos Aires Catamarca Córdoba Corrientes Chaco Chubut Entre Ríos Formosa Jujuy La Pampa La Rioja Mendoza Misiones Neuquén Río Negro Salta San Juan San Luis Santa Cruz Santa Fe Santiago del Estero Tierra del Fuego Tucumán

361 2,083 1,090 35 238 52 44 36 96 5 5 41 7 52 15 82 23 13 9 7 13 170 7 30 13

1,283 2,998 1,410 10 216 25 19 45 43 35 73 12 19 164 68 40 74 71 63 45 40 364 41 13 108

1,644 5,081 2,500 45 454 77 63 81 139 40 78 53 26 216 83 122 97 84 72 52 53 534 48 43 121

3 20 3 0 0 1 0 0 0 0 1 0 0 0 0 0 0 15 0 0 0 0 0 0 0

1,647 5,101 2,503 45 454 78 63 81 139 40 79 53 26 216 83 122 97 99 72 52 53 534 48 43 121

Total

2,444

4,281

6,725

23

6,748

Total Financial System

Source: ABA based on “Information on Financial Institutions”, Central Bank.

43

ANNUAL REPORT 2004 Statistical Appendix

TABLE 21: Assets and Liabilities Structure December 2001

December 2002

December 2003

In Millions of Pesos

%

In Millions of Pesos

%

In Millions of Pesos

123,981

100.0

187,542

100.0

Cash and due from banks

9,865

8.0

15,914

8.5

25,894

Public bonds

6,337

5.1

31,750

16.9

70,176

56.6

72,840

51,994

41.9

2,617

Public sector Provisions

Item

In Millions of Pesos

%

210,183

100.0

13.9

27,019

12.9

45,259

24.2

55,334

26.3

38.8

58,668

31.4

66,511

31.6

38,470

20.5

33,398

17.9

41,111

19.6

2.1

1,985

1.1

1,417

0.8

1,697

0.8

22,689

18.3

44,337

23.6

33,228

17.8

31,158

14.8

-7,125

-5.7

-11,952

-6.4

-9,374

-5.0

-7,455

-3.5

22,996

18.5

40,313

21.5

28,712

15.4

33,611

16.0

3,740

3.0

6,915

3.7

6,461

3.5

6,238

3.0

10,868

8.8

19,812

10.6

21,879

11.7

21,470

10.2

107,698

86.9

161,451

86.1

164,923

88.3

187,693

89.3

66,447

53.6

75,001

40.0

94,635

50.6

116,720

55.5

61,768

49.8

66,215

35.3

77,862

41.7

84,223

40.1

352

0.3

289

0.2

677

0.4

669

0.3

Public sector

4,327

3.5

8,497

4.5

16,097

8.6

31,828

15.1

Other obligations through financial intermediation

36,458

29.4

75,742

40.4

61,691

33.0

64,309

30.6

4,792

3.9

10,709

5.7

8,597

4.6

6,664

3.2

16,283

13.1

26,091

13.9

21,950

11.7

22,489

10.7

Assets

Loans Non-financial private sector Financial sector

Other obligations through financial intermediation Fixed assets Others Liabilities Deposits Non-financial private sector Financial sector

Others Stockholder´s Equity

%

December 2004

186,873 100.0

Source: ABA based on “Information on Financial Institutions”, Central Bank.

44

ANNUAL REPORT 2004 Statistical Appendix

TABLE 22: Terms for Assets and Liabilities

As of December 31, 2004 (in millions of Pesos) Liabilities

1 3 6 12 24 More Total Month Months Months Months Months than 24 Months

Deposits

93,700 13,365

3,529

2,488

175

Other Financial Intermediation Obligations

16,122

773

1,014

3,032

3,997

28,892

53,830

2,798

276

543

1,611

2,675

19,569

27,472

82

69

29

51

89

407

726

266

25

27

742

626

6,361

8,047

Financ. Received by Local Financial Institutions

6,856

328

166

546

432

1,734

10,063

Others

6,119

75

249

83

175

820

7,522

11

73

55

13

75

1,188

1,415

109,832

14,211

4,598

5,533

4,247

Central Bank International Banks and Institutions Unsubordinated Notes

Subordinated Notes Total Financing per Sector

Due 1 3 6 12 24 Portfolio Month Months Months Months Months

3,463 116,720

33,543 171,964 More Total than 24 Months

Non-financial Public Sector

662

3,499

758

463

1,854

2,610

22,074

31,921

Financial Sector

160

2,459

177

67

121

288

452

3,723

Non-financial Private Sector and Foreign Residents

11,210

15,240

4,613

4,536

4,443

4,928

15,697

60,668

Total

12,033

21,198

5,549

5,066

6,418

7,826

38,223

96,312

Source: ABA based on “Information on Financial Institutions�, Central Bank.

45

ANNUAL REPORT 2004 Statistical Appendix

TABLE 23: Terms for Assets and Liabilities

As of December 31, 2004 (as a percentage of liabilities) Liabilities

1 3 6 12 24 More Total Month Months Months Months Months than 24 Months

Deposits

54.5

7.8

2.1

1.4

0.1

2.0

67.9

9.4

0.4

0.6

1.8

2.3

16.8

31.3

Central Bank

1.6

0.2

0.3

0.9

1.6

11.4

16.0

International Banks and Institutions

0.0

0.0

0.0

0.0

0.1

0.2

0.4

Unsubordinated Notes

0.2

0.0

0.0

0.4

0.4

3.7

4.7

Financ. Received by Local Financial Institutions

4.0

0.2

0.1

0.3

0.3

1.0

5.9

Others

3.6

0.0

0.1

0.0

0.1

0.5

4.4

0.0

0.0

0.0

0.0

0.0

0.7

0.8

63.9

8.3

2.7

3.2

2.5

19.5

100.0

Other Financial Intermediation Obligations

Subordinated Notes Total Financing per Sector

Due 1 3 6 Portfolio Month Months Months

12 Months

24 Months

More Total than 24 Months

Non-financial Public Sector

0.4

2.0

0.4

0.3

1.1

1.5

12.8

18.6

Financial Sector

0.1

1.4

0.1

0.0

0.1

0.2

0.3

2.2

Non-financial Private Sector and Foreign Residents

6.5

8.9

2.7

2.6

2.6

2.9

9.1

35.3

Total

7.0

12.3

3.2

2.9

3.7

4.6

22.2

56.0

Source: ABA based on “Information on Financial Institutions�, Central Bank.

46

ANNUAL REPORT 2004 Statistical Appendix

TABLE 24: Loans and Deposits

(In millions of Pesos)

Loans Period

Public Banks

Private Banks

Deposits

NonTotal Banking Financial Financial System Institutions

Public Banks

Private Banks

NonBanking Financial Institutions

Total Financial System

1990

December

9,557

4,984

86

14,627

7,462

3,414

60

10,936

1991

December

19,952

11,415

279

31,646

6,793

9,300

223

16,316

1992

December

18,409

21,713

599

40,721

10,547

16,013

451

27,011

1993

December

21,543

25,433

722

47,698

17,324

23,347

490

41,162

1994

December

23,286

32,614

860

56,759

18,562

28,521

588

47,670

1995

December

23,580

31,702

666

55,948

17,730

27,178

324

45,233

1996

December

22,255

38,312

781

61,347

19,789

34,631

371

54,791

1997

December

23,379

45,590

1,022

69,991

24,023

46,169

336

70,527

1998

December

25,153

50,402

1,524

77,080

27,254

50,676

390

78,320

1999

December

22,060

53,732

1,907

77,699

26,946

54,275

352

81,573

2000

December

21,700

52,707

1,745

76,152

28,498

57,679

393

86,570

2001

December

20,388

48,291

1,494

70,173

21,454

44,767

226

66,447

2002

December

28,429

43,958

453

72,840

32,851

41,954

196

75,001

2003

December

17,529

40,647

492

58,668

44,732

49,687

216

94,635

2004

December

19,570

46,075

866

66,511

55,745

60,765

211

116,720

Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and “Information on Financial Institutions�, Central Bank.

