MEMORIA ANUAL 2005

ANNUAL REPORT 2005 List ACTIVE MEMBERS

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

ANNUAL REPORT 2005 List ASSOCIATED MEMBERS

Banco de la Nación Argentina Banco de Inversión y Comercio Exterior S.A. Banca di Roma Societá Per Azioni Banco Bilbao Vizcaya S.A. Banco de Chile Banco de Finanzas e Inversiones S.A. Banco Latinoamericano de Exportaciones Banco Santander Central Hispano S.A. Bank LEU AG Bayerische Hypo-Und Vereinsbank AG BSI Banca Della Svizzera Italiana Calyon Argentina S.A. Commerzbank AG Coöperatieve Centrale Raiffeisen-Boerenleebank B.A. (Rabobank) Credit Suisse Dresdner Bank AG Dresdner Bank Lateinamerika AG Natexis Banques Populaires Sanpaolo IMI S.P.A. Société Générale Standard Bank London Limited Standard Chartered Bank The Bank of New York The Bank of Nova Scotia Union Bancaire Privee CBI-TDB Wachovia Bank, N.A.

ANNUAL REPORT 2005 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:

BANCA NAZIONALE DEL LAVORO S.A. Tullio Lanari

Treasurer:

BANCO ITAÚ BUEN AYRE S.A. Rodolfo Corvi

Pro Treasurer:

DEUTSCHE BANK S.A. Luis Caputo

Members:

ING BANK N.V. (Sucursal Argentina) Fernando Tedín Uriburu JP MORGAN CHASE BANK, National Association (Sucursal Buenos Aires) Carlos Ingham

Alternate Members:

BNP PARIBAS Philippe Joannier AMERICAN EXPRESS BANK Ltd. S.A. José María Zas ABN AMRO BANK N.V. José Oscar Fernández

ANNUAL REPORT 2005 List THE BANK OF TOKYO-MITSUBISHI, Ltd. Takashi Fukushima 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 2005 List SPECIAL COMMITTEES

FINANCIAL AFFAIRS AND CAPITAL MARKET Coordinating Secretaries Carlos D. Marí - BBVA Banco Francés S.A. 1 Gabriel Martino - HSBC Bank Argentina S.A. 2 Alternate Coordinating Secretaries Sergio Lew - Banco Río de la Plata S.A. Jorge Fraga - Citibank N.A. 3 Santiago González Pini - Citibank N.A. 4 LEGAL AFFAIRS Coordinating Secretary Analía Schnaidman - Banca Nazionale del Lavoro S.A. Alternate Coordinating Secretaries Fabián Montiel - BBVA Banco Francés S.A. Guillermo Cristiani - Banco Río de la Plata S.A. 5 Pablo Antao - Banco Itaú Buen Ayre S.A. 6 BANK AUDITING Coordinating Secretaries Jesús López García - Banco Río de la Plata S.A. 7 Sergio Ems - BankBoston N.A. 8 Eduardo José Zerega - BBVA Banco Francés S.A. RETAIL BANKING Coordinating Secretary Pío Rueda - Banco Río de la Plata S.A. Alternate Coordinating Secretary Fabián Turturro - BankBoston N.A. 9

1

Until 09.12.05 Until 09.12.05 Alternate Coordinating Secretary 3 Until 09.12.05 4 From 09.12.05 5 Until 04.18.05 6 From 07.19.05 7 Until 10.31.05 8 Until 12.28.05 9 From 06.23.05 2

ANNUAL REPORT 2005 List INSURANCE BANKING Coordinating Secretary José Luis D'Alessio - BankBoston N.A. Alternate Coordinating Secretary Manuel Germán García Nieto - Banca Nazionale del Lavoro S.A. BASILEA II Coordinating Secretaries To be appointed 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 - Banca Nazionale del Lavoro S.A. Fernando Alesón - Citibank N.A. Marcela B. de Lazzarini - BankBoston N.A. Claudio Di Lello - HSBC Bank Argentina S.A. ACCOUNTING AND REPORTING STANDARDS Coordinating Secretaries Juan José Pardo - Banca Nazionale del Lavoro S.A. Ana María Zorgno - Banco Itaú Buen Ayre S.A. Alternate Coordinating Secretary Diego Esquenazi - HSBC Bank Argentina S.A. 10

10

From 06.01.05

ANNUAL REPORT 2005 List TRANSACTIONS Coordinating Secretaries Hugo Vacca Núñez - BankBoston N.A. 11 Pedro Telwak - Banco Río de la Plata S.A. 12 Alternate Coordinating Secretaries Alicia Echarri - Citibank N.A. 13 Javier Michelesi - BBVA Banco Francés S.A. 14 FOREIGN TRADE TRANSACTIONS Coordinating Secretary Luis Martínez - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Hermine Espiñeira - Deutsche Bank S.A. Miguel A. Zarlenga - ABN AMRO Bank N.V. SECURITIES TRANSACTIONS Coordinating Secretary María Rosa Eiras - BankBoston N.A. PREVENTION OF BANK CRIME AND FRAUD Coordinating Secretaries To be appointed.

PREVENTION OF MONEY LAUNDERING Coordinating Secretary Rubén J. Silvarredonda - Banca Nazionale del Lavoro S.A. Alternate Coordinating Secretary Graciela F. Rosich - BankBoston N.A. SMALL AND MEDIUM SIZED COMPANIES Coordinating Secretary Hernán Caballero - Banco Río de la Plata S.A.

11

Until 03.10.05 From 03.10.05 13 From 03.10.05 14 From 03.10.05 12

ANNUAL REPORT 2005 List LABOR RELATIONS Coordinating Secretary Daniel Agudo - BBVA Banco Francés S.A. Alternate Coordinating Secretary Santiago Batlle - BankBoston N.A. 15 RELATIONS AND COMMUNICATIONS Coordinating Secretary Oscar Correa - Banco Río de la Plata S.A. Alternate Coordinating Secretary Carlos Martínez - Banca Nazionale del Lavoro S.A. CREDIT RISK Coordinating Secretary Silvia Tobin - HSBC Bank Argentina S.A. Alternate Coordinating Secretaries Darío Mangano - Banca Nazionale del Lavoro S.A. Jorge Bertoni - BBVA Banco Francés S.A. 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 - Banca Nazionale del Lavoro S.A. TECHNOLOGY, ORGANIZATION AND SYSTEMS Coordinating Secretaries Claudio Tróccoli - Banco Río de la Plata S.A. 16 Enrique Rubinstein - BankBoston N.A. 17

15

Until 08.08.05 Until 05.06.05 17 Until 11.28.05 Alternate Coordinating Secretary 16

ANNUAL REPORT 2005 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 Commercial Committee: Incumbent Members 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. Horacio Argento - Banco Río de la Plata S.A. Eduardo Bonifacini - BBVA Banco Francés S.A. Julia Langwagen - BankBoston N.A. Jorge Barnfather - Citibank N.A. Analía Schnaidman - Banca Nazionale del Lavoro S.A. Eduardo Ayerra - BankBoston N.A.

Standard Documents Subcommittee: Incumbent Members Alternate Members

Pedro Telwak - Banco Río de la Plata S.A. 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.

ANNUAL REPORT 2005 List Checks Subcommittee: Incumbent Members Alternate Members

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

Direct Debit Subcommittee: Incumbent Members

Julia Langwagen - BankBoston N.A.

BUENOS AIRES STOCK EXCHANGE Board: Mario Vicens - ABA President STAF COMMITTEE - CENTRAL BANK Claudio Tróccoli - Banco Río de la Plata S.A. SELF-REGULATORY BOARD - BANK PRACTICES CODE María Elena Deligiannis - ABA Technical Manager (Incumbent) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) SOCIAL INCLUSION FAMILY LAW MANAGEMENT, ENFORCEMENT AND CONTROL NATIONAL COUNCIL Mario Vicens - ABA President (Incumbent) Rubén Mattone - ABA Communications and Institutional Relations Manager (Alternate) FELABAN Alternate Governor: Mario Vicens - ABA President (1) 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 (1)

From November 2004.

ANNUAL REPORT 2005 List ARGENTINE FEDERAL POLICE FOUNDATION Board of Directors Mario Vicens - ABA President (Member) OTC MARKET 2nd Vicepresident Treasurer Director Incumbent Directors

Ricardo Lospinnato - Banco de la Nación Argentina Gabriel Martino - HSBC Bank Argentina S.A. Carlos Planas - Deutsche Bank S.A. Esteban Benegas Lynch - JP Morgan Chase Bank N.A. (Sucursal Buenos Aires)

Alternate Directors

Luis Castresana - Banco Itaú Buen Ayre S.A. Sergio Lew - Banco Río de la Plata S.A. Alejandro Ledesma - BankBoston N.A.

MERCOSUR Group of Mercosur Bank Associations María Elena Deligiannis - ABA Technical Manager Link to Mercosur Work Subgroup N°4 "Financial Affairs" María Elena Deligiannis - ABA Technical Manager Money Laundering and Terrorism Financing Prevention Commission Rubén Silvarredonda - Banca Nazionale del Lavoro S.A. MINISTRY OF LABOR, EMPLOYMENT AND SOCIAL SECURITY Vital Minimum Salary Council Mario Vicens - ABA President (Alternate) Banking Collective Bargaining Agreement Negotiating Commission Incumbent Members Alternate Members Legal Advisors

Daniel Agudo - BBVA Banco Francés S.A. Santiago Batlle - BankBoston N.A. Sergio Scattolini - Banco Río de la Plata S.A. Alejandro Ortiz Quintero - HSBC Bank Argentina S.A. Diego Sánchez - Citibank N.A. Horacio Rivas - Banca Nazionale del Lavoro S.A. Julián Arturo de Diego María Elena Deligiannis

ANNUAL REPORT 2005 List 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 - Banca Nazionale del Lavoro S.A. ARGENTINE UNION OF SERVICE ENTITIES - UDES Mario Vicens - ABA President (1st Vicepresident)

ANNUAL REPORT 2005

PRESIDENT´S LETTER

The official party’s victory in parliamentary elections conducted in October 2005, with the subsequent support to President Kirchner’s administration, constituted the most relevant political event of the year, insofar as it consolidates the political support of the Government to carry out its administration. The other very relevant event was the restructuration of the debt in default which, together with the governmental decision to previously pay-off Argentina’s obligations to the IMF, represents an essential step towards the normalization of the country’s financial position and, at the same time, towards the construction of a sustained and sustainable growth strategy.

In this context, the financial system had an adequate framework for consolidating the improvement of its financial and economic position, trend which had already been observed since 2003 onwards and which, as of the good performance registered in 2005, allows to foresee a more promising horizon for the country’s future activity.

In fact, in 2005, most Argentine financial system variables showed clearly favorable signs of evolution. Liquidity improved twofold. On the one hand, private sector’s deposits continued growing at a rate of approximately 20-25% per year, while restructuration of the debt in default and fiscal discipline allowed the banks to replace their public bond holdings, mostly involuntary, with new loans granted to the private sector.

