Memoria Anual ABA 2006 Ingles

ANNUAL REPORT 2006 List ACTIVE MEMBERS

ABN AMRO Bank N.V. American Express Bank Ltd. S.A. Banco Bradesco Argentina S.A. Banco Cetelem 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. BankBoston N.A. BBVA Banco Francés S.A. BNP Paribas Citibank N.A. Deutsche Bank S.A. GE Compañía Financiera S.A. HSBC Bank Argentina S.A. JP Morgan Chase Bank, National Association (Sucursal Buenos Aires) Standard Bank Argentina S.A. The Bank of Tokyo-Mitsubishi Ufj, Ltd.

ANNUAL REPORT 2006 List

ASSOCIATED MEMBERS

Banco de la Nación Argentina Banco de Chile Banco Latinoamericano de Exportaciones Banco Santander Central Hispano S.A. Bank LEU AG Bayerische Hypo-Und Vereinsbank AG BSI Banca Della Svizzera Italiana Calyon Argentina S.A. Commerzbank AG Coöperatieve Centrale Raiffeisen-Boerenleebank B.A. (Rabobank) Credit Suisse ING Bank N.V. Sanpaolo IMI S.p.A. Société Générale Société Anonyme Standard Chartered Bank The Bank of New York The Bank of Nova Scotia Union Bancaire Privee CBI-TDB Wachovia Bank, N.A.

ANNUAL REPORT 2006 List

BOARD OF DIRECTORS

President:

MARIO VICENS

1st Vicepresident:

BANCO RÍO DE LA PLATA S.A. Enrique Cristofani

2nd Vicepresident:

CITIBANK N.A. Juan J. Bruchou

3rd Vicepresident:

BBVA BANCO FRANCÉS S.A. Jorge Bledel

4th Vicepresident:

BANKBOSTON N.A. Alejandro Ledesma Padilla

Secretary:

HSBC BANK ARGENTINA S.A. Antonio Losada

Pro Secretary:

Vacant Position

Treasurer:

BANCO ITAÚ BUEN AYRE S.A. Rodolfo Corvi

Pro Treasurer:

DEUTSCHE BANK S.A. Luis Caputo

Members:

JP MORGAN CHASE BANK, National Association (Sucursal Buenos Aires) Facundo D. Gómez Minujín BNP PARIBAS Christian Giraudon

Alternate Members:

AMERICAN EXPRESS BANK Ltd. S.A. José María Zas ABN AMRO BANK N.V. José Oscar Fernández THE BANK OF TOKYO-MITSUBISHI UFJ, Ltd. Takashi Fukushima

ANNUAL REPORT 2006 List 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 2006 List

SPECIAL COMMITTEES

FINANCIAL AFFAIRS AND CAPITAL MARKET Coordinating Secretary Gabriel Martino - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Sergio Lew - Banco Río de la Plata S.A. Santiago González Pini - Citibank N.A. LEGAL AFFAIRS Coordinating Secretary Analía Schnaidman - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Fabián Montiel - BBVA Banco Francés S.A. Pablo Antao - Banco Itaú Buen Ayre S.A. BANK AUDITING Coordinating Secretaries Eduardo José Zerega - BBVA Banco Francés S.A. Diego Gagliano - BankBoston N.A. José Luis Estella de Noriega - Banco Río de la Plata S.A. RETAIL BANKING Coordinating Secretary Pío Rueda - Banco Río de la Plata S.A. Alternate Coordinating Secretary Fabián Turturro - BankBoston N.A. INSURANCE BANKING Coordinating Secretary Manuel Germán García Nieto - HSBC Bank Argentina S.A. BASILEA II Coordinating Secretaries To be appointed

ANNUAL REPORT 2006 List TRUST Coordinating Secretary Atilio Serenelli - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Eduardo Rodríguez 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 - HSBC Bank Argentina 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 - HSBC Bank Argentina S.A. Ana María Zorgno - Banco Itaú Buen Ayre S.A. Alternate Coordinating Secretary Diego Esquenazi - HSBC Bank Argentina S.A. TRANSACTIONS Coordinating Secretary Pedro Telwak - Banco Río de la Plata S.A. Alternate Coordinating Secretaries Alicia Echarri - Citibank N.A. Javier Michelesi - BBVA Banco Francés S.A. FOREIGN TRADE TRANSACTIONS Coordinating Secretary Luis Martínez - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Hermine Espiñeira - Deutsche Bank S.A. Miguel Angel Zarlenga - ABN AMRO Bank N.V.

ANNUAL REPORT 2006 List SECURITIES TRANSACTIONS Coordinating Secretary María Rosa Eiras - BankBoston N.A. PREVENTION OF BANK CRIME AND FRAUD Coordinating Secretary Raúl Ernesto Fiori - Banco Río de la Plata S.A. Alternate Coordinating Secretaries Roberto Fernández Latorre - BankBoston N.A. Roberto J. Veltri - Citibank N.A. PREVENTION OF MONEY LAUNDERING Coordinating Secretary Rubén J. Silvarredonda - HSBC Bank Argentina 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. RELATIONS AND COMMUNICATIONS Coordinating Secretary Oscar Correa - Banco Río de la Plata S.A. Alternate Coordinating Secretary Angélica Ocampo - HSBC Bank Argentina S.A. CREDIT RISK Coordinating Secretary Silvia Tobin - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Darío Mangano - HSBC Bank Argentina S.A. Jorge Bertoni - BBVA Banco Francés S.A.

ANNUAL REPORT 2006 List BANK SECURITY Coordinating Secretary Daniel Alí - Banco Itaú Buen Ayre S.A. Alternate Coordinating Secretaries Jorge D. Sande - BBVA Banco Francés S.A. Carlos Morán - HSBC Bank Argentina S.A. TECHNOLOGY, ORGANIZATION AND SYSTEMS Coordinating Secretary Enrique Rubinstein - BankBoston N.A.

ANNUAL REPORT 2006 List INSTITUTIONAL REPRESENTATIVES

NATIONAL CUSTOMS ADMINISTRATION Customs Consulting Board Luis Martínez - HSBC Bank Argentina S.A. (Incumbent) Salvador Ilaria - Deutsche Bank S.A. (Alternate) ARGENTINE SOYA ASSOCIATION (ACSOJA) Pablo Bullrich - Banco Río de la Plata S.A. ARGENTINE BANK MARKETING ASSOCIATION (AMBA) Mario Vicens - ABA President (Member) CENTRAL BANK OF THE ARGENTINE REPUBLIC Interbank Commission for Means of Payment in the Argentine Republic Technical Committee: Incumbent Members Alternate Members Comercial Committee: Incumbent Member Alternate Members Legal Committee: Incumbent Members

Pedro Telwak - Banco Río de la Plata S.A. Javier Aníbal Michelesi - BBVA Banco Francés S.A. Alicia Echarri - Citibank N.A. Juan Carlos Aguilera - BankBoston N.A. Edgardo Bonifacini - BBVA Banco Francés S.A. Julia Langwagen - BankBoston N.A. Jorge Barnfather - Citibank N.A. Analía Schnaidman - HSBC Bank Argentina S.A. Eduardo Ayerra - BankBoston N.A.

Standard Documents Subcommittee: Incumbent Member Pedro Telwak - Banco Río de la Plata S.A. Alternate Members Javier Aníbal Michelesi - BBVA Banco Francés S.A. Alicia Echarri - Citibank N.A. Transactional Electronic Means of Payment Subcommittee: Incumbent Members Renato Otmarich - Banco Río de la Plata S.A. Carlos Bestilleiro - BBVA Banco Francés S.A. Checks Subcommittee: Incumbent Member Alternate Members

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

ANNUAL REPORT 2006 List Direct Debit Subcommittee: Incumbent Member Julia Langwagen - BankBoston N.A. BUENOS AIRES STOCK EXCHANGE Board: Mario Vicens - ABA President SELF-REGULATORY BOARD - BANK PRACTICES CODE María Elena Deligiannis - ABA Technical Manager (Incumbent) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) SOCIAL POLICIES NATIONAL CONSULTING BOARD Mario Vicens - ABA President (Incumbent) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) FELABAN Alternate Governor: Mario Vicens - ABA President ARGENTINE AGROINDUSTRIAL CHAIN FORUM Argentine Bankers Association (ABA) - Member Entity EXPORT.AR FOUNDATION Mario Vicens - ABA President (Member) Small and Medium Sized Companies Board Ramón González Nuñez - BankBoston N.A. Andrea Rupp - ABA Committee’s Coordinator ARGENTINE FEDERAL POLICE FOUNDATION Board of Directors Mario Vicens - ABA President (Member) OTC MARKET 2nd. Vicepresident Treasurer Director Incumbent Directors

Luis Downs - Banco de la Nación Argentina Gabriel Martino - HSBC Bank Argentina S.A. Esteban Benegas Lynch - JP Morgan Chase Bank N.A. (Sucursal Buenos Aires) Sergio Lew - Banco Río de la Plata S.A. Fernando Negri -BankBoston N.A.

ANNUAL REPORT 2006 List Alternate Directors

Alejandro Ledesma - BankBoston N.A. Luis Castresana - Banco Itaú Buen Ayre S.A. Santiago González Pini - Citibank N.A. Alberto Estrada - BBVA Banco Francés S.A.

MERCOSUR Group of Mercosur Bank Associations María Elena Deligiannis - ABA Technical Manager Link to Mercosur Work Subgroup Number 4 "Financial Affairs" Financial System Commission María Elena Deligiannis - ABA Technical Manager Money Laundering and Terrorism Financing Prevention Commission Rubén Silvarredonda - HSBC Bank Argentina S.A. BANKING COLLECTIVE BARGAINING AGREEMENT NEGOTIATING COMMISSION Incumbent Members

Daniel Agudo - BBVA Banco Francés S.A. Sergio Scattolini - BankBoston N.A. María Elena Deligiannis - ABA Technical Manager Julián Arturo de Diego - Labor Counselor

Alternate Members

Alejandro Ortiz Quintero - HSBC Bank Argentina S.A. Diego Sánchez - Citibank N.A.

NATIONAL EXECUTIVE POWER Argentine Trademark Program Mario Vicens - ABA President Rubén Mattone - ABA Communications and Institutional Relations Manager FINANCIAL INFORMATION UNIT Technical Commission for Amendment of Resolution Number 2 Rubén Silvarredonda - HSBC Bank Argentina S.A. Natalia Miranda - ABA Committee´s Coordinator ARGENTINE UNION OF SERVICE ENTITIES - UDES Mario Vicens - ABA President (1st Vicepresident)

ANNUAL REPORT 2006 List AREAS AND PERSONS IN CHARGE

BOARD President Mario Vicens TECHNICAL MANAGEMENT Manager María Elena Deligiannis Committee´s Coordination Natalia Miranda Andrea Rupp INSTITUTIONAL RELATIONS AND COMMUNICATIONS MANAGEMENT Manager Rubén Mattone ADMINISTRATIVE MANAGEMENT Manager José Luis Prado ECONOMIST Damián Wilson

ANNUAL REPORT 2006

PRESIDENT´S LETTER

During the year 2006, the financial system has continued making progress towards its normalization, after the crisis of the years 2001 and 2002. This progress has been both quantitative and qualitative. Regarding the quantitative progress, it is worth mentioning private sector’s bank loans growth and improvement of banks financial soundness as most remarkable aspects. Qualitatively speaking, the continuity of the recovery of the banking business was the most remarkable aspect during 2006.

Private sector bank loans have continued their growing trend during the past year at a pace higher than 40% per year. Credit offer has been fluid in all lines of credit, with longer terms and a continuous improvement of costs, both as a result of the descending trend shown by inflation during most of the year, as well as of resources set free as a consequence of the reduction of the public debt held by banks, and of the strong competence presented by the credit market.

All lines of credit registered a very favorable evolution, including those very much affected by the crisis, as mortgage loans, which used to register net repayments in previous years.

During 2006, mortgage loans granted grew 60% in relation to the previous year, closing the period with a net balance 16% above the balance registered a year earlier.

On the other hand, almost 40% of new loans -not considering revolving lines of credit- were granted with more than one-year terms on interest rates that were practically maintained at the same levels of 2004, even where the cost of financing has been duplicated in relation to that time and bank operative costs have registered a 40% increase during the same period.

Another remarkable aspect is the very positive evolution of the system economic solvency.

The system net equity increased almost 24% during the year, thus allowing the capital-asset ratio to reach almost 17%, a level above the mean registered in developing countries. The positive trend of the economy, together with capitalization of the higher profitability derived from business expansion and from additional capital contributions in the case of some institutions, is the most significant factor of equity recovery.

On the other hand, during 2006, trends already present in previous periods were consolidated, constituting an essential condition in order that credit continues its growing trend and in order that the business completes its normalization process. Private sector deposits have continued growing steadily, liquidity has been maintained at very adequate levels, credit quality has improved, and gaps are being reduced.

The framework described has been very nurturing in order that the relation of banks with their customers and users continues improving, to such extent claims currently represent one tenth of those registered in 2002, and only one fourth of those registered two years before.

ANNUAL REPORT 2006

The positive impact made in regional economies by good international prices and technological changes are driving the expansion of banking institutions in the provinces. As a direct consequence of this, financing for regional productive activities is growing steadily, especially exports, as well as consumer credits and transactional services in the provinces. In fact, a very significant part of the automatic teller machines network and branch expansion carried out by the banks in the year 2006 took place in the provinces. This development of the activity was much favored by the continuity of economic growth.

In this context, it is worth acknowledging that some legislative and judicial decisions made during the last months showed the intention of moving forward in the normalization of the legal framework for this business. The last Act approved by the Congress governing mortgage foreclosures reflected an important progress in this sense, limiting exceptions and abandoning general treatments typical during the last three years, which unnecessarily affected the home mortgage loan market as a whole.

On the other hand, the decision made by the National Supreme Court to reject the unconstitutionality of emergency and pesification regulations may also be construed as a sign that the Courts still want to eliminate any uncertainties left on the business legal framework.

However, it is clear that certainty shall only be achieved if the clearness and reasonableness of judgments passed by the Courts at each of their levels completely eliminate any and all capricious doubts and interpretations, which, whether due to lack of accuracy or due to omission, prevent judicial cases that arose as a consequence of the crisis from being finally settled.

In this area, it is worth mentioning that the banks have not received any compensation at all for any losses provoked by judicial orders that mandated the reimbursement of deposits at a Dollar value way above the value set forth by the rules. On the contrary, the compensation received by the banks not only covered only partially the loss provoked by assets and liabilities asymmetric pesification provided for by the authorities in the year 2002, not including in any way the impact of preliminary injunctions granted by the Courts in response to the claim raised by a certain number of depositors.

While in some areas there has been some progress, there are kickbacks that may jeopardize the recovery of the business. This is the case of some initiatives that try to restrict credit information, whose scope and availability are key in order that performing small and medium-sized companies that have good projects may profit from this condition.

Extending credit information fosters the competence among banks, reduces bank loan costs, and increases access thereto by companies that, having been recorded as good payers, may be distinguished from the minority which tries to hide its compliance in the lack of information.

Another phenomenon incorporated to the list of issues considered by the banks is the increase of the tax burden on the sector. Banking businesses have been exposed during the last years to a growing trend to use them as tax contribution bases, both at the national and at the provincial and municipal levels. It is obvious that, even if the bank absorbs part of this

ANNUAL REPORT 2006

cost, at the end of the day these taxes shall finally raise the cost of financial and/or transactional services offered by banks.

Without a doubt, these factors constitute one of the most important obstacles in order that Argentina resolves the small size of the financial intermediation business in the country. The size of the financial system and transactions banking, whichever the index used to measure it, is way below those registered worldwide and in countries such as Spain or Chile.

Therefore, extending and improving channels in order that national savings finance investment is a key condition for the economy to continue growing steadily.

In summary, 2006 ends with a banking system that shows a sustained increase of credit and goes back to normality practically at all levels; with a solvency that has been consolidated to the extent banks have not only capitalized profits generated during the last years and foreign debts, but also are injecting new funds to the business. At the same time, there is the expectation that the normalization within the legal framework of the business continues in order to solve defenses and litigation received from the crisis.

With this horizon, banks have resumed their investment plans based on the fact that the economic recovery shall turn into a sustained growth and, as it arises from international experience; economic development shall be necessarily related to the development of the financial market and banking.

As shown by the recent experience, in order that this process continues and consolidates, it is essential that the order and fiscal discipline be assured during the coming years in Argentina at the same time investment is extended and inflation is aligned to international levels. This is, maybe, one of the most important challenges to take into account in a year of elections as this year 2007.

Mario Vicens President

ANNUAL REPORT 2006

Index Page Chapter 1: Evolution of Argentine Economy ................................................................. 1 Introduction ..................................................................................................................................... 1 The Macroeconomic Context........................................................................................................ 1 Balance of Payments ....................................................................................................................... 1 Foreign Commerce.......................................................................................................................... 2 Employment..................................................................................................................................... 2 Public Finance.................................................................................................................................. 3 Public Debt ...................................................................................................................................... 3 Chapter 2: Monetary Evolution and Amendments to Central Bank’s Regulations....... 4 Monetary Evolution ........................................................................................................................ 4 Central Bank’s Reserves ................................................................................................................. 5 Deposits and Loans......................................................................................................................... 5 Interest Rates ................................................................................................................................... 6 Main Regulatory Changes ......................................................................................................... 7 Increase of the Minimum Capital Requirement for Sight Deposits and Elimination of of their Remuneration................................................................................................................ 7 Incentives for Construction and Home and Equipment Loans.......................................... 8 Check Discount as Guarantee for Loans................................................................................ 8 Term Investments and Deposits with Variable Interest Rate.............................................. 8 Incentive for Microcredits......................................................................................................... 9 Setting up of Temporary Branches in Distant Areas ............................................................ 9 Long-term Debt Instruments ................................................................................................. 10 Facilities for Profit Distribution............................................................................................. 11 Payment of Long-term Instruments Financial Services...................................................... 11 Truncation of all Checks ......................................................................................................... 11 Chapter 3: Financial System ..........................................................................................12 Introduction ................................................................................................................................... 12 Profitability, Efficiency and Intermediation Margins............................................................... 12 Portfolio Quality............................................................................................................................ 13 Exposure to the Public Sector..................................................................................................... 14 Interest Rate Structure and Composition .................................................................................. 15 Capitalization.................................................................................................................................. 18 Financial System Tax Burden ...................................................................................................... 20 Evolution of Loans and Deposits per Group of Institutions................................................. 21 Medium and Long-term Financing............................................................................................. 22 Statistical Appendix: Tables 1 to 45......................................................................24 to 69 Appendix ....................................................................................................................... 70 Principal Measures of Banking, Exchange and Financing Policies........................................ 70

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ANNUAL REPORT 2006 Chapter I: Evolution of Argentine Economy

Chapter 1: Evolution of Argentine Economy Introduction During 2006, the economy continued its growth trend for the fourth year in a row within a framework of surplus tax and foreign income, net investment increase and strong unemployment level reduction. On the other hand, there was a 9.8% increase in consumer prices, less than the 12.3% increase recorded in the previous year, while wholesale prices increased only 3.6%, half the increase recorded in 2005.

The Central Bank international reserve continued to grow and, towards the year end, it outpaced levels recorded immediately before total repayment of the IMF debt.

The international economic framework continued to act as favorable factor for Argentine economy. The economic growth of the country’s commercial partners, as well as exchange terms, continued to favor Argentine economy development as they have done for the past 6 years, empowered by the abundant global liquidity and by the weakness of the US currency.

The Macroeconomic Context According to the most updated information available, the GDP recorded an 8.4% increase with respect to the previous year. More than 50% of this increase is due to the behavior of service sectors which, although they recorded a 7.9% growth with respect to the previous year, represent more than 60% of the year GDP. Consumption grew 7.4% during the first nine months of the year with respect to the same period of the previous year. Fixed gross domestic investment, on the other hand, grew 20.5% during the same period and it represented 21.1% of the GDP, practically double the minimum levels recorded in the year 2002.

Industrial production measured through INDEC’s Industrial Monthly Estimate (IME) grew 8.3% during the year 2006, slightly above the 8.0% recorded in 2005 and 15.9% above the maximum value recorded in 1998. This dynamism of industrial production was reflected in the Installed Capacity Use (ICU), which reached a mean of 73.6% during the year 2006, above the 72.8% recorded in the previous year. It is worth mentioning that there is still much dispersion in installed capacity use as, while in the automobile vehicle sector it amounts to 51.1%, in the oil refining sector, it reaches 92.8%.

Balance of Payments The current account surplus during the first nine months of the year increased to US$5.275 billion, which represents a 32% growth compared to the same period of the previous year.

International prices of goods traded by the country and the expansion of some industrial 1

ANNUAL REPORT 2006 Chapter I: Evolution of Argentine Economy sector exports, as is the case with vehicles and automobile parts and accessories, constituted key factors of the positive balance of payments.

Simultaneously, the balance of payments capital and finance account recorded a negative balance due to the net public debt repayment to foreign creditors, especially due to total repayment of the IMF debt at the beginning of the year. In turn, the private sector net capital income is estimated in approximately US$2.4 billion until September, which shows a 42% reduction with respect to the previous year.

Foreign Commerce On the other hand, Argentine exports during the year 2006 grew 15.4% compared to 2005 and they reached a historic record amounting to US$46.569 billion. This increase was due both to the increase of exported goods prices (8.1%) as of exported quantities growth (6.8%).