47

ANNUAL REPORT 2004 Statistical Appendix

TABLE 25: Loans and Deposits (As a percentage)

Loans Period

Public Banks

Private Banks

Deposits

NonTotal Banking Financial Financial System Institutions

Public Banks

Private Banks

NonBanking Financial Institutions

Total Financial System

1990

December

65.3

34.1

0.6

100.0

68.2

31.2

0.5

100.0

1991

December

63.0

36.1

0.9

100.0

41.6

57.0

1.4

100.0

1992

December

45.2

53.3

1.5

100.0

39.0

59.3

1.7

100.0

1993

December

45.2

53.3

1.5

100.0

42.1

56.7

1.2

100.0

1994

December

41.0

57.5

1.5

100.0

38.9

59.8

1.2

100.0

1995

December

42.1

56.7

1.2

100.0

39.2

60.1

0.7

100.0

1996

December

36.3

62.5

1.3

100.0

36.1

63.2

0.7

100.0

1997

December

33.4

65.1

1.5

100.0

34.1

65.5

0.5

100.0

1998

December

32.6

65.4

2.0

100.0

34.8

64.7

0.5

100.0

1999

December

28.4

69.2

2.5

100.0

33.0

66.5

0.4

100.0

2000

December

28.5

69.2

2.3

100.0

32.9

66.6

0.5

100.0

2001

December

29.1

68.8

2.1

100.0

32.3

67.4

0.3

100.0

2002

December

39.0

60.3

0.6

100.0

43.8

55.9

0.3

100.0

2003

December

29.9

69.3

0.8

100.0

47.3

52.5

0.2

100.0

2004

December

29.4

69.3

1.3

100.0

47.8

52.1

0.2

100.0

Source: ABA based on "Statements of Financial Institutions", "Financial Statements of Financial Institutions" and “Information on Financial Institutions�, Central Bank.

48

ANNUAL REPORT 2004 Statistical Appendix TABLE 26: Information by Group of Institutions As of October 2004 (in millions of Pesos) Group

Assets

Stockholders´ Equity

Loans to Deposits to Private Private Sector (1) Sector

Public Federal Banks

52,143

3,956

4,617

15,578

Public Provincial and Municipal

37,527

2,506

4,333

14,165

Public Banks

89,670

6,462

8,950

29,743

International Banks

60,489

6,287

12,694

32,724

Local Private

54,378

7,244

8,763

14,628

Cooperatives

4,326

514

787

3,129

Private Banks

119,193

14,045

22,244

50,482

Banks Total

208,864

20,507

31,194

80,225

1,696

1,022

702

189

210,559

21,529

31,895

80,414

Non-Banking Financial Institutions Total Financial System

(1) Net of provisions.

Source: ABA based on "Information on Financial Institutions", Central Bank.

49

ANNUAL REPORT 2004 Statistical Appendix TABLE 27: Information by Group of Institutions As of October 2004 (as a percentage) Group

Assets

Stockholders´ Equity

Loans to Private Sector (1)

Deposits to Private Sector

Public Federal Banks

24.8

18.4

14.5

19.4

Public Provincial and Municipal

17.8

11.6

13.6

17.6

Public Banks

42.6

30.0

28.1

37.0

International Banks

28.7

29.2

39.8

40.7

Local Private

25.8

33.6

27.5

18.2

Cooperatives

2.1

2.4

2.5

3.9

Private Banks

56.6

65.2

69.7

62.8

Banks Total

99.2

95.3

97.8

99.8

0.8

4.7

2.2

0.2

100.0

100.0

100.0

100.0

Non-Banking Financial Institutions Total Financial System

(1) Net of provisions.

Source: ABA based on "Information on Financial Institutions", Central Bank.

50

ANNUAL REPORT 2004 Statistical Appendix TABLE 28: Concentration of Deposits (As a percentage) End of:

Top 5

Top 10

Top 15

Top 20

Others

Number of Banks

1988

December

37.11

50.72

…

65.34

34.66

175

1989

December

35.96

49.76

…

67.46

32.54

176

1990

December

36.17

49.39

…

65.63

34.37

170

1991

December

35.63

49.78

…

67.68

32.32

166

1992

December

34.96

48.62

…

66.25

33.75

167

1993

December

38.68

51.69

60.56

66.77

33.23

167

1994

December

36.85

50.18

58.73

65.14

34.86

168

1995

December

42.61

58.21

68.13

74.34

25.66

127

1996

December

42.33

58.40

68.76

75.25

24.75

120

1997

December

45.18

61.62

71.43

78.30

21.70

113

1998

December

48.91

70.51

79.54

84.46

15.54

104

1999

December

50.26

71.74

80.37

85.87

14.13

92

2000

December

52.33

73.18

82.77

88.55

11.45

89

2001

December

49.92

73.42

83.66

89.51

10.49

85

2002

December

54.16

77.04

85.31

90.25

9.75

78

2003

December

55.65

75.49

85.17

90.31

9.69

75

2004

December

55.16

73.72

85.02

89.99

10.01

74

Source: ABA based on “Statements of Financial Institutions”, “Financial Statements of Financial Institutions” and “Information on Financial Institutions”, Central Bank.

51

ANNUAL REPORT 2004 Statistical Appendix

TABLE 29: Concentration of Assets (As a percentage) End of:

Top 5

Top 10

Top 15

Top 20

Others

Number of Banks

1993

December

38.19

51.28

59.73

65.71

34.29

167

1994

December

36.43

50.57

58.83

64.89

35.11

168

1995

December

39.88

55.18

64.00

69.29

30.71

127

1996

December

38.71

55.67

66.37

72.38

27.62

120

1997

December

40.89

57.73

67.64

74.05

25.95

113

1998

December

42.82

64.03

73.56

80.03

19.97

104

1999

December

45.64

68.20

77.44

83.23

16.77

92

2000 December

45.63

69.35

79.00

85.09

14.91

89

2001

December

48.71

70.90

80.97

87.01

12.99

85

2002 December

57.16

77.72

86.10

90.38

9.62

78

2003 December

57.85

76.89

85.12

89.90

10.10

75

2004 December

55.64

73.44

83.75

88.96

11.04

74

Source: ABA based on “Statements of Financial Institutions”, “Financial Statements of Financial Institutions” and “Information on Financial Institutions”, Central Bank.

52

ANNUAL REPORT 2004 Statistical Appendix TABLE 30: Tranches of Deposits As of December 31, 2004 Tranches From

Individuals To

Number

Amount

Legal Persons Number

Total

300 500 1,000 2,500 5,000 10,000 25,000 50,000 100,000 250,000 500,000 1,000,000 2,500,000 5,000,000 10,000,000 25,000,000 50,000,000 100,000,000

Number

Amount In Millions of Pesos

In Millions of Pesos

In Millions of Pesos 0 301 501 1,001 2,501 5,001 10,001 25,001 50,001 100,001 250,001 500,001 1,000,001 2,500,001 5,000,001 10,000,001 25,000,001 50,000,001 100,000,001

Amount

Total

9,292,920 821,468 1,103,227 1,280,722 675,136 466,653 408,954 179,174 80,227 31,482 5,826 1,834 737 250 179 65 23 6 1

593 566 974 2,505 2,685 3,807 6,745 6,722 5,584 4,504 1,991 1,209 1,061 726 1,552 981 1,100 1,294 127

625,328 229,810 187,474 168,019 69,558 56,305 60,720 38,000 26,404 21,272 8,653 5,377 3,503 1,257 783 468 173 57 53

1,082 237 328 959 571 739 1,311 1,691 2,841 3,949 4,420 4,404 5,902 5,466 6,026 7,959 6,867 5,120 12,118

9,918,248 1,051,278 1,290,701 1,448,741 744,694 522,958 469,674 217,174 106,631 52,754 14,479 7,211 4,240 1,507 962 533 196 63 54

1,675 804 1,302 3,464 3,256 4,547 8,056 8,413 8,425 8,454 6,411 5,613 6,964 6,193 7,578 8,941 7,966 6,414 12,245

14,348,884

44,727

1,503,214

71,992

15,852,098

116,720

Source: ABA based on “Information on Financial Institutions”, Central Bank.