On the other hand, the system’s solvency also improved with the public debt revaluation and with the reduction of non-performing loans to private sector, simultaneously with the advance payment of rediscounts granted by the Central Bank to banks to cope with the crisis and with the payment and capitalization of foreign debts, whose payment had been previously deferred. In this sense, it is worth mentioning that no international bank has any outstanding debts to the Central Bank, and that they, in turn, have capitalized debts and new funds amounting to $7 billion, which represents approximately 60% of the total system’s gains.

In summary, we can positively say that, during 2005, banks in general overcame a chronic loss situation that lasted for several years. In turn, the persistence of this situation will allow protecting and increasing solvency levels recovered both through the capitalization of debts and profits and through new capital injection.

However, the most relevant fact that should be highlighted is not equity improvement, even if we take into account its relevance for the financial system’s stability. The first thing detected without further analysis is the expansion of the credit to the private sector, which reached a general annual growth above 30%. All lines of credit have experienced the same phenomenon, except for mortgage loans which, although they are evolving more slowly, they are evolving positively to the extent the gap among home prices and the necessary income to access credit is being gradually reduced, very much affected by unemployment

ANNUAL REPORT 2005

rate increase and labor informality, salary lag and emergency measures (suspension of foreclosure proceedings) provoked by the crisis.

This sector’s evolution has been benefited by a very favorable context for those who need to incur debt to produce or consume. The cost of credit has been reduced to levels below those of the convertibility, practically equivalent to inflation and lower than salary evolution, with levels very lower than those registered for the same lines of credit in some neighboring countries. On the other hand, regulatory amendments implemented by the Central Bank during the last years have fostered competence among banks and have improved the access of a specific part of the market to services offered by banks.

In this highly competitive framework, the introduction of initiatives prone to protecting consumer rights, as the transparency regime set forth by the Central Bank and the Bank Practices Code, voluntarily implemented by banks recently, have created a very competitive framework for the bank services market which, for sure, will benefit consumers and will help to normalize the relationship of the banks with the users, very much affected by the events that took place in 2001-2002.

Although there are still matters to be solved, the financial system shows a very strong basis to continue advancing towards its full normalization in the short and medium term.

Economic stability, fiscal discipline and the exercise of a prudent and responsible monetary policy constitute, without a doubt, the necessary framework for the activity to completely recover the leading role it always had in investment financing, production and consumption.

Once inflationary pressures recently registered are overcome, and with a macroeconomic framework leading to full consolidation, the attention of the financial system shall be drawn towards accelerating the complete elimination of the effects of the crisis and developing a strategy to expand the capacity to direct savings towards those investments and uses decisively contributing to install a sustained and integral growth pattern for the country.

Mario Vicens President

ANNUAL REPORT 2005

Index Page Chapter 1: Evolution of Argentine Economy .............................................................. 1 Introduction .................................................................................................................................. 1 The Macroeconomic Context..................................................................................................... 1 Balance of Payments .................................................................................................................... 2 Foreign Commerce....................................................................................................................... 3 Public Finance............................................................................................................................... 3 Debt Restructuration ................................................................................................................... 4 Total Repayment of the Debt to the IMF ................................................................................ 5 Chapter 2: Monetary Evolution and Amendments to Central Bank’s Regulations ... 7 Monetary Evolution ..................................................................................................................... 7 Central Bank’s Reserves .............................................................................................................. 8 Deposits and Loans...................................................................................................................... 9 Interest rates................................................................................................................................ 11 Main Regulatory Changes......................................................................................12 Differential minimum capital requirements per area ............................................................ 12 Simplification of Reporting Regimes....................................................................................... 13 Minimum cash requirements reduction and unified position.............................................. 13 Extension of loan capacity in foreign currency for capital assets ....................................... 14 Federal Uniform Compensation .............................................................................................. 14 Credit facilities ............................................................................................................................ 14 Exchange market deregulation measures................................................................................ 15 Fostering of Long-Term Credit – Deferral of Judicial Injunctions .................................... 15 Amendments to the Export Prefinancing Regime ................................................................ 16 Savings accounts for individuals under 21 years old ............................................................. 16 Regulatory Changes for Credit Funds ..................................................................................... 16 Chapter 3: Financial System.......................................................................................18 Introduction ................................................................................................................................ 18 Profitability, Efficiency and Intermediation Margins............................................................ 18 Portfolio quality .......................................................................................................................... 22 Exposure to the Public Sector.................................................................................................. 23 Capitalization............................................................................................................................... 24 Gaps ............................................................................................................................................. 26 Financial System Tax Burden ................................................................................................... 27 Evolution of loans and deposits per group of institutions................................................... 28 Financial system salaries ............................................................................................................ 29 Statistical Appendix: Tables 1 to 43 ...........................................................................31 Appendix ................................................................................................................... 75 Principal Measures of Banking, Exchange and Financing Policies..................................... 75

ANNUAL REPORT 2005 Chapter I: Evolution of Argentine Economy

Chapter 1: Evolution of Argentine Economy Introduction During the year 2005, the economy growth that had commenced in 2003 continued. In turn, fiscal and foreign accounts surplus was maintained while unemployment rates reached their minimum levels since 1994. Among the factors contributing to this performance it may be highlighted the permanence of an actually favorable international economic context, the continued fiscal discipline and the restructuration of the public debt in default, the gradual increase of production capacity and the rapid growth of bank credit.

On the other hand, inflation increased as a consequence of several factors. In addition to the impact of relative price changes there were other factors, such as salary increase, employment recovery, bank credit increase, etc., which constantly increased goods and services demand in a context of gradual reduction of the idle production capacity.

In addition, the constant foreign currency market excess offer was systematically absorbed by the Central Bank to prevent the appreciation of the national currency. In turn, the Central Bank had to actively intervene in the monetary market through the allocation of debt and through the advance repayment of rediscounts granted to banks within the crisis framework, in order to avoid the fact that reserve accumulation could prevent it from meeting its monetary expansion goals.

In turn, it is worth mentioning that there were three very significant events during the year related to economic policy. The first is the restructuration of the public debt in default, whose successful closing contributed to eliminate a very important uncertainty factor. The second, in chronological order, was the resignation of the Ministry of Economics and Production, Mr. Roberto Lavagna, who was in charge of economic policy since 2002, without the situation affecting market stability and economic course. Mrs. Felisa Miceli was appointed as Ministry of Economics and Production, who was President of Banco de la Nación Argentina until such time. Last, it is worth mentioning the advance repayment of the debt to the IMF. This decision, although it provoked a marked reduction of Central Bank’s international reserves, did not involve a significant change in the economic performance.

The Macroeconomic Context According to available information, there was a 9.1% increase in the GDP during 2005 in relation to the previous year. The highest contribution was made by service sectors, with an 8.3% increase within an actual crisis recovery framework. Among services, it is worth mentioning the 16.4% increase registered by the financial intermediation sector as a whole.

On the other hand, goods producers sectors continued to grow, even though they showed a more heterogeneous evolution, mainly concentrated on construction, manufacturing industry and agriculture and livestock.

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ANNUAL REPORT 2005 Chapter I: Evolution of Argentine Economy

In this context, private consumption should be highlighted, which registered a 9.4% increase during the first three quarters of the year, while gross domestic investment registered a 20.9% increase in the same period. With regard to investment, it is worth mentioning that, even though its increase was less than in the previous year, its expansion has been very significant, both quantitatively as qualitatively. In fact, investment in durable production equipment increased 25% with regard to the same period of the previous year, while construction investment increased 18.4%.

The growth registered in the industrial activity also deserves to be highlighted. During 2005, according to the Industrial Monthly Estimate (Estimador Mensual Industrial - EMI) released by the National Institute of Statistics and Census (Instituto Nacional de EstadĂ­stica y Censos INDEC), there was a 7.7% increase with regard to the previous year, which, although it is less than the 10.7% corresponding to 2004, still represents a significant growth. The use of installed capacity continued to increase during the year, and it reached a 71.1%-mean in 2005, higher than the 69.7% registered in 2004, which represents a 27.6% increase with regard to 2002. It is worth mentioning that, in some industrial sectors, this index has reached levels of approximately 90%.

In 2005, with regard to inflation evolution, the consumer price index registered a 12.3% increase, which means a cumulative increase of 74.1% since the end of the convertibility. In turn, the wholesale price index registered a cumulative increase of 10.7% during the past year, which represents 165.4% since the end of 2001.

Said increase in the economic activity level was also reflected on the employment level, which increased to 41.1% in the third quarter of the year, thus exceeding the 40.1% registered in the same quarter of the previous year. On the other hand, unemployment was reduced to 11.1% from 13.2% registered a year earlier. Suboccupation also showed an improvement, decreasing to 13% from the 15.2% registered 12 months before. According to official reports, between the second quarter of 2002 and the third quarter of 2005, the formal private sector contributed 72% of the employment level growth (excluding social employment programs), while informal private employment contributed 20%, and the public sector, 8%.

This is even more important if we take into account that the Salary Index released by INDEC increased 20% between December 2005 and the same month of the previous year, while the private sector registered an increase of 26%.

Balance of Payments In the year 2005, the capital inflow that had started in the previous year was consolidated. In the first three quarters of the year, the capital and financial accounts of the balance of payments showed a 2.1 billion US Dollars surplus, while it is estimated that the non-financial private sector capital net flow exceeds 4 billion US Dollars.

In mid-year, the Government imposed some additional controls to the speculative capital inflow, in order to reduce the volatility that this type of investments cause to the evolution 2

ANNUAL REPORT 2005 Chapter I: Evolution of Argentine Economy

of the local economy. Through Decree 616/05, it was set forth that any fund inflow to the local market shall only be transferred abroad after 365 days and, additionally, a 30% reserve of the funds shall be created through a non-transferable non-compensated 365-day term deposit, which cannot be used as security or collateral for credit operations of any kind.

On the other hand, the current account surplus increased to 3.9 billion US Dollars during the first nine months of the year, which is 40% higher than the same period of the previous year and is higher than the amount registered during all the year 2004.

Central Bank’s international reserves increased approximately 6.3 billion US Dollars in the same period.

Foreign Commerce The commercial balance of the year 2005 amounted to 11.3 billion US Dollars, which represents a 6.5% reduction with respect to the 12.1 billion US Dollars registered in the previous year. Although exports reached a record level, exceeding 40 billion US Dollars (which represents a 15.8% increase with respect to the previous year), the higher growth of imports (27.8%) reduced the commercial surplus.

In the year 2005, all export items increased with respect to the previous year. The agricultural manufactures continue to be the item with the highest rate (33% of the total), followed by industrial manufactures (30%), even though the latter present the highest growth during the year, due both to price increase as to quantity increase.

On the imports side, 41% corresponds to capital assets and their pieces and accessories, which also constitute the group that registered the highest growth during the year (+33%), followed by intermediate assets, which represented 36% of the total. Although imports of consumable items increased 27% during the year, they only represent 11% of foreign purchases.