Meanwhile, imports recorded a 19.1% increase, amounting to US$34.159 billion. The increase of imported quantities (16.5%) explains most of the imported amount growth, and import prices only grew 2.2%.

Thus, exchange terms (the relationship between export and import prices) improved 5.9% during the year 2006 and the foreign commerce balance for the entire year amounted to US$12.4 billion, 6.4% above the income for the previous year.

With regard to the commerce with the various economic groups, it is worth mentioning that the region that recorded the highest volume of transactions is comprised by MERCOSURmember countries, whose commercial exchange amounted to a deficit of US$2.8 billion.

There follow, in level of importance, the European Union, main Asian countries and NAFTA. It is also worth mentioning the exchange carried out with Chile, which amounted to a commercial surplus that represents 31% of the total balance of the year 2006.

Employment The continued economic activity level growth was reflected in an increase in employment. In the fourth year quarter, the employment rate (employed population compared to total population) increased to 42.1%, while in the same period of the previous year, it had reached 41.3%. On the other hand, unemployment was reduced to 8.7%, while in the previous year it had reached 10.1%. It is worth mentioning that unemployment adjusted according to the impact of work plans (any and all persons employed in Home Male and Female Chiefs are deemed employed) amounts to 10.1%, two points less than a year before, when it recorded 12.7%. In addition, a reduction was observed in underemployment, which amounted to 10.8%, compared to the 11.9% recorded one year before.

This increase in the employment level was accompanied by salary improvement. According to the INDEC’s index, an 18.9% increase was recorded in the general level between December 2006 and December of the previous year.

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ANNUAL REPORT 2006 Chapter I: Evolution of Argentine Economy Public Finance The public sector again registered an improvement compared to the income recorded in the previous year. According to the savings-investment-financing scheme, the basic cash primary surplus of the national public sector was higher than $23.1 billion in the year 2006, equivalent to 3.6% of the GDP. In order to achieve this income, the recovery of tax revenue collection was essential, which increased 25.8% in this year mainly as a result of VAT (27.8%) and income tax (19.9%) increases. Both taxes, representing three fourths of Argentine IRS income, excluding the social security system, and bank account debit and credit tax (23.9% increase) account for most of the revenue collection increase.

Current expenses also increased significantly, especially due to higher current transfers to the provinces on account of coparticipation resources (22.6%) and of increase of social security benefits (29.3%) and salaries expenditure (26.3%).

In all, current income increased 25% while current expenses increased 22%, which resulted in an 18% increase of the primary surplus compared to the previous year.

Public Debt At the end of the third quarter of 2006, the national government public debt amounted to almost US$155 billion, of which US$124.8 billion corresponded to the non-performing debt, US$4.8 billion to the performing debt (mainly to the Paris Club) and US$25.3 to the debt not presented for exchange.

47% of the non-performing debt is denominated in Pesos, while 89% of this amount corresponds to the debt adjustable to CER. There follow debts denominated in US Dollars and Euros, which represent 40% and 10% shares, respectively, while the rest is divided among other currencies.

The average life of the non-performing debt is 13.1 years, which results from combining the 17.5 year average term for public bonds and Treasury bonds and the 5.9 year term for loans (including secured loans).

One year after debt restructuration, the total debt represents 73% of the GDP.

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ANNUAL REPORT 2006 Chapter II: Monetary Evolution and Amendments to Central Bank´s Regulations Chapter 2: Monetary Evolution and Amendments to Central Bank’s Regulations Monetary Evolution During the year 2006, the monetary base recorded a $25.3 billion expansion, which implies a 46.3% growth. The main expansion factor was transactions carried out by the Central Bank to absorb the foreign currency offer from the foreign private sector. As it has been doing for the past years, a part of this expansion was sterilized through the issuance of Central Bank notes (LEBAC and NOBAC), through which transactions almost $10 billion were absorbed during the year. In turn, financial institutions repaid rediscounts to the Central Bank, thus allowing the absorption of approximately $8.4 billions, while other national public sector transactions allowed absorbing almost an additional $5.4 billion amount. The repos stock reduction observed during the fourth quarter of the year contributed to expand the monetary base in $5.8 billions of net cash. With these figures, the Central Bank managed to comply with goals set forth in the Monetary Program which, as of 2006, approved the additional M2 as goal instead of the broad monetary based it used before.

For the year 2007, the Central Bank set forth the following goals: minimum 11.7% growth and maximum 18.7% growth in M2, which represents a value amounting to between 17.3% and 18.4% of the GDP. Broad Monetary Based Expansion Factors (In millions of Pesos) Factors

2005

2006

Private Foreign Sector

28,227

43,006

Domestic Public Sector

-4,231

-5,354

Rediscounts

-9,637

-8,440

Repos

-1,893

5,832

-10,031

-9,748

Other

-202

61

Total

2,233

25,356

Central Bank Bonds

The adjusted balance of Central Bank bonds (LEBAC and NOBAC) amounted to $43.7 billions, which represents a 34% increase in the year 2006. Continuing with the strategy applied as of 2005, the Central Bank concentrated mainly in the issuance of bonds in Pesos, and ceased issuing notes adjustable to CER. Instead, it concentrated in variable rate notes (NOBAC) whose return is related to the BADLAR rate (30 to 35 day fixed-term deposit rate

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ANNUAL REPORT 2006 Chapter II: Monetary Evolution and Amendments to Central Bank´s Regulations and deposits amounting to more than one million Pesos or US Dollars rate) with an additional 2.5% margin in both cases, based on a maximum 2-year term and which, different from LEBAC, accrue interest on a quarterly basis. Although NOBAC adjustable to both BADLAR of financial system and private banks rates were offered the latter were better received by the market. The higher issuance of NOBAC contributed to extend the mean term which, at the end of 2005, was 178 days for instruments in Pesos and which, at the end of 2006, was 347 days.

It is worth mentioning the significant increase of deposits maintained by institutions at the Central Bank to meet minimum cash requirements. Although this increase is related to a deposit growth, most of it is due to the increase of reserve requirements established by the Central Bank during the year. The reserve increase was used as one of the monetary absorption factors during 2006 to sterilize part of the currency used to acquire reserves.

On the other hand, the Central Bank continued to apply increases over repos rates, progressively increasing them from 5.0% at the beginning of the year, to 6.3% at the end of December for 7-day term transactions. This was also transferred to Central Bank bonds interest rates. Thus, the mean return of bonds issued in Pesos increased from 7.9% at the end of 2005, to 11.6% at the end of 2006.

Central Bank’s Reserves In order to continue accumulating reserves, the Central Bank intervened from time to time in the foreign currency market. The transactions it carried out with the private sector allowed it to obtain a US$14 billion increase of its reserve holdings. The balance of transactions with international organizations produced a negative cash flow amounting to US$11.9 billion, of which US$9.5 billion correspond to the advance repayment of the IMF debt at the beginning of the year.

Altogether, the Central Bank registered a US$4 billion increase in its holdings throughout the year. Thus, the total Central Bank’s reserve amounted to more than US$32 billion.

Deposits and Loans In the year 2006, private sector deposits registered a 22.2% increase, something more than the growth recorded in the previous year. The highest increase was observed in fixed-term deposits in Pesos, which registered a 24.1% increase during the year. In turn, deposits in savings accounts registered a 21.4% growth, and there was a 15.1% increase in current account and sight deposits.

There was a 43.3% reduction in fixed-term deposits adjustable to CER, which decreased to $3.75 billion. This type of deposits is made mostly by institutional investors, such as Pension and Retirement Trust Funds (AFJPs).

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ANNUAL REPORT 2006 Chapter II: Monetary Evolution and Amendments to Central Bank´s Regulations Private sector loans, in turn, maintained the growing trend registered during the last years, with a 40% increase in 2006. The highest increase was recorded in personal loans (77%), followed by pledge loans (60%) and credit card financing (38.1%). Lines of credit mostly used by companies to finance its working capital, current account overdrafts and debt instruments discount increased 35.4% and 32.1%, respectively. The increase of new mortgage loan financing granted turned out to be determining for balance growth to the extent they commenced to repeatedly outpace monthly repayments. This is the first year after the crisis in which a repeated increase is observed in this type of loans, which balance increased 15.5%. It should be taken into account that this figure does not reflect the complete growth of the line of credit due to portfolio securitizations carried out by some institutions during the year.

Finally, foreign currency private sector loans grew 61.8%, driven by foreign commerce transactions financing.

Interest Rates Interest rates of new loans granted continue to show levels far lower than those prevailing during the year 2003 and are below mean values registered during the nineties.

Main reductions recorded during the year 2006 were observed in personal loans, which were reduced in 1.2 percentage points during the year, reaching a 24.7% mean for the period as a whole. Then, there come credit card financing, with interest rates reduced in 0.5 percentage points with regard to the previous year, amounting to 27.2%, followed by pledge loans, reaching 9.9%, with a 0.4 percentage point reduction.

On the other hand, repos interest rate increase and the increase of the debt used by the Central Bank as monetary absorption tool, and the sustained inflation on levels higher than those registered in international financial markets, boosted the increase of the interest rate to be paid by banks in return for deposits. Mean interest rates of fixed-term deposits in Pesos increases from 5.2% at the end of 2005 to 6.7% in December 2006.

These increases also affected interest rates of some types of loans, mainly of those loans granted for shorter terms, even though they were maintained at levels below those observed during the past decade both in real and in nominal terms.

6

ANNUAL REPORT 2006 Chapter II: Monetary Evolution and Amendments to Central Bank´s Regulations Interest Rates for Loans in Pesos (As annual nominal percentages) Type of Loan

Year 2003

Year 2004

Year 2005

Year 2006

Difference 2003-2006

Current accounts overdrafts

40.6

16.3

15.7

17.1

-23.5

Other advance payments

24.7

11.6

10.1

12.7

-12.0

Promissory notes

17.7

10.8

10.3

12.6

-5.1

Mortgage loans

18.0

12.0

11.3

11.7

-6.3

Pledge loans

19.7

13.3

10.3

9.9

-9.8

Personal loans and credit cards

45.9

29.7

25.9

24.7

-21.2

Personal loans

54.8

30.7

27.7

27.2

-27.6

Source: ABA based on Central Bank´s data.

Main Regulatory Changes Increase of the Minimum Capital Requirement for Sight Deposits and Elimination of their Remuneration The Central Bank set forth a 2 percentage point increase at the sight deposit reserve level and the elimination of the remuneration for such reserves as of April 1, 2006.

Then, it was provided for that, as of August 2006, there would be an additional 2 percentage point increase in the minimum cash requirement for sight deposits in Pesos and, at the same time, the reserve for term deposits in Pesos constituted for more than 180 days and the possibility of using the cash maintained by the banks for technical purposes to pay in mandatory reserves were eliminated. In the latter case, a gradual 3-month application schedule was provided for the measure, starting in September. Later on, the application of this schedule was deferred, therefore, computation of up to 67% of cash is allowed.

In turn, as of February, a 100% reserve was set forth for those sight deposits with compensations higher than 75% of the private bank BADLAR rate. This limit was reduced to 50% of the BADLAR rate as of April, and to 35% as of October.

On the other hand, the interest rate for repos of Trust Funds constituted in the Central Bank to meet liquidity margins required by CNV (Comisión Nacional de Valores) was reduced from 2.55% to 0.50% (annual nominal rate).

7

ANNUAL REPORT 2006 Chapter II: Monetary Evolution and Amendments to Central Bank´s Regulations Incentives for Construction and Home and Equipment Loans The Central Bank qualified guarantee trusts related to real estate projects as preferred "B” guarantee, both for the construction of homes as for the construction of commercial or industrial buildings. Basically, preferred “B” guarantees are those guarantees with a maturity date longer than six months, and preferred “A” guarantees may have a term less than six months.

It was also provided for the facilitation of mortgage loans up to $100,000 for permanent residence unique family home agreed upon as of 08.01.06, through the flexibilization of the minimum capital requirement for these loans.

In order to facilitate imports of capital assets comprised in ALADI agreements, guarantees granted by institutions to make this type of imports were excluded from the calculation of fixed assets. This contributes to the financial institutions being able to make transactions that, otherwise, could provoke a surplus in the fixed assets ratio due to the magnitude of their amounts and terms.

Check Discount as Guarantee for Loans In order to contribute to facilitate access of companies, particularly of small and mediumsize companies, to bank loans, the Central Bank modified certain requirements in order that the discount of debt instruments, such as deferred payment checks, may be deemed as preferred “A” guarantee, and it also eliminated estimates for checks issued by standard drawers. Thus, financial institutions shall consider not only the issuer rating, and this improves their provision for non-collectibility risk.

Additionally, the atomization limit was eliminated where the value of discount instruments issued by the same person was above 1.5% of the financial institution computable equity, and this was also applicable in the events where the discount transactions as a group amounted to more than 15% of the said equity.

Term Investments and Deposits with Variable Interest Rate Term investments with variable interest rate have a minimum 180-day term and their return is related to the evolution of certain assets, such as the price of some assets (gold, oil, corn, soya, sunflower), financial assets (stock exchange indexes, government bonds), and interest rates.

The Central Bank incorporated, as variable admitted for calculation of these deposits remuneration, the interest rate applicable to term deposits constituted for up to 59-day terms according to the survey published by such institution, the CER (only for deposits in Pesos for a minimum 365-day term) and foreign currencies such as the Dollar, the Euro, the Yen and the Real.

8

ANNUAL REPORT 2006 Chapter II: Monetary Evolution and Amendments to Central Bank´s Regulations It was also provided for that the list of government and private bonds should be updated according to the volatilities list published by the Central Bank.

In addition, the prior approval requirement to begin operations was eliminated, and it was admitted that financial institutions may notify the Superintendence of Financial and Exchange Institutions the commencement of these operations, reporting on the particular features of each investment modality offered.

On the other hand, the Central Bank authorized a new form of fixed-term deposit raising with a variable interest rate with a minimum guaranteed return. While fixed-rate deposits have a minimum 30-day term and variable-rate deposits have a minimum 120-day term, for this new type of deposits the Central Bank set forth a minimum 180-day term.

The BADLAR rate was included as a possible rate for variable rate fixed-term deposits.

Incentive for Microcredits The Central Bank modified the regulatory framework applicable to small loans for production activities or micro projects in order to facilitate microcredits operations reducing the periodicity of financing installment payments to one week, two weeks or one month.

It was also allowed the granting of an initial grace period for the payment of capital servicing fees where the frequency of payment is weekly, which allows the micro entrepreneur to count on sufficient time to set up its business. In addition, the maximum limit of the payable installment was increased from $200 to $300 in order to comprise a broader population strip.

The maximum financing term was extended from 24 to 36 months and the financing amount available for home infrastructure works (such as pavement and water, sewerage, gas and connection networks) was increased from $3,000 to $6,000.

Setting up of Temporary Branches in Distant Areas The Central Bank authorized the possibility of setting up a new type of branch in towns that do not have financial institutions branches, thus allowing such places to carry out all types of transactions, except for the opening of current accounts. Business days and hours shall be determined by each institution, which shall be required to inform such business days and hours to the Superintendence of Financial and Exchange Institutions and to publicly exhibit the timetable in the temporary office.

Although the setting up of customer service centers does not grant the financial institution any exclusive right or preference for the opening of a permanent branch in the area where the temporary office is located, the institution shall have the option to transform such office into a branch. If the setting up of a branch of another financial institution is authorized within the same town, there shall be a 6-month term to elect either to convert the office into a branch or to close it.

9

ANNUAL REPORT 2006 Chapter II: Monetary Evolution and Amendments to Central Bank´s Regulations Requirements for the authorization of these types of offices are similar to those in force for the opening of new branches.

In turn, the opening of 43 new private financial institutions branches was also authorized in various areas of the country, thus allowing to increase the bank services offer.

Area

Branches

City of Buenos Aires

7

Province of Buenos Aires (Metropolitan Area)

9

Province of Buenos Aires (rest)

8

Argentine Northwest

8

Argentine Northeast

2

Argentine Central Area New Cuyo

2 3

Patagonia

4

Total

43

Long-term Debt Instruments The Central Bank admitted the computation of long-term debt instruments or “perpetuities” within institutions’ minimum capital requirements. These instruments have a minimum 30year term.

The combine features similar to those of bonds (as payment of a periodic coupon) and shares to the extent they give right not to pay coupons if there are no distributable profits and they do not have the same privilege as the rest of the bank creditors. Depending on specific conditions of each instrument in relation to the capacity to absorb loss, the relevant funds may be admitted for computation of the basic net equity or for computation of net equity from the budget viewpoint. The Central Bank has contemplated both cases in the amendment introduced to minimum capital requirements.

These mechanisms represent an incentive to the institutions capitalization as they allow them to increase their solvency without diluting the control of the company. Under Basle Agreement I, executed in 1988, they were accepted as supplementary regulatory capital components and then, in 1998, the Basle ommittee allowed their inclusion in the basic capital computation, with a maximum limit of 15%, provided certain requirements are met.

10

ANNUAL REPORT 2006 Chapter II: Monetary Evolution and Amendments to Central Bank´s Regulations Facilities for Profit Distribution The Central Bank authorized distribution of profits by financial institutions whenever their amount is higher than the amount resulting from the addition of the following: outstanding adjustments arising from differences that may persist between the book value and the market value of portfolio public sector assets, residual exchange differences arising from compliance with judicial orders mandating reimbursement of deposits based on parities above that set forth under the rules and, finally, adjustments that may be introduced by the Central Bank and by its external audit.

Likewise, to carry out the distribution of profits the minimum capital requirement must be met after deducting the above mentioned items plus the addition of the minimum presumed income tax computable within the regulatory framework, the amounts of profits to be distributed and forbearances in force that the institution is using to meet minimum capital requirement and interest rate risk.

Thus, the system used until that time, which required the evolution and authorization by the Central Bank based on a case-by-case analysis is improved.

Payment of Long-term Instruments Financial Services The Central Bank decided to approve a specific procedure for the payment of financial services corresponding to long-term debt instruments or “perpetuities�, admitting that institutions may comply with the procedure set forth on a general basis, but not deducting special treatments still applicable implemented as a consequence of the crisis of the years 2001 and 2002.

These are the adjustments resulting from: payments made in compliance with judicial orders originating in cases where regulations in force applicable to pesified deposits have been challenged; the positive difference between the book value and the market value in the events where the financial institution registers government bonds not valued at the market price; and the attenuated computation in the minimum capital ratio of credit risk for public sector financing and interest rate risk.

Truncation of all Checks As of November 24, 2006, truncation of all checks and other instruments subject to clearing through Automated Clearing Houses. This means that depositary institutions shall keep such instruments, whichever their amount, and transfer automated information to the respective Automated Clearing Houses.

In turn, depositary institutions shall transfer, in addition to the automated record, an image of the front and reverse sides of checks and of any other instruments subject to clearing in amounts higher than $5,000.

11

ANNUAL REPORT 2006 Chapter III: Financial System

Chapter 3: Financial System Introduction In the year 2006, a new phase of the financial system normalization process was completed.

The first phase started during the second half of the year 2002 upon commencement of deposits recovery. Then, in mid 2003, private sector loans started to grow as a result of the improvement of the general economic situation, the recovery of banks liquidity and of credit demand. The sustained growth of private sector loans was essential to revert the negative margin recorded by financial intermediaries since the crisis. Thereafter, in the year 2005, most institutions registered general positive results, and this allowed financial system results to be positive for the sector for the first time since the crisis.

The continuity of this situation throughout 2006, together with capitalization of debts undertaken by banks to foreign creditors before the crisis, the injection of new capital in the case of some institutions, the normalization of the situation of debtors and the reduction of the government bonds portfolio, contributed to consolidate the liquidity and to strongly improve system solvency.

Financial System Recovery Stages Stage

Feature

Year 2002 Year 2003 Year 2004 Year 2005 Year 2006

Start of deposit recovery.

Start of private sector loans recovery.

Growth of private sector loans and improvement of intermediary margin.

First year with positive income in balance sheets.

Strong equity consolidation.

A direct consequence of this process was the acceleration registered in repayment of financial assistance by the Central Bank to some banks. During the year 2006, $1,86 billion, equivalent to 81% of the initial debt, were repaid. At the year end, only two institutions of the forty-four institutions that originally received the assistance had those debts outstanding.

Profitability, Efficiency and Intermediation Margins The year 2005 was the first year after the crisis where the financial system produced gains, and this trend was maintained also during the year 2006. This improvement was based in the increase of both financial income and net services fees. Financial income was mainly driven by interest income as a result of the growth registered by private sector loans. Net income on account of adjustments to CER was reduced with respect to the previous year due to the

12

ANNUAL REPORT 2006 Chapter III: Financial System lower inflation rate registered in 2006, and to the gradual reduction of net assets subject to this adjustment.

Non-collectibility charges were maintained in an amount similar to the amount registered in the previous year, even though they represent a lower proportion with respect to assets volume.

Regarding administrative expenses, an increase of 19% was observed, mainly driven by the increase of salary cost and, to a lesser extent, by new employees hired.

On the other hand, remaining losses as a consequence of the crisis that are still present in institutions balance sheets are being progressively reduced, which is also part of the financial system normalization process. Amortizations of exchange differences paid on account of judicial injunctions (amparos) continue affecting the final income of institutions, but at a decreasing pace. During the year 2006, 13,700 cases were recorded, for which more than $773 million were paid, producing an exchange difference of approximately $207 millions.