53

ANNUAL REPORT 2004 Statistical Appendix

TABLE 31: Loans by Type December 2001 Type of Loan

December 2002

Millions of Pesos

%

Millions of Pesos

22,689

32.3

44,337

Financial Sector

2,617

3.7

Non-financial Private Sector (1)

51,994

Overdraft

December 2004

Millions of Pesos

%

Millions of Pesos

60.9

33,228

56.6

31,158

46.8

1,985

2.7

1,417

2.4

1,697

2.6

74.1

38,470

52.8

33,398

56.9

41,111

61.8

6,410

9.1

4,535

6.2

4,427

7.5

5,907

8.9

Promisory Notes

11,221

16.0

7,268

10.0

6,150

10.5

8,246

12.4

Mortgage Loans

16,037

22.9

11,411

15.7

9,337

15.9

8,845

13.3

3,666

5.2

1,953

2.7

1,307

2.2

1,687

2.5

Non-financial Public Sector

Pledge Loans

%

December 2003

%

Consumer Loans

4,530

6.5

2,410

3.3

2,335

4.0

4,083

6.1

Others

8,679

12.4

7,856

10.8

7,421

12.6

10,169

15.3

Interest and difference of receivable accrued quotes

1,451

2.1

3,038

4.2

2,421

4.1

2,174

3.3

Provisions

-7,128

-10.2

-11,952

-16.4

-9,374

-16.0

-7,455

-11.2

Total

70,173

100.0

72,840

100.0

58,668

100.0

66,511

100.0

(1) It includes loans to foreign residents.

Source: ABA based on "Information on Financial Institutions", Central Bank.

54

ANNUAL REPORT 2004 Statistical Appendix

TABLE 32: Financing by Activity

As a percentage Economic Activity

Primary Production

1990

1991 1992

1993 1994

1995 1996

9.0 11.1 12.6 12.4 10.8 10.3

9.2

1997 1998 1999 2000 2001 2002

9.1

9.1

8.1

2003 2004

8.9

8.2

5.7

6.6

7.7

Manufacturing Industry 23.9 20.8 20.6 19.5 18.0 18.5 19.4 18.1 16.5 14.6 11.5

9.3

7.7

8.8 12.4

Electricity, gas and water

7.4

3.0

1.3

2.5

2.0

2.1

2.1

2.0

2.2

1.8

1.6

1.5

2.2

1.2

1.1

Construction

5.9

6.4

5.1

4.2

4.2

4.3

4.1

3.5

3.6

3.7

3.5

3.0

2.5

2.2

2.4

Commerce

6.6 11.4 15.1 17.0 15.7 13.9 12.3 11.6 10.5

9.8

8.7

6.3

4.3

4.5

5.2

Services

23.3 21.5 20.1 21.5 23.6 25.0 26.8 27.1 26.5 28.0 37.7 42.2 54.6 52.0 46.6

Individual Employees

21.7 22.6 20.7 18.1 20.2 20.2 21.7 23.9 24.9 28.3 24.8 24.1 16.6 16.4 17.0

Non-identified Total

2.2

3.2

4.5

4.8

5.5

5.7

4.5

4.7

6.8

5.7

3.2

5.4

6.4

8.2

7.6

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Source: ABA based on "Statistical Bulletin", Central Bank.

55

ANNUAL REPORT 2004 Statistical Appendix

TABLE 33: Non-Performing Loans by Activity

As a percentage on total financing of each activity Economic Activity

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Primary Production

27.0

24.4 23.4

22.1

30.5

33.0

24.6

21.7

17.4

23.4

27.2

30.6

50.2

42.2

23.1

Manufacturing Industry

23.1

17.7 18.4

21.1

23.7

21.4

15.9

14.7

14.6

15.7

20.7

29.0

48.3

41.8

20.5

Electricity, gas and water

3.3

7.4

3.3

4.1

1.3

1.8

0.8

1.2

1.3

2.1

2.7

59.1

69.8

53.0

Construction

13.6

10.7 13.4

16.5

19.7

23.8

15.9

14.0

11.5

12.1

22.3

24.9

58.0

75.0

55.2

Commerce

19.7

18.1 16.8

18.0

23.9

31.9

25.5

22.8

20.0

22.4

28.1

30.1

49.7

45.1

28.8

Services

17.8

26.9 16.2

13.1

10.0

10.8

6.9

6.2

4.7

4.7

6.9

10.3

11.6

8.6

5.2

7.2

9.1

12.5

29.9

22.7

15.0

14.7

15.0

21.8

25.8

37.8

24.5

18.7

Non-identified 45.9

26.6 15.8

17.5

17.6

21.4

20.5

18.4

11.2

18.3

25.3

30.8

39.5

41.8

26.2

Total

19.4

15.8

18.0

22.7

16.8

13.9

12.1

13.4

16.9

20.1

26.6

23.0

15.3

Individual Employees

2.8

16.0

62.8

7.6

15.5

Source: ABA based on "Statistical Bulletin", Central Bank.

56

ANNUAL REPORT 2004 Statistical Appendix

TABLE 34: Financing by Tranches As of December 31, 2004 Tranches From

To

Individual

Legal Persons

Individual

Legal Persons

Number Amount

Number Amount

Number Amount

Number Amount

In Millions of Pesos

In Millions of Pesos

%

%

%

%

0 300 301 500 501 1,000 1,001 2,500 2,501 5,000 5,001 10,000 10,001 25,000 25,001 50,000 50,001 100,000 100,001 200,000 200,001 500,000 500,001 1,000,000 1,000,001 2,500,000 2,500,001 5,000,000 5,000,001 10,000,000 10,000,001 25,000,000 25,000,001 50,000,000 50,000,001 100,000,000 100,000,001

803,582 420,179 771,374 1,123,453 680,421 437,389 317,073 138,129 53,308 14,367 4,277 584 127 29 6 1 ... ... ...

154.7 188.2 607.2 1,881.2 2,452.0 3,086.9 5,003.8 4,819.5 3,562.5 1,922.9 1,216.3 383.0 183.6 92.4 40.8 11.7 ... ... ...

16,870 2,177 3,584 6,306 6,120 7,265 10,891 8,630 8,074 6,859 5,908 2,379 1,706 707 401 309 117 83 70

2.3 1.0 2.8 10.8 22.8 53.2 179.1 311.2 578.0 974.4 1,837.0 1,667.2 2,637.4 2,453.3 2,761.1 4,836.1 3,965.2 5,815.7 42,596.9

16.9 8.8 16.2 23.6 14.3 9.2 6.7 2.9 1.1 0.3 0.1 0.0 0.0 0.0 0.0 0.0 ... ... ...

0.6 0.7 2.4 7.3 9.6 12.1 19.5 18.8 13.9 7.5 4.8 1.5 0.7 0.4 0.2 0.0 ... ... ...