The commercial exchange with Mercosur’s country members represented a deficit that amounted to 3.35 billion US Dollars, this being the region with the highest transaction volume, followed by the European Union, the NAFTA and main Asian countries. It should also be highlighted the exchange with Chile, whereby a commercial surplus representing 35% of the total balance of the year 2005 was reached.

Public Finance The national public sector registered again an improvement with regard to the income obtained in the previous year. According to the savings-investment-financing scheme, the public sector obtained a primary income of almost 19.7 billion Pesos in the year 2005. The recovery of the tax revenue collection, which increased to 21.3% in the year, played a very important role in obtaining this result. The behavior of the VAT should be highlighted. It increased 19% with regard to the previous year, and the income tax showed a 25.8% 3

ANNUAL REPORT 2005 Chapter I: Evolution of Argentine Economy

increase. Both taxes represent a significant share of revenue collection, as they amount to three quarters of the Argentine IRS income (excluding the social security system), and, together with the bank account debit and credit tax (+22.8%), they account for a great part of the revenue collection increase.

On the other hand, current expenses increased due to higher transfers to the provinces (23.4%), mainly on account of coparticipated resources. Consumption and operating expenses also increased (23.5%), including those related to salaries, goods and services.

Expenditures on account of interest increased almost 80% due to payments arising from debt restructuration.

Altogether, current income increased 20%, while current expenses increased 22%, thus resulting in a primary surplus increase of 13% with regard to the previous year.

After the restructuration, the public debt decreased from 109% to 84% of the GDP, while the proportion of debt denominated in national currency increased from 25% before the exchange transaction to 31%. On the other hand, as a result of the restructuration of the debt in default and of the advance payment of IMF credits, the debt maturity schedule improved significantly.

Public Debt Maturity Schedule (In millions of Dollars) 35,000

30,000

25,000

20,000

15,000

10,000

5,000

0

2006

2007 2008 2009

2010 2011

Before Restr ucturatio n

2012 2013

2014 2015

Post-Restr ucturatio n

2016 2017

2018 / 2030 Average

After Payment to IM F

Note: Excluding capital payments maturing after the years 2030

Debt Restructuration During the first quarter of 2005, the Government carried out the restructuration of the debt that was in default since the end of 2001. The amount of the debt eligible to be filed for restructuration amounted to 81.8 billion US Dollars, of which 62.3 billion US Dollars were exchanged, that is, 76.15%. Over this total amount filed for exchange, new bonds were

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ANNUAL REPORT 2005 Chapter I: Evolution of Argentine Economy

issued for a total amount of 35.3 billion US Dollars, including Par, Discount, and Quasi-Par bonds.

Restructured Debt by Currency and Aplicable Law (In millions of US Dollars) US Dollars

Euros

Yens

Pesos

New York Law

Argentine Law

United Kingdom Law

Japanese Law

Argentine Law

Total

Par

5,313

1,246

6,391

196

1,854

15,000

Discount

3,088

566

2,879

54

5,345

11,932

Quasi-Par

…

…

…

…

8,329

8,329

8,401

1,812

9,270

250

15,528

35,261

Bond

Total

On the other hand, the issue of Units Linked to the GDP would reach an approximate notional value of 62.3 billion US Dollars.

After this exchange, the greatest part of the public debt is in a regular situation. The part of the debt assumed within the framework of the Paris Club and the claim to creditors that did not accept to participate in the exchange is still pending regularization.

Total Repayment of the Debt to the IMF Through Decree 1601/05, the Government ordered total payment of the debt in favor of the IMF. Such debt had been assumed in favor of the IMF within the framework of the stand-by arrangements approved by the Board of Directors of the IMF in March 2000, January 2003 and September 2003, also including a small remnant amount assumed under the extended facilities arrangement dated March 1992.

In order to carry out this transaction, some sections of Act 23,928 were amended through Decree 1599/05, and then ratified by the Congress through Act 26,076. Among the changes, it was determined that Central Bank’s reserves in gold and foreign currency shall be affected to support up to one hundred per cent (100%) of the monetary base. On the other hand, freely available reserves are those that exceed 100% of the monetary base. It was also added that freely available reserves may be applied to payment of obligations undertaken in favor of international financial organizations, provided they have a neutral monetary effect.

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ANNUAL REPORT 2005 Chapter I: Evolution of Argentine Economy

Through Resolution 49/05, the Ministry of Economy and Production asked the Central Bank for total repayment of this debt and instructed the issue of a 10-year Bond in exchange for National Government’s liabilities that constituted Central Bank’s assets arising from the debt in favor of the IMF. Additionally, it was defined that such instrument would be nontransferable and that it would accrue an annual rate equivalent to the rate obtained by the Central Bank for the same period on investments made with international reserves, up to a maximum of annual Libor rate less one percentage point, payable semiannually and amortized totally upon maturity.

As reported by the Central Bank, 43% of the payment was made with funds deposited in the IMF and the remaining 57% with deposits made in the Bank for International Settlements (BIS).

At the time of payment, the repaid debt amounted to DEG 6,655 billion (approximately 9.5 billion US Dollars).

Thus, the country repaid all the debt to the IMF, together with Brazil, which made the same determination practically at the same time.

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ANNUAL REPORT 2005 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations

Chapter 2: Monetary Evolution and Amendments to Central Bank’s Regulations Monetary Evolution In the year 2005, the monetary base registered an increase of 2.23 billion Pesos (+4.3%) between December 31, 2004 and December 31, 2005. The main expansion factor was the foreign private sector as a consequence of Central Bank’s interventions to absorb the foreign currency offer. This effect was partially neutralized by the issue of Central Bank’s bonds (LEBAC and NOBAC), which allowed to absorb approximately 10 billion Pesos. In turn, the repayment of rediscounts granted to financial institutions under the crisis and the Government transactions contributed to reduce the monetary base by 9.6 billion Pesos and by 3.4 billion Pesos, respectively. Last, these transactions as a whole, together with net repos with public bonds amounting to an additional amount of 1.9 billion Pesos, allowed the Central Bank to meet, for the tenth quarter in a row, the goals established in the Monetary Program.

Broad Monetary Based Expansion Factors (In millions of Pesos) Factors

2004

2005

Private Foreign Sector

23,168

28,227

Domestic Public Sector

-6,511

-3,400

Rediscounts

-2,184

-9,637

Repos

-5,509

-1,893

Central Bank Bonds

-3,880

-10,031

Others

1,003

-1,034

Total

6,086

2,233

With regard to LEBAC and NOBAC placing, it is worth mentioning that the balance amounted to 26.2 billion Pesos, which implies a 76% increase throughout the year. Although during 2004 the Central Bank considerably increased the issue of bonds indexed according to CER, the rise of inflation pushed the Central Bank to stop issuing this type of bonds. In place thereof, NOBACs were offered, with variable interest rates tied to BADLAR (interest rates of 30-35 days term deposits amounting to more than one million Pesos or US Dollars), corresponding both to the financial system mean and to private banks, with a 2.5% margin in both cases and for up to 2 year-terms.

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ANNUAL REPORT 2005 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations

Interest rates applicable to these bonds also reflected the increase established by the Central Bank for repos rates. Throughout the year, successive increases stipulated raised repos rates from 2.5% at the end of 2004 to 5% at the end of 2005 for 7-day term transactions, and 4.5% rates for 1-day term transactions.

Central Bank’s Reserves Throughout the year 2005, the Central Bank purchased net reserves from the Private Sector amounting almost to 9.7 billion US Dollars, within the framework of the foreign exchange policy implemented by the Central Bank and of the international reserves accumulation program.

On the other hand, the net effect of public sector transactions and of payments made to international institutions generated a net reduction of approximately 300 million US Dollars.

It is worth mentioning that, although the decision to fully repay the debt to the IMF was made at the end of 2005, the impact on the reserves (9.5 billion US Dollars) was seen at the beginning of January 2006; therefore, its effect is not observed in the period covered by this Annual Report.

The reduction of minimum cash requirements is the counterpart of a reduction of reserves amounting to approximately 1.3 billion US Dollars during the year, while other items registered a net increase of 300 million US Dollars.

The combination of these effects resulted in an increase of Central Bank reserves amounting to 8.4 billion US Dollars during the year 2005. Thus, at the year end, the total balance amounted to 28.1 billion US Dollars, which, after repayment of the debt to the IMF, were reduced to 18.6 billion US Dollars.

Variation of Central Bank´s Reserves (In millions of US Dollars) Factors

2004

2005

Private Sector with Monetary Effect

7,882

9,677

-3,623

-4,540

19

4,311

Minimum Cash Requirement

684

-1,293

Exchange Rate Valuation

207

-427

Others

356

703

5,527

8,431

International Institutions Other Public Sector Transactions

Total

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ANNUAL REPORT 2005 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations

Deposits and Loans In the year 2005, the growing trend of private sector loans continued, which trend was already consolidated during 2004. Total private sector loans increased 38% during the year, reaching an aggregate amount of 53.7 billion Pesos. As regards consumer credits, the growth of personal loans and credit card financing should be highlighted, which registered increases amounting to 73% and 71.2% respectively.

Private Sector Loans (In millions of Pesos)

60,000

55,000

50,000

45,000

40,000

35,000

30,000

25,000

20,000

2003

2004

2005

With regard to commercial lines of credit, discounts raised 59.3%, while current account overdrafts were almost 40% higher than a year before.

On the other hand, pledge loans showed a very significant increase amounting to 41.1% during the year. Simultaneously, during the year 2005, a significant recovery was verified on mortgage loans, which increased in the last quarter of the year. This behavior is not totally reflected on balances due to the fact that several financial trusts were created, which reduce the amount registered in institutions’ balance sheets. However, if we observe the amounts granted per month, we can see the increase of new transactions carried out, which shows the effort made by financial institutions to place longer term financing with available funds.

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ANNUAL REPORT 2005 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations

Mortgage Loans Interest Rates

%

Millions of Pesos

20

400

19

350

18 300 17 250

16 15

200

14

150

13 100 12 50

11 10

2002

2003 Amounts Granted (right axis)

2004

2005

0

Average Rate

In addition, foreign currency loans increased 49%, mainly to finance foreign commerce transactions.

In turn, total private sector deposits registered a 21.6% increase during the year, duplicating the 11.4% observed in the previous year. Among placements in Pesos, we should mention the 29% increase of current account balances. In addition, deposits in savings accounts increased 19.5%, while time deposits were 20.2% above the amount registered a year earlier.

This latter event is particularly relevant if we consider the low interest rates accrued by these deposits. Although these rates have increased during 2005, they are still lower than those observed during the past decade.

In order to facilitate raising of longer term funds, the Central Bank extended the minimum term for deposits indexed according to CER up to a minimum 365-day term. This type of deposits, mostly made by institutional investors, such as Pension and Retirement Trust Funds (AFJPs), increased 36.1% during the year.

Last, it is worth mentioning that the last CEDROs (issued during the crisis as a consequence of deposits rescheduling) installments matured in September.

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ANNUAL REPORT 2005 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations

Total Deposits (In billions of Pesos) 140

120

100

80

60

40

20 0

Dec.

Dec.

Dec.

March

Private Sector

June

Sept.