With these figures, total deposits repaid under judicial injunctions since the crisis amounts to 337,200 cases, for which more than 23,2 billion Pesos were paid -equivalent to 21,000 US Dollars per deposit according to the deposit original currency-, which includes an excess of 9,8 billion Pesos above the amount that banks should have reimbursed within the framework of current laws.

Most of these exchange differences (approximately $9,75 billion) were activated in balance sheets and are being amortized according to the rules set forth by the Central Bank in 60 monthly and consecutive installments since the difference recording date. The net value accounted for in assets at the end of 2006 is approximately $3,5 billion.

The other factor arising from the crisis that affects balance sheets is the difference of valuation of public sector assets. According to current regulations, the difference between the book value and the market price of these assets is progressively reduced until reaching the market value. However, the recovery of government bonds quoting price and the higher liquidity available since the restructuration of the public debt in the year 2005, contributed to reduce these valuation difference and, consequently, the adjustment amount to be recorded as loss.

The profitability of the financial system as a whole amounted to 2.0% of net assets (ROA) for the entire year 2006, and it reaches 3.0% if balance sheet losses (which correspond to crisis times) are excluded.

Portfolio Quality During the year 2006, the non-performing rate decrease that started in the year 2003 continued. The total financial system non-performing portfolio represented 3.4%, significantly below 5.2% and 10.7% levels registered in 2005 and at the end of 2004, respectively.

13

ANNUAL REPORT 2006 Chapter III: Financial System The reduction of private sector non-performing financing constituted the main driver of this behavior, as it was reduced to 4.5%, significantly less than the 7.6% registered during the previous year and only fourth of the value observed two years earlier. In turn, the commercial portfolio non-performing rate was reduced during the year 2006, from 9.3% to 5.1%. The family consumption loans portfolio (including home financing) improved its nonperforming rate level from 4.8% to 3.5% in the same period.

Non-performing Portfolio / Total Private Sector Financing In %

Non-performing Portfolio In %

40 45

35

40

30

35

25

30

10

20

33.5

15

16.0

15 5

7.6 Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Consumption and Mortgage

10

18.6

19.1

5 0

Commercial

25

38.6

20

45

Dec. 2005

4.5

0

Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

Dec. 2006

Dec. 2006

It is worth mentioning that the non-performing rate registered in private banks continues to be lower than that registered in public institutions. Private banks non-performing portfolio was reduced to 3.6%, and public banks portfolio almost doubles this figure, amounting to 6.9% of total private sector financing.

Exposure to the Public Sector During last year, the financial system public sector exposure of the public debt portfolio possessed by banks was reduced to 35.3% from 44.3% of total assets registered in December of the previous year. It is worth mentioning that most of public sector exposure comes from compensations of losses provoked by the asymmetric pesification or from public debt restructuration possessed by banks at the time of the crisis. Approximately one fourth of this exposure corresponds to BOGAR, which are secured bonds from the provinces debt exchange, while national secured loans (including the adjustment to CER) received in exchange for the national public debt at the end of the year 2001 and that were pesified at $1.40 plus the adjustment to CER, represent 19% of the total. In turn, bonds received as compensations for asymmetric pesification that, at the end of 2006 represented 8.7% of the total, have registered almost a one-third decrease during last year.

14

ANNUAL REPORT 2006 Chapter III: Financial System

Public Sector Loans / Assets In %

Exposure to Public Sector As a % of assets 50

50

45

45

40

40

35

35

30

30

25

25

20

20

15

15

10

10

5

5

0

0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Dec. 2000

Dec. 2001

LEBAC/NOBAC

Dec. Dec. 2002 2003

Dec. 2004

Compensation

Dec. 2005

Nov. 2006

Bonds + Loans

The Central Bank set forth that private public assets possessed by financial institutions cannot be more than 40% of total assets as of January 1, 2006, excluding holdings of bonds issued by the Central Bank (LEBAC and NOBAC) held both in its own portfolio as in counterparts coming from repos transactions. This limit is reduced to 35% of total assets as of July 2007.

In last November 30, the exposure of the total financial system to the public sector amounted to 23.5% of total assets, notwithstanding some institutions still were above the 40% limit set forth by the regulations.

The group of international banks registers the lowest indexes as a result from the fact that various institutions aggressively reduced their government bonds holdings and securitized an important portion of the secured loans portfolio. On the other hand, part of outstanding compensations was paid in cash as they were bonds with overdue coupons.

On the other hand, the portfolio of bonds issued by the Central Bank (LEBAC and NOBAC) amounts to 27.2% of total exposure to public sector of financial system, while repos amount to an additional 6.2%.

Interest Rate Structure and Composition There are various factors that determine the loan interest rate level and the margin that banks charge to rates paid for deposits. In the first place, there is the cost for developing activities that allow converting normally individual and atomized savings into the financing necessary to meet families and producers’ funds needs. In this sense, it is worth mentioning the transformation of terms and other conditions pertaining to financial intermediation and 15

ANNUAL REPORT 2006 Chapter III: Financial System those tasks such as creditors payment capacity assessment that, if carried out, as they are very costly if done on a case-by-case basis, are convenient.

On the other hand, it is a much regulated activity as it involves public savings and the key role of banks in payment means administration. The most important regulations are minimum capital requirements, reserves, deposit insurance, and other technical aspects intended mainly to secure liquidity and solvency of the system as a whole. Banks are bound to comply with a minimum capital requirement related to the assets volume and its risks (including loans). In addition, a certain portion of sight deposits should be maintained (and not invested in loans or other remunerated assets), contributions should be made to deposit insurance system and a group of technical ratios limiting resource allotment should be complied with. The cost of each of these regulations is part of the credit cost.

The activity is also subject to a series of specific charges, as the deposit insurance fund constitution and some provincial taxes, whose cost is also part of the margin charged upon deposits interest rate.

Therefore, the interest rate that banks charge for loans granted comprises the financial cost of funds raised plus expenses arising from the intermediation between depositors and creditors, the economic cost of regulations, the specific tax burden imposed upon the business, and shareholders' compensation. To this we should add the incidence of the nonperforming rate, which, within certain limits, is part of the same credit process.

In order to estimate the incidence of each of these components, banks balance sheets were used to estimate the loan portfolio mean interest rate and its components.

During the first eleven months of 2006, the mean implied rate charged for private sector loans grew to an annual 13.4%. Of this total, 4.9 percentage points correspond to the fund raising cost.

Administration expenses have a net incidence of 5.2 percentage points per year if considered net of income and expenses arising from the rendering of other non-financial banking services. Most of this component is the labor cost.

Taxes increased the credit cost during that period in 2.4 percentage points per year, as a result of the incidence of the following taxes: income tax, gross income tax, SEDESA contribution (deposit insurance fund), and other municipal and provincial taxes. Bank transaction tax is not computed because it is transferred to service users.

On the other hand, currently banks may lend or invest approximately up to 80% of deposits, which implies that they may earn interest only up to that amount and they must pay the cost of the total amount raised. The economic incidence of reserves in the cost of credit amounts to 2.2% percentage points per year, estimated as the amount not received for long term operational assets, net of the compensation acknowledged by the Central Bank for a portion thereof.

16

ANNUAL REPORT 2006 Chapter III: Financial System Another cost factor is the non-performing rate of the loans portfolio, whose significance depends to a great extent from the economic situation. The crisis triggered the noncollectibility of credit portfolios but, as of the recovery of production and employment, the non-collectibility was below historic levels. As a result, currently this factor increases the credit cost in about 1.4 percentage points, less than one third of the impact it had in the year 2001.

Finally, there comes the institutions’ profitability. Due to the strong loan market competence, interest rates registered for most credit lines are on minimum historic levels and on levels below those prevailing during convertibility.

The combination of this feature with the incidence that stills exists from market reduction -private sector loans were reduced from 21% of the GDP in 2001 to 10% in the current year- and crisis losses not yet absorbed, make loans to the private sector, considered as an isolated business from the rest of the services rendered by the bank, still having negative results, but with a clear trend towards balance.

This is due to the fact that there is a scale problem. The result is positive if the result of other items is computed, such as government bonds transactions and release of noncollectibility provisions constituted in previous fiscal year, which, in the chart attached hereto, is referred to as Operating Income with a negative sign. Tax and regulatory factors are also significant while, as it is to be expected in this case, the non-performing rate plays a positive role.

In such respect, it is worth mentioning that, in international banks, the incidence of administrative expenses on the interest rate on loans is less than that observed in the financial system mean, which is reflected on the lower interest rate registered by this group of institutions.

During the first eleven months of 2006, mean interest rates on loans to the private sector have registered a slight increase as a consequence of the higher financial cost, the impact of reserve increase, and the lower contribution from the rest of bank activities. Expenses reduction, if measured in proportion to the amount lent, and non-collectibility reduction play a favorable role.

17

ANNUAL REPORT 2006 Chapter III: Financial System Implied Interest Rate on Loans (*) As annual nominal percentages Item

Financial System

2001 2002

Interest rate on loans Raising cost Net administrative expenses I Operating income Net administrative expenses II Taxes, SEDESA and contributions Non-collectibility Net reserve

Internat.

Banks

2003

2004

2005

2006 (**)

2006 (**)

19.5

26.5

13.5

11.0

11.9

13.4

11.7

8.6

15.3

9.7

3.2

3.8

4.9

4.0

4.3

8.3

7.7

6.5

6.3

5.2

4.0

-2.0 -23.1

-14.1

-6.6

-4.3

-2.8

-1.1

2.3 -14.8

-6.5

-0.2

2.0

2.4

2.9

1.5

3.0

2.4

2.4

2.5

2.4

1.5

4.8

18.9

4.7

3.0

1.9

1.4

1.2

2.2

4.2

3.1

2.5

1.7

2.2

2.1

(*) The calculation was made using non-financial private sector loans. (**) It corresponds to 11 annualized months.

Capitalization In the year 2006, the financial system net equity increased 23.4%, reaching a total of $33,2 billion. In turn, there were certain improvements in its composition. On the one hand, a capital increase was registered both for the capitalization of profits obtained during the period as from capital contributions made. On the other hand, accumulated losses in previous fiscal years amounting to $6,9 billion were absorbed, mainly produced during the crisis, while the distribution of cash dividends amounted to $460 millions.

It is worth mentioning that capitalizations made by financial institutions since the crisis are above $14,5 billion, of which approximately $7,6 billion correspond to international banks that have capitalized debts and injected new funds since the beginning of the crisis, concentrating 52% of the total injected by the financial system.

18

ANNUAL REPORT 2006 Chapter III: Financial System

Shareholders' Equity In billions of Pesos

Cumulative Caps 2002 - 2006 In millions of Pesos

35

16,000

30

14,000 12,000

25

10,000

20

8,000

15

6,000

10

4,000 5

2,000 0

Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

Dec. 2006

0 2002

2003

2004

2005

2006

Source: ABA based on Central Bank´s data.

Financial Institutions Caps 2002-2006 Per Type of Institution - In millions of Pesos 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0

Public Banks

National Private Banks

International Banks

Non-banking Financial Institutions

Thus, capital integration in relation to risk assets increased to 16.8% for the system as a whole, and to 18.2% for private banks. In both cases, minimum cash requirements set forth by the Central Bank are far complied with, and this allows institutions support the minimum cash requirement increase to be effective as of 2007 through the gradual elimination of the attenuation determined during the crisis.

19

ANNUAL REPORT 2006 Chapter III: Financial System

Financial Institution Caps 2002-2006 Market share

International Banks 52%

National Private Banks 25%

Public Banks 21%

Non-banking Financial Institutions 2%

Source: ABA based on Central Bank´s data.

Financial System Tax Burden The financial system is affected by various taxes, including direct and indirect taxes affecting the cost of bank services, mainly the cost of bank credit and of non-financial or operational services.

During the first 11 months of 2006, a 32.5% increase was registered in the amount paid for various taxes by the financial system as a whole. This charge represents 0.89% of total assets, higher than the 0.68% observed in the year 2004, and to the 0.75% of the year 2005.

20

ANNUAL REPORT 2006 Chapter III: Financial System Tax Burden As a % of assets 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0.0 2001

2002

2003

2004

2005

11 months 2006

Administrative Taxes SEDESA contribution Income Tax Gross Income Tax

This total includes the amount paid on account of gross income tax, income tax, SEDESA contribution, and taxes included in administrative expenses, such as real estate tax of branches and office buildings.

In the year 2006, income tax was the most representative tax, amounting to 40% of the financial system tax burden, with a 34% increase with regard to the previous year. Secondly, there comes the amount paid on account of gross income, which represents 31% of the tax burden, followed by taxes included in administrative expenses, representing 18%. The remaining 11% corresponds to the SEDESA contribution.

Evolution of Loans and Deposits per Group of Institutions According to the information contained in financial institutions balance sheets, total private sector loans increased more than $21,9 billion during the year 2006. 37% of this amount is due to international bank behavior.

With these results, international banks are still the most representative group according to private sector loans, with 36.5% of the market, followed by local private banks, with 35.0% and public banks, with 25.1%. The remaining 3.4% corresponds to non-banking financial institutions, such as financial companies and credit funds.

21

ANNUAL REPORT 2006 Chapter III: Financial System

Private Sector Deposits National Private Banks 31%

Public Banks 30%

International Banks 39%

Non-banking Financial Institutions 0%

Private Sector Loans National Private Banks 35%

Public Banks 25%

International Banks 37%

Non-banking Financial Institutions 3%

According to financial institutions balance sheets, private sector deposits increased more than $22,5 billion during the year 2006, which represents a 22.2% increase. Again, international banks are the most representative group as they raise 38.3% of private sector deposits, followed by local private banks with 31.2%, and public banks with 30.1%.

Medium and Long-term Financing New medium and long-term loans granted by the financial system to the private sector during the year 2006 registered a 69% increase with respect to the previous year, due to the fact that new more than one-year term financing amounted to $20.0 billion.

This type of financing has registered a sustained increase since 2002, and now it represents 36% of total new loans ranted to the private sector during 2006 and its recovery was even stronger than that of revolving credits and of the rest of financing.

It is important to point out that the increase of medium and long-term financing was very significant both in the case of companies as in relation to individuals.

New loans granted for more than one-year terms are almost eight times higher than those granted during 2003, and they tripled loans granted during the year 2004. This latter increase was stronger in financing to companies than in financing to individuals.

New medium and long-term loans granted to individuals were concentrated in more than one-year term personal loans, followed by mortgage and pledge loans. It is worth mentioning the growth registered by the granting of new mortgage loans, which turned out to be 54% higher than the previous year, and it more than tripled that of loans granted in the year 2004.

22

ANNUAL REPORT 2006 Chapter III: Financial System In the case of companies, the increase of new medium and long-term loans was driven by more than one-year term instruments discount, which was established as one of the most dynamic commercial lines of this type of financing.

On the other hand, it is worth mentioning that, of the total $55.7 billion granted in new private sector loans during the year 2006, 60% was intended for companies, while the remaining 40% was granted to individuals. However, as regards medium and long-term financing, it was observed that 73% was granted to individuals, while the remaining 27% was granted to companies, even those the latter registered a higher growth.

The strong growth of longer term financing, in a context where the credit cost is on minimum historic levels both on nominal as on real terms, turns out to be an important contribution to favor the companies investment growth and access to durable consumable items by families.

23

ANNUAL REPORT 2006 Statistical Appendix

TABLE 1: Deposits in Domestic Currency

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

Current Accounts

Savings Accounts

Time Deposits (1)

Total

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

December December 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 30,825 38,630

1,980 2,758 4,653 5,242 4,688 5,936 7,601 8,206 8,347 7,924 4,499 9,144 14,554 21,616

2,955 5,998 8,903 9,622 7,343 8,756 12,057 13,577 12,791 12,024 5,872 33,435 38,472 42,179

8,064 13,665 19,770 21,858 19,042 25,207 31,836 34,432 33,719 31,900 18,681 65,885 83,851 102,425

2005

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

38,762 37,863 37,988 38,577 40,055 40,304 40,435 40,563 40,628 41,947 43,620 47,386

22,173 22,003 22,431 22,185 22,642 23,995 25,618 25,731 25,233 25,785 25,785 25,965

43,825 45,713 46,497 47,439 47,862 48,800 48,472 49,393 50,728 50,204 50,380 49,253

104,760 105,579 106,916 108,201 110,559 113,099 114,525 115,686 116,589 117,936 119,785 122,604

2006

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

47,229 45,549 45,809 45,855 47,978 49,704 48,912 48,903 49,299 50,584 53,417 55,386

26,657 27,849 28,424 27,484 28,766 28,130 29,591 28,435 28,143 28,728 28,742 30,157

49,933 50,927 51,323 53,525 54,501 57,615 58,864 62,160 64,216 65,111 66,124 65,906

123,819 124,326 125,556 126,863 131,245 135,448 137,367 139,499 141,658 144,423 148,283 151,449

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

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

24

ANNUAL REPORT 2006 Statistical Appendix

TABLE 2: Deposits in Foreign Currency

Monthly average of daily balances (in millions of 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 2003 2004

December December 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 52 25

40 11 12 16 42 597 782 839 392 482 493 1,092 1,528 2,119 1,695 1,162 2,385 327 349 417

… … … … … …

1,137 1,866 3,698 4,032 3,445 4,529 5,330 5,304 6,146 5,602 9,772 83 457 1,848

… … … …

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 1,041 1,646

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 1,899 3,936

2005

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

26 20 22 22 21 21 16 17 15 14 11 10

484 467 481 478 496 471 446 482 484 478 458 455

2,161 2,093 1,948 1,471 1,785 1,405 1,376 1,386 1,395 1,391 1,424 1,455

2,000 1,808 1,844 1,856 1,921 2,022 2,089 2,149 2,185 2,176 2,179 2,236

… … … … … … … … … … … …

4,670 4,388 4,296 3,826 4,224 3,920 3,926 4,034 4,079 4,058 4,072 4,157

2006

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

13 12 13 14 15 13 12 12 9 6 3 4

468 470 467 435 426 440 495 519 481 496 523 518

1,582 1,618 1,711 1,908 2,048 2,065 2,077 1,930 1,960 2,021 2,006 1,937

2,472 2,369 2,405 2,496 2,573 2,664 2,759 2,882 3,021 3,093 3,180 3,227

… … … … … … … … … … … …

4,534 4,468 4,596 4,853 5,061 5,182 5,342 5,343 5,471 5,617 5,713 5,686

Source: ABA based on "Statistical Bulletin", "Daily Information on Deposits, Credits and Cash in Foreign Currency" and "Main Liabilities of Financial System", Central Bank.

25

ANNUAL REPORT 2006 Statistical Appendix

TABLE 3: Judicial Injunctions Period

Number of Lawsuits

Principal (1)

Update According to CER

Exchange Rate Difference

Total Amount Paid

In millions of Pesos

Average Amount per Lawsuit In thousands of Pesos

2005 January February March April May June July August September October November December

383 1,650 1,990 1,880 1,905 2,162 1,222 1,586 1,766 1,440 1,416 2,125

12 43 73 48 50 48 33 44 35 33 29 54

6 24 42 28 30 29 20 28 23 22 20 38

10 29 50 35 34 37 22 40 25 27 17 39

28 96 166 110 115 115 75 112 83 81 66 131

72 58 83 59 60 53 61 71 47 56 47 62

2006 January February March April May June July August September October November December

145 918 1,348 1,156 1,372 1,202 1,080 1,006 1,273 1,226 1,407 1,558

2 19 31 25 37 30 26 25 29 29 30 33

1 14 22 19 29 24 20 20 23 25 25 28

2 12 19 16 22 17 18 17 17 17 20 31

6 45 71 59 88 71 63 62 68 71 75 92

38 49 53 51 64 59 59 61 54 58 54 59

Year 2002 Year 2003 Year 2004 Year 2005 Year 2006

174,119 87,413 42,429 19,525 13,691

5,809 2,242 1,105 504 315

1,374 964 539 309 251

6,432 1,826 982 364 207

13,615 5,032 2,626 1,177 773

78 58 62 60 56

337,177

9,974

3,437

9,813

23,224

69

Total

(1) Pesified at $1.40 per US Dollar.

Source: ABA based on Central Bank's data.