19.1 2.5 4.1 7.1 6.9 8.2 12.3 9.8 9.1 7.8 6.7 2.7 1.9 0.8 0.5 0.3 0.1 0.1 0.1

0.0 0.0 0.0 0.0 0.0 0.1 0.3 0.4 0.8 1.4 2.6 2.4 3.7 3.5 3.9 6.8 5.6 8.2 60.2

Total

4.764.299

25,606.8

88,456

70,705.5

100.0

100.0

100.0

100.0

Source: ABA based on "Information on Financial Institutions", Central Bank.

57

ANNUAL REPORT 2004 Statistical Appendix TABLE 35: Financing by Tranche and Situation As of December 31, 2004 (as a percentage) Tranches

From

To

0 301 501 1,001 2,501 5,001 10,001 25,001 50,001 100,001 200,001 500,001 1,000,001 2,500,001 5,000,001 10,000,001 25,000,001 50,000,001 100,000,001

300 500 1,000 2,500 5,000 10,000 25,000 50,000 100,000 200,000 500,000 1,000,000 2,500,000 5,000,000 10,000,000 25,000,000 50,000,000 100,000,000

Total

Performing

Non-Performing

Non-collectible

(1)

(2)

(3)

Number Debt of Amount Debtors

Number of Debtors

Debt Amount

Number of Debtors

Debt Amount

80.6 78.7 77.5 78.0 75.2 67.3 60.0 63.7 59.0 53.8 54.1 62.9 69.5 74.2 73.2 79.0 77.6 85.5 98.0

80.2 78.7 77.6 78.0 75.1 67.0 60.3 63.8 58.4 53.5 54.9 63.3 69.8 74.0 73.4 79.3 77.6 86.4 99.5

2.8 2.5 2.6 2.5 2.1 1.9 2.3 2.6 2.3 2.6 5.1 6.4 6.9 8.3 12.0 11.9 15.4 5.3 2.0

2.7 2.5 2.6 2.5 2.0 1.9 2.4 2.6 2.3 2.7 5.2 6.5 6.9 8.6 12.2 12.2 15.1 4.7 0.5

16.7 18.8 20.0 19.5 22.7 30.8 37.6 33.7 38.7 43.6 40.8 30.7 23.6 17.6 14.7 9.1 7.0 9.2 ...

17.2 18.8 19.8 19.6 22.9 31.1 37.3 33.6 39.4 43.9 39.9 30.2 23.2 17.4 14.4 8.5 7.4 8.9 ...

75.9

80.7

2.5

4.2

21.7

15.1

(1) Including situations 1 and 2.

(2) Including situations 3 and 4.

(3) Including situations 5 and 6.

Source: ABA based on "Information on Financial Institutions", Central Bank.

58

ANNUAL REPORT 2004 Statistical Appendix

TABLE 36: Concentration of Credit Assistance As of December 31, 2004 Number of Institutions

Individual

Legal Persons

Individual

Legal Persons

Number Amount

Number Amount

Number Amount

Number Amount

In Millions of Pesos

In Millions of Pesos

%

%

%

%

1 2 3 4 5 or more

3,560,983 12,859.2 921,857 8,012.8 218,290 3,126.6 48,573 1,059.6 14,596 548.4

67,735 13,139 4,127 1,599 1,856

10,918.6 8,123.7 5,474.3 3,172.1 43,016.9

74.7 19.3 4.6 1.0 0.3

50.2 31.3 12.2 4.1 2.1

76.6 14.9 4.7 1.8 2.1

15.4 11.5 7.7 4.5 60.8

Total

4,764,299 25,606.8

88,456 70,705.5

100.0

100.0

100.0

100.0

Source: ABA based on "Information on Financial Institutions", Central Bank.

59

ANNUAL REPORT 2004 Statistical Appendix

TABLE 37: Income Statement - Financial System

(As a percentage of net assets)

Financial Margin Interest income CER and CVS return Assets return Differences in valuation Other financial income Net Income on services Non-collectibility expenses Operating expenses Tax burdens Income tax Adjustments on Public Loans valuation ( 1 ) Judicial Injunctions Amortization Miscellaneous Monetary adjustment ROA before income tax ROA before monetary adjustment ROA ROA adjusted ( 2 ) Ratios - % ROE (Financial Margin + Net Non-interest income) / Operating Expenses Interest Income (CER/CVS adjustment included) / Loans Interest Expenses (CER/CVS adjustment included) / Deposits

1999

2000

2001

2002

2003

2004

5.6

5.7

5.7

6.6

1.1

3.1

4.3 0.0 0.9 0.2 0.2 2.9 -2.1 -5.9 -0.4 -0.3 0.0 0.0 0.5 0.0

4.0 0.0 1.2 0.1 0.4 2.8 -2.4 -5.8 -0.4 -0.3 0.0 0.0 0.4 0.0

3.8 0.0 1.2 0.2 0.5 3.0 -2.6 -6.1 -0.5 -0.2 0.0 0.0 0.6 0.0

-1.7 3.9 1.7 2.8 -0.1 1.9 -4.7 -4.4 -0.3 -0.2 0.0 0.0 -1.8 -5.8

-0.5 1.3 1.1 -0.5 -0.3 1.9 -1.1 -4.2 -0.3 -0.2 -0.4 -0.6 0.9 0.0

0.9 1.0 0.9 0.5 -0.2 2.0 -0.7 -4.2 -0.3 -0.1 -0.2 -0.9 0.8 0.0

0.6 0.2 0.2 0.2

0.4 0.0 0.0 0.0

0.2 0.0 0.0 0.0

-8.7 -3.1 -8.9 -8.9

-2.7 -2.9 -2.9 -1.9

-0.2 -0.3 -0.3 0.9

1.7

0.0

-0.2

-59.2

-22.7

-2.5

142.5

147.4

143.3

189.1

69.3

126.6

0.0

13.0

15.2

11.8

13.1

8.7

0.0

5.3

7.3

9.2

5.7

1.7

Note: Interest income and loans correspond to non-financial private sector.

(1) Communication "A" 3911. Valuation adjustments according to Communication "A" 4084 are included in “Assets Return�.

(2) Judicial injunctions amortization and Public Sector revaluation are not included.

Source: "Report on Banks", Central Bank.

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ANNUAL REPORT 2004 Statistical Appendix

TABLE 38: Non-Performing Loans - Financial System

As a percentage

Dec. 1999

Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

11.5

12.9

13.1

18.1

17.7

10.8

14.0

16.0

19.1

38.6

33.5

18.8

Comercial Loans

11.7

13.7

21.4

43.8

38.9

22.1

Comercial up to $ 200 thousands

21.5

22.8

17.3

46.3

28.0

27.9

Consumer and Mortgage

16.6

17.3

17.5

31.4

28.0

11.5

59.6

61.1

66.4

73.8

79.2

100.5

(Provisions - Non-performing loans)/ Total financing

4.7

5.0

4.4

4.7

3.7

-0.1

(Non-performing loans - Provisions)/ Equity

24.7

26.2

21.6

17.2

11.9

-0.2

Non-performing loans Non-performing - Private Sector

Provisions / Non-performing loans

Source: "Report on Banks", Central Bank.