Dec.

Public Sector

Interest Rates Interest rates on loans continued their downward trend in 2005, similarly to the trend observed during the last years. According to information available, the highest reductions were those applied to credit card financing, amounting to an annual nominal percentage of 26%, compared to the 29.5% percentage observed at the end of the previous year.

The second place belongs to consumer loan rates, which amounted to 25.1%, compared to the 26.7% registered at the end of 2004. The reduction of pledge loans rates, which amounted to 10%, was also significant.

It is worth mentioning that mortgage loan rates amounted to 11.4%, thus showing a slight reduction compared to the previous year, and reaching levels below those registered during the past decade.

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ANNUAL REPORT 2005 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations

Interest Rates for Loans in Pesos (As annual nominal percentages) Type of loan

Dec. 2003

Dec. 2004

Nov. 2005

Difference 2003-2005

Overdrafts ( 1 )

21.6

13.7

16.6

-5.0

Promissory Notes

11.5

10.7

11.1

-0.3

Mortgage loans

14.2

11.5

11.4

-2.9

Pledge loans

16.0

11.7

10.0

-6.0

Consumer loans

34.2

26.7

25.1

-9.0

Credit cards

34.8

29.5

26.0

-8.9

(1) Includes other advance payments.

Source: ABA based on Central Bank’s data.

On the other hand, increases in interest rates, used by the Central Bank as a monetary policy tool, also affected rates paid by the institutions to depositors. Thus, interest rates paid for time deposits in Pesos increased from 3.3% at the end of 2004 to 5.3% in December 2005.

Main Regulatory Changes Differential Minimum Capital Requirements per Area In order to promote the creation of new financial institutions in areas with smaller banking coverage, the Central Bank changed minimum cash requirements according to the location of such institutions, their type and operating volume.

The intention was to promote the creation of new financial institutions in regional markets.

For such purpose, four categories were defined according to the jurisdictions where the institutions are located, with decreasing basic capital requirement levels amounting to 25, 14, 12.5 or 10 million Pesos for banks, and to 10, 8, 6.5 or 5 million Pesos for other institutions, such as financial companies (except for credit funds, to which a separate regime applies), respectively for Categories I, II, III or IV. The classification of the various urban conglomerates and provinces in the different areas (I through IV) corresponds to the differences among these markets according to private sector 12

ANNUAL REPORT 2005 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations

loan and deposit concentration, availability of ATMs and branches per inhabitant, private sector deposits and loans per capita, as an estimate of the degree of competence and development of financial services in each of these areas.

Additionally, the royalty that financial institutions that are not banks must pay to the Central Bank for authorization purposes was reduced to 400,000 Pesos (save for credit funds, which are exempt from this royalty), and the royalty applicable to new banks remained unchanged, amounting to 900,000 Pesos.

These provisions shall apply to institutions authorized to conduct business as of 07.01.05, including transformation cases, while financial institutions already conducting business on 06.30.05 shall comply with basic capital requirements provided for new institutions in their area, up to a maximum of 15 million Pesos.

Simplification of Reporting Regimes The Central Bank continued implementing the simplification of reporting regimes and eliminated the requirement of several data to prevent duplication, unnecessary orders, and it adapted delivery frequencies in order to create a simplified system and to achieve higher reporting efficiency.

Among adopted measures, the daily deposit reporting regime was eliminated, as well as another report on composition of economic groups, authorized accounts, public bonds and institutional information. The filing time of exchange and term holdings was also adjusted, in order that institutions can prepare this information without need to work extra hours or having to create special work teams. Statements of data on foreign currency purchase and sale and payment orders to and from abroad were eliminated.

Minimum Cash Requirements Reduction and Unified Position Throughout the year, the Central Bank provided for in several opportunities progressive reductions of minimum cash requirements for deposits in Pesos. Such requirements were reduced 3 percentage points for sight deposits and between 2 and 4 percentage points for time deposits.

On the other hand, it was determined that, as of 2005, integration of December, January and February be carried out in a unified position due to the higher seasonal currency demand registered at the year end, which reduces liquidity requirements of financial institutions during this period and also the volatility of the interbank market interest rate.

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ANNUAL REPORT 2005 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations

Extension of Loan Capacity in Foreign Currency for Capital Assets The Central Bank authorized financial institutions to grant commercial financing for the import of capital assets using resources from foreign currency deposits. According to Decree 905/02, the loan capacity of foreign currency deposits must be applied to foreign commerce financing and related activities. Until this amendment was made, only financing of exports and export-oriented imports of goods was allowed.

The Central Bank established that financial institutions must assess several unfavorable scenarios in the event of significant changes in the exchange rate, taking into account that, with this amendment, loans may be granted to customers not having foreign currency income. This assessment could induce debtors to cover their currency gaps with future exchange transactions.

Federal Uniform Compensation According to the agreement made between the Central Bank and Bankers Associations at the end of 2004, the Uniform Federal Compensation was implemented as of mid-2005. This means that the term for electronic transfers throughout the country was reduced to 24 hours and the check clearing term was unified in 48 hours for all markets.

Likewise, check truncation amount was raised to 5,000 Pesos, which implies that checks below that amount stay with the institution where they are deposited, and only electronic information is sent to the issuing institution in order that it confirms or bounces the check without need to have the original document available. This prevents the physical transportation of 90% of instruments, allowing unifying and reducing the clearing term with the consequent reduction of operating costs.

This system could be instrumented thanks to important technological developments introduced by financial institutions, thus raising security levels to the highest international standards. This system was already being used in the City of Buenos Aires and in Greater Buenos Aires since 1999, thus, this new development implies equal treatment throughout the national territory, speeding up individuals and companies payment chain.

The Central Bank expressed its intention to raise the truncation amount during 2006 to include virtually all checks.

Credit Facilities In order to facilitate access to credit, mainly to small- and medium-sized companies, the Central Bank increased from 200,000 Pesos to 500,000 Pesos the commercial financing amount that financial institutions may elect to classify credits only for compliance with payments, thus simplifying the assessment task. They shall not have to verify that financing are higher than the debtor’s net worth for this loan section.

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ANNUAL REPORT 2005 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations

On the other hand, classification criteria applicable to debtors with high insolvency risk and uncollectible debts were adjusted in order to adapt them to judicial terms applicable to agreements with creditors, therefore the term required for a debtor who has entered into an agreement with its creditors to be classified as default debtor was increased from 365 to 540 days.

On the other hand, individuals showing a good credit history were authorized to be granted consumer credits of up to 15,000 Pesos without need to give evidence of their income, which will facilitate access to the formal financial system to individuals previously resorting to alternative sources of financing at a higher cost.

Exchange Market Deregulation Measures Among exchange measures adopted we should mention the extension from 30 to 90 days of the settlement term of new financial indebtedness for amounts above 50 million US Dollars.

The term applicable to advance repayment of financial debts was also extended from 90 to 360 days, thus facilitating the reduction of foreign indebtedness or its replacement with lower-cost lines of credit, which is observed more regularly since the macroeconomic situation improvement.

In addition, institutions were allowed to purchase credits granted by foreign banks to local companies, and conditions applicable to official credit agencies investments were flexibilized to facilitate their financial support, by means of a minority interest in local companies’ capital for financing of investment projects.

On the other hand, within the framework of the policy to prevent the appreciation of the Peso, the positive threshold on the global foreign currency deposits of financial institutions was suspended (net assets in foreign currency including forwards). Previously, foreign currency deposits could not be above 30% of the institution’s equity or proprietary resources. The additional threshold for short-term deposits, which includes foreign currency liquid assets and liabilities maturing within the next 180 days, was also suspended.

Access to the exchange market for the creation of foreign assets was also limited when there are due and payable foreign debt capital or interest amortizations.

Fostering of Long-Term Credit - Deferral of Judicial Injunctions In order to boost long-term credit, the Central Bank allowed the possibility to extend amortization terms of differences paid on account of judicial orders provided new long-term commercial loans are granted (more than 2 years of mean duration), without reducing the total amount of the rest of the commercial portfolio. These deferrals shall not be above 10% of the computable equity.

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ANNUAL REPORT 2005 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations

Amendments to the Export Prefinancing Regime In November, the Central Bank introduced amendments to the above mentioned regime to assure exports financing fluency and to prevent the inadequate use of financing instruments.

To such end, records of securities exported during the last 12 months were allowed to be used in lieu of contracts and purchase orders as evidence of indebtedness, without exceeding 25% of the exports during such period, increasing this limit to 50% in the cases where shipping terms are longer than 365 days.

Maximum terms to make shipments were also extended, contemplating financing granted by exporters to small regional producers and the extension of terms for reasons out of the exporter’s control.

On the other hand, a special treatment was implemented for foreign medium- and long-term lines of credit, in order to facilitate the availability of this type of financing. In turn, it was set forth that exporters shall not have any shipment delays with regard to the maximum term set forth, in order that they can continue entering new credits on account of advances and prefinancing.

Advance or prefinancing transactions not repaid with foreign currency collected from shipments shall be deemed financial loans, and the relevant exchange rules shall apply thereto and a one-year term non-compensated deposit shall be made amounting to 30% of the amount of foreign currency collected.

Savings Accounts for Individuals under 21 Years Old In mid 2005, the Central Bank authorized the opening of savings accounts to individuals between 18 and 21 years old, even though they are neither emancipated nor have a job. The only requirement is that they have the prior authorization of their parents or tutors, who shall assume any liability for acts carried out by the minor account holder. This measure authorizes approximately 1.5 million individuals to have direct access to financial services.

Regulatory Changes for Credit Funds In September, the Central Bank changed the rules applicable to cooperative credit funds, in order to flexibilize certain aspects and to create incentives in order that credit unions already providing financial services could take the initiative and create a credit fund and start operating under the supervision of the Central Bank.

Among the main changes, we should mention the increase of the maximum interest that public services credit unions may have in credit funds’ capital, thus admitting the participation of other types of credit unions. On the other hand, in order to facilitate their creation in less densely populated areas and to compensate any capital deficiencies in such

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ANNUAL REPORT 2005 Chapter II: Monetary Evolution and Amendments to Central Bank’s Regulations

areas, credit unions have been given the possibility to have a share in credit funds’ capital inversely proportional to the population density.

In order to facilitate the raising of members, the requirement that each member should payin the capital amount on the subscription date (save in the case of credit unions) was eliminated. The maximum amount of fixed-term deposits rising was increased from 12,000 Pesos to 20,000 Pesos.

In order to afford the possibility of granting financial support to customers that, due to the nature of their business, cannot comply with a periodical payment schedule, the margin to grant financing in non-periodical installments or financing with total repayment upon maturity was increased. The threshold for loans credited on sight accounts (equivalent to current account overdrafts) was also increased, the prohibition to install ATMs was eliminated, board of directors members’ requirements were flexibilized, and a simplified reporting regime was applied thereto.