26

ANNUAL REPORT 2006 Statistical Appendix

TABLE 4: Monetary Agregates

(in millions of Pesos of December 2006) Period

M1

M2

M1 + Foreign Currency Demand Deposits

M2 + Total Deposits in Foreign Currency

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

December December December December December December December December December December December

40,700 38,839 48,143 56,020 59,576 58,675 54,387 39,650 51,499 72,768 85,059

75,501 65,879 80,757 99,865 109,928 107,547 100,000 64,299 108,134 141,366 162,215

41,533 39,772 49,707 58,194 62,379 61,198 56,330 44,478 52,731 73,955 86,372

98,487 88,578 109,123 137,035 152,469 154,691 151,701 112,014 111,147 146,988 173,912

2005

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

86,113 83,660 82,810 83,017 85,365 86,383 87,729 87,714 86,934 88,435 90,551 96,152

165,716 164,522 163,700 163,941 167,093 170,280 172,167 172,619 171,498 172,236 174,002 177,745

87,613 85,080 84,282 84,466 86,862 87,803 89,054 89,155 88,388 89,892 91,944 97,553

179,479 177,317 176,265 175,042 179,306 181,581 183,432 184,270 183,375 184,267 186,084 190,271

2006

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

96,294 93,102 93,058 92,402 94,569 96,694 97,436 97,197 97,669 98,964 101,934 106,341

178,294 176,627 177,360 177,015 181,165 185,297 188,236 189,638 191,605 193,801 197,425 202,405

97,756 94,579 94,534 93,780 95,913 98,089 98,995 98,833 99,187 100,521 103,554 107,940

192,104 190,338 191,496 191,901 196,616 201,259 204,702 206,086 208,563 211,204 214,996 219,806

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 2006 Statistical Appendix

TABLE 5: Monetary Agregates

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 2005 2006

M1

M2

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 14.1 14.4 14.7

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 27.3 28.0 28.3

M1 + Foreign Currency Demand Deposits 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 14.4 14.6 15.0

M2 + Total Deposits in Foreign Currency 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 29.4 30.2 30.8

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 2006 Statistical Appendix

TABLE 6: Monetary Agregates in Real Terms (1)

Monthly average of daily balances (in millions of Pesos of December 2006) Period

Cash Held by 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 2003 2004

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

11,522 13,174 11,001 9,597 7,790 8,434 13,048 17,130 22,395 24,327 23,083 24,802 28,857 30,340 29,590 27,060 19,901 20,501 32,890 38,339

14,847 13,103 8,580 6,718 7,988 4,964 8,649 12,434 15,283 16,373 15,756 23,340 27,163 29,236 29,084 27,328 19,748 30,998 39,877 46,720

26,370 26,277 19,581 16,315 15,778 13,398 21,697 29,564 37,678 40,700 38,839 48,143 56,020 59,576 58,675 54,387 39,650 51,499 72,768 85,059

8,945 8,950 7,765 5,694 2,353 7,010 5,474 6,985 11,444 12,273 10,537 13,177 16,953 18,968 19,299 18,118 10,693 12,163 18,828 26,143

27,962 39,809 35,227 44,638 18,456 6,427 8,170 15,191 21,895 22,527 16,503 19,438 26,891 31,384 29,573 27,495 13,956 44,472 49,770 51,012

63,277 75,036 62,574 66,647 36,588 26,835 35,341 51,740 71,016 75,501 65,879 80,757 99,865 109,928 107,547 100,000 64,299 108,134 141,366 162,215

2005

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

39,360 38,447 38,229 38,178 38,934 39,932 41,647 41,870 41,704 42,175 42,759 44,750

46,753 45,213 44,580 44,839 46,431 46,451 46,083 45,844 45,230 46,260 47,793 51,402

86,113 83,660 82,810 83,017 85,365 86,383 87,729 87,714 86,934 88,435 90,551 96,152

26,744 26,275 26,324 25,786 26,247 27,655 29,196 29,081 28,091 28,436 28,251 28,166

52,860 54,587 54,566 55,138 55,482 56,242 55,242 55,824 56,473 55,366 55,199 53,427

165,716 164,522 163,700 163,941 167,093 170,280 172,167 172,619 171,498 172,236 174,002 177,745

2006

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

45,728 44,806 44,633 44,507 44,673 45,333 47,226 47,298 47,528 47,841 48,166 50,955

50,566 48,295 48,425 47,895 49,896 51,361 50,209 49,899 50,141 51,123 53,769 55,386

96,294 93,102 93,058 92,402 94,569 96,694 97,436 97,197 97,669 98,964 101,934 106,341

28,540 29,528 30,048 28,707 29,916 29,067 30,376 29,014 28,624 29,034 28,932 30,157

53,460 53,998 54,254 55,906 56,680 59,535 60,425 63,426 65,313 65,803 66,559 65,906

178,294 176,627 177,360 177,015 181,165 185,297 188,236 189,638 191,605 193,801 197,425 202,405

(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 2006 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 2003 2004

December December 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 28,717 35,838

3,872 716 27 47 31 91 88 6,703 10,953 20,396 22,988

16,218 12,741 13,158 15,221 15,551 15,139 14,293 16,876 28,719 49,112 58,826

...

1,494 4,961 6,315 9,347 9,662 9,248 -4,773 -233 -46 5,491

...

15,010 18,137 21,536 24,898 24,802 23,541 12,109 28,486 49,066 64,317

...

456 1,049 478 1,620 1,827 1,016 171 79 559 486

2005

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

36,364 35,779 36,253 36,597 37,361 38,645 40,709 41,117 41,502 42,400 43,207 46,008

22,061 22,458 22,000 19,690 21,180 18,992 19,163 18,933 17,045 18,312 18,486 15,972

58,425 58,237 58,252 56,287 58,541 57,637 59,873 60,050 58,547 60,712 61,693 61,980

7,227 7,105 5,211 5,353 5,209 5,633 4,881 7,096 7,400 4,811 4,570 5,422

65,653 65,343 63,463 61,640 63,750 63,270 64,753 67,146 65,947 65,523 66,263 67,403

293 499 521 1,468 889 733 2,337 1,528 1,116 1,127 1,563 1,227

2006

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

47,136 46,643 46,576 47,288 47,442 48,598 50,729 50,822 50,901 51,621 52,248 56,158

18,598 18,714 18,842 20,143 21,299 21,498 21,741 23,813 25,448 26,109 28,013 28,660

65,734 65,357 65,418 67,431 68,741 70,096 72,470 74,636 76,349 77,729 80,261 84,818

3,537 4,142 2,608 2,933 5,305 5,549 4,733 4,969 2,983 3,252 3,318 1,666

69,271 69,498 68,027 70,364 74,046 75,645 77,203 79,605 79,331 80,982 83,579 86,484

1,749 1,727 3,171 3,035 3,662 4,513 3,231 753 863 654 575 2,041

(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 2006 Statistical Appendix

TABLE 8: Central Bank´s Reserves

(1)

Monthly average of daily balances Period

Liquid Reserves (2)

Government Securities (3)

Total

In millions of US Dollars

Monetary Liabilities (4) In millions of Pesos

1996 1997 1998 1999 2000 2001 2002 2003 2004

December December December December December December December December December

17,503 20,871 24,975 24,910 24,077 14,815 10,265 13,820 19,310

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 13,820 19,310

14,059 14,190 15,551 15,139 14,293 16,876 28,719 49,112 58,826

2005

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

19,841 20,526 20,741 20,618 21,602 22,559 24,015 25,080 25,581 26,047 26,501 27,262

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

19,841 20,526 20,741 20,618 21,602 22,559 24,015 25,080 25,581 26,047 26,501 27,262

58,425 58,237 58,252 56,287 58,541 57,637 59,873 60,050 58,547 60,712 61,693 61,980

2006

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

19,608 20,059 20,873 21,866 23,691 24,837 26,041 27,024 27,740 28,390 29,760 31,167

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

19,608 20,059 20,873 21,866 23,691 24,837 26,041 27,024 27,740 28,390 29,760 31,167

65,734 65,357 65,418 67,431 68,741 70,096 72,470 74,636 76,349 77,729 80,261 84,818

(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 2006 Statistical Appendix

TABLE 9: Central Bank Bills and Notes (LEBAC and NOBAC) As of end of period Period

Stock In Pesos

In Foreign Currency

Average Rates

In Pesos Indexed to CER

Total

In Millions of Pesos

In Pesos

In Foreign Currency

Weighted Average Term In Pesos Indexed to CER

In Pesos

As Annual Percentage

In Foreign Currency

In Pesos Indexed to CER

In Days

2002 2003 2004

December December December

3,049 8,151 7,698

615 244 158

...

2,758 10,834

3,664 11,154 18,690

42.5 15.9 7.7

-0.0 -0.0 ...

...

8.7 2.4

103 226 184

8 18 47

...

360 385

2005

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

8,101 8,132 8,450 8,958 10,944 14,337 13,335 14,568 17,598 17,696 16,856 17,357

158 150 150 150 93 93 127 92 92 147 147 148

11,357 12,553 13,669 14,012 12,904 14,086 17,319 16,675 15,412 15,516 14,823 14,988

19,615 20,835 22,270 23,119 23,941 28,517 30,781 31,335 33,102 33,360 31,825 32,492

7.3 7.2 6.2 6.2 6.1 6.3 6.6 6.7 7.1 7.2 7.7 7.9

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

1.0 3.7 3.7 3.9 3.9 3.9

2.3 2.1 1.9 1.8 1.8 1.7 1.8 1.8 2.0 2.0 2.0 2.0

169 167 144 135 126 119 118 124 133 134 176 178

16 79 48 18 85 55 63 273 243 192 162 131

395 406 400 385 421 399 447 438 444 414 406 375

2006

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

16,570 18,875 21,207 23,023 24,760 26,586 30,514 33,317 34,401 36,256 37,493 38,074

207 115 115 117 118 118 118 57 57 57 56 56

15,157 13,498 11,961 10,005 10,107 10,167 7,158 7,200 7,241 7,301 7,021 5,564

31,935 32,488 33,284 33,145 34,986 36,871 37,790 40,574 41,699 43,613 44,570 43,694

8.2 8.9 9.6 10.2 10.4 10.6 10.9 11.2 11.4 11.5 11.6 11.6

4.0 3.9 3.9 4.3 4.3 4.3 4.3 4.9 5.2 5.2 5.2 5.2

2.0 2.3 2.1 2.5 2.5 2.5 3.2 3.2 3.2 3.2 3.4 2.8

197 254 335 364 350 330 340 344 335 340 349 347

83 103 72 124 93 63 32 27 179 148 118 87

344 361 376 422 391 361 480 449 419 388 377 446

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

Source: ABA based on Central Bank's data.

32

ANNUAL REPORT 2006 Statistical Appendix

TABLE 10: Interest Rates

(Annual nominal, as a percentage) On Loans

On Deposits In Domestic Currency Period

Savings Accounts

Time Deposits (1)

In Foreign Currency Savings Accounts

Time Deposits (1)

Domestic Prime Rate In Domestic Currency

In Foreign Currency

30 days

30 days

90 days

Interbank Rate

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Average Average Average Average Average Average Average Average Average Average

3.7 3.5 3.3 3.0 2.9 2.8 3.2 6.4 1.3 0.7

12.5 7.6 7.2 7.8 8.5 8.7 17.4 46.9 10.8 2.8

2.7 2.6 2.5 2.4 2.5 2.7 3.4 2.0 0.9 0.1

8.4 6.3 6.0 6.5 6.5 7.2 9.9 3.9 0.8 0.4

19.1 10.9 9.5 11.0 11.4 11.5 32.4 66.6 20.7 6.9

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 3.9 2.0

2005

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

0.7 0.7 0.7 0.8 0.7 0.8 0.8 0.8 0.7 0.7 0.9 0.9

2.9 2.8 2.9 3.2 3.8 4.0 4.4 4.2 4.4 4.5 4.6 5.3

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

0.3 0.3 0.4 0.4 0.5 0.4 0.5 0.6 0.6 0.7 0.7 0.7

5.6 5.4 5.4 5.6 6.1 6.2 6.5 6.4 6.3 6.4 6.7 7.1

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

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

2.4 2.2 2.4 2.8 3.3 4.7 5.0 4.3 4.5 4.7 6.5 6.7

Average

0.8

3.9

0.1

0.5

6.2

...

...

4.1

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

0.9 0.8 0.9 0.8 0.8 0.8 0.8 0.8 0.9 0.8 0.8 0.8

5.6 5.7 6.1 6.2 6.7 6.6 7.0 7.1 7.0 7.2 7.3 7.0

0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1

0.7 0.7 0.8 0.8 0.8 1.0 1.0 1.1 1.1 1.1 1.1 1.2

7.5 7.5 7.4 7.7 8.2 8.9 9.1 9.4 9.4 9.4 9.5 9.6

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

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

7.2 5.4 8.3 7.8 5.9 7.2 7.7 6.9 7.6 6.8 8.0 8.2

Average

0.8

6.7

0.1

0.9

8.8

...

...

7.4

2006

(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 2006 Statistical Appendix

TABLE 11: Lending Rates in Pesos (Annual nominal, as a percentage)

In Domestic Currency Period

Current Accounts Overdrafts

Promissory Notes

Mortgage Loans

Pledge Loans

Consumer + Credit Cards

Consumer Loans

Credit Cards Financing

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Average Average Average Average Average Average Average Average Average Average Average

34.7 41.6 32.7 28.2 28.8 30.6 30.0 40.4 60.3 37.7 15.7

19.6 20.0 13.3 11.1 11.6 12.1 12.2 28.0 38.8 17.7 10.8

16.3 15.4 12.4 13.2 14.3 14.4 15.0 15.3 29.4 18.0 12.0

24.2 26.3 22.2 18.9 20.5 20.6 21.4 21.1 19.1 19.7 13.3

37.1 44.8 40.7 38.2 34.7 32.7 33.0 34.3 51.0 54.3 30.4

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

40.7 45.9 29.7

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

51.4 54.8 30.7

2005

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

13.8 13.9 14.1 14.3 14.4 14.5 14.0 14.3 15.1 16.5 16.8 17.0

9.9 9.8 10.0 9.2 9.6 10.1 10.3 10.4 10.8 10.7 11.1 11.5

11.1 11.3 11.5 11.3 11.3 11.6 11.2 11.0 11.2 11.0 11.4 11.6

11.0 11.3 11.0 10.4 10.0 10.1 10.0 10.2 9.9 10.3 10.0 9.9

27.2 26.9 26.8 27.9 27.3 27.4 28.0 27.4 27.1 27.0 27.1 26.8

26.7 26.7 26.2 26.7 26.1 26.0 26.7 25.6 25.0 25.1 24.9 24.9

27.4 27.0 27.0 28.3 27.7 27.8 28.4 28.1 27.9 27.6 28.0 27.4

Average

14.9

10.3

11.3

10.3

27.3

25.9

27.7

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

17.3 16.7 17.7 17.3 16.1 16.5 16.2 16.1 16.1 16.3 16.4 16.5

11.5 12.1 12.2 12.5 13.0 12.6 12.9 13.0 13.0 12.7 12.9 12.9

11.5 11.4 11.3 11.9 11.8 12.0 12.0 11.4 11.5 11.9 11.6 11.7

8.8 9.1 9.5 10.4 10.3 10.0 9.3 9.6 9.8 10.3 10.6 11.1

27.5 27.3 26.1 26.2 26.7 26.4 27.4 27.1 25.7 26.0 25.8 25.5

25.5 25.8 24.5 24.0 24.3 23.8 24.6 24.8 24.3 25.4 24.8 24.6

28.1 27.7 26.7 26.9 27.6 27.4 28.5 28.2 26.4 26.3 26.2 25.9

Average

16.6

12.6

11.7

9.9

26.5

24.7

27.2

2006

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 2006 Statistical Appendix

TABLE 12: Lending Rates in Foreign Currency

(Annual nominal, as a percentage) Period

In Foreign Currency Current Accounts Overdrafts

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Average Average Average Average Average Average Average Average Average Average Average

2005

2006

Promissory Notes

Mortgage Loans

Pledge Loans

Consumer + Credit Cards

Consumer Loans

Credit Cards Financing

19.2 22.0 13.3 13.5 13.0 10.9 9.5 20.8 22.0 10.6 5.0

13.4 17.4 12.0 10.9 11.1 12.1 12.5 19.6 12.5 7.7 5.1

15.1 16.7 14.0 12.5 12.2 13.0 12.6 12.4 11.5 4.3 9.1

17.2 19.1 16.3 15.3 14.1 14.6 15.5 16.6 7.4 13.7 11.4

19.9 23.9 22.5 21.8 21.2 23.1 24.1 26.1 31.5 28.8 20.6

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

21.5 ... ...

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

31.5 28.8 20.6

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

4.3 4.7 5.3 5.5 4.5 5.2 5.2 5.5 5.2 5.7 5.0 5.4

4.8 4.3 5.1 4.9 4.9 4.3 5.0 5.0 5.1 6.4 5.2 6.1

7.1 7.4 7.0 7.2 7.9 8.0 9.1 14.3 9.8 11.2 10.8 11.1

9.2 13.1 12.7 12.6 11.5 6.7 14.0 14.0 14.0 ...

8.4 8.0

19.0 19.1 19.8 19.4 18.9 19.5 18.7 18.5 18.5 18.6 18.3 18.4

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

19.0 19.1 19.8 19.4 18.9 19.5 18.7 18.5 18.5 18.6 18.3 18.4

Average

5.1

5.1

9.2

11.3

18.9

...

18.9

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

5.5 5.3 5.3 5.4 4.8 5.3 5.3 5.6 5.6 5.7 5.7 5.9

4.8 5.3 5.1 5.1 4.9 5.2 5.3 5.5 5.4 5.4 5.3 5.5

10.7 10.5 12.1 9.2 11.6 11.6 11.2 11.2 10.7 10.6 9.7 10.0

8.5 9.5 12.9 9.6 8.1 8.8 8.4 8.2 8.3 9.4 ... ...

18.3 18.7 17.7 17.9 17.6 17.5 17.6 17.6 17.5 17.5 17.5 17.4

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

18.3 18.7 17.7 17.9 17.6 17.5 17.6 17.6 17.5 17.5 17.5 17.4

Average

5.4

5.2

10.8

9.2

17.7

...

17.7

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

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

35

ANNUAL REPORT 2006 Statistical Appendix

TABLE 13: Bank Credit (in millions of Pesos) End of:

To Public Sector

To Private Sector

In Domestic Currency

In Foreign Currency

Total

In Domestic Currency

In Foreign Currency

Total

December December 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 67,798 78,743

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 28,425 25,639

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 96,223 104,382

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 34,975 41,422

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 5,483 5,549

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 40,458 46,971

2005 January February March April May June July August September October November December

84,074 84,036 83,946 86,152 86,887 88,205 87,079 85,571 86,626 83,039 81,443 86,251

24,255 23,884 21,316 21,266 19,164 18,342 17,487 16,730 16,197 16,961 15,329 14,919

108,329 107,920 105,262 107,418 106,051 106,547 104,566 102,301 102,823 100,001 96,772 101,170

42,284 42,363 42,912 44,291 44,985 45,963 46,699 47,678 49,114 50,721 52,365 54,163

5,592 5,777 6,204 6,200 6,258 7,159 7,514 8,052 7,669 7,664 7,821 7,898

47,876 48,141 49,116 50,491 51,243 53,123 54,214 55,730 56,783 58,385 60,186 62,061

2006 January February March April May June July August September October November December

82,493 82,740 81,058 82,010 85,325 83,584 85,475 86,095 83,320 85,689 83,640 77,681

14,328 14,376 11,302 10,875 11,514 14,406 11,514 10,752 10,819 13,022 12,687 11,252

96,821 97,116 92,360 92,885 96,839 97,990 96,990 96,847 94,139 98,711 96,327 88,933

55,400 56,844 56,901 57,836 59,823 61,618 63,049 64,767 66,707 69,084 71,213 72,815

8,114 8,784 9,400 10,149 10,626 10,963 11,265 11,678 12,069 12,131 12,290 12,488

63,514 65,628 66,301 67,985 70,449 72,581 74,314 76,445 78,776 81,215 83,503 85,303

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

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

36

ANNUAL REPORT 2006 Statistical Appendix

TABLE 14: Nominal Bank Credit by Currency (in millions of Pesos) End of:

In Domestic Currency

In Foreign Currency

Loans

Resources Earned on Loans

Total

Loans

Resources Earned on Loans

Total

Total

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

December December 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 90,727 107,961

412 6,707 7,549 5,402 4,614 3,840 2,844 1,353 1,364 677 599 556 459 14,409 12,045 12,204

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 98,919 102,773 120,165

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 33,804 31,093

109 394 761 835 791 977 1,161 1,030 1,079 1,106 1,135 1,212 1,344 207 105 95

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 33,908 31,188

2,277 17,691 33,036 45,609 56,436 63,844 67,554 73,874 85,406 95,865 98,850 96,688 86,093 143,206 136,681 151,353

2005

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

114,011 113,888 114,330 117,567 118,842 121,432 121,313 121,148 124,042 121,926 122,289 129,174

12,347 12,510 12,529 12,876 13,030 12,736 12,466 12,101 11,698 11,835 11,519 11,240

126,358 126,399 126,859 130,443 131,873 134,168 133,778 133,249 135,740 133,761 133,808 140,413

29,758 29,570 27,438 27,382 25,338 25,415 24,911 24,685 23,772 24,531 23,053 22,726

88 91 81 84 84 87 91 98 94 94 98 91

29,846 29,662 27,519 27,466 25,422 25,502 25,002 24,783 23,867 24,625 23,150 22,817

156,204 156,060 154,378 157,909 157,295 159,670 158,780 158,031 159,607 158,386 156,959 163,231

2006

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

126,382 128,090 127,053 129,117 134,777 135,121 138,608 140,961 140,038 144,743 144,688 141,018

11,511 11,493 10,905 10,729 10,371 10,081 9,917 9,902 9,989 10,030 10,165 9,477

137,893 139,584 137,959 139,846 145,148 145,202 148,525 150,863 150,027 154,773 154,853 150,496

22,352 23,069 20,604 20,912 22,022 25,254 22,659 22,297 22,747 25,005 24,829 23,592

90 90 98 112 118 114 120 133 141 148 148 147

22,442 23,160 20,702 21,023 22,140 25,369 22,779 22,430 22,888 25,153 24,977 23,740

160,335 162,743 158,661 160,869 167,288 170,571 171,304 173,293 172,915 179,926 179,830 174,235

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

37

ANNUAL REPORT 2006 Statistical Appendix

TABLE 15: Bank Credit in Real Terms (1) (in millions of Pesos of December 2006) End of:

In Domestic Currency

In Foreign Currency

Loans

Resources Earned on Loans

Total

Loans

Resources Earned on Loans

Total

Total

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

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

23,169 27,185 33,667 47,435 58,269 60,460 54,842 59,749 65,750 72,903 72,921 65,962 44,109 112,407 117,372 130,570

22,370 31,316 20,867 13,683 11,348 8,990 6,392 3,004 3,043 1,566 1,386 1,271 1,090 19,166 15,583 14,760

45,539 58,501 54,534 61,118 69,617 69,450 61,233 62,753 68,793 74,469 74,307 67,233 45,199 131,572 132,954 145,330

72,280 22,265 34,687 52,283 67,234 77,733 87,981 98,948 119,295 144,564 151,604 151,081 156,216 58,631 43,731 37,605

5,938 1,840 2,104 2,116 1,944 2,287 2,610 2,288 2,406 2,556 2,625 2,770 3,195 275 135 115

78,218 24,105 36,791 54,398 69,178 80,020 90,591 101,235 121,701 147,119 154,229 153,851 159,411 58,906 43,866 37,720

123,757 82,606 91,325 115,516 138,795 149,469 151,824 163,988 190,494 221,588 228,536 221,085 204,611 190,478 176,820 183,050

2005

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

137,515 135,997 134,171 136,649 137,761 139,951 138,256 136,922 138,091 134,461 133,986 140,120

14,892 14,939 14,704 14,966 15,105 14,678 14,207 13,676 13,023 13,052 12,621 12,192

152,407 150,937 148,874 151,615 152,866 154,629 152,463 150,598 151,114 147,512 146,607 152,313

35,893 35,311 32,200 31,826 29,372 29,291 28,390 27,899 26,465 27,053 25,258 24,652

106 109 96 98 97 101 104 111 105 104 107 99

35,999 35,420 32,295 31,923 29,469 29,391 28,494 28,009 26,570 27,157 25,365 24,751

188,406 186,357 181,169 183,538 182,335 184,020 180,957 178,608 177,683 174,669 171,972 177,064

2006

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

135,310 135,812 134,310 134,862 140,165 139,625 142,283 143,832 142,430 146,283 145,642 141,018

12,324 12,186 11,528 11,207 10,785 10,417 10,180 10,104 10,160 10,136 10,232 9,477

147,634 147,999 145,838 146,069 150,951 150,043 152,463 153,936 152,590 156,419 155,873 150,496

23,931 24,460 21,780 21,842 22,902 26,096 23,260 22,751 23,135 25,271 24,992 23,592

96 96 104 117 123 118 124 135 143 150 149 147

24,027 171,662 24,556 172,555 21,884 167,722 21,959 168,028 23,025 173,975 26,214 176,257 23,383 175,847 22,887 176,823 23,279 175,869 25,421 181,840 25,141 181,015 23,740 174,235

(1) Deflated by the combined price index.