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ANNUAL REPORT 2004 Statistical Appendix

TABLE 39: Income Statement - Private Banks

(As a percentage of net assets)

Financial Margin Interest income CER and CVS return Assets return Differences in valuation Other financial income Net Income on services Non-collectibility expenses Operating expenses Tax burdens Income tax Adjustments on Public Loans valuation ( 1 ) Judicial Injunctions Amortization Miscellaneous Monetary adjustment ROA before income tax ROA before monetary adjustment ROA ROA adjusted ( 2 ) Ratios - % ROE (Financial Margin + Net Non-interest income) / Operating Expenses Interest Income (CER/CVS adjustment included) / Loans Interest Expenses (CER/CVS adjustment included) / Deposits

1999

2000

2001

2002

2003

2004

6.1 4.5 0.0 1.1 0.3 0.3 3.1 -2.2 -6.3 -0.4 -0.5 0.0 0.0 0.5 0.0

6.2 4.1 0.0 1.4 0.2 0.5 2.9 -2.5 -6.0 -0.4 -0.4 0.0 0.0 0.4 0.0

6.4 4.3 0.0 1.2 0.3 0.7 3.2 -3.0 -6.4 -0.5 -0.3 0.0 0.0 0.7 0.0

7.6 -0.2 1.1 2.5 4.4 -0.1 2.0 -5.0 -4.8 -0.4 -0.2 0.0 0.0 -3.0 -7.5

2.3 0.1 0.9 1.7 -0.3 -0.2 2.0 -1.3 -4.6 -0.3 -0.3 -0.6 -0.7 1.0 0.0

3.2 1.0 0.8 0.9 0.7 -0.3 2.4 -0.9 -4.6 -0.3 -0.2 -0.1 -1.0 0.8 0.0

0.8 0.3 0.3 0.3

0.6 0.1 0.1 0.1

0.5 0.2 0.2 0.2

-11.1 -3.8 -11.3 -11.3

-2.2 -2.4 -2.5 -1.2

-0.5 -0.7 -0.7 0.5

2.3

0.8

1.4

-79.0

-19.1

-5.6

146.0

151.9

150.9

199.3

92.6

120.1

0.0

13.9

16.1

24.7

9.0

8.2

0.0

5.7

7.8

21.9

5.8

2.2

Note: Interest income and loans correspond to non-financial private sector.

(1) Communication "A" 3911. Valuation adjustments according to Communication "A" 4084 are included in “Assets Return�

(2) Judicial injunctions amortization and Public Sector revaluation are not included.

Source: "Report on Banks", Central Bank.

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ANNUAL REPORT 2004 Statistical Appendix

TABLE 40: Non-Performing Loans - Private Banks

As a percentage

Dec. 1999

Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

7.6

8.3

9.9

19.8

15.7

8.9

8.9

9.8

14.0

37.4

30.4

15.4

Comercial Loans

6.2

7.6

15.2

44.5

39.9

18.8

Comercial up to $ 200 thousands

11.7

14.6

16.4

46.4

26.8

13.2

Consumer and Mortgage

12.5

11.9

12.4

26.0

17.2

10.0

69.4

67.7

75.7

73.4

79.0

94.0

(Provisions - Non-performing loans)/ Total financing

2.3

2.7

2.4

5.3

3.3

0.5

(Non-performing loans - Provisions)/ Equity

11.5

13.4

11.4

18.6

11.2

1.9

Non-performing loans Non-performing - Private Sector

Provisions / Non-performing loans

Source: "Report on Banks", Central Bank.

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ANNUAL REPORT 2004 Statistical Appendix TABLE 41: Minimum Cash Requirements As a percentage Item 1. Deposits in current accounts.

2. Deposits in savings accounts.

2.1. In Pesos 2.2. In Foreign Currency 3. Custody loans, special accounts for closed savings groups, "Unemployment fund for construction workers", "Payment of compensation", special current accounts for legal persons and pension savings accounts.

3.1. In Pesos 3.2. In Foreign Currency 4. Other demand deposits and obligations, pension payments granted by ANSES outstanding payment and fixed balances corresponding to obligations comprised in these rules.

4.1. In Pesos 4.2. In Foreign Currency 5. Unused balances on account of current accounts overdrafts.

6. Demand deposits -whichever the type of deposit-, which, at least, must constitute the amount of mutual funds (as provided for in the Securities Exchange Commission rules and regulations).

7. Deposits in current accounts made by non-banking financial institutions computable for compliance of their minimum cash requirements.

8. Time deposits, "acceptance" obligations -including liabilities for credit sale or assignment to persons other than financial institutions-, repos, stockrelated collaterals and repos, constant term investments, with advance settlement option or with renewal term for a fixed term and with variable compensation, and other term obligations, except for deposits comprised in items 12 and 15, according to their remaing term*: 8.1. In Pesos: i) Up to 29 days. ii) From 30 to 59 days. iii) From 60 to 89 days. iv) From 90 to 179 days. v) From 180 to 365 days. vi) More than 365 days.

Also included in this item are deposits with "CER" clause and deposits comprised in the "Deposit rescheduling regime" -not excluding those included in item 6.5, in whole or in part, if applicable according to the nature of the Court order-: 8.2. In Foreign Currency: i) Up to 29 days. ii) From 30 to 59 days iii) From 60 to 89 days. iv) From 90 to 179 days. v) From 180 to 365 days. vi) More than 365 days.

9. Obligations under foreign lines of credit (excep those included in items 8 and 10).

January to May

2004 June/July

August to December

20

18

18

20 20

18 20

18 30

20 20

18 20

18 30

20 20 20

18 20 18

18 30 18

80

80

100

100

100

100

18 14 10 5 3 0

18 14 10 5 3 0

18 14 10 5 3 0

18 14 10 5 3 0

18 14 10 5 3 0

35 28 20 10 6 0

0

0

0

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ANNUAL REPORT 2004 Statistical Appendix TABLE 41: Minimum Cash Requirements (cont.)

As a percentage Item 10. Debt securities (including notes). a) Debt issued as of 01.01.02, including debts arising from restructured obligations, according to their remaining term: 10.1. In Pesos: i) Up to 29 days. ii) From 30 to 59 days iii) From 60 to 89 days. iv) From 90 to 179 days. v) From 180 to 365 days. vi) More than 365 days.

10.2. In Foreign Currency: i) Up to 29 days. ii) From 30 to 59 days iii) From 60 to 89 days. iv) From 90 to 179 days. v) From 180 to 365 days. vi) More than 365 days. b) Others.

11. Obligations towards the Trust Fund For Assistance to Financial Institutions and Insurance.

12. Demand an time deposits made under Court order with funds originating in lawsuits, and their fixed balances.

12.1. In Pesos: 12.2. In Foreign Currency: 13. Special accounts in US Dollars intended for deposit of collateral required in future transactions and options carried out in self-regulated markets subject to the control of the National Securities and Exchange Commission.

14. Special demand accounts denominated in foreign currency.

15. Deposits - whichever their instrumentation - of mutual funds, (except those included in item 6): 15.1. In Pesos: 15.2. In Foreign Currency:

January to May

2004 June/July

August to December

18 14 10 5 3 0

18 14 10 5 3 0

18 14 10 5 3 0

18 14 10 5 3 0 0

18 14 10 5 3 0 0

35 28 20 10 60 0 0

0

0

0

10 10

10 10

10 15

100 100

100 100

100 100 25 40

(*) The item "Time deposits in US Dollars that may be settled in Pesos" was eliminated since 5.15.04.

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ANNUAL REPORT 2004 Appendix APPENDIX Principal Measures of Banking, Exchange and Financing Policies

Communication "A" 4103. OPRAC - 1 - 567. (02.19.04) According to Decree 117/04, the Central Bank issued the new ordered text of the regulations applicable to Acts Number 25,713 and 25,796, relating to the application of the Reference Stabilization Ratio (Coeficiente de Estabilizaci贸n de Referencia - CER) and the Salary Variation Ratio (Coeficiente de Variaci贸n Salarial - CVS), thus defining the treatment applicable to foreign currency financing in force on 01.05.02, whose balance to 02.03.02 have been converted into Pesos in accordance to Section 3 of Decree 214/02.

In such respect, we must mention the elimination of the CVS as of 04.01.04 for loans granted to individuals having a mortgage security on their single family dwelling where they have their permanent residence, with an original amount not to exceed US$ 250,000 and for pledges and personal loans originally granted up to the amounts of US$ 30,000 and US$ 12,000, respectively, considering such thresholds, as the case may be, individually per each loan that the same debtor has within each type.