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ANNUAL REPORT 2005 Chapter III: Financial System

Chapter 3: Financial System Introduction The financial system recovery encompassed several stages. The first stage was during the second semester of 2002, when deposits started to recover. Then, in mid 2003, private sector loans started to increase, as a result of the improvement in the general economic situation, of the recovery banks liquidity and of the recovery of credit demand. The sustained growth of private sector loans turned out to be an essential factor in order to reverse the negative financial intermediation margin prevailing during the previous years. The consolidation of this sector’s improvement during 2005 was reflected on returns, which for the first time since the crisis was positive for most institutions.

Thus, loans and deposits registered a sustained increase in most banks, the credit portfolio quality improved, exposure to public sector debts and gaps were reduced. In turn, as part of equity recovery, many institutions and, particularly, international banks, increased their capital through debts and profits capitalization and through injection of new funds, which shall allow bank credit to the private sector to continue growing in a framework of gradual but sustained regulatory normalization.

At the end of 2005, only 5 institutions owed debts to the Central Bank under the “matching� schedule for a total amount of 12.04 billion Pesos, while a year earlier this list included 23 financial institutions. In turn, successive capitalizations raised capital integration to 15.5% with regard to risk assets for the entire financial system (taking into account forbearances), and to 18.2% with regard to private institutions. This capitalization level has allowed meeting minimum capital requirements, even though they were increased during 2005 due to the progressive reduction of forbearances (temporary reductions) established in 2002 to facilitate recovery from the crisis.

Even though some situations caused by the crisis have not been completely solved (among which we should highlight the legal status of pesification, the permanence of emergency taxes affecting bank transactions, suspension of mortgage foreclosures, etc.), the year 2005 represented a very significant advance in the normalization process of the activity following the 2001-2002 crisis.

Profitability, Efficiency and Intermediation Margins As it was mentioned above, the year 2005 was the first year in which a positive return was registered after the crisis. From the first year quarter, where a virtually cero return was registered, the positive trend of returns was consolidated during the following quarters in such a way that, for the year as a whole, profitability of the entire sector reached 0.9% of assets, a very significant advance with regard to important losses registered in previous years.

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ANNUAL REPORT 2005 Chapter III: Financial System

A representative event is the composition of income after improvement. From the first quarter of 2004, the interest margin registered positive returns, evidencing the progressive recovery of financial intermediation as the core business of the banking system. In turn, the contribution of assets adjustable to CER improved as inflation increased in relation to immediately previous periods. Last, the important reduction of uncollectibility charges should be highlighted, as they registered a 22.6% reduction and reached a historical minimum percentage of 0.5% of total assets.

Return (In millions of Pesos)

Returns (In millions of Pesos) 800

5,000

600 400

0

200 0

- 5,000

- 200 - 400

- 10,000

- 600 - 800

- 15,000

- 1,000

- 20,000

Year 2001

Year 2002

Year 2003

Year 2004

Year 2005

- 1,200

I 2004

II 2004

Intermediation Margin (As % of assets)

III 2004

IV 2004

I 2005

II 2005

III 2005

IV 2005

Interest Margin (In millions of Pesos)

12

700

10

600

8

500 6

400 4 2

300

0

200

-2 -4

100 2001

Interest

2002

2003

2004

Adjustments to CER / CVS

2005

0

Others

I 2004

II 2004

III 2004

IV 2004

I 2005

II 2005

III 2005

IV 2005

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ANNUAL REPORT 2005 Chapter III: Financial System

Intermediation Margin Millions of Pesos

Uncollectibility Charges Millions of Pesos

3,000

2,500

2,000

1,500

1,000

500

% of Assets

12,000

6.0

10,000

5.0

8,000

4.0

6,000

3.0

4,000

2.0

2,000

1.0

0

0

2001

I 2004

II 2004

III 2004

IV 2004

I 2005

II 2005

III 2005

IV 2005

2002

2003

In millions of Pesos

2004

2005

0.0

As % of Assets (right axis)

On a different side of returns, improvements were also observed in net income from services, which increased to 2.3% of assets from the 2.0% registered during the previous year as a result from the increase in the economic activity.

On the other hand, administrative expenses increased compared to previous years. During 2005, they represented 4.3% of the total assets, compared to their 4.0% incidence registered during the previous year. In nominal terms, total administrative expenses increased 18.1% during 2005, mainly due to higher personnel expenses due to increases and bonuses granted during the year and due to the higher number of employees hired during that period.

Net Income from Services

Administrative Expenses Millions of Pesos

% of Assets

12,000

6.0

Millions of Pesos

% of Assets 2.5

5,000 4,500

5.0

10,000

4.0

8,000

2.0

4,000 3,500

1.5

3,000

6,000

3.0

4,000

2.0

2,000

1.0

0

0.0

2,500 1.0

2,000 1,500

0.5

1,000 500

2001

2002

Millions of Pesos

2003

2004

2005

As % o f Assets (right axis )

0.0

0 2001

2002

In millions of Pesos

2003

2004

2005

As % of Assets (right axis)

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ANNUAL REPORT 2005 Chapter III: Financial System

Profitability ratios described above also show the effects of the crisis. On the one side, amortization of differences paid on account of judicial injunctions (amparos) continue affecting institutions’ final income. In such respect, it is worth mentioning that during 2005, 19,100 cases were registered for which more than 1.1 billion Pesos were paid, producing an exchange difference amounting to approximately 350 million Pesos. With these figures, total judicial injunctions paid from the crisis amounts to 322,500 cases for which more than 22.4 billion Pesos have been paid, which implies an exchange difference of 9.6 billion Pesos with respect the pesified value of deposits at $1.40 per US Dollar plus the relevant adjustment to CER. Therefore, the average amount paid is 70,000 Pesos per case, equivalent to 21,000 US Dollars.

Most of these exchange differences (approximately 9.5 billion Pesos) is being amortized according to Central Bank’s rules in 60 monthly consecutive installments from the time the difference is recorded, therefore, the net value accounted for on the asset at the end of 2005 is approximately 4.9 billion Pesos.

Net Amounts Accounted of Differences Paid under Judicial Injunctions (In millions of Pesos)

Cumulative Amounts Paid under Judicial Injunctions (In millions of Pesos)

Millions of Pesos 7,000

6,545

25,000

5,906

6,000

4,870

20,000

9,244

5,000

9,600

8,264

15,000

4,000 10,000

3,000

6,426 10,413

2,000 5,000

12,052

12,841

7,177

1,000 0

0 December 2003

December 2004

December 2005

2002

2003

Exchange Difference

2004

2005

Deposits + CER

On the other hand, the valuation adjustment of public sector assets owned by institutions has also generated losses, thus reducing the final profitability. We must remember that most public sector assets that are part of institutions’ assets are accounted for at their technical value, which is higher than the market value. According to regulations currently in force, this valuation difference is progressively eliminated until it matches the market value. In this sense, the recovery of the public bonds quotation value contributed positively to reduce these valuation differences, and the restructuration of the public debt played an essential role.

Excluding both effects, the total return on assets (ROA) amounts to 2% for the entire year 2005.

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ANNUAL REPORT 2005 Chapter III: Financial System

Portfolio Quality A major improvement in the private sector loans portfolio of financial institutions was registered during the last year. The total financial system’s non-performing loans amounted to 5.2%, much less than the 10.7% registered at the end of the previous year. This result was very much affected by the improvement of financing to the private sector, which nonperforming rate was reduced to 7.6%, from the 18.6% registered a year earlier.

Non-performing Loans / Total Financing to the Private Sector (As a %) 40 35 30 25 38.6 20 33.5 15 10

14.0

16.0

19.1

18.6

5 0

7.6

Dec. 1999

Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

On the one hand, this was due to the higher volume of loans granted during the period. On the other hand, recovery of non-performing loans also contributed to the improvement of this ratio, which was very much affected by the growth of the economic activity level.

As regards private sector financing, the non-performing commercial loans was reduced during 2005 from 22.8% to 9.3%. The non-performing rate of the portfolio intended for family consumption (including home equity financing) decreased from 11% to 4.8% during the same period.

It is worth mentioning that the non-performing rate registered by private banks continues to be lower than the one registered by public institutions. Private banks non-performing loans rate was 6.3%, while public banks rate is almost the double thereof, amounting to 11.2% of total private sector financing.

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ANNUAL REPORT 2005 Chapter III: Financial System

Non-performing Loans (As a %) 45 40 35 30 25 20 15 10 5 0

Dec. 1999

Dec. 2000

Dec. 2001 Comercial

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

Consumer and Mo rtgage

Exposure to the Public Sector During last year, the financial system exposure to the public sector was reduced to 43.4%, compared to 47.7% of total assets registered in December of the previous year.

On the one hand, several institutions reduced their public bond holdings and securitized a part of their secured loans portfolio. This process was led by international banks that, as a group, show the lowest public sector exposure rates at the end of the period. On the other hand, outstanding compensations were paid, part of which were collected in cash as they were bonds with due and payable coupons.

It is worth mentioning that most of the public sector exposure accounts for compensations for losses caused by the asymmetric pesification or the restructuration of public debt holdings of the financial system during the crisis. Approximately 25% of the exposure accounts for BOGAR, which are secured bonds from the provincial debt exchange, while national secured loans (including the adjustment to CER) received in exchange for the national public debt at the end of 2001 and pesified at $1.40 plus the adjustment to CER represent 21% of the total amount. In turn, bonds received as compensation for asymmetric pesification which, at the end of 2005, represented 12.1% of the total amount, have been reduced almost 50% during the past year.

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ANNUAL REPORT 2005 Chapter III: Financial System

Public Sector Exposure (As a % of assets)

50 45 40 35 30 25 20 15 10 5 0

Dec. 2000

Dec. 2001

LEBAC/NOBAC

Dec. 2002

Dec. 2003 Compensation

Dec. 2004

Dec. 2005

Bonds + Loans

On the other hand, holdings of Central Bank’s debt (LEBAC and NOBAC) amounts to 21.6%, while the counterpart of repos transactions amounts to an additional 6.6%.

According to the current regulations, as of January 1, 2006, public sector assets in the portfolio of financial institutions shall not be higher than 40% of the total assets. This requirement does not include holdings of bonds issued by the Central Bank (LEBAC and NOBAC) both from banks’ portfolio as from counterpart of repos transactions.

At December 31 of the past year, if the financial system is considered as a whole, public sector exposure amounted to 31.2% of total assets, notwithstanding the fact that some institutions were still above the 40%-threshold set forth in applicable regulations.

Capitalization The increase of capital registered by institutions since the crisis amounts to more than 12.1 billion Pesos. These decisions are intended to set off losses caused by the 2001-2002 crisis and align available capital to requirements set forth by new regulations in force, in many cases requiring more capital than in the past.

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ANNUAL REPORT 2005 Chapter III: Financial System

Financial Institutions Capitalization in 2005 Share

Local Private Banks 25 %

International Banks 68 %

Public Banks 4%

Non-banking Financial Institutions 3%

Financial Institutions Capitalization in the Period 2002-2005 (Per year – In millions of Pesos) 5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0

2002

2003

2004

2005

International Banks Local Private Banks Public Banks Non-banking Financial Institutions

International banks have capitalized debts and provided new funds amounting to 7.4 billion Pesos since the onset of the crisis, which represents 61% of the total. During the past year,

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ANNUAL REPORT 2005 Chapter III: Financial System

capitalizations carried out by international banks concentrated 68% of total contributions to the financial system, which should be understood as a ratification of their trust in the future.