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

38

ANNUAL REPORT 2006 Statistical Appendix

TABLE 16: 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 December November

Public Banks

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2002 2003 2004 2005 2006

Private Banks

Non-Banking Financial Institutions

Total Financial System

161 154 142 139 141 134 134 131 133 135 96 96 95 86 76 75 72 62 62 60 59 58 60

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

315 296 267 244 236 221 219 211 206 205 157 146 139 125 116 113 107 99 99 96 91 89 90

37 37 36 36 36 36 35 36 34 33 31 24 19 16 16 14 13 16 16 15 14 13 12

Source: ABA based on Central Bank's data.

39

ANNUAL REPORT 2006 Statistical Appendix

TABLE 17: Employees Period

Public Banks

Private Banks

Total

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 2005 2006 ( 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 39,499 38,442 37,096

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 43,433 46,763 49,485

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 82,932 85,205 86,581

(1) It corresponds to September.

Source: ABA based on Central Bank's data.

40

ANNUAL REPORT 2006 Statistical Appendix

TABLE 18: Number of Accounts Period

Time Deposits

Savings Accounts

Current Accounts

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

December December December December December 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 2,080,318 1,593,350 1,256,816 937,550 902,696

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 13,790,783 17,764,496 11,329,351 12,571,963 14,093,178

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 3,204,233 3,260,707 2,638,476 2,032,786 2,286,472

2005

March June September December

844,009 880,559 942,570 915,959

13,079,737 13,087,626 15,254,225 16,520,886

2,165,411 2,268,101 2,396,598 2,593,732

2006

March June September

970,244 1,034,620 1,114,441

16,613,368 17,067,082 17,525,072

2,569,251 2,638,351 2,658,044

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

41

ANNUAL REPORT 2006 Statistical Appendix

TABLE 19: Number of Branches (1) End of:

December December December December December June December December December December December December December December December December December December November

1987 1988 1989 1990 1991 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Public Banks

Private Banks

Non-Banking 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 1,561 1,412

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 2,218 2,406

227 160 107 87 75 60 59 51 45 45 42 56 63 73 58 59 53 100 99

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 3,879 3,917

(1) Including head offices.

Source: ABA based on Central Bank's data.

42

ANNUAL REPORT 2006 Statistical Appendix

TABLE 20: Branches Geographical Distribution (1) As of November 30, 2006 Provinces

Public Banks

Private Banks

Total Banking System

Non-Banking 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

164 1,248 513 14 223 40 43 48 25 5 5 94 12 35 13 31 20 9 7 6 11 70 8 5 11

590 1,816 655 6 163 20 16 28 92 13 23 11 13 99 45 22 37 40 25 30 26 352 36 12 52

754 3,064 1,168 20 386 60 59 76 117 18 28 105 25 134 58 53 57 49 32 36 37 422 44 17 63

21 78 44 0 5 1 2 0 1 0 1 0 0 5 2 1 0 3 3 3 0 5 1 0 1

775 3,142 1,212 20 391 61 61 76 118 18 29 105 25 139 60 54 57 52 35 39 37 427 45 17 64

Total

1,412

2,406

3,818

99

3,917

(1) Including head offices.

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

43

ANNUAL REPORT 2006 Statistical Appendix

TABLE 21: ATMs Geographical Distribution

As of November 30, 2006 Provinces

Public Banks

Private Banks

Total Banking System

Non-Banking 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

350 1,565 826 35 181 59 63 39 15 4 4 39 5 48 11 75 22 10 8 6 10 65 3 27 10

1,458 3,825 1,689 10 270 33 26 59 134 47 79 13 26 205 79 49 86 103 71 53 56 517 66 16 138

1,808 5,390 2,515 45 451 92 89 98 149 51 83 52 31 253 90 124 108 113 79 59 66 582 69 43 148

3 30 3 0 0 1 0 0 0 0 2 0 0 0 0 0 0 24 0 0 0 0 0 0 0

1,811 5,420 2,518 45 451 93 89 98 149 51 85 52 31 253 90 124 108 137 79 59 66 582 69 43 148

Total

1,915

5,283

7,198

33

7,231

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

44

ANNUAL REPORT 2006 Statistical Appendix

TABLE 22: Assets and Liabilities Structure Item

December 2003 In Millions of Pesos

Assets

%

December 2004 In Millions of Pesos

%

December 2005 In Millions of Pesos

%

November 2006 In Millions of Pesos

%

186,873

100.0

212,562

100.0

221,962

100.0

264,843

100.0

25,894 45,259 58,668 33,398 1,417 33,228 -9,374

13.9 24.2 31.4 17.9 0.8 17.8 -5.0

26,997 55,769 66,117 41,054 1,697 30,866 -7,500

12.7 26.2 31.1 19.3 0.8 14.5 -3.5

18,933 67,122 79,241 55,885 2,450 25,836 -4,930

8.5 30.2 35.7 25.2 1.1 11.6 -2.2

34,161 66,687 99,755 76,806 4,716 22,508 -4,276

12.9 25.2 37.7 29.0 1.8 8.5 -1.6

28,712 6,461 21,879

15.4 3.5 11.7

34,711 6,259 22,710

16.3 2.9 10.7

28,607 6,141 21,918

12.9 2.8 9.9

35,096 6,133 23,011

13.3 2.3 8.7

164,923

88.3

188,683

88.8

195,044

87.9

232,321

87.7

Deposits Non-financial private sector Financial sector Public sector Other obligations through financial intermediation Others

94,635 77,862 677 16,097

50.6 41.7 0.4 8.6

116,655 84,266 670 31,720

54.9 39.6 0.3 14.9

136,492 101,647 737 34,108

61.5 45.8 0.3 15.4

170,569 122,234 1,160 47,175

64.4 46.2 0.4 17.8

61,691 8,597

33.0 4.6

64,928 7,100

30.5 3.3

52,072 6,480

23.5 2.9

54,583 7,169

20.6 2.7

Stockholder's Equity

21,950

11.7

23,879

11.2

26,918

12.1

32,522

12.3

Cash and due from banks Public bonds Loans Non-financial private sector Financial sector Public sector Provisions Other credits through financial intermediation Fixed assets Others Liabilities

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

45

ANNUAL REPORT 2006 Statistical Appendix

TABLE 23: Terms for Assets and Liabilities

As of November 30, 2006 (in millions of Pesos) Assets

Due Portfolio

1 Month

3 6 12 24 Months Months Months Months

More than 24 Months

Total

Public Sector Loans Financial System Non-financial Private Sector and Foreign Residents Liquid Assets Public Bonds BOGAR (aprox.)

BODEN 2012 BODEN 2007 LEBAC/NOBAC - Holdings LEBAC/NOBAC - Repos

66 184

4,612 5,585

310 670

380 381

917 782

1,147 391

15,854 623

23,287 8,616

5,360 … … … … … … …

31,173 34,161 7,422 96 … …

1,082 6,244

11,384 …

2,252 192 … …

2,060 …

10,160 …

5,236 288 1,183 133 3,632 …

8,637 …

9,024 576 1,183 133 7,132 …

9,485 …

17,497 1,153 2,365 266 13,713 …

22,294 …

25,256 21,708 3,548 … … …

98,493 34,161 66,687 24,013 8,279 533 27,619 6,244

Total

5,610

82,953

14,616

16,157

19,360

28,520

64,027

231,243

3 6 12 24 Months Months Months Months

More than 24 Months

Total

Liabilities

1 Month

Deposits Demand Deposits Others Other Financial Intermediation Obligations Central Bank International Banks and Institutions Unsubordinated Notes Financing Received by Local Financial Institutions Others

107,595 32,324 75,271

19,217 …

19,217

4,431 …

4,431

5,308 …

5,308

1,071 …

1,071

32,947 32,324 622

170,569 64,648 105,920

13,612 1,332 51 239

1,250 202 177 55

1,501 360 107 178

2,468 971 19 337

2,555 1,547 84 469

13,367 6,695 289 5,382

34,751 11,107 726 6,660

5,188 6,802

748 68

410 445

751 390

288 166

493 509

7,878 8,380

2

40

57

76

68

943

1,186

121,208

20,507

5,989

7,852

3,694

47,256

206,506

Subordinated Notes Total

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

46

ANNUAL REPORT 2006 Statistical Appendix

TABLE 24: Terms for Assets and Liabilities As of November 30, 2006 (as % of liabilities) Assets

Due Portfolio

1 Month

3 Months

6 Months

12 Months

24 More than Months 24 Months

Total

Public Sector Loans Financial System Non-financial Private Sector and Foreign Residents Liquid Assets Public Bonds BOGAR (aprox.)

BODEN 2012 BODEN 2007 LEBAC/NOBAC - Holdings LEBAC/NOBAC - Repos

0.0 0.1

2.2 2.7

0.2 0.3

0.2 0.2

0.4 0.4

0.6 0.2

7.7 0.3

11.3 4.2

2.6 ... ... ... ... ... ... ...

15.1 16.5 3.6 0.0 ... ...

0.5 3.0

5.5 ...

1.1 0.1 ... ...

1.0 ...

4.9 ...

2.5 0.1 0.6 0.1 1.8 ...

4.2 ...

4.4 0.3 0.6 0.1 3.5 ...

4.6 ...

8.5 0.6 1.1 0.1 6.6 ...

10.8 ...

12.2 10.5 1.7 ... ... ...

47.7 16.5 32.3 11.6 4.0 0.3 13.4 3.0

Total

2.7

40.2

7.1

7.8

9.4

13.8

31.0

112.0

Liabilities

1 Month

3 Months

6 Months

12 Months

24 More than Months 24 Months

Total

Deposits Demand Deposits Others Other Financial Intermediation Obligations Central Bank International Banks and Institutions Unsubordinated Notes Financing Received by Local Financial Institutions Others Subordinated Notes

52.1 15.7 36.4

9.3 ...

9.3

2.1 ...

2.1

2.6 ...

2.6

0.5 ...

0.5

16.0 15.7 0.3

82.6 31.3 51.3

6.6 0.6 0.0 0.1

0.6 0.1 0.1 0.0

0.7 0.2 0.1 0.1

1.2 0.5 0.0 0.2

1.2 0.7 0.0 0.2

6.5 3.2 0.1 2.6

16.8 5.4 0.4 3.2

2.5 3.3 0.0

0.4 0.0 0.0

0.2 0.2 0.0

0.4 0.2 0.0

0.1 0.1 0.0

0.2 0.2 0.5

3.8 4.1 0.6

Total

58.7

9.9

2.9

3.8

1.8

22.9

100.0

0.7

0.7

2.7

2.5

7.7

1.4

1.1

Assets / Liabilities (%)

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

47

ANNUAL REPORT 2006 Statistical Appendix

TABLE 25: Terms for Assets and Liabilities

As of November 30, 2006 (Percentage Term Structure) Assets

Due Portfolio

1 Month

3 Months

6 Months

12 Months

24 Months

More than 24 Months

Total

Public Sector Loans Financial System Non-financial Private Sector and Foreign Residents Liquid Assets Public Bonds BOGAR (aprox.)

BODEN 2012 BODEN 2007 LEBAC/NOBAC - Holdings LEBAC/NOBAC – Repos

0.3 2.1

19.8 64.8

1.3 7.8

1.6 4.4

3.9 9.1

4.9 4.5

68.1 7.2

100.0 100.0

5.4 ... ... ... ... ... ... …

31.7 100.0 11.1 0.4 ... ...

3.9 100.0

11.6 ...

3.4 0.8 ... ...

7.5 …

10.3 ...

7.9 1.2 14.3 25.0 13.2 …

8.8 ...

13.5 2.4 14.3 25.0 25.8 …

9.6 ...

26.2 4.8 28.6 50.0 49.6 …

22.6 ...

37.9 90.4 42.9 ... ... …

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

Total

2.4

35.9

6.3

7.0

8.4

12.3

27.7

100.0

Liabilities

1 Month

3 Months

6 Months

12 Months

24 Months

More than 24 Months

Total

Deposits Demand Deposits Others Other Financial Intermediation Obligations Central Bank International Banks and Institutions Unsubordinated Notes Financing Received by Local Financial Institutions Others Subordinated Notes

63.1 50.0 71.1

11.3 …

18.1

2.6 …

4.2

3.1 …

5.0

0.6 …

1.0

19.3 50.0 0.6

100.0 100.0 100.0

39.2 12.0 7.0 3.6

3.6 1.8 24.4 0.8

4.3 3.2 14.8 2.7

7.1 8.7 2.6 5.1

7.4 13.9 11.5 7.0

38.5 60.3 39.7 80.8

100.0 100.0 100.0 100.0

65.9 81.2 0.1

9.5 0.8 3.4

5.2 5.3 4.8

9.5 4.6 6.4

3.7 2.0 5.7

6.3 6.1 79.5

100.0 100.0 100.0

Total

58.7

9.9

2.9

3.8

1.8

22.9

100.0

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

48

ANNUAL REPORT 2006 Statistical Appendix

TABLE 26: Loans and Deposits (in millions of Pesos) Period

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

December December December December December December December December December December December December December December December December November

Loans Public Banks

Private Banks

9,557 19,952 18,409 21,543 23,286 23,580 22,255 23,379 25,153 22,060 21,700 20,388 28,429 17,529 19,096 24,472 30,727

4,984 11,415 21,713 25,433 32,614 31,702 38,312 45,590 50,402 53,732 52,707 48,291 43,958 40,647 46,155 53,326 66,528

Deposits

NonBanking Financial Institutions

Total Financial System

Public Banks

Private Banks

86 279 599 722 860 666 781 1,022 1,524 1,907 1,745 1,494 453 492 866 1,444 2,500

14,627 31,646 40,721 47,698 56,759 55,948 61,347 69,991 77,080 77,699 76,152 70,173 72,840 58,668 66,117 79,241 99,755

7,462 6,793 10,547 17,324 18,562 17,730 19,789 24,023 27,254 26,946 28,498 21,454 32,851 44,732 55,680 61,708 79,441

3,414 9,300 16,013 23,347 28,521 27,178 34,631 46,169 50,676 54,275 57,679 44,767 41,954 49,687 60,765 74,495 90,666

NonBanking Financial Institutions 60 223 451 490 588 324 371 336 390 352 393 226 196 216 211 289 462

Total Financial System

10,936 16,316 27,011 41,162 47,670 45,233 54,791 70,527 78,320 81,573 86,570 66,447 75,001 94,635 116,655 136,492 170,569

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

49

ANNUAL REPORT 2006 Statistical Appendix

TABLE 27: Loans and Deposits (as a percentage) Period

Loans Public Banks

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

December December December December December December December December December December December December December December December December November

65.3 63.0 45.2 45.2 41.0 42.1 36.3 33.4 32.6 28.4 28.5 29.1 39.0 29.9 28.9 30.9 30.8

Deposits

Private Banks

NonBanking Financial Institutions

Total Financial System

Public Banks

Private Banks

34.1 36.1 53.3 53.3 57.5 56.7 62.5 65.1 65.4 69.2 69.2 68.8 60.3 69.3 69.8 67.3 66.7

0.6 0.9 1.5 1.5 1.5 1.2 1.3 1.5 2.0 2.5 2.3 2.1 0.6 0.8 1.3 1.8 2.5

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

68.2 41.6 39.0 42.1 38.9 39.2 36.1 34.1 34.8 33.0 32.9 32.3 43.8 47.3 47.7 45.2 46.6

31.2 57.0 59.3 56.7 59.8 60.1 63.2 65.5 64.7 66.5 66.6 67.4 55.9 52.5 52.1 54.6 53.2

NonBanking Financial Institutions

Total Financial System

0.5 1.4 1.7 1.2 1.2 0.7 0.7 0.5 0.5 0.4 0.5 0.3 0.3 0.2 0.2 0.2 0.3

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

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

50

ANNUAL REPORT 2006 Statistical Appendix

TABLE 28: Information by Group of Institutions November 2006 (in millions of Pesos) Group

Assets

Stockholders´ Loans to Private Deposits of Equity Sector Private (1) Sector

Public Federal Banks Public Provincial and Municipal Public Banks International Banks Local Private Cooperatives Private Banks Banks Total Non-Banking Financial Institutions

65,050 44,609 109,659 69,432 76,402 6,060 151,895 261,554 3,289

7,779 3,968 11,747 7,920 11,117 688 19,725 31,472 1,049

7,988 10,457 18,446 27,463 21,951 2,391 51,805 70,251 2,319

18,489 20,891 39,381 45,957 31,405 5,029 82,391 121,772 462

Total Financial System

264,843

32,522

72,570

122,234

(1) Net of provisions.

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

51

ANNUAL REPORT 2006 Statistical Appendix

TABLE 29: Information by Group of Institutions November 2006 (as a percentage) Group

Public Federal Banks Public Provincial and Municipal Public Banks International Banks Local Private Cooperatives Private Banks Banks Total Non-Banking Financial Institutions Total Financial System

Assets Stockholders´ Equity

Loans to Private Sector (1)

Deposits of Private Sector

24.6 16.8 41.4 26.2 28.8 2.3 57.4 98.8 1.2

23.9 12.2 36.1 24.4 34.2 2.1 60.7 96.8 3.2

11.0 14.4 25.4 37.8 30.2 3.3 71.4 96.8 3.2

15.1 17.1 32.2 37.6 25.7 4.1 67.4 99.6 0.4

100.0

100.0

100.0

100.0

(1) Net of provisions.

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

52

ANNUAL REPORT 2006 Statistical Appendix

TABLE 30: 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 Debt valuation ( 1 ) Judicial Injunctions Amortization Miscellaneous Monetary adjustments Total Return Adjusted Return ( 2 ) ROE

2000

2001

2002

2003

2004

2005

2006

5.7 4.0 0.0 0.1 1.2 0.4 2.8 -2.4 -5.8 -0.4 -0.3 0.0 0.0 0.4 0.0 0.0 0.0 0.0

5.7 3.8 0.0 0.2 1.2 0.5 3.0 -2.6 -6.1 -0.5 -0.2 0.0 0.0 0.6 0.0 0.0 0.0 -0.2

6.5 -1.7 3.9 2.8 1.7 -0.1 1.9 -4.7 -4.4 -0.3 -0.2 0.0 0.0 -1.8 -5.8 -8.9 -8.9 -59.2

1.1 -0.5 1.3 -0.5 1.1 -0.3 1.9 -1.1 -4.2 -0.3 -0.2 -0.4 -0.6 0.9 0.0 -2.9 -1.9 -22.7

3.1 0.9 1.0 0.4 1.0 -0.2 2.0 -0.8 -4.1 -0.3 -0.1 -0.2 -0.9 0.8 0.0 -0.5 0.7 -4.2

4.6 1.5 1.5 0.4 1.2 0.1 2.3 -0.6 -4.6 -0.4 -0.3 -0.2 -0.9 0.8 0.0 0.9 2.0 7.0

5.7 1.8 1.3 0.4 2.0 0.1 2.7 -0.5 -5.0 -0.5 -0.3 -0.3 -0.7 1.0 0.0 2.0 3.0 14.8

(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.