Due to this elimination, such financing shall not be updated and, as regards interest rates, they shall be subject to the following treatment as of 04.01.04: Type of Loan

Maximum original amount -in US$-

Maximum interest rate -as annual nominal %- (*)

Mortgage Pledge Personal

250,000 30,000 12,000

12.38 16.41 25.98

(*) The respective contractual rate in force on 02.02.02 shall be applied provided it is lower.

Communication "A" 4111. CONAU - 1 - 639. (03.10.04) The Central Bank informed financial institutions that they should send to the Central Bank the information regarding their Business and Projection Plan, for whose development a series of macroeconomic assumptions must be taken into account.

In general, projections shall be informed monthly on each of the 12 months following the starting date and semiannually for the following periods, setting February 20 of each year as maturity date for filing of data and taking Dec. 31 of the immediately previous calendar year as starting date.

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ANNUAL REPORT 2004 Appendix

Communication "A" 4114. LISOL - 1 - 412. (03.12.04) The Central Bank set forth the procedure in order that financial institutions be compensated for the asymmetric indexation, by virtue of Act 25,796 and of Annex II of Decree 117/04.

The main terms of this Act are the following:

04.30.04 was set as deadline to opt for the compensation.

The percentage elected for the compensation shall be the same for all lines of credit (including trust portfolios).

The weighted mean rate shall be calculated according to the balance net of provisions.

A similar procedure shall apply for calculation of the mean duration per line.

Delivered bonds shall be given a similar treatment to the rest of the bonds granted in compensation with respect to "Securities holding in investment accounts".

The compensation shall apply as long as the provisions of Section 4 of Annex II to Decree 117/04 are not complied with. This section sets forth the duration of the compensation. In such respect, it has been set forth that each line of credit shall be considered separately in the entire system. Individually, the procedure could conclude before, always on a line by line basis, upon termination of the "theoretical loan" term.

The Communication included the "Letter of adhesion sample" to the compensation.

Communication "A" 4122. LISOL - 1 - 414. (03.26.04) Through this rule, the Central Bank modified the calculation of the compensation to financial institutions due to the effects of asymmetric pesification, set forth in Sections 28 and 29 of Decree 905/02.

In this sense, it has been clarified that any debt capitalization coming from the head office arising from deposits, negotiable obligations (subordinated or not), financing lines of financial institutions in foreign currency, shall not be computed to the effects of determining the hedging bond (capitalized or not), if it has been accounted for on 31.12.01 (as liabilities).

Communication "A" 4124. LISOL - 1 - 415. (04.02.04) The Central Bank extended until 12.31.04 the possibility that the activated amount of differences resulting from compliance with court rulings arising from cases where the rules and regulations currently in force applicable to deposits and to other financial

67

ANNUAL REPORT 2004 Appendix intermediation obligations are challenged, originally agreed upon in foreign currency within the framework of Act 25,561, Decree 214/02 and supplementary provisions, not be computed in order to determine own cash resources and compliance with the maximum limit set forth by rules regarding "Ratio applicable to fixed assets and other items".

Communication "A" 4125. CONAU - 1 - 646. (04.07.04) The Central Bank amended the External Auditors’ Reports, particularly in regard to the scope of the verification of financial institutions’ debtors.

In this sense, it has been provided for that, regarding the information about "Financial System Debtors and Composition of Economic Groups", the external auditor shall give his express opinion about the category assigned to each of the customers, even where there are no discrepancies, in the event of cases comprised and reclassified in the quarter under a report.

Communication "A" 4128. CAMEX - 1 - 481. (04.16.04) The Central Bank increased to US$ 2,000,000.- or its equivalent in other currency, the maximum monthly amount of US Dollars that can be purchased, without need for prior agreement in the event of country residents.

Communication "A" 4129. CAMEX - 1 - 482. (04.16.04) The Central Bank authorized the single free exchange market to repatriate direct investments and non-resident portfolios.

Communication "A" 4130. LISOL - 1 - 416. (04.26.04) The Central Bank clarified that financing cancellations granted by financial institutions in foreign currency, which had been excluded from the transformation to Pesos provided for in Section 6 of Act 25,561 and undertaken in the provisions of Section 3 of Decree 214/02, provided such cancellation has been carried out in Pesos between 01.15.02 and 02.03.02, whichever the exchange rate applied, shall not be computed in order to determine the compensation with BODEN 2007.

Communication "A" 4131. LISOL - 1 - 417. (04.29.04) The Central Bank extended for 15 calendar days, counted as of the time upon which the Ministry of Economy and Production resolves about the consultations made by Bank Associations, the date set forth in Communication "A" 4114 for the filing of the letter of adhesion to the compensation regime provided for by Act 25,796 and by Decree 117/04.

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ANNUAL REPORT 2004 Appendix

Communication "A" 4132. LISOL - 1 - 418, OPRAC - 1 - 568 and OPASI - 2 - 351.

(04.30.04) The Central Bank adapted the rules regulating pledge of assets for operations in selfregulated markets.

In this sense, the Central Bank authorized the creation of security margins of up to 20% of bilateral net holdings per underlying asset, for each settlement date, in futures operations, options and other products arising from financial institutions, carried out in domestic institutionalized markets not grating any performance bond for operations.

Communication "A" 4135. LISOL - 1 - 419 and OPRAC - 1 - 569. (05.05.04) The Central Bank provided for that financial institutions, as of 07.01.04, in addition to complying with the threshold in force to the date of this Circular for the Net Global Position of foreign currency (which shall not exceed 30% of the previous month RPC), shall comply with a new sub-threshold in that holding, relating sight account balance plus assets and liabilities included and realizable or maturing within the following 180 days.

A treatment to the effects of rules regulating credit risk fractioning and credit rating was also set forth for forward operations, related or not to repos.

Communication "A" 4136. LISOL - 1 - 420. (05.06.04) In relation to the CER/CVS compensation for financial institutions, the Central Bank adapted its rules and set forth that financial institutions shall state, until 05.18.04, their adhesion to the compensation regime provided for by Chapter II of Act 25,796, Decree 117/04 (Annex II) and Resolution 302/04 of the Ministry of Economy and Production.

Communication "A" 4138. CONAU - 1 - 650. (05.10.04) Through this circular, the Central Bank provided for the accounting scheme applicable to the recording of forward operations compensated without delivery of the underlying asset.

Communication "A" 4139. CONAU - 1 - 651. (05.13.04) The Central Bank communicated procedural rules to the effects of participating in the compensatory regime provided for by Act 25,796, Decree 117/04, Resolution 302/04 of the Ministry of Economy and Production, and Communication "A" 4114 and supplementary rules.

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ANNUAL REPORT 2004 Appendix Likewise, it set forth that adhering institutions and financial trust trustees, where applicable, shall comply with the information requirement set forth in this Circular.

Communication "A" 4140. LISOL - 1 - 421, OPASI - 2 - 352 and OPRAC - 1 - 570.

(05.14.04) The possibility that time deposits in Dollars and Euros be settled in Pesos was left without effect.

Communication "A" 4141. LISOL - 1 - 422. (05.18.04) By virtue of the adjustment to the risk international rating that a member country of the Organization for Economic Co-operation and Development (OECD) must have ("AA" or higher), rules governing "Minimum capital requirement for financial entities" and "Guarantees" were updated.

Communication "A" 4142. CAMEX - 1 - 483. (05.18.04) Valid as of 05.19.04, the Central Bank allowed access to the exchange market for payment of interest accrued on account of foreign debts, before the date of maturity of the interest quota.