Financial Institutions Capitalization in the Period 2002-2005 (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

Local Private Banks

International Banks

Non-banking Financial Institutions

Gaps During 2005, gradual reduction of bank financial gaps continued as part of the business normalization process. In the first place, said reduction of public sector assets holding allowed a reduction of assets adjustable to CER. On the other hand, during this year, financial institutions substantially reduced their indebtedness to the Central Bank. Under the “matching” schedule, important amounts were repaid during the year, in addition to the installments set forth in the schedule. In the event of international banks, the schedule allowed to repay all the debts due to the Central Bank on this account.

After payment of installments and after repayments made at the beginning of February 2006, only four institutions remained, which still had debts amounting to 9.9 billion Pesos.

26

ANNUAL REPORT 2005 Chapter III: Financial System

Gaps Billions of Pesos

60 47.3

40

33.7 29.1

26.7

20 11.5 11.5 10.8

7.9

0 - 12.2

- 20

- 26.1 - 32.4

- 40 - 48.1

- 60 Pesos

Pesos + CER or CVS

Foreign Currency

December 2002 December 2003 December 2004 December 2005

Likewise, during this year, financial institutions increased their holdings of adjustable LEBACs and NOBACs. During the second semester of the year last CEDROs installments were due, also subject to CER. At the same time, financial institutions increased their debts adjustable to deposits.

As a net result of all these changes, the currency gap registered in institutions’ balance sheets was slightly reduced compared to the levels registered during the previous year. However, the reduction of adjustable long-term assets, as the public debt, is a very positive perspective of additional reduction of this gap.

Financial System Tax Burden A great variety of taxes apply to the financial system, including direct and indirect charges that affect the cost of banking services, mainly the cost of bank credit and non-financial or transaction services.

27

ANNUAL REPORT 2005 Chapter III: Financial System

During 2005, a 20.4% increase was registered in the amount paid on account of several taxes by the financial system as a whole. This charge represents 0.75% of total assets, higher than the 0.68% observed in the previous year.

Tax Burden (As a % of the asset)

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

Gross Income Tax

Contribution to SEDESA

Income Tax

Administrative Taxes

This total includes the amount paid on account of Gross Income Tax, Income Tax, the contribution to SEDESA, and taxes included in administrative expenses, such as real estate taxes of branches and office buildings.

In 2005, the most representative tax was the income tax, which amounted to 37.4% of the financial system tax burden, which registered a 122% increase compared to the previous year. Secondly, there it is the amount paid on account of gross income tax, which represents 30% of the tax burden, followed by other taxes representing almost 20%.

Evolution of Loans and Deposits per Group of Institutions According to information included in financial institutions’ balance sheets, total loans to the private sectors increased 14.8 billion Pesos during 2005. 39% of this amount accounts for the behavior of international banks, while local private banks represented 36% of the increase, and public banks, 22%.

With these figures, international banks continue to be the most representative group as regards loans to the private sector, with 36.5% of the market, followed by local private 28

ANNUAL REPORT 2005 Chapter III: Financial System

banks, with 32.4%, and public banks, with 28.8%. The remaining 2.4% corresponds to nonbanking financial institutions, such as financial companies and credit funds.

Private Sector Loans December 2005

Public Banks 29 %

Non-banking Financial Institutions 2%

International Banks 37 %

Local Private Banks 32 %

Several lines of credit account for the growth registered during the past year. On the one hand, commercial loans were driven both by discounts of promissory notes as by current account overdrafts, while the growth of consumer loans was essentially based on personal loans and, to a lesser extent, on credit card financing. On the other hand, in relation to real estate secured financing, the growth registered in pledge loans should be highlighted, and 2005 is the first year where an increase is observed in mortgage loans balance, as a consequence of the fact that loans granted by the system as a whole have, for the first time, been higher than old credits repayment and than amounts sent to financial trusts.

As regards liabilities, private sector deposits accounted for 87% of total deposits growth, which turned out to be 21% during the year. It is worth mentioning that 67% of private sector deposits at the end of 2005 was deposited in private banks, continuing the trend observed from the second semester of 2003, when the preference for public banks shown by depositors immediately after the crisis was reversed.

Financial System Salaries According to data obtained from the Integrated Pension and Retirement System provided by AFIP, the mean gross compensation of the financial intermediation sector during 2005 was 100% higher than the average of the economy, and it more than doubles the mean of service sectors and is 82% higher than compensations paid by goods production sectors.

29

ANNUAL REPORT 2005 Chapter III: Financial System

If we take into account salary evolution taking as basis the 1994-1998 mean, we can observe that there was a 53.1% increase in financial intermediation sector’s gross compensations, a similar ratio than the economy total sector mean, regardless of the particular effects of the economic crisis on the financial system.

It is worth mentioning that, during the post crisis period, financial system salary increases were the result of increases granted by the institutions themselves, of measures provided for by the National Government, and of two agreements entered into with the banking union.

By way of example, we can point out that the salary paid by private banks to an administrative clerk registered a 94% increase during the 2001-2005 period, the salary paid to the cashiers increased 75% and the salary paid to a branch business officer increased 68%.

On the other hand, the financial intermediation business as a whole increased 13% the number of positions during the last two years.

Mean Gross Compensations Accrued (including SAC) (In Pesos) 3,000

2,500

2,000

1,500

1,000

500

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Financial Inte r mediation Good Sectors Ser vice Sector s Total

30

ANNUAL REPORT 2005 Statistical Appendix

TABLE 1: Deposits in Domestic Currency

Montlhy 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

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

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

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

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

2004

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

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

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

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

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

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

(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.

31

ANNUAL REPORT 2005 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

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

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

… … … … … …

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

… … … …

1,063 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

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

2004

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

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

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

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

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

… … … … … … … … … … … …

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

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

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

32

ANNUAL REPORT 2005 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

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

1,204 3,363 4,675 4,160 4,319 4,787 3,405 3,362 3,658 3,432 2,458 3,507

31 66 138 109 101 105 77 82 114 105 67 107

14 30 64 50 47 50 37 41 58 54 35 57

32 66 115 97 99 112 77 75 89 84 54 80

77 162 317 257 247 267 191 199 260 243 155 243

64 48 68 62 57 56 56 59 71 71 63 69

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

381 1,643 1,981 1,862 1,889 2,137 1,204 1,550 1,741 1,417 1,381 1,913

12 43 73 47 50 48 33 43 35 30 28 48

6 24 42 27 30 29 20 27 23 20 19 33

10 29 50 34 34 36 22 39 24 25 17 36

27 96 165 109 114 113 74 109 82 74 64 117

72 58 83 58 60 53 62 70 47 52 46 61

Year 2002 Year 2003 Year 2004 Year 2005

173,932 87,161 42,330 19,099

5,805 2,262 1,102 489

1,372 973 538 300

6,426 1,838 980 355

13,603 5,074 2,620 1,144

78 58 62 60

322,522

9,658

3,183

9,600

22,441

70

Total

(1) Pesified at $1.40 per US Dollar.

Source: ABA based on Central Bank's data.

33

ANNUAL REPORT 2005 Statistical Appendix

TABLE 4: Monetary Aggregates

(in millions of Pesos of December 2005) Period

M1

M2

M1 + Foreign Currency Demand Deposits

M2 + Total Deposits in Foreign Currency

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

December December December December December December December December December December

37,639 35,908 44,504 51,791 55,103 54,259 50,284 36,668 47,493 67,114

69,822 60,908 74,654 92,326 101,674 99,453 92,457 59,463 99,722 130,382

38,471 36,841 46,069 53,965 57,906 56,782 52,227 41,496 48,724 68,301

92,808 83,607 103,020 129,495 144,216 146,597 144,157 107,178 102,734 136,004

2004

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

69,328 69,872 68,321 69,701 71,500 73,667 75,540 73,097 72,243 72,905 74,439 78,441

134,469 135,691 132,946 134,782 136,345 139,940 142,694 141,724 142,391 143,492 147,012 149,594

70,579 71,092 69,598 70,950 72,925 75,066 76,907 74,446 73,582 74,274 75,776 79,754

140,731 141,870 139,133 141,602 144,692 149,854 153,548 153,143 153,839 154,876 158,501 161,292

2005

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

79,426 77,163 76,377 76,563 78,732 79,675 80,915 80,896 80,173 81,555 83,513 88,640

152,848 151,745 150,982 151,196 154,110 157,055 158,794 159,202 158,161 158,838 160,478 163,858

80,926 78,583 77,849 78,012 80,229 81,095 82,239 82,338 81,628 83,013 84,906 90,042

166,611 164,540 163,548 162,297 166,323 168,357 170,059 170,853 170,038 170,869 172,560 176,385

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.

34

ANNUAL REPORT 2005 Statistical Appendix

TABLE 5: Monetary Aggregates

Annual averages (as a percentage of the GDP) Period

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

M1

M2

M1 + Foreign Currency Demand Deposits

M2 + Total Deposits in Foreign Currency

3.7 5.0 3.9 2.6 2.6 2.2 2.9 4.3 5.7 6.4 6.4 7.3 8.0 8.5 8.8 8.3 7.6 10.2 11.9 14.1 14.8

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 28.8

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 15.0

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 31.1

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.

35

ANNUAL REPORT 2005 Statistical Appendix

TABLE 6: Monetary Aggregates in Real Terms (1)

Monthly average of daily balances (in millions of Pesos of December 2005) Period

Cash Held

by Public

Current Accounts

M1

Savings Accounts

Time Deposits

M2

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

10,604 12,135 10,132 8,833 7,167 7,782 12,053 15,836 20,713 22,497 21,341 22,928 26,679 28,062 27,363 25,018 18,405 18,906 30,335

13,664 12,069 7,902 6,184 7,348 4,581 7,989 11,495 14,135 15,142 14,567 21,576 25,112 27,041 26,896 25,266 18,263 28,587 36,779

24,268 24,204 18,033 15,017 14,515 12,363 20,042 27,331 34,848 37,639 35,908 44,504 51,791 55,103 54,259 50,284 36,668 47,493 67,114

8,232 8,244 7,152 5,241 2,165 6,468 5,056 6,457 10,585 11,350 9,742 12,181 15,674 17,544 17,846 16,752 9,888 11,217 17,365

25,733 36,669 32,443 41,087 16,979 5,930 7,546 14,044 20,250 20,833 15,258 17,969 24,861 29,027 27,348 25,421 12,907 41,012 45,903

58,233 69,117 57,628 61,346 33,659 24,762 32,645 47,833 65,683 69,822 60,908 74,654 92,326 101,674 99,453 92,457 59,463 99,722 130,382

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

30,994 30,796 30,865 30,712 31,039 31,593 32,889 32,544 32,304 32,142 32,747 35,356

38,334 39,076 37,456 38,989 40,461 42,073 42,651 40,553 39,939 40,763 41,692 43,085

69,328 69,872 68,321 69,701 71,500 73,667 75,540 73,097 72,243 72,905 74,439 78,441

18,568 19,940 20,480 21,393 21,331 22,019 22,884 23,978 24,283 23,679 24,133 24,109

46,573 45,879 44,145 43,688 43,515 44,255 44,270 44,650 45,865 46,909 48,440 47,044

134,469 135,691 132,946 134,782 136,345 139,940 142,694 141,724 142,391 143,492 147,012 149,594

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

36,304 35,461 35,259 35,210 35,909 36,831 38,412 38,615 38,461 38,894 39,435 41,254

43,123 41,702 41,117 41,353 42,823 42,843 42,503 42,281 41,712 42,661 44,078 47,386

79,426 77,163 76,377 76,563 78,732 79,675 80,915 80,896 80,173 81,555 83,513 88,640

24,667 24,234 24,279 23,781 24,207 25,507 26,928 26,821 25,906 26,224 26,055 25,965

48,755 50,348 50,327 50,851 51,171 51,874 50,951 51,485 52,081 51,059 50,909 49,253

152,848 151,745 150,982 151,196 154,110 157,055 158,794 159,202 158,161 158,838 160,478 163,858

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

(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.