53

ANNUAL REPORT 2006 Statistical Appendix

TABLE 31: Ratios - Financial System As a percentage

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

1 - Liquidity

22.3

26.1

23.1

25.0

23.4

19.6

22.8

29.1

29.6

20.1

22.7

2 - Credit to Public Sector

19.2

19.2

19.3

21.8

21.8

25.8

49.1

47.2

41.5

32.8

22.9

3 - Loans to Private Sector

57.8

56.2

57.2

53.7

49.7

47.2

20.8

18.1

20.3

26.8

31.8

4 - Private Sector Nonperforming Loans

16.2

13.8

12.2

14.0

16.0

19.1

38.6

33.5

18.6

7.6

4.5

5 - Capital Exposure to Private Sector

24.9

22.5

20.6

24.7

26.2

21.9

17.3

12.4

-1.0

-4.1

-3.3

6 - ROA

0.6

1.0

0.5

0.2

0.0

0.0

-8.9

-2.9

-0.5

0.9

2.0

7 - ROE

4.1

6.3

3.9

1.7

0.0

-0.2

-59.2

-22.7

-4.2

7.0

14.8

142.0

136.0

138.0

142.0

147.0

143.0

189.0

9 - Capital requirement compliance

23.8

20.8

20.3

21.0

20.1

21.4

…

10 - Excess of minimun capital requirement

64.0

73.0

49.0

54.0

58.0

54.0

…

8 - Efficiency

69.0 125.0 14.5

14.0

116.0 185.0

151.0 166.0 15.3 173.0

1 - (Liquid assets in Central Bank + Other liquids assets + LEBAC/NOBAC from repos) / Total deposits.

2 - (Public bonds (LEBAC/NOBAC not included) + Loans to Public Sector + Compensations) / Net Asset.

3 - Loans to Private Sector / Net Asset.

4 - Private Sector Non-performing loans / Loans to Private Sector.

5 - (Non-performing - Provisions) / Equity. Non-performing includes categories 3 to 6.

6 - Total Return / Net Assets.

7 - Total Return / Equity.

8 - (Financial Margin (Net interest income + CER/CVS Return + Other assets return + Difference on valuation + Other financial return) + Net Non-interest income) / Operating expenses.

9 - Minimum capital requirement compliance / Risk weighted assets (according to Central Bank regulations).

10 - (Minimum capital compliance - requirement (considering forbearances) / Requirement.

Source: “Report on Banks”, Central Bank.

54

16.8 136.0

ANNUAL REPORT 2006 Statistical Appendix

TABLE 32: Non-Performing Loans – Financial System As a percentage

Non-performing loans Non-performing - Private Sector Commercial loans Consumer and Mortgage Provisions / Non-performing loans (Non-performing loans - Provisions) / Total financing (Non-performing loans - Provisions) / Equity

Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

Dec. 2006

12.9 16.0 14.9 17.3 61.1

13.1 19.1 20.7 17.5 66.4

18.1 38.6 44.0 31.4 73.8

17.7 33.5 38.0 28.0 79.2

10.7 18.6 22.8 11.0 102.9

5.2 7.6 9.3 4.8 125.1

3.4 4.5 5.1 3.5 130.5

5.0

4.4

4.7

3.7

-0.3

-1.3

-1.0

26.2

21.6

17.2

11.9

-1.0

-4.1

-3.4

Source: “Report on Banks”, Central Bank.

55

ANNUAL REPORT 2006 Statistical Appendix

TABLE 33: 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 Debt valuation ( 1 ) Judicial Injunctions Amortization Miscellaneous Monetary adjustments Total Return Adjusted Return ( 2 ) ROE

2000

2001

2002

2003

2004

2005

2006

6.2 4.1 0.0 0.2 1.4 0.5 2.9 -2.5 -6.0 -0.4 -0.4 0.0 0.0 0.4 0.0 0.1 0.1

6.4 4.3 0.0 0.3 1.2 0.7 3.2 -3.0 -6.4 -0.5 -0.3 0.0 0.0 0.7 0.0 0.2 0.2

7.6 -0.2 1.1 4.4 2.5 -0.1 2.0 -5.0 -4.8 -0.4 -0.2 0.0 0.0 -3.0 -7.5 -11.3 -11.3

2.3 0.1 0.9 -0.3 1.7 -0.2 2.0 -1.3 -4.6 -0.3 -0.3 -0.6 -0.7 1.0 0.0 -2.5 -1.2

2.9 1.0 0.8 0.6 0.8 -0.3 2.4 -0.9 -4.6 -0.3 -0.2 0.0 -1.0 0.7 0.0 -1.0 0.2

4.3 1.7 1.0 0.5 1.0 0.1 2.7 -0.6 -5.1 -0.4 -0.2 -0.2 -1.0 0.9 0.0 0.5 1.6

5.7 2.1 0.6 0.5 2.3 0.1 3.3 -0.5 -5.7 -0.6 -0.3 -0.1 -0.9 1.2 0.0 2.2 3.2

0.8

1.4

-79.0

-19.1

-8.1

4.1

15.1

(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.

56

ANNUAL REPORT 2006 Statistical Appendix

TABLE 34: Ratios – Private Banks As a percentage

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

1 - Liquidity

23.6

26.9

22.8

24.3

24.1

23.6

24.8

27.6

29.2

21.5

23.7

2 - Credit to Public Sector

15.9

16.9

17.0

20.4

19.9

23.2

49.9

47.7

43.1

29.5

16.9

3 - Loans to Private Sector

59.5

57.4

58.9

55.5

51.0

49.6

22.1

19.8

23.1

31.7

38.7

4 - Private Sector Nonperforming Loans

11.1

8.5

7.7

8.9

9.8

14.0

37.4

30.4

15.3

6.3

3.6

5 - Capital Exposure to Private Sector

21.6

14.3

13.2

11.5

13.4

11.4

18.6

11.2

1.9

-2.2

-3.0

6 - ROA

0.6

0.7

0.5

0.3

0.1

0.2

-11.3

-2.5

-1.0

0.5

2.2

7 - ROE

4.1

6.3

4.3

2.3

0.8

1.4

-79.0

-19.1

-8.1

4.1

15.1

144.0

135.0

139.0

146.0

152.0

151.0

168.0

93.0

115.0

15.9

15.4

14.6

18.9

18.0

17.6

…

14.0

15.1

33.0

47.0

27.0

60.0

49.0

43.0

…

88.0

157.0

8 - Efficiency 9 - Capital requirement compliance 10 - Excess of minimun capital requirement

136.0 158.0 17.8 155.0

18.2 116.0

1 - (Liquid assets in Central Bank + Other liquids assets + LEBAC/NOBAC from repos) / Total deposits.

2 - (Public bonds (LEBAC/NOBAC not included) + Loans to Public Sector + Compensations) / Net Asset.

3 - Loans to Private Sector / Net Asset.

4 - Private Sector Non-performing loans / Loans to Private Sector.

5 - (Non-performing - Provisions) / Equity. Non-performing includes categories 3 to 6.

6 - Total Return / Net Assets.

7 - Total Return / Equity.

8 - (Financial Margin (Net interest income + CER/CVS Return + Other assets return + Difference on valuation + Other financial return) + Net Non-interest income) / Operating expenses.

9 - Minimum capital requirement compliance / Risk weighted assets (according to Central Bank regulations).

10 - (Minimum capital compliance - requirement (considering forbearances) / Requirement.

Source: “Report on Banks”, Central Bank.

57

ANNUAL REPORT 2006 Statistical Appendix

TABLE 35: Non-Performing Loans – Private Banks As a percentage

Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

Dec. 2006

Non-performing loans

8.3

9.9

19.8

15.7

8.9

4.4

2.9

Non-performing - Private Sector

9.8

14.0

37.4

30.4

15.3

6.3

3.6

Commercial loans

8.4

15.4

44.7

39.0

18.2

7.3

3.9

Consumer and Mortgage

11.9

12.4

26.0

17.2

10.0

4.2

3.2

Provisions / Non-performing loans

67.7

75.7

73.4

79.0

95.7

114.6

129.5

2.7

2.4

5.3

3.3

0.4

-0.6

-0.9

13.4

11.4

18.6

11.2

1.3

-2.2

-3.0

(Non-performing loans - Provisions) / Total financing (Non-performing loans - Provisions) / Equity Source: “Report on Banks”, Central Bank.

58

ANNUAL REPORT 2006 Statistical Appendix

TABLE 36: Concentration of Deposits As a percentage End of: 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

December December December December December December December December December December December December December December December December December December November

Top 5

Top 10

Top 15

Top 20

Others

Number of Banks

37.11 35.96 36.17 35.63 34.96 38.68 36.85 42.61 42.33 45.18 48.91 50.26 52.33 49.92 54.16 55.65 55.16 54.52 56.53

50.72 49.76 49.39 49.78 48.62 51.69 50.18 58.21 58.40 61.62 70.51 71.74 73.18 73.42 77.04 75.49 73.72 72.80 74.03

… … … … …

60.56 58.73 68.13 68.76 71.43 79.54 80.37 82.77 83.66 85.31 85.17 85.02 84.16 84.70

65.34 67.46 65.63 67.68 66.25 66.77 65.14 74.34 75.25 78.30 84.46 85.87 88.55 89.51 90.25 90.31 89.99 89.32 89.62

34.66 32.54 34.37 32.32 33.75 33.23 34.86 25.66 24.75 21.70 15.54 14.13 11.45 10.49 9.75 9.69 10.01 10.68 10.38

175 176 170 166 167 167 168 127 120 113 104 92 89 85 78 75 73 71 72

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

59

ANNUAL REPORT 2006 Statistical Appendix

TABLE 37: Concentration of Assets As a percentage End of: 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

December December December December December December December December December December December December December November

Top 5

Top 10

Top 15

Top 20

Others

38.19 36.43 39.88 38.71 40.89 42.82 45.64 45.63 48.71 57.16 57.85 55.64 54.80 53.60

51.28 50.57 55.18 55.67 57.73 64.03 68.20 69.35 70.90 77.72 76.89 73.44 71.59 70.50

59.73 58.83 64.00 66.37 67.64 73.56 77.44 79.00 80.97 86.10 85.12 83.75 82.19 81.19

65.71 64.89 69.29 72.38 74.05 80.03 83.23 85.09 87.01 90.38 89.90 88.96 87.54 86.63

34.29 35.11 30.71 27.62 25.95 19.97 16.77 14.91 12.99 9.62 10.10 11.04 12.46 13.37

Number of Banks 167 168 127 120 113 104 92 89 85 78 75 73 71 72

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

60

ANNUAL REPORT 2006 Statistical Appendix

TABLE 38: Tranches of Deposits

As of November 30, 2006 Tranches From

Individual To

Number

Amount

Legal Persons Number

In Millions of Pesos 0 300 10,546,495 301 500 867,741 501 1,000 1,197,039 1,001 2,500 1,709,812 2,501 5,000 960,408 5,001 10,000 691,247 10,001 25,000 616,205 25,001 50,000 263,720 50,001 100,000 130,007 100,001 250,000 56,634 250,001 500,000 11,080 500,001 1,000,000 3,671 1,000,001 2,500,000 1,313 2,500,001 5,000,000 402 5,000,001 10,000,000 196 10,000,001 25,000,000 66 25,000,001 50,000,000 22 50,000,001 100,000,000 5 100,000,001 …

Total

17,056,063

Amount

Total Number

In Millions of Pesos

614 544 999 3,089 3,564 5,246 9,829 9,526 8,758 8,595 3,553 2,164 1,832 1,379 2,318 1,514 898 1,044 …

960,909 247,405 210,052 202,201 85,251 67,504 76,446 48,296 36,700 30,646 13,152 9,166 6,092 2,219 1,367 861 277 107 50

65,464

1,998,701

1,686 1,030 311 935 568 752 1,428 1,883 3,237 4,882 4,977 6,314 8,120 6,958 7,393 10,015 7,605 5,477 10,334 83,905

Amount In Millions of Pesos

11,507,404 1,115,146 1,407,091 1,912,013 1,045,659 758,751 692,651 312,016 166,707 87,280 24,232 12,837 7,405 2,621 1,563 927 299 112 50

2,300 1,573 1,310 4,024 4,132 5,998 11,257 11,409 11,995 13,477 8,530 8,478 9,952 8,337 9,712 11,528 8,504 6,520 10,334

19,054,764

149,368

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

61

ANNUAL REPORT 2006 Statistical Appendix

TABLE 39: Loans by Type Type of Loan

December 2003 Millions of Pesos

Public Sector

%

December 2004 Millions of Pesos

%

December 2005 Millions of Pesos

%

November 2006 Millions of Pesos

%

33,228

56.6

30,866

46.7

25,836

32.6

22,508

22.6

Financial Sector

1,417

2.4

1,697

2.6

2,450

3.1

4,716

4.7

Private Sector (1)

33,398

56.9

41,054

62.1

55,885

70.5

76,806

77.0

Overdraft

4,427

7.5

5,883

8.9

8,344

10.5

11,501

11.5

Promissory Notes

6,150

10.5

8,209

12.4

12,844

16.2

16,645

16.7

Mortgage Loans

9,337

15.9

8,844

13.4

8,865

11.2

10,015

10.0

Pledge Loans

1,307

2.2

1,688

2.6

2,372

3.0

3,707

3.7

Consumer Loans

2,335

4.0

4,081

6.2

7,135

9.0

12,389

12.4

Others

7,421

12.6

10,224

15.5

14,589

18.4

20,765

20.8

Interest accrued

2,421

4.1

2,125

3.2

1,736

2.2

1,783

1.8

Provisions

-9,374

-16.0

-7,500

-11.3

-4,930

-6.2

-4,276

-4.3

Total

58,668

100.0

66,117

100.0

79,241

100.0

99,755

100.0

(1) It includes loans to foreign residents.

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

62

ANNUAL REPORT 2006 Statistical Appendix

TABLE 40: Financing by Activity As a percentage

Primary Manufacturing Electricity, Construction Commerce Services Individual Production Industry Gas and Employees Water 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

9.0 11.1 12.6 12.4 10.8 10.3 9.2 9.1 9.1 8.1 8.9 8.2 5.7 6.6 7.8 10.3 10.3

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 12.6 16.3 16.9

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 0.9 1.2

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 2.3 2.2

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 6.2 6.5

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 46.4 36.5 31.8

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 16.6 23.1 27.4

Nonidentified

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 8.0 4.4 3.8

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

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

63

ANNUAL REPORT 2006 Statistical Appendix

TABLE 41: Non-Performing Loans by Activity As a percentage on total financing of each activity

Primary Manufacturing Electricity, Construction Commerce Services Individual Production Industry Gas and Employees Water 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

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 42.1 21.9 7.5 4.1

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 20.0 7.0 6.0

3.3 62.8 7.4 3.3 4.1 1.3 1.8 0.8 1.2 1.3 2.1 2.7 59.1 68.6 56.1 46.9 25.5

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 75.2 54.6 43.9 29.6

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 27.8 8.5 3.7

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 8.7 5.3 3.6 4.5

2.8 7.6 7.2 9.1 12.5 29.9 22.7 15.0 14.7 15.0 21.8 25.8 37.8 24.3 17.5 10.3 10.1

Nonidentified

Total

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 24.6 22.6 24.0

16.0 19.4 15.5 15.8 18.0 22.7 16.8 13.9 12.1 13.4 16.9 20.1 26.6 22.9 14.9 8.5 7.7

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

64

ANNUAL REPORT 2006 Statistical Appendix

TABLE 42: Financing by Tranches As of November 30, 2006 Tranches From

Individual To

Number

Amount

Legal Persons Number

In Millions of Pesos 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 Total

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

Individual

Legal Persons

Amount

Number

Amount

Number

Amount

In Millions of Pesos

%

%

%

%

764,521 449,147 932,454 1,506,442 1,104,965 876,204 616,866 171,943 70,704 24,840 7,464 1,097 275 46 17 8 1 … …

21,609.0 2,147.0 3,483.0 6,293.0 6,639.0 7,686.0 11,814.0 10,060.0 10,210.0 9,097.0 8,247.0 3,615.0 2,525.0 1,087.0 609.0 478.0 170.0 122.0 107.0

151 201 733 2,558 4,018 6,239 9,382 5,912 4,831 3,338 2,136 726 391 157 105 117 26 … …

2.9 1.0 2.7 10.9 24.8 56.3 196.4 363.5 734.0 1,297.2 2,590.4 2,527.6 3,921.2 3,835.5 4,283.9 7,347.2 5,795.6 8,620.9 47,761.6

11.7 6.9 14.3 23.1 16.9 13.4 9.5 2.6 1.1 0.4 0.1 0.0 0.0 0.0 0.0 0.0 0.0 … …

20.4 2.0 3.3 5.9 6.3 7.3 11.1 9.5 9.6 8.6 7.8 3.4 2.4 1.0 0.6 0.5 0.2 0.1 0.1

0.4 0.5 1.8 6.2 9.8 15.2 22.9 14.4 11.8 8.1 5.2 1.8 1.0 0.4 0.3 0.3 0.1 … …

0.0 0.0 0.0 0.0 0.0 0.1 0.2 0.4 0.8 1.5 2.9 2.8 4.4 4.3 4.8 8.2 6.5 9.6 53.4

6,526,994

105,998.0

41,022

89,373.7

100.0

100.0

100.0

100.0

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

65

ANNUAL REPORT 2006 Statistical Appendix

TABLE 43: Financing by Tranches and Situation

As of November 30, 2006 (as a percentage) Tranches

Performing (1)

Non-Performing (2)

Non-Collectible (3)

From

To

Number of Debtors

Debt Amount

Number of Debtors

Debt Amount

Number of Debtors

Debt Amount

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

85.3 85.2 85.9 86.8 87.9 88.1 85.4 76.8 76.4 78.1 79.5 84.1 85.5 87.4 88.7 90.5 94.1 90.7 97.4

85.1 85.3 86.0 86.9 88.0 88.1 84.8 76.6 76.6 78.0 79.9 84.4 85.6 87.4 88.7 90.3 93.9 91.8 98.8

2.8 2.5 2.7 3.2 3.1 2.1 1.4 1.3 1.2 1.2 1.2 1.7 2.8 3.1 3.4 2.7 1.7 0.9 2.6

2.7 2.5 2.7 3.2 3.0 2.0 1.4 1.3 1.2 1.2 1.3 1.7 3.0 3.1 3.5 2.8 1.8 0.8 1.2

11.9 12.3 11.4 10.1 9.0 9.8 13.2 21.9 22.3 20.8 19.3 14.2 11.7 9.6 7.9 6.8 4.2 8.4 …

12.2 12.2 11.3 9.9 9.0 9.9 13.8 22.1 22.2 20.8 18.8 13.9 11.5 9.5 7.8 6.9 4.3 7.5 …

86.2

89.3

2.7

1.9

11.1

8.8

Total

(1) Include situations 1 and 2.

(2) Include situations 3 and 4.

(3) Include situations 5 and 6.

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

66

ANNUAL REPORT 2006 Statistical Appendix

TABLE 44: Concentration of Credit Assistance As of November 30, 2006 Number of Institutions

Individual

Number

Amount

Legal Persons

Number

In Millions of Pesos

Individual

Legal Persons

Amount

Number

Amount

Number

Amount

In Millions of Pesos

%

%

%

%

1 2 3 4 5 or more

4,545,280 1,411,118 413,138 114,956 42,502

18,300.1 13,196.4 5,976.6 2,234.4 1,314.4

80,060 16,411 5,214 2,048 2,265

13,241.6 11,329.3 7,564.2 4,627.5 52,611.3

69.6 21.6 6.3 1.8 0.7

44.6 32.2 14.6 5.4 3.2

75.5 15.5 4.9 1.9 2.1

14.8 12.7 8.5 5.2 58.9

Total

6,526,994

41,021.9

105,998

89,373.7

100.0

100.0

100.0

100.0

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

67

ANNUAL REPORT 2006 Statistical Appendix

TABLE 45: Minimum Cash Requirements (as a percentage)

Since:

Item 1. Deposits in current accounts. (except 16). (1) 2. Deposits in savings accounts.

2.1. In Pesos (except 16). (1) 2.2. In Foreign Currency.

3. Custody loans, special accounts for closed savings groups, "Unemployment fund for construction workers", "Accounts for salaries payments", special current accounts for legal persons and pension savings accounts.

3.1. In Pesos (except 16). (1) 3.2. In Foreign Currency.

4. Other demand deposits and obligations, pension payments granted by ANSES outstanding payment and immobilized funds corresponding to obligations comprised in these rules.

4.1. In Pesos (except 16). (1) 4.2. In Foreign Currency.

5. Unused overdrafts funds.

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

7. 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 11, 14 and 15, according to their remaing term: 7.1. 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) More than 180 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-: 7.2. 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.

December February April August December 2005 2006 2006 2006 2006 15 15 17 19 19 15 30

15 30

17 30

19 30

19 30

15 30

15 30

17 30

19 30

19 30

15 30 15

15 30 15

17 30 17

19 30 19

19 30 19

100

100

100

100

100

14 11 7 2 1

14 11 7 2 1

14 11 7 2 1

14 11 7 2 0

14 11 7 2 0

35 28 20 10 6 0

35 28 20 10 6 0

35 28 20 10 6 0

35 28 20 10 6 0

35 28 20 10 6 0

68

ANNUAL REPORT 2006 Statistical Appendix

TABLE 45: Minimum Cash Requirements (continued) (as a percentage)

8. Obligations under foreign lines of credit (except those included in items 7 and 9).

9. Debt securities (including notes). a) Debt issued as of 01.01.02, including debts arising from restructured obligations, according to their remaining term: 9.1. 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) More than 180 days.