Communication "A" 4155. CONAU - 1 - 657, LISOL - 1 - 425 and OPRAC - 1 572. (06.18.04) The Central Bank informed rules of valuation for debt instruments received by financial institutions within the framework of the Mortgage Refinancing System, provided for by Act 25,798.

In such respect, it was provided for that they shall be valuated according to the provisions of Communications "A" 3911 and "A" 4084 (technical or present value, whichever is lower).

On the other hand, it was admitted that, upon the assignment of loans eligible for the Trust for Mortgage Refinancing, financial institutions release up to 65% of constituted provisions, with regard to such loans, attributable to the capital plus updates thereof.

Communication "A" 4156. REMON - 1 - 786. (06.22.04) The Central Bank amended, effective as of 06.22.04, Communication "A" 4143, relating to money regulation operations and the Central Bank interest in repos markets with application of LEBACs and purchase/sale secondary items of LEBACs and NOBACs.

70

ANNUAL REPORT 2004 Appendix Communication "A" 4163. CONAU - 1 - 660 and OPRAC - 1 - 573. (07.02.04) The Central Bank introduced amendments to the rules governing "Valuation of public assets", the main amendments being as follows: It attenuated the convergence towards the valuation in market Pesos of public assets.

It expressly set forth, for each month, the discount rates to be applied, thus attenuating the convergence since July 2004.

In addition to the reduction that this has represented, it also reduced this rate for some periods. For example, the rate to be applied on December 2005 was reduced from 4.5% to 4%.

Communication "A" 4168. OPRAC - 1 - 574 and LISOL - 1 - 426. (07.15.04) The Central Bank flexibilized application options admitted for the capacity of foreign currency loans.

Thus, it incorporated as applicable destination debt instruments or certificates of interest in financial trusts issued in foreign currency and authorized for public offer by the Securities and Exchange Commission, whose underlying assets are constituted by documents purchased from the trustee, secured by mutual guarantee companies recorded in the Registry authorized at the Central Bank or by provincial funds constituted with like purpose as these companies, admitted by such Institution.

On the other hand, the Central Bank provided for that this type of application of funds shall be weighted at 50% on the minimum capital requirement to determine its risk value.

Communication "A" 4169. RUNOR - 1 - 684. (07.15.04) The Central Bank modified the individual threshold referring to the total sureties granted to each partner of Mutual Guarantee Companies, and it set forth that it shall not exceed 5% (previously 2.5 %) of the risk fund of the grantor company, or $ 500,000.-, whichever is lower.

Communication "A" 4171. CAMCO - 1 - 150. (07.15.04) Communication "A" 3415 was left without effect. Therefore, certificates of fixed term deposits were included as clearable instruments to the effects of the electronic clearing process.

71

ANNUAL REPORT 2004 Appendix Communication "A" 4172. LISOL - 1 - 427. (07.15.04) Amendments were introduced to the rules governing Minimum Capital Requirements. In such respect, it was accepted that the "Variable Rate National Government Bonds in Pesos 2013" that institutions may receive as compensation for the CER/CVS difference, have the same treatment as those delivered under Decree 905/02, temporarily reducing the minimum capital requirement by means of application of the "Alfa 1" ratio.

Likewise, tables setting forth risk indicators were left without effect, as they had been already suspended since 06.01.03.

Communication "A" 4174. CAMCO - 1 - 151. (07.22.04) The Central Bank modified the amount of truncated checks, setting forth that, as of 08.06.04, check depositaries shall retain the checks whenever their amount is less than or equal to $ 2,000.- and transmit the relevant information to the clearing house for electronic clearing.

Likewise, same procedure shall apply as of 01.07.05 with checks with amounts less than or equal to $ 3,000.Communication "A" 4176. CAMEX - 1 - 488. (07.26.04) Effective as of 07.27.04, it was provided for that transactions in Pesos resulting from the settlement of exchange purchase-sale transactions carried out between entities authorized to conduct exchange transactions, shall compulsorily be carried out through current accounts held at the Central Bank or through accounts established at local banks.

It was clarified that the settlement of exchange transactions carried out between entities authorized to make exchange transactions through delivery of bills in Pesos is forbidden.

Communication "A" 4183. CREFI - 2 - 40, LISOL - 1 - 429, OPASI - 2 - 356, OPRAC - 1 - 576, REMON - 1 - 788 and RUNOR - 1 - 686. (08.06.04) The Central Bank regulated Act 25,782, which amended the Financial Entities Act in those aspects related to credit unions.

In such respect, it was set forth that Credit Banks shall be incorporated as credit unions, and that they shall transact at a single place of business and have the authorization of the Central Bank. Transactions for which legal provision is made (assets, liabilities, services) may be exclusively carried out with their partners, which shall subscribe a minimum corporate stock of $ 200.-, and by residents of the district corresponding to the entity’s place of business.

The basic capital requirements were set between $100,000.- and $1,000,000.-, according to the number of inhabitants of the district where the transactions are carried out.

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ANNUAL REPORT 2004 Appendix

Communication "A" 4184. CONAU - 1 - 666. (08.09.04) The Central Bank incorporated to the Monthly Accounting Information Regime a new data requirement referred to as Transparency Information Regime, intended to provide information related, among others, to rates and requirements of the following financial products offered to the market by institutions: current account –individuals-, savings account, credit cards, mortgage loans, personal loans and transfers.

Communication "A" 4187. OPRAC - 1 - 577 and OPASI - 2 - 357. (08.10.04).

The Central Bank regulated Section 20 of Decree 905/02. Said rule set forth the mechanism for cancellation by individuals or companies who are original holders of "National Government Bonds" (Bonos del Gobierno Nacional - BODEN) of loans and that have constituted a mortgage on their single family dwelling as security, and of personal loans, secured or unsecured, effective on 01.05.02 with balance calculated on 02.03.02.

The rule made clear that only those banks that requested advance payments shall be bound to receive these Bonds, up to the amount they have not yet repaid to the Central Bank. Therefore, financial institutions shall give priority to those debtors adhering to this operation between 09.15.04 and 10.15.04, included.

Likewise, the rule provided for that entities may pre-cancel advance payments and rediscounts received by the Central Bank until 04.30.02 with BODEN received from customers who have exercised the option described in the previous paragraph.

Communication "A" 4194. CAMEX - 1 - 491. (08.23.04) Effective as of 10.01.04, included, the Central Bank modified the determination of the maximum threshold of the General Exchange Holding, setting it at 10% of the equivalent in US Dollars of the Computable Equity (Responsabilidad Patrimonial Computable - RPC) at the end of the month immediately prior to the last month for which the maturity date had been effective for its presentation before the Central Bank, according to the rules governing the relevant information regime.

Communications "C" 38,975 and 39,098. (07.21.04 and 08.03.04) The Central Bank communicated that the National Court as to Criminal Matters and Federal Court as to Correctional Matters Number 5, in charge of Dr. Norberto Oyarbide, Secretary Number 10, requested financial institutions, through written communication, in re “NN ON PUBLIC OFFENSE”, to inform amounts collected on account of penalty as set forth by Act 25,730 and the destination given to such amounts, on account of checks rejected until 01.07.04, included.

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ANNUAL REPORT 2004 Appendix

Communication "A" 4206. OPASI - 2 - 358. (09.14.04) The Central Bank reduced from 0.03% to 0.02% the regular contribution that financial institutions must assign to the Deposit Insurance Fund.

This amendment was made effective as of the contribution date and it matured in September 2004.