36

ANNUAL REPORT 2005 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

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

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

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

...

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

...

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

...

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

2004

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

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

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

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

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

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

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

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

(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.

37

ANNUAL REPORT 2005 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)

Financial Liabilities (5)

In Millions of Pesos

1996 1997 1998 1999 2000 2001 2002 2003

December December December December December December December December

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

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

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

18,169 20,090 24,898 24,802 23,541 12,103 28,486 49,066

2004

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

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

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

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

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

60,928 62,116 60,467 63,093 66,464 69,478 72,023 73,009 73,717 75,124 76,082 78,817

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

79,294 80,633 79,719 78,693 81,843 84,847 87,693 91,242 91,338 92,264 92,966 93,534

(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.

(5) Financial Liabilities net of repos.

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

38

ANNUAL REPORT 2005 Statistical Appendix

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

Stock Period

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

December December

3,049 8,151

647 242

…

1,897

3,696 10,291

42.5 15.9

-0.0 -0.0

...

8.7

103 220

8 18

...

348

2004

January February March April May June July August September October December

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

225 210 223 223 223 176 176 176 132 132 160

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

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

13.9 13.4 11.9 11.7 11.7 11.2 11.1 11.1 10.9 9.0 7.7

-0.0 -0.0 ...

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

7.6 7.0 6.2 5.8 5.4 4.6 4.1 3.8 3.4 2.7 2.4

226 213 216 207 187 179 181 176 188 198 184

45 18 76 47 16 77 46 15 57 26 47

385 390 410 437 419 362 408 400 389 395 385

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

160 151 151 151 92 92 124 89 89 140 140 140

7,342 8,010 8,637 8,731 7,984 8,665 10,562 10,071 9,257 9,227 8,739 8,739

15,603 16,293 17,239 17,840 19,020 23,095 24,022 24,728 26,943 27,063 25,735 26,236

7.3 7.2 6.2 6.2 6.2 6.3 6.6 6.7 7.0 7.2 7.7 8.0

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

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

169 167 144 135 126 119 118 122 133 134 176 178

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

396 407 401 385 421 399 447 438 444 414 405 374

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

Source: ABA based on Central Bank's data.

39

ANNUAL REPORT 2005 Statistical Appendix

TABLE 10: Interest Rates

(Annual nominal, as a percentage) On Loans

On Deposits In Domestic Currency Period

Savings Accounts

In Foreign Currency

Time Savings Deposits (1) 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

Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated

3.7 3.5 3.3 3.0 2.9 2.8 3.2 6.4 1.3

12.5 7.6 7.2 7.8 8.5 8.7 17.4 46.9 10.8

2.7 2.6 2.5 2.4 2.5 2.7 3.4 2.0 0.9

8.4 6.3 6.0 6.5 6.5 7.2 9.9 3.9 0.8

19.1 10.9 9.5 11.0 11.4 11.5 32.4 66.6 20.7

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

2004

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

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

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

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

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

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

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

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

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

Accumulated

0.7

2.8

0.1

0.4

6.9

...

...

2.0

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

Accumulated

0.8

3.9

0.1

0.5

6.2

...

...

4.1

2005

(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.

40

ANNUAL REPORT 2005 Statistical Appendix

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

Current Accounts Overdrafts

Promisory Notes

Mortgage Loans

Pledge Loans

Consumer + Credit Cards Financing

Consumer Loans

Credit Cards Financing

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated

40.1 49.7 37.5 31.7 32.4 31.4 33.9 47.8 78.8 43.0

21.1 21.6 14.0 11.6 12.0 11.4 12.8 30.4 45.7 20.2

17.4 16.3 12.9 13.8 15.0 13.8 15.8 16.7 33.2 19.4

26.6 29.3 24.3 20.3 22.2 20.3 23.2 22.6 22.0 18.2

43.3 54.4 48.4 44.9 40.2 33.9 38.0 39.2 63.5 68.6

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

47.3 54.7

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

64.0 69.6

2004

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

21.0 19.4 16.3 15.3 15.7 15.6 15.2 15.2 14.9 14.6 14.1 13.7

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

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

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

33.9 33.4 30.9 30.4 31.7 31.1 30.5 29.9 28.9 29.5 29.0 28.9

32.4 33.7 31.4 31.4 30.9 28.0 27.9 26.3 25.2 26.8 26.5 26.7

34.1 33.4 30.8 30.3 31.8 31.6 31.0 30.8 29.9 30.2 29.6 29.5

Accumulated

16.9

11.2

12.5

14.0

34.8

32.6

35.4

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

Accumulated

15.7

10.6

11.7

10.7

30.5

28.7

31.0

2005

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

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

41

ANNUAL REPORT 2005 Statistical Appendix

TABLE 12: Lending Rates in Foreign Currency

(Annual nominal, as a percentage) Period

In Foreign Currency Current Accounts Overdrafts

Promisory Notes

Mortgage Loans

Pledge Loans

20.6 24.0 14.0 14.1 13.6 10.3 9.9 22.1 23.9 11.6

14.1 18.5 12.5 11.3 11.5 11.4 12.9 21.0 13.8 8.2

15.9 17.8 14.7 13.1 12.7 12.5 13.3 12.9 15.4 9.3

18.4 20.4 17.3 16.1 14.8 14.0 16.4 18.0 19.0 16.8

21.5 26.3 24.6 23.8 23.1 22.9 26.5 29.8 35.7 32.2

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

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

35.7 32.2

Consumer + Credit Cards Financing

Consumer Loans

Credit Cards Financing

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated Accumulated

2004

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

5.2 6.7 4.5 6.9 5.3 4.3 5.8 3.7 4.0 4.4 4.6 4.9

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

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

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

21.5 21.6 21.4 20.2 21.9 21.1 20.2 20.7 19.0 20.6 19.6 19.5

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

21.5 21.6 21.4 20.2 21.9 21.1 20.2 20.7 19.0 20.6 19.6 19.5

Accumulated

5.1

5.1

9.4

11.8

22.3

...

22.3

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

Accumulated

5.2

5.1

9.5

11.7

20.3

...

20.3

2005

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

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

42

ANNUAL REPORT 2005 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

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

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

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

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

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

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

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

68,084 67,907 70,770 69,981 71,150 73,472 77,065 76,259 75,743 78,819 78,489 78,743

28,012 27,405 25,159 25,284 26,540 26,693 26,399 26,758 26,288 26,128 25,350 25,639

96,096 95,312 95,928 95,266 97,690 100,165 103,464 103,018 102,032 104,947 103,839 104,382

34,938 35,280 36,309 36,751 37,216 37,739 38,093 38,535 39,447 40,342 41,429 41,422

5,704 5,209 4,380 4,343 4,489 4,874 5,002 5,081 4,952 5,137 5,261 5,549

40,642 40,489 40,689 41,093 41,704 42,613 43,094 43,616 44,398 45,479 46,690 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 85,506 86,626 83,036 81,441 85,302

24,255 23,884 21,316 21,266 19,164 18,342 17,487 16,786 16,197 16,961 15,329 15,349

108,329 107,920 105,262 107,418 106,051 106,547 104,566 102,292 102,823 99,997 96,770 100,651

42,284 42,363 42,912 44,291 44,985 45,963 46,699 47,678 49,113 50,710 52,356 54,145

5,592 5,777 6,204 6,200 6,258 7,159 7,514 8,052 7,669 7,664 7,821 7,911

47,876 48,141 49,116 50,491 51,243 53,123 54,214 55,730 56,783 58,374 60,177 62,056

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

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

43

ANNUAL REPORT 2005 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

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

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

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

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

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

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

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

2004

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

90,876 90,975 94,302 93,838 95,224 97,951 101,845 101,496 101,896 106,872 107,565 107,961

12,146 12,213 12,777 12,894 13,141 13,259 13,313 13,299 13,294 12,289 12,352 12,204

103,022 103,187 107,079 106,732 108,366 111,210 115,158 114,795 115,190 119,161 119,918 120,165

33,607 32,505 29,447 29,533 30,933 31,463 31,288 31,725 31,130 31,148 30,499 31,093

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

33,716 32,613 29,538 29,627 31,029 31,567 31,401 31,839 31,240 31,265 30,612 31,188

136,738 135,801 136,617 136,359 139,394 142,778 146,558 146,634 146,430 150,426 150,529 151,353

2005

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

114,011 113,888 114,330 117,567 118,842 121,432 121,313 121,083 124,042 121,911 122,277 127,902

12,347 12,510 12,529 12,876 13,030 12,736 12,466 12,101 11,698 11,835 11,519 11,545

126,358 126,399 126,859 130,443 131,873 134,168 133,778 133,184 135,740 133,746 133,797 139,447

29,758 29,570 27,438 27,382 25,338 25,415 24,911 24,741 23,772 24,531 23,053 23,169

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 24,839 23,867 24,625 23,150 23,260

156,204 156,060 154,378 157,909 157,295 159,670 158,780 158,022 159,606 158,371 156,947 162,707

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

44

ANNUAL REPORT 2005 Statistical Appendix

TABLE 15: Bank Credit in Real Terms (1) (in millions of Pesos of December 2005) 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

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

21,315 25,085 31,099 43,853 53,893 55,912 50,704 55,234 60,787 67,430 67,433 60,986 40,792 103,662 108,252

20,579 28,897 19,275 12,649 10,496 8,314 5,909 2,777 2,813 1,448 1,282 1,175 1,008 17,675 14,372

41,894 53,982 50,374 56,503 64,389 64,226 56,613 58,010 63,600 68,878 68,715 62,162 41,800 121,336 122,624

66,494 20,546 32,041 48,335 62,184 71,886 81,342 91,470 110,289 133,709 140,195 139,684 144,467 54,070 40,333

5,463 1,698 1,943 1,956 1,798 2,115 2,413 2,115 2,225 2,364 2,427 2,561 2,955 253 125