9.2. 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.

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

11. Demand and time deposits made under Court order with funds originating in lawsuits, and their immobilized funds.

11.1. In Pesos: 11.2. In Foreign Currency: 12. Special accounts in US Dollars intended for deposit of collateral required in fowards and options carried out in selfregulated markets subject to the control of the National Securities and Exchange Commission. (4) 13. Special demand accounts denominated in foreign currency. (4) 14. Deposits -whichever their instrumentation - of mutual funds, (except those included in item 6): 14.1. In Pesos: 14.2. In Foreign Currency: 15. Special deposits linked to foreign capital inflows -Decree 616/0516. Deposits and other demand obligations in Pesos (except "Unemployment fund for construction workers"), which interest rate were higher than 35% of the average BADLAR interest rate of private banks (since 2.1.06). (2) (3)

0

0

0

0

0

14 11 7 2 1

14 11 7 2 1

14 11 7 2 1

14 11 7 2 0

14 11 7 2 0

35 28 20 10 6 0 0

35 28 20 10 6 0 0

35 28 20 10 6 0 0

35 28 20 10 6 0 0

35 28 20 10 6 0 0

0

0

0

0

0

8 15

8 15

8 15

10 15

10 15

100 100

100 100

100 100

100 100

0 0

18 40

18 40

18 40

18 40

18 40

100

100

100

100

100

100

100

100

100

(1) The words "except 16" were included since 2.1.06.

(2) The words "(except "Unemployment fund for construction workers")" were included since 4.1.06.

(3) Until 9.30.06 the limit was 50% of BADLAR. Since 10.1.06 it was 35%.

(4) These item was removed since 12.4.06.

69

ANNUAL REPORT 2006 Appendix

APPENDIX Principal Measures of Banking, Exchange and Financing Policies

Press Release 48,447. (01.03.06).

The Central Bank informed that, on 01.03.06, the Argentine Republic’s total debt in favor of the International Monetary Fund (IMF) was repaid, within the framework of Act Number 26,076, as regulated.

Communication "A" 4472. CONAU - 1 -754. (01.09.06).

The item "Pledge Loans" was included into the Transparency Information Regime.

Communication "A" 4473. REMON - 1 - 805. (01.09.06).

Effective as of 02.01.06, the Central Bank incorporated a new concept to the “Minimum Cash” rules: "Deposits and other sight payment obligations in Pesos with compensation above 75% of the mean BADLAR rate of private banks for the previous month", to which a 100% requirement shall apply.

Communication "A" 4476. CONAU - 1 - 757. (01.20.06).

The Central Bank set forth that the final date to exercise the option to enter the Mortgage Refinancing System was 03.06.06. Only those applicable persons with a desire to exercise the option to enter such system should notify their affirmative decision.

Communication "A" 4482. CONAU - 1 - 761. (01.25.06).

The Central Bank eliminated information requirements regarding Cash and Cash Equivalents, Deposits, and Other Obligations and Liquidity Position.

Communication "A" 4484. CAMEX - 1 - 547. (01.26.06).

Effective as of 01.27.06, the Central Bank provided that access to the exchange market for the payment of import financing of goods not compliant with any of the conditions set forth in the Communication shall be governed by the same rules applicable to the payment of capital fees for financial loans.

70

ANNUAL REPORT 2006 Appendix Communication "B" 8649. (01.30.06).

The Central Bank informed that, as of 02.01.06, Pesos and U.S. Dollar bills declared by the Central Bank to be fake or unused should be restored to relevant financial institutions and companies devoted to transportation of monies and securities in order that they file reports thereon with the corresponding jurisdictions, for which they shall have a maximum 30 (thirty) calendar day term.

Communication "D" 12,260. (02.01.06).

Financial institutions were notified about a requirement from the Undersecretary of Public Revenues, Provincial Revenue Office of the Province of Buenos Aires, presided over by Santiago Montoya, B.A., whereby the Undersecretary requested financial and banking institutions to provide this Provincial Tax Administration, within the framework of Section 39, subsection c), of Act 21,526, information regarding cash financial assets and/or easily realizable assets in the possession of debtors who are taxpayers of this Revenue Office of the Province of Buenos Aires against whom judicial collection proceedings had been filed.

Communication "A" 4491. LISOL - 1 - 450. (02.03.06).

The Central Bank gave the “B” preferred guarantee qualification to guarantee trusts constituted on real property intended for home construction.

Communication "A" 4494. CONAU - 1 - 764. (02.13.06).

The Information Regime on Prevention of Money Laundering and Other Illegal Activities was amended as regards possession and maintenance of information.

Communication "A" 4495. RUNOR - 1 - 775. (02.14.06).

Operating instructions for the generation of the Regime on Prevention of Money Laundering and Other Illegal Activities’ database, as well as its presentation, were modified, provided the Central Bank makes a formal request to such end.

Communication "D" 12,282. (02.14.06).

It was made clear that, according to the Provincial Tax Administration criteria, provisions set forth in Section 39 of the Financial Institutions Act have been fully complied with, that the required information refers to accounts and products, and that it determines the balance and type of accounts and the amount of products.

71

ANNUAL REPORT 2006 Appendix Communication "A" 4496. CAMEX - 1 - 549. (02.16.06).

As of 02.17.06, the Central Bank eliminated the restriction to access the exchange market imposed upon payment of consumable items and fixed assets, which should occur before the 30 days following the date of market dispatch.

Communication "A" 4501. LISOL - 1 - 451. (02.26.06).

The Central Bank granted the treatment as “B” preferred guarantee to guarantee trusts related to real property projects in general.

The treatment as "B" preferred guarantee shall apply, in addition to guarantee trusts created for the construction of real property intended for dwelling purposes, to those built both for commercial and industrial purposes.

Communication "A" 4502. LISOL - 1 - 452. (02.26.06).

The guarantees granted by the institutions to conduct capital assets imports within the framework of ALADI’s Payment and Mutual Credit Agreement System were excluded from the calculation of the Technical Relations of Fixed Assets and Other Items.

Communication "A" 4506. CONAU - 1 - 768. (03.01.06).

The Central Bank communicated the procedural rules applicable to the “Business Plan and Prospects” information requirement for the filing corresponding to 2006-2008 period.

Particularly, macroeconomic events to be considered were filed and deductibles were incorporated to the position for the prudential relations between -Minimum Cash and Minimum Capital Requirements-.

Communication "A" 4507. CAMEX - 1 - 550. (03.07.06).

The Central Bank provided, effective as of 03.08.06, that institutions authorized to conduct exchange transactions should have the prior agreement of the Central Bank in order to make, through the Single Free Exchange Market, payments of non-residing parties to local financial institutions on account of executions of financial guarantees and of financial debt collections, without constituting the 30% deposit provided for by Decree 616/05.

Communication "A" 4508. REMON - 1 - 806. (03.10.06).

The Central Bank informed that it shall make repos using Government Obligations issued by the National Government as underlying assets. Therefore, it shall participate daily in the REPD road show of the Mercado Abierto Electrónico S.A. (MAE) SIOPEL electronic 72

ANNUAL REPORT 2006 Appendix system, through the inclusion and/or acceptance of purchase and sale offers, under the blind agreement modality in compliance with certain conditions.

Communication "A" 4509. REMON - 1 - 807. (03.14.06).

As of 04.01.06, the Central Bank increased the reserve level of sight deposits in two percentage points, from 15% to 17%, and eliminated the compensation thereof.

Communication "A" 4510. CREFI - 2 - 50 and RUNOR - 1 - 779. (03.15.06).

The Central Bank increased additional information requirements relating to capital integration in the event of creation, merger and transformation of financial institutions.

In such respect, it made clear that it may be considered that there is no adequate own solvency if it is feasible to presume that resources have not been provided by third parties or generated through other type of operations in order to stimulate solvency, according to the assessment being conducted.

Communication "A" 4515. CAMEX - 1 - 551. (03.21.06).

Effective as of 03.22.06, the Central Bank exempted individuals and legal persons residing in the country and not included in the financial system from the limit for the formation of foreign assets, which is set in two million US Dollars per month, provided that funds acquired above said limit are intended for the primary subscription in foreign currency of government obligations issued by the National Government.

Press Release 48,496. (03.21.06).

The Central Bank informed that controls and follow-ups of exchange transactions will be reinforced, due to the detection of transactions made by financial agents, which constitute an infringement to the Exchange Penal Regime.

Generally, transactions detected are instrumented through the simultaneous purchase and sale (or vice versa) of financial assets.

Press Release 48,498. (03.22.06).

The Central Bank informed that transactions mentioned in the Press Release above referred to are exclusively simultaneous purchase and sale transactions of securities, intended to instrument exchange transactions through the stock exchange market not compliant with applicable exchange rules.

73

ANNUAL REPORT 2006 Appendix Transactions above mentioned do not include the primary placement of securities or its negotiation in secondary markets through transactions related to the variation in securities holdings.

Communication "C" 44,763. (03.22.06).

The Central Bank communicated that, through Act Number 26,085 and Decree 302/06, it was provided to add March 24 to national holidays to commemorate the National Truth and Justice Memorial Day. Communication "A" 4518. REMON - 1 - 809. (03.28.06).

The Central Bank amended, effective as of 04.01.06, "Minimum Cash Requirements", in relation to the requirement of sight deposits and other obligations in Pesos, with a compensation higher than 50% (and lower than 75%) of the mean BADLAR rate applied by private banks in the month prior to the relevant month.

Communication "A" 4519. CAMEX - 1 - 552. (03.29.06).

The Central Bank published new rules regarding exchange recording, which include the verification of customer’s data, if the customer resides within the country, against the Federal Administration of Public Revenues’ or AFIP (Administración Federal de Ingresos Públicos) Unique Taxpayers Reference.

Communication "A" 4521. RUNOR - 1 - 783. (03.30.06).

In order to facilitate the search for information related to terrorists’ lists and organizations, the Central Bank reported electronic addresses to which financial institutions may have access to obtain updated information.

Communication "B" 8694. (03.30.06).

The Central Bank informed the proportional interest of each financial institution in SEDESA controlling trust, updated to December 2005.

In such respect, it reminded that its corporate capital amounts to $1,000,000 and Stateowned share holdings amount to $1.

74

ANNUAL REPORT 2006 Appendix Communication "A" 4522. LISOL - 1 - 453 and OPRAC - 1 - 590. (04.04.06).

The Central Bank modified certain requirements set forth by the current regulations in order that negotiable instruments discount be considered an “A” Preferred Guarantee.

With this treatment, no estimate is required for checks issued by drawers classified as normal, and only the credit rating of the discount document’s payee is taken into account.

Additionally, the atomization limit applicable where the value of discount instruments issued by the same person, which, considered on an individual basis, is above the 1.5% Computable Equity of the intervening financial institution was eliminated. Before, it was only applicable in the event the group of discount transactions was above 15% of such equity.

On the other hand, in the rule governing "Credit Management", the requirement that sets forth that financial institutions, prior to the granting of a credit assistance higher than the lesser of: 2.5% of the institution computable equity or $1,000,000 was updated, now they must require a sworn statement from their customer stating whether or not this assistance is related thereto or not, and the limit was increased from $1,000,000 to $2,000,000.

Communication "A" 4527. OPRAC - 1 – 591. (04.25.06).

Through this Communication, the Central Bank considered on a same footing State-Owned Companies and non-financial private persons, in relation to the general treatment provided in rules regarding financial assistance from banks to the non-financial public sector.

As set forth in Act 20,705, State-Owned Companies are those companies that, except for any private capital interest, constitute the National State, the Provinces, the municipalities and state agencies legally authorized to carry on industrial or commercial activities or to exploit public utilities.

Lending financial institutions shall verify, prior to the granting of each credit assistance, the required intervention of the Central Bank, the compliance at all times of certain requirements set forth in this Communications, and the existence of the relevant authorization by virtue of the Federal Tax Liability Regime (section 25 of Act 25,917).

Communication "A" 4529. LISOL - 1 - 454. (04.26.06).

The Central Bank extended from 90 to 180 calendar days the term of coverage required in order that export credit insurance covering commercial risk be deemed "A" Preferred Guarantees.

Likewise, it extended from 180 to 270 calendar days the term of coverage required for export credit insurance in order that they be deemed "B" Preferred Guarantees.

75

ANNUAL REPORT 2006 Appendix Communication "B" 8712. (04.27.06).

The Central Bank communicated that, on 05.02.06, Standard Bank Argentina S.A. shall commence to operate as a first degree commercial bank based in the City of Buenos Aires.

Likewise, it informed that this financial institution has acquired assets and undertaken liabilities of ING Bank N.V.’s Argentine branch.

Communication "A" 4531. RUNOR - 1 - 785. (05.04.06).

The Central Bank modified the rules governing “Mutual Guarantee Companies”, increasing the aggregate amount of sureties granted to a Mutual Guarantee Company partner to the lesser of: $3,000,000 (before $1,200,000) or to 5% of the granting company contingency fund, corresponding to the last quarterly balance sheet including an external auditor’s opinion. This latter amount shall not apply where guarantees are granted on companies’ debt instruments offered to the market through the public offer legal regime.

Communication "A" 4532. REMON - 1 - 810 and OPASI - 2 - 372. (05.05.06).

Effective as of 04.01.06, the “Unemployment Fund for construction industry workers” was excluded from the Minimum Cash Requirement.

Likewise, as of this same date, rules governing "Savings, payment of compensations and special deposits" were modified regarding intervening institutions. The previous rule made reference to retail institutions and, according to CREFI-2, the distinction between first and second degree commercial banks was introduced, without considering their retail character.

Communication "A" 4539. LISOL - 1 - 455. (05.17.06).

The Central Bank modified Rules Governing Minimum Capital Requirements of Financial Institutions and the incidence of financial institutions’ income controlled on a period-toperiod basis without auditor's report for the determination of the Computable Equity in relation to deductible items in order to determine the Computable Equity of financial institutions, particularly, as it relates to local and foreign financial institutions interests.

Communication "B" 8753. (06.22.06).

The Central Bank communicated that Banca Nazionale del Lavoro S.A. has changed its name for Hexagon Bank Argentina S.A.

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ANNUAL REPORT 2006 Appendix Communication "A" 4543. OPASI - 2 - 373 and LISOL - 1 - 456. (06.27.06).

The Central Bank added to current deposit options the possibility that financial institutions offer to their customers’ variable interest rate fixed-term deposits together with a minimum fixed interest rate, the minimum term for this type of deposit being 180 days.

Thus, the depositor shall receive as its deposit yield the higher of: the variable interest rate agreed upon or the fixed interest rate. Additionally, the BADLAR rate was introduced as acceptable variable interest rate (which is applied to fixed term deposits higher than one million pesos). These modalities of deposit raising have been authorized both in pesos and in foreign currency.

Communication "A" 4546. LISOL - 1 - 458. (07.09.06).

The Central Bank reduced from 40 to 35% of total assets the three categories (national, provincial and municipal) of the maximum public sector asset exposure limit that financial institutions may maintain in their balance sheet. The disposition was effective as of 07.01.06 and, until that date, the 40% limit in force since January 2006 was in force.

Likewise, technical aspects that made financial institutions participation in public bonds trading were modified.

Communication "B" 8764. (07.11.06).

The Central Bank informed that the amount debited on account of "Contribution to Deposits Guarantee Fund" for the months of June and July of this year was equivalent to the amount calculated for the month of May. Communication "A" 4549. REMON - 1 - 811 and OPRAC - 1 - 592. (07.21.06).

The Central Bank provided, effective as of August 2006, an increase of two percentage points in the reserve fund for sight deposits denominated in pesos and it eliminated the term deposit reserve fund, in pesos, as of 180 days of residual term.

Likewise, the possibility of using cash from institutions, in-transit cash and cash pertaining to companies devoted to transportation of monies and securities to constitute reserve funds was eliminated. This elimination was to be implemented gradually on one-third increments per month, starting in September.

Communication "A" 4550. CAMEX - 1 - 554. (07.26.06).

Communication "A" 4519 was amended. This communication set forth that, in the case of those bonds for which a CUIT, CUIL or CDI number must be registered before making the exchange transaction, the authorized exchange entity must verify the customer’s ID data 77

ANNUAL REPORT 2006 Appendix against those registered in the Unique Taxpayers Reference of the Federal Administration of Public Revenues or PUCAFIP (Padrón Único de Contribuyentes de la Administración Federal de Ingresos Públicos).

Due to the amendments introduced, the query may be made as of 08.01.06 using the database provided by the Central Bank.

On line or database queries may be carried out individually or through systems and the printout or the relevant file, as the case may be, supporting that the requirement set forth has been complied with.

In the case of transactions not above the equivalent of five thousand pesos per day and per institution, it is also acceptable to register the ID number (DNI, LC or LE).

Communication "A" 4551. LISOL - 1 - 459. (07.27.06).

The Central Bank modified the Minimum Capital Requirements, particularly as it relates to the credit risk minimum capital requirement, and it incorporated a provision for new home mortgage loans -for unique, family and permanent- occupation homes, only if the loans imply disbursements amounting up to $100,000 agreed upon and made effective as of 08.01.06 and excluding refinancing loans.

Up to 90% of the property appraisal value, the risk index shall be 50%. For amounts above 90% of the property appraisal value, the index shall be 100%.

The foregoing regulation already provided for a risk index table for own-home first degree mortgages without taking into account a maximum amount. In this case, if the amount is up to 75% of the property appraisal value, the risk index shall be 50%. For amounts above 75% of the property appraisal value, the index shall be 100%.

On the other hand, the Central Bank incorporated to Guarantee Rules and Regulations, the calculation percentage of the coverage margin for mortgages granted for this type of property (own home only implying disbursements of up to $100,000, agreed upon and made effective as of 08.01.06 and excluding refinancing loans), representing 90% of the property appraisal value. Own home mortgage coverage margins in the rest of financing shall continue to be 75% and, in the case of real property for various own home purposes, the margin shall be 50%.

Communication "A" 4552. CAMEX - 1 - 555. (08.04.06).

Effective as of 08.07.06, the minimum limit of the maximum limit of foreign assets that financial institutions may maintain in their General Exchange Position was increased from US$1,500,000 to US$5,000,000.

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ANNUAL REPORT 2006 Appendix Likewise, the minimum limit of the General Exchange Position was increased from US$5,000,000 to US$7,000,000, in the event the financial institution has 15 or more branches.

Communication "A" 4553. CAMEX - 1 - 556. (08.04.06).

The Central Bank set forth that, in the event of foreclosure of guarantees granted by local financial institutions for compliance of Argentine exporters on account of advance payments or prefinancing received from abroad, the local customer debt to the financial institution for such foreclosure shall be governed by the rules applicable to export prefinancing granted by local institutions, and the date of origin shall be the date of the advance payment exchange agreement of the date of entry of the foreign prefinancing.

Communication "A" 4554. CAMEX - 1 - 557. (08.04.06).

It was set forth that, for foreign currency entry on account of financial loans having a term longer than 1 year and exempt from making the non-compensatory deposit required by current capital control regulations (Decree 616/05 and supplementary rules), the customer that made the exchange transaction shall file with the intervening institution, within a 90 calendar day term, the supporting documents evidencing use of the funds to the specific destination exempted or the creation of the relevant non-compensatory deposit.

Something similar was provided for exchange income on account of "Domestic direct investment contributions" (which may also be exempted from the creation of the deposit), in which case there shall be a 190 day term, counted as of the date of commencement of the recording proceedings before the Public Registry of Commerce of the final contribution capitalization, in order that the customer provides relevant documentation supporting the pertinent final capitalization or, if the customer does not provide this documentation, he shall have a 10 business day term to constitute the non-compensatory deposit.

The progress of these requirements shall be reported by the authorized exchange institution to the Central Bank Non-Financial Institutions Control Management, within 5 business days after the maturity of the relevant obligation on behalf of the customer.

Communication "A" 4555. CAMEX - 1 - 558. (08.04.06).

The Central Bank issued new provisions relating to office hours of the Foreign Exchange Local Market, which were effective as of 08.07.06.

In such respect, the official office hours set forth continues unchanged, as well as the office hours applicable in the provinces (the first five hours counted as of the opening of banking institutions to the public).

To conduct exchange transactions before or after office hours set forth for the Foreign Exchange Local Market operation, institutions shall communicate the Central Bank their 79

ANNUAL REPORT 2006 Appendix decision to operate in extended hours and, in all events, they shall state, on the relevant bonds, the hour in which exchange transactions were carried out.

Communication "A" 4556. OPRAC - 1 - 593. (08.10.06).

The Central Bank amended the regulations referring to reduced amount loans, in order to facilitate micro credit transactions, as follows: •

The maximum financing term was extended from 24 to 36 months, and it was set forth that the maximum monthly fixed installment payable shall not be higher than $300 (before $200) or its equivalent in other currencies. Loans granted for a term longer than 36 months shall be secured with first degree mortgages constituted on family homes.

•

The amount of financing available for home infrastructure works (pavements and water, sewerage, gas and connection networks) was increased from $3,000 to $6,000 and the maximum installment thereof was increased from $100 to $200).