Press Release 48,094. (11.02.04) The Central Bank communicated that on 11.02.04 the President of the Central Bank, Dr. Martín Redrado, and the four Bank Associations, to wit: Argentine Bankers Association (Asociación de Bancos de la Argentina - ABA), Argentine Capital Private Bankers Association (Asociación de Bancos Privados de Capital Argentino - ADEBA), Public and Private Bankers Association of the Argentine Republic (Asociación de Bancos Públicos y Privados de la República Argentina - ABAPPRA) and Specialized Bankers Association (Asociación de la Banca Especializada - ABE), subscribed the letter of agreement through which the final implementation of the Uniform Federal Compensation (Compensación Federal Uniforme - CFU) was formalized.

In this sense, starting on 01.04.05, retail transfers may be made domestically within a 24hour term, thus modifying the current 48-hour clearing term. Likewise, this new schedule promoted check truncation, that is, the possibility that checks for amounts less than or equal to a given amount be retained by the depositary financial institution, and that only electronic information be sent to the drawee entity in lieu of paper documents.

The current value of $ 2,000 used within the Capital Federal and in Greater Buenos Aires shall be increased to $ 3,000 as of 01.07.05. Additionally, as of 07.22.05, the truncation schedule shall be extended to the entire national territory, and the value shall be increased to $ 5,000.Communication "A" 4234. OPASI - 2 - 360. (11.05.04) In order to generate adequate conditions for the placement of funds in the financial system of both institutional and individual investors, the Central Bank updated indexes that may be used by financial institutions to calculate the yield of Variable Compensation Deposits and Investments (Depósitos e Inversiones con Retribución Variable – DIVAS).

Likewise, the possibility of risk coverage that financial institutions have for these transactions was extended. It is worth mentioning that hedging operations could only be carried out with foreign banks having an international risk rating of "A" or higher but, as of the issuance of Communication "A" 4234, hedging operations may be carried out in institutionalized markets of the country or of OCDE-member countries having an international risk rating of "AA" or higher.

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ANNUAL REPORT 2004 Appendix

Communication "A" 4236. CAMEX - 1 - 499. (11.08.04).

It was provided for that financial institutions may access the exchange market to acquire hedging options of Variable Compensation Deposits and Investments.

Communication "A" 4238. LISOL - 1 - 431. (11.12.04) The Central Bank increased the basic minimum capital requirement from $ 5 million to $ 10 million for those entities already operating on 10.31.95.

Communication "A" 4242. LISOL - 1 - 432. (11.22.04) The Central Bank amended rules governing "Guarantees", effective upon new credit operations:

The term of the following Preferred "A" Guarantees was extended from 6 months to 1 year: 1. Cash guarantees, in the same currency of the loan.

2. Fixed term certificate bonds issued by the same entity, in the same currency as the credit transaction.

3. Sureties/Letters of Credit having an international risk rating of AA or higher (the 6-month term was maintained for those having ratings A or higher).

4. Assignment of rights on tariff and rates collection in public concessions, provided they do not exceed 50% of the projected income.

Hedging margins were extended for the following Preferred "A" Guarantees: 1. National Public Bonds: from 75% to 85%.

2. Mutual Guarantee Companies or provincial funds: from 80% to 100%.

3. Credit Instruments of Big Debtors (Deferred Checks; Credit Invoices; Promissory Notes and Drafts): from 85% to 100%.

Requirements regarding credit instruments discounted were flexibilized assigning liability to the assignor (Deferred Checks; Credit Invoices; Promissory Notes and Drafts) eliminating internal thresholds, provided the total amount of this transaction does not exceed 15% of the entity’s RPC. This threshold may be exceeded, provided it complies with a series of guidelines.

Communication "A" 4243. SINAP - 1 - 2. (11.23.04) The Central Bank modified the check truncation, providing for that, as of 07.22.05, it shall be extended to the entire national territory. In this sense, check depositaries shall

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ANNUAL REPORT 2004 Appendix retain the instruments when they amount to $ 5,000.- or more, and transmit the relevant information to the Clearing Houses for electronic clearance.

Communication "A" 4251. REMON - 1 - 790. (11.29.04) LEBACs adjustable according to CER were incorporated to repos operations with the participation of the Central Bank.

Communication "A" 4253. RUNOR - 1 - 710. (12.02.04) The Central Bank increased the individual threshold of guarantees to be granted to partners having an interest in a Mutual Guarantee Company.

Thus, the total sureties granted to each of the partners shall not exceed the lesser of the following: 5% of the risk fund of the grantor company (corresponding to the last quarterly balance sheet containing an external auditor's report) and $ 1,250,000. Such gap had been set forth through Communication "A" 4169 dated 07.15.04 and the maximum threshold amounted to $ 500,000.Communication "A" 4254. LISOL - 1 - 433. (12.02.04) The Central Bank extended the following temporary provisions: ƒ Until 12.31.05, the possibility that the debtors of the commercial portfolio that, starting on 06.30.02, had executed or may have executed payment agreements resulting from authorized judicial or extrajudicial settlements or private arrangements executed jointly with creditor financial entities, or private arrangements with the financial institution, be reclassified into a regular situation provided they have the prior authorization of the members of the Board of Directors or of an equivalent authority of the lender. ƒ The possibility that, in the event of refinancing of debts agreed upon or that may be agreed upon from 06.30.02 until 12.30.05, corresponding to debtors of the commercial portfolio, where capital reductions are made, the minimum noncollectibility risk requirement be equivalent to the amount resulting from deducting from payable provisions on the debt before refinancing the amount corresponding to the reduction made. The provisioning percentage resulting on the refinanced amount shall determine the level of classification that must be assigned to the debtor. ƒ Until 12.30.05, the possibility that credit assistance implying new reimbursements of funds be higher than 300% of the computable equity of the customer, provided they have the previous approval of the Board of Directors or of an equivalent authority of the lender.

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ANNUAL REPORT 2004 Appendix Until 12.31.05, the exclusion of judicial injunctions (“amparos”) from the Fixed Asset Technical Ratio.

Until 06.30.05, the possibility that assets taken as defense or in payment of credits incorporated to the entity’s equity until 03.31.03 not be computed to the effects of the calculation of the Fixed Asset Technical Ratio.

Communication "A" 4258. OPRAC - 1 - 578. (12.10.04) The Central Bank left without effect the restrictions regarding the increase of financing for entities maintaining financial assistance from the Central Bank to address lack of liquidity situations.

Communication "A" 4264. OPASI - 2 - 361. (12.17.04) The Central Bank admitted, exceptionally, that financial institutions accept fixed-term deposits, whose total or partial compensation consists of delivering the holder or of making available to the holder durable consumable items, subject to the following conditions: a. The holders must be individuals. b. These deposits must be formalized under the modality of "Non-transferable fixed-term certificates of deposit". c. The amount must be equal to or higher than $ 50,000 in Pesos or its equivalent in foreign currency. d. Minimum term: 180 days. e. In the advertisement through which the product is promoted, including the advertisements shown at the bank’s offices, as well as in the documents used to formalize the transaction, it shall be clearly stated that the deposits are not affected by the deposit insurance fund. f. Any advice given to holders about the nature of the compensation for tax purposes must be expressly stated.

Communication "A" 4270. CONAU - 1 - 691 and LISOL - 1 - 434. (12.29.04) The Central Bank communicated amendments referring to the treatment of public sector assets. In this sense, the Central Bank informed about the accounting treatment of "Discount Bonds" and of "Negotiable Instruments related to IGP" to be received in exchange for public bonds (Decree 1735/04).

Communication "A" 4271. OPASI - 2 - 362. (12.30.04) The Central Bank reduced, as of the holding of January 2005, the regular contribution of financial institutions to the Deposit Insurance Fund, from 0.02% to 0.015%.

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Communication "A" 4272. OPASI - 2 - 363. (12.31.04) The Central Bank extended for a year the limitation on the number of endorsements, both in regular and deferred checks.

On the maturity date of such limitation, set forth through Communication "A" 3244, the Central Bank provided that the term would be extended until 12.31.05.

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