•

The periodicity of the installment was modified. Under the new provisions, it may be weekly, biweekly or monthly for financing intended for production or services (micro companies). In this sense, it was made clear that, if such periodicity is less than one month, the addition of all monthly installments shall not be higher than the maximum limit set forth for the monthly installment ($300).

Communication "B" 8783. (08.11.06).

The Central Bank informed that it has recorded Garantía de Valores S.G.R. in the relevant Registry of the Superintendence of Financial and Exchange Institutions.

Communication "A" 4557. CREFI - 2 - 51 and RUNOR - 1 - 793. (08.17.06).

The Central Bank set forth that the Corporate Comptroller, as controlling body, is mandatory for all financial institutions, as well as for Exchange Institutions and Agencies.

Communication "A" 4558. OPASI - 2 - 374. (08.17.06).

Nominal value minimum amounts of debt securities issued by financial institutions and of securities through third party intermediary transactions were increased from $100,000 to $300,000 (or its equivalent in other currencies).

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ANNUAL REPORT 2006 Appendix Communication "A" 4559. OPRAC - 1 - 594 and LISOL - 1 - 460. (08.17.06).

The Central Bank published a series of measures relating to mortgage loans transactions.

There follow the main measures published: •

It was included the possibility that banks may finance up to 90% of the value of a home worth between $200,000 and $300,000, and up to 100% (before 90%) of a home worth up to $200,000 (before $100,000).

•

In the case of property subject to a financial lease, in the event of new financing agreed upon and made effective as of 08.01.06 on the lessee’s own property -unique, family and permanent residence, and provided it is not a contract renegotiation, it was included the possibility that banks may finance up to 90% of the value of a home worth between $200,000 and $300,000, and up to 100% of a home worth up to $200,000.

•

The possibility of using screening systems was incorporated, in addition to credit scoring models already allowed in the previous regulation, in order to grant or not loans up to $15,000 (personal loans) and up to $200,000 (mortgage loans). The previous regulation only contemplated the use of scoring methods for loans of up to $15,000.

•

Screening systems shall be applied systematically and they shall be updated from time to time.

Communication "A" 4560. CAMEX - 1 - 559. (08.18.06).

Effective as of 08.22.06, the Central Bank introduced two new exceptions, thus, no prior agreement from the Central Bank shall be required to conduct arbitrations and exchanges with: •

Banco Multilateral de Desarrollo.

•

Foreign banks authorized by the Central Bank to set up new branches in the country or to purchase share holdings in local banking institutions.

Communication "A" 4561. CAMEX - 1 - 560. (08.18.06).

Through Communication "A" 4177, the Central Bank had allowed the admission to access to the Foreign Exchange Local Market for the payment of debt services, under different conditions, one of them referring to the payment to foreign creditors of export advance payments and prefinancing, on account of direct debts not secured by local banks and not paid through the application of exports, which shall be governed, as far as their repayment abroad is concerned, by the rules applicable to the repayment of foreign financial loans. The date of origin shall be the date of the settlement agreement for the entry of foreign currency

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ANNUAL REPORT 2006 Appendix to the country. Through this Communication, a series of exceptions were set forth for these events.

On the one hand, and among other operative changes, it was provided that, in order to calculate, in the case of prefinancing, compliance with shipments, those carried out in a currency other than the prefinancing currency, shall be computed based on repos reported

by Banco Nación in force upon closing of the business day prior to the effective date of shipment.

Communication "A" 4563. CONAU - 1 - 781. (08.23.06).

The Central Bank modified the Exchange Transactions Information Regime, incorporating to procedural rules everything related to identification, providing that it shall be necessary to file the CUIT, CUIL or CDI number, unless the amount of the transaction is lower than $5,000. In this case, it shall suffice and ID including DNI, LC or LE number.

Press Release 48,610. (08.31.06).

The Central Bank Board of Directors informed that it authorized the opening of forty-three new branches of financial institutions, all of them private-owned.

Communication "A" 4569. CAMEX - 1 - 562. (09.08.06).

The Central Bank eliminated the requirement to open a file before such Institution in those cases where there are shipment permits pending collection by the exporter, provided financial institutions in charge of foreign currency entry follow-up apply the proceeding provided for by the current regulations.

Communication "B" 8803. (09.11.06).

It was informed that, as of the date of issuance of this Communication, the list of Public Administration Officers has been included in the Central Bank’s website, in order that financial institutions may identify persons with public exposure.

Communication "A" 4570. CAMEX - 1 - 563. (09.12.06).

The Central Bank modified the regulations relating to access to the Foreign Exchange Local Market for the constitution of portfolio investments abroad, and the following changes were introduced: •

It was set forth that the cumulative amount of foreign currency acquired for this transactions shall not be higher than the aggregate amount outstanding payment on the

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ANNUAL REPORT 2006 Appendix date of access of debts due on 12.31.05 to the exchange market, plus the debt on account of interest computed up to the next due date. •

The Sworn Statement to be filed before the Central Bank by the company through the financial institution appointed for foreign currency purchases and uses shall include the foreign financial debt details, on the various reference dates whose filing is due on the date of filing of the Statement, and overdue interest plus amounts corresponding to following due dates.

Communication "B" 8806. (09.13.06).

It was provided that, as of 09.18.06, all institutions members of the Electronic Payment System or MEP (Sistema de Medio ElectrĂłnico de Pagos) should make their transfers using the new version, and 09.15.06 was set forth as the last day for using the last version.

Communication "A" 4572. OPRAC - 1 - 595. (09.15.06).

The Central Bank incorporated for financial institutions the possibility of using specific screening means (screening systems and credit scoring models) for car pledge loans up to $50,000 and for financing through credit cards up to $15,000.

Communication "A" 4573. REMON - 1 - 812. (09.17.06).

The Central Bank adapted, effective as of 10.01.06, regulations relating to sight accounts compensation limits.

In this sense, the proportion regarding the BADLAR rate (private banks) used to calculate the maximum rate as of which sight deposits are subject to a 100% minimum cash requirement was reduced from 50% to 35%.

Communication "B" 8814. (09.19.06).

It was communicated that, through Resolution 731/06, the Ministry of Economy and Production exempted from the constitution of the deposit provided for in Decree 616/05 foreign currency inflows to the local market intended for or originating in the primary subscription of share certificates, bonds or debt instruments for trusts which purpose is the development of energetic infrastructure works and whose underlying assets are comprised totally or partially of specific charges created through Act 26,095, to the extent they are paid or redeemed in whole or in part in terms of at least three hundred and sixty five (365) calendar days, whichever their terms of payment.

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ANNUAL REPORT 2006 Appendix Communication "A" 4574. CAMEX - 1 - 564. (09.20.06).

The Central Bank set forth that institutions authorized to conduct exchange transactions shall not require the Central Bank’s prior consent to transfer through the Foreign Exchange Local Market payments from non-residents to local financial institutions on account of financial security foreclosures granted irrevocably by foreign companies to cover risks of securities granted by local financial institutions.

Communication "A" 4575. SINAP - 1 - 9. (09.28.06).

The Central Bank communicated that, as of 11.24.06, check truncation will be applied to all checks and other clearable instruments transferred through Electronic Clearing Houses; therefore, depositary institutions shall retain such instruments, whatever their amount, and transfer the relevant electronic data to Electronic Clearing Houses.

Likewise, depositary institutions shall additionally transfer the electronic record, an image of front and back sides of checks in amounts higher than $5,000 and/or in any amount determined by the Central Bank in the future and, also, an image of front and back of any and all other clearable instruments.

Communication "A" 4576. LISOL - 1 - 461. (09.28.06).

Effective as of 10.01.06, “long-term debt instruments” or “perpetuities” were admitted for the calculation of financial institutions basic equity.

This type of instrument combines similar features to those of a bond or a share, it has an extended term of maturity, which the Central Bank has set to be 30 years, and it requires authorizations both for its public offering as for its trading in domestic or foreign self regulated stock markets.

Relevant amounts of reserve funds specifically created for the payment of financial services will be included in the Basic Stockholders’ Equity in the event of insufficient distributable profits, provided that due dates are prior to 12.31.12; and, from such date, also unused amounts will be included, to the extent they are not higher than limits set forth. The remnant shall be computed as supplementary Stockholders’ Equity. The fund shall be paid in upon subscription and it shall not be higher than 10% of the respective issue.

Communication "A" 4577. LISOL - 1 - 462 and OPRAC - 1 - 596. (09.28.06).

The Central Bank determined that, as of 01.01.07, the negative foreign currency Net Global Position limit shall be reduced from 30% to 15%.

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ANNUAL REPORT 2006 Appendix Communication "A" 4578. CREFI - 2 - 52. (09.28.06).

It was provided for that financial institutions, except for credit funds, may set up a new type of operating offices (temporary assistance offices) in places where there are no branches yet.

To such end, they shall have the Central Bank’s prior authorization.

They may carry out any and all types of transactions admitted for branches. However, they shall not offer the banking current account service, notwithstanding which they shall be authorized to receive deposits intended for such accounts opened in another branch.

Likewise, they may assist customers on limited days and hours according to the policies adopted by each financial institution, provided the customers are informed about the service availability days and hours.

Communication "A" 4579. OPASI - 2 - 375 and SERVI - 1 - 58. (09.29.06).

Rules applicable to Regulation of Bank Current Account were modified in order to adapt current regulations to the provisions set forth in Decree 1824/06 issued by the Government of the Province of Buenos Aires, and in Resolution 493/06 issued by the Provincial State Department, through which the Provincial Office of Vital Statistics was appointed as competent authority regarding the reception of claims for lost instruments, credentials, securities and private instruments.

Communication "A" 4580. REMON - 1 - 813. (09.29.06).

The Central Bank deferred, effective as of 10.01.06, the application of the gradual release schedule in third increments of the total monthly cash calculation -both in pesos and in foreign currency- of institutions, in transit and of companies devoted to transportation of monies and securities, as Minimum Cash mean integration.

Communication "A" 4581. OPRAC - 1 - 597. (09.29.06).

The Central Bank provided for that public companies not constituted under Act 20,705 (State-Owned Companies Act) may obtain the general treatment provided for non-financial private companies, provided they comply with certain requirements, inter alias, having the specific purpose of developing activities in the energy sector.

Likewise, the Central Bank defined the procedure to be followed by such companies to request credit assistance, and it made clear that lending financial institutions shall verify, prior to granting each loan, the required Central Bank intervention and the compliance, at all times, of requirements set forth for the purpose of this specific treatment.

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ANNUAL REPORT 2006 Appendix Communication "A" 4584. RUNOR - 1 - 798. (10.19.06).

Through Communication "A" 4317, the Central Bank had announced that the Court Communications System or SOJ (Sistema de Oficios Judiciales) used by the Federal Administration of Public Revenues or AFIP to request information, to slap on or release attachments or to request the transfer of attached funds through court orders originating in lawsuits commenced by the AFIP, would be used to serve notice of communications in lawsuits commenced by provincial public revenues agencies.

With respect to the foregoing, this time it was communicated that the AFIP entered into an agreement with the Ministry of Economy of the Province of Buenos Aires whereby, as of 11.01.06, communications served in collection lawsuits commenced by the Administration of Public Revenues of the Province of Buenos Aires (according to the provisions of the Fiscal Code of such province), shall be communicated through the Court Communications System or SOJ. Press Release 48,648. (10.20.06).

The Central Bank made clear that the authorization of attachments is an exclusive power of the Judiciary and, therefore, the mechanism described in Communication "A" 4584 only referred to an electronic procedure that facilitates distribution of court communications (including requests for attachment, among other petitions) to financial institutions, always ordered by the Judiciary.

Communication "A" 4587. CONAU - 1 - 788. (10.23.06).

The Central Bank introduced a series of modifications to the Transparency Information Regime, effective as of October 2006.

In such sense, the maximum and minimum cost of each expense related to personal, mortgage and pledge loans was incorporated.

Communication "A" 4588. CONAU - 1 - 789. (10.26.06).

An information requirement was issued in relation to the identification of offices, domestic branches and foreign affiliates of financial institutions, offices, agencies and exchange brokers. In this sense, the Central Bank shall make available on its website (exclusively for the use by institutions) a file including details of authorized offices and branches, according to the information available.

Institutions shall inform the code and type of office (central, head office, branch, agency, district office, mobile agency, etc.), and the name, address, authorization and withdrawal date, if any.

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ANNUAL REPORT 2006 Appendix Communication "A" 4589. CONAU - 1 - 790. (10.29.06).

The Central Bank published a general proceeding for authorizing requests made by financial institutions in relation to profit distribution.

According to the approved schedule, institutions may distribute profits to the extent there are profits available after deducting the following items: legal and statutory reserve amounts, residual exchange differences for judicial injunctions, the difference between the book and the market value of government securities maintained in their portfolio, valuation adjustments of assets notified by the Superintendence of Financial and Exchange Institutions and/or by the external audit of the institution not yet accounted for thereby and individual asset valuation deductibles granted by the Superintendence.

Likewise, to the extent that, after making any adjustments, the institution continues to have positive income, it shall not verify payment defects in the minimum capital requirement and it shall deduct there from the items above mentioned, the positive balance amount on account of the minimum presumed income tax computable in the regulatory equity, the amount of profits it wants to distribute and the deductibles granted by the Superintendence affecting in any way the minimum capital requirement.

Communication "C" 46,679. (11.02.06).

The Central Bank made clear that the highest level officer competent in the financial intermediary operations area that must be part of the “Money Laundering Control and Prevention Committee" must be an executive officer having experience and knowledge in the area and having a consistent assignment of functions within the framework of the definition of positions corresponding to the organizational structure of each institution.

Communication "A" 4591. LISOL - 1 - 463 and CONAU - 1 - 791. (11.08.06).

The Central Bank set forth a specific procedure for the payment of financial services corresponding to issues of "long-term debt instruments" carried out by financial institutions as of 11.01.06.

In such scheme, it is admitted that institutions may comply with the general procedure set forth, but without deducting special treatments implemented as a consequence of the economic crisis of the years 2001 and 2002.

Such specific treatments comprise three items: •

Adjustments resulting from payments made in compliance with court orders originating in lawsuits through which the current regulations applicable to pesified deposits is challenged.

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ANNUAL REPORT 2006 Appendix •

The positive difference between the book and the market value, in the event the financial institution registers government securities not valued at market prices.

•

The attenuated computation (in minimum capital requirements) of the credit risk for public sector financing and of the interest rate risk.

Communication "A" 4594. RUNOR - 1 - 800. (11.13.06).

The Central Bank communicated the registry designs that shall be used in the Court Communications System or SOJ in accordance with the agreement entered into between the AFIP and the Administration of Public Revenues of the Province of Buenos Aires.

Communications made in collection lawsuits commenced by such Administration shall be communicated through the SOJ as of 11.15.06.

Communication "A" 4596. SINAP - 1 - 10. (11.13.06).

The Central Bank modified the agreement on check truncation. It shall be in force as of the date of implementation of the image transfer procedure.

Institutions not entering into this agreement shall not participate in the securities electronic clearance which constitutes the basis of the National Payment System.

Communication "A" 4598. LISOL - 1 - 464. (11.17.06).

It was set forth that, as of 01.01.07, the 15% foreign currency negative Net Global Position limit provided by the applicable regulation may be increased in 15 percentage points, provided the institution registers the following together: •

Mean and long term financing in pesos, excluding eventual liabilities, to non-financial private sector customers for an amount equivalent to the extension of the above mentioned limit. Financing balance whose mean term is longer than 4 years were taken into account.

•

An increase of the minimum capital requirement for credit risk equal to the amount corresponding to the extension of the above mentioned limit.

Likewise, the formula to determine the minimum cash requirement for credit risk was modified, incorporating to the formula the IP factor addition (increase on account of extension of the foreign currency negative net global position general limit).

Finally, the definition of "own liquid resources" (which are part of the concept of foreign currency positive net global position) was modified, it being understood as such the excess of Computable Equity or RPC (Responsabilidad Patrimonial Computable) with respect to

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ANNUAL REPORT 2006 Appendix fixed assets and to other items. The previous regulation defined it as RPC less fixed assets and related customer financing.

Communication "B" 8863. (11.21.06).

Implementation of the extension of check truncation to all checks and other clearable instruments and to check images higher than $5,000 was extended from 11.24.06 to 12.01.06.

Likewise, in the period comprised between 11.24.06 and 11.30.06, depositary institutions should clear checks higher than $5,000 and other clearable instruments through the remittance of the physical instrument to correspondent institutions. However, depositary institutions should transfer on a daily basis images available of checks higher than $5,000 and of other clearable instruments.

Communication "A" 4602. OPASI - 2 - 376 and REMON - 1 - 814. (12.04.06).

The Central Bank admitted that special sight accounts for the deposit of guarantees in future transactions and options whose holders are self regulated markets subject to the control of the National Securities and Exchange Commission may be maintained in more than one financial institution.

Likewise, it was set forth that fund transfers may be made between authorized special accounts.

In turn, Minimum Cash Requirements were adapted, leaving without effect the payment of the 100% requirement for special accounts in US Dollars intended for the deposit of guarantees required in future transactions and options transferred through self regulated markets subject to the control of the National Securities and Exchange Commission and special sight accounts in foreign currency.

Communication "A" 4603. CAMEX - 1 - 565. (12.11.06).

Effective as of 12.11.06, the Central Bank provided that exchange transactions corresponding to the inflow and outflow of foreign currency from or intended for the purchase or sale of securities or for other transactions carried out or to be carried out by intermediaries included or not in the Financial Institutions Act -except for Pension and Retirement Trust Funds and Mutual Funds- requested or ordered by its customers, shall be declared in the exchange market on behalf of the customer and not on behalf of the intermediary, and the rules and regulations applicable according to the customer’s place of residence shall apply.

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ANNUAL REPORT 2006 Appendix Communication "A" 4604. CAMEX - 1 - 566. (12.11.06).

The Central Bank provided for, effective as of 12.11.06, that financial institutions may maintain in their correspondent bank accounts the funds obtained from own financial debt placements or from issues of shares abroad, on account of third party transfers pending settlement.

Communication "A" 4605. CAMEX - 1 - 567. (12.18.06).

The Central Bank published the rearrangement and new regulations applicable as of 12.19.06 for advance and sight payments of Argentine goods imports.

The term for filing evidence for imported goods nationalization was set forth, both in the case of imports (maximum 365 days as of the access to the Foreign Exchange Local Market), as in the case of sight payments (maximum 90 days), as well as the procedure to be followed by financial institutions for the intervention of customs documents according to the various import regimes.

The Central Bank also stated the procedure to be followed where the importer requires longer terms, where upon maturity of the term foreign currency is required to enter for lack of documents, or where the lack of documents derives in loss of goods.

It was stated, additionally, that intervening financial institutions shall notify, within 10 business days following he due date of terms set forth in this regulation, through a note addressed to the Non-Financial Institutions Control Management, importers who have not furnished evidence of the dispatch or of entry of the corresponding foreign currency.

Communication "A" 4606. CONAU - 1 - 794. (12.20.06).

Effective as of filing of reports corresponding to December 2006, the Central Bank modified the Financial System Debtors Information Regime and the Composition of Economic Groups.

Among major changes, the frequency of paragraph C "Additional information about major debtors” was increased to a semiannual frequency, amounts determining which debtors are affected by such paragraph were redefined, and the system indebtedness amount was increased from $200,000 to $500,000 and from $20,000 to $50,000 with the reporting institution; and an identical criterion was applied to paragraph G “Major Debtors”, increasing from $200,000 to $500,000 the debt balance on the last day of the month, as of which such debtors are deemed "Major debtors of the financial institution".

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ANNUAL REPORT 2006 Appendix Communication "A" 4607. CONAU - 1 - 795. (12.22.06).

The Central Bank conducted a series of modifications and accommodations in External Audit and Internal Control Minimum Requirements related to Prevention of Money Laundering and Terrorism Financing.

In such sense, an annual report was included, referred to as "Verification of compliance with the Central Bank’s regulations regarding prevention of money laundering and other illegal activities and regarding prevention of terrorism financing". Additionally, on a quarterly basis, each financial institution shall issue a report about verification of the procedure through which it generates, stores and, where applicable, transfers in due time and form to the Central Bank the information set forth in the Regulations on Prevention of Money Laundering and Other Illegal Activities.

Likewise, Annex II “Methodology for Assessment of Internal Control� was modified and it was provided that the Internal Control Manager shall include in its planning the assessment of the program of prevention of money laundering and terrorism financing.

Communication "A" 4609. RUNOR - 1 - 805. (12.27.06).

The Central Bank approved new minimum requirements relating to the management and implementation of financial institutions information technology. Thus, it left without effect the provisions of Communication "A" 3198, which shall only be maintained by Electronic Clearing Houses, and which compiled the provisions on Minimum Requirements of the information systems and technology area in force to date.

This Communication shall be applied by currently operating financial institutions within a maximum 180-day term, and by new institutions authorized, as of the commencement of their operations.

The regulation is divided into eight sections, which comprise subjects relating to the functional organization and information and system technology management; protection of information assets; continuity of electronic data processing; transactions and data processing; electronic banking; delegation of activities pertaining to the institution to third parties; and information application systems.

Communication "A" 4611. OPASI - 2 - 377. (12.29.06).

The Central Bank extended from 12.31.06 to 12.31.07, the term to limit check endorsement.

Therefore, checks presented for collection, or, as the case may be, for registration until such date, may only contain one endorsement (in the case of regular checks) or up to two endorsements (in the case of deferred checks).

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