71,957 22,244 33,984 50,291 63,983 74,001 83,755 93,584 112,513 136,073 142,622 142,245 147,422 54,323 40,458

113,850 76,226 84,359 106,793 128,371 138,227 140,368 151,595 176,113 204,951 211,337 204,407 189,221 175,659 163,081

2004

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

108,385 107,702 111,066 109,613 110,196 112,831 116,514 114,555 114,500 119,507 120,999 120,412

14,486 14,458 15,048 15,062 15,208 15,273 15,230 15,010 14,938 13,742 13,895 13,612

122,871 122,160 126,115 124,675 125,403 128,104 131,744 129,564 129,438 133,250 134,893 134,024

40,082 38,482 34,681 34,498 35,797 36,242 35,794 35,807 34,981 34,831 34,308 34,679

131 128 108 109 110 121 129 129 123 131 126 106

40,213 38,610 34,789 34,608 35,907 36,363 35,923 35,936 35,104 34,962 34,434 34,785

163,084 160,770 160,904 159,283 161,310 164,467 167,668 165,500 164,542 168,211 169,328 168,809

2005

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

126,836 125,436 123,748 126,025 127,057 129,082 127,517 126,212 127,351 123,986 123,561 127,902

13,736 13,779 13,561 13,803 13,931 13,538 13,103 12,613 12,010 12,036 11,640 11,545

140,572 139,215 137,309 139,828 140,988 142,620 140,620 138,825 139,361 136,022 135,201 139,447

33,105 32,569 29,698 29,352 27,089 27,016 26,185 25,789 24,407 24,948 23,295 23,169

98 101 88 90 90 93 96 102 97 96 99 91

33,203 32,669 29,786 29,442 27,179 27,109 26,280 25,891 24,503 25,044 23,393 23,260

173,775 171,884 167,095 169,269 168,167 169,729 166,900 164,716 163,865 161,066 158,595 162,707

(1) Deflated by the combined price index.

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

45

ANNUAL REPORT 2005 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 December December December December

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

Public Banks

Private Banks

Non-Banking Financial Institutions

Total Financial System

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

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

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

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

Source: ABA based on Central Bank's data.

46

ANNUAL REPORT 2005 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 ( 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 38,286

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 45,574

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 83,860

(1) It corresponds to September.

Source: ABA based on Central Bank's data.

47

ANNUAL REPORT 2005 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 10,994,651 12,499,287

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 1,909,660 2,176,151

2005

March June September

844,009 880,559 933,087

13,079,737 13,015,787 13,952,420

2,165,411 2,181,967 2,192,293

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

48

ANNUAL REPORT 2005 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 November

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

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 1,560

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 2,216

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

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 3,876

(1) Including head offices.

Source: ABA based on Central Bank's data.

49

ANNUAL REPORT 2005 Statistical Appendix

TABLE 20: Branches Geographical Distribution (1) As of November 30, 2005 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

163 1,397 537 14 257 40 44 48 26 5 5 95 12 35 18 30 20 9 6 6 11 155 8 5 11

589 1,627 625 6 124 20 15 24 91 12 22 11 12 92 40 20 36 37 25 29 26 265 31 10 54

752 3,024 1,162 20 381 60 59 72 117 17 27 106 24 127 58 50 56 46 31 35 37 420 39 15 65

21 79 45 0 5 1 2 0 1 0 1 0 0 5 2 1 0 3 3 3 0 5 1 0 1

773 3,103 1,207 20 386 61 61 72 118 17 28 106 24 132 60 51 56 49 34 38 37 425 40 15 66

Total

1,560

2,216

3,776

100

3,876

(1) Including head offices.

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

50

ANNUAL REPORT 2005 Statistical Appendix

TABLE 21: ATMs Geographical Distributions

As of November 30, 2005 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

340 1,626 824 34 195 52 54 35 16 4 4 38 5 46 17 69 20 10 7 6 9 143 3 25 10

1,301 3,158 1,426 9 214 28 20 50 114 39 78 12 21 168 69 44 76 82 67 45 49 369 50 12 116

1,641 4,784 2,250 43 409 80 74 85 130 43 82 50 26 214 86 113 96 92 74 51 58 512 53 37 126

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

1,644 4,804 2,253 43 409 81 74 85 130 43 83 50 26 214 86 113 96 107 74 51 58 512 53 37 126

Total

1,966

4,459

6,425

23

6,448

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

51

ANNUAL REPORT 2005 Statistical Appendix

TABLE 22: Assets and Liabilities Structure Item

December 2002

December 2003

December 2004

November 2005

In Millions of Pesos

%

In Millions of Pesos

%

In Millions of Pesos

%

In Millions of Pesos

%

Assets

187,542

100.0

186,873

100.0

212,562

100.0

221,128

100.0

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

15,914 31,750 72,840 38,470 1,985 44,337 -11,952

8.5 16.9 38.8 20.5 1.1 23.6 -6.4

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

24,822 61,754 77,456 54,223 3,033 25,698 -5,497

11.2 27.9 35.0 24.5 1.4 11.6 -2.5

40,313 6,915 19,812

21.5 3.7 10.6

28,712 6,461 21,879

15.4 3.5 11.7

34,711 6,259 22,710

16.3 2.9 10.7

28,143 6,107 22,847

12.7 2.8 10.3

Liabilities

161,451

86.1

164,923

88.3

188,683

88.8

194,446

87.9

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

75,001 66,215 289 8,497

40.0 35.3 0.2 4.5

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

134,427 100,130 668 33,628

60.8 45.3 0.3 15.2

75,742 10,709

40.4 5.7

61,691 8,597

33.0 4.6

64,928 7,100

30.5 3.3

53,436 6,584

24.2 3.0

Stockholder's Equity

26,091

13.9

21,950

11.7

23,879

11.2

26,682

12.1

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

52

ANNUAL REPORT 2005 Statistical Appendix

TABLE 23: Terms for Assets and Liabilities

As of October 31, 2005 (in millions of Pesos) Assets

1 Month

3 Months

6 Months

12 Months

24 Months

420 129

3,771 3,453

697 419

720 177

1,045 216

9,704 ... ... ... ... ... ... ...

20,890 24,822 7,310 99 ... ...

2,462 4,749

6,495 ...

6,388 198 ... ...

6,190 ...

6,530 ...

9,446 297 1,445 389 7,315 ...

10,253

60,245

14,000

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 Subordinated Notes 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 Total

Due Portfolio

More than 24 Months

Total

1,786 186

18,508 537

26,948 5,117

5,796 ...

3,993 594 1,445 389 1,566 ...

6,685 ...

6,993 1,187 2,889 778 2,139 ...

18,595 ...

27,623 22,362 4,334 ...

927 ...

74,694 24,822 61,754 24,737 10,112 1,555 20,600 4,749

16,873

11,050

15,649

65,265

193,334

3 Months

6 Months

12 Months

24 Months

83,696 27,444 56,252

13,324 …

13,324

4,825 …

4,825

4,078 …

4,078

11,555

1,551

1,355

1,174 70 238

815 20 184

4,834

More than 24 Months

Total

336 …

336

28,168 27,444 724

134,427 54,888 79,539

1,604

3,452

20,778

40,295

944 46 47

748 58 314

2,113 135 446

12,757 357 5,233

18,550 686 6,462

370

183

363

283

1,044

7,077

5,239 14

162 6

134 25

121 44

475 107

1,387 1,178

7,520 1,376

95,265

14,881

6,205

5,727

3,895

50,124

176,098

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

53

ANNUAL REPORT 2005 Statistical Appendix

TABLE 24: Terms for Assets and Liabilities As of October 31, 2005 (as % of liabilities) 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

0.2 0.1

2.1 2.0

0.4 0.2

0.4 0.1

0.6 0.1

1.0 0.1

10.5 0.3

15.3 2.9

5.5 ... ... ... ... ... ... ...

11.9 14.1 4.2 0.1 ... ...

1.4 2.7

3.7 ...

3.6 0.1 ... ...

3.5 ...

3.7 ...

5.4 0.2 0.8 0.2 4.2 ...

3.3 ...

2.3 0.3 0.8 0.2 0.9 ...

3.8 ...

4.0 0.7 1.6 0.4 1.2 ...

10.6 ...

15.7 12.7 2.5 ...

0.5 ...

42.4 14.1 35.1 14.0 5.7 0.9 11.7 2.7

Total

5.8

34.2

8.0

9.6

6.3

8.9

37.1

109.8

More than 24 Months

Total

Liabilities

1 Month

3 Months

6 Months

12 Months

24 Months

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

47.5 15.6 31.9

7.6 ...

7.6

2.7 ...

2.7

2.3 ...

2.3

0.2 ...

0.2

16.0 15.6 0.4

76.3 31.2 45.2

...

0.7 ... ...

0.9 0.5 0.0 0.1

0.8 0.5 0.0 0.0

0.9 0.4 0.0 0.2

2.0 1.2 0.1 0.3

11.8 7.2 0.2 3.0

22.9 10.5 0.4 3.7

...

3.0 ...

0.2 0.1 0.0

0.1 0.1 0.0

0.2 0.1 0.0

0.2 0.3 0.1

0.6 0.8 0.7

4.0 4.3 0.8

Total

54.1

8.5

3.5

3.3

2.2

28.5

100.0

Assets / Liabilities (%)

29.5

51.2

119.7

123.2

222.2

75.1

60.6

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

54

ANNUAL REPORT 2005 Statistical Appendix

TABLE 25: Terms for Assets and Liabilities

As of October 31, 2005 (Percentage Term Structure) Assets 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 Total Liabilities

Due Portfolio

1 Month

3 Months

6 Months

12 Months

24 More than Months 24 Months

Total

1.6 2.5

14.0 67.5

2.6 8.2

2.7 3.5

3.9 4.2

6.6 3.6

68.7 10.5

100.0 100.0

13.0 ... ... ... ... ... ... ...

28.0 100.0 11.8 0.4 ... ...

11.9 100.0

8.7 ...

10.3 0.8 ... ...

30.1 ...

8.7 ...

15.3 1.2 14.3 25.0 35.5 ...

7.8 ...

6.5 2.4 14.3 25.0 7.6 ...

8.9 ...

11.3 4.8 28.6 50.0 10.4 ...

24.9 ...

44.7 90.4 42.9 ...

4.5 ...

100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0

5.3

31.2

7.2

8.7

5.7

8.1

33.8

100.0

1 Month

3 Months

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

62.3 50.0 70.7

9.9 ...

16.8

3.6 ...

6.1

3.0 ...

5.1

0.2 ...

0.4

21.0 50.0 0.9

100.0 100.0 100.0

3.8 4.4 2.9 2.9

3.4 5.1 6.8 0.7

4.0 4.0 8.5 4.9

8.6 11.4 19.6 6.9

51.6 68.8 52.0 81.0

100.0 100.0 100.0 100.0

69.7

5.2 2.2 0.4

2.6 1.8 1.8

5.1 1.6 3.2

4.0 6.3 7.8

14.7 18.5 85.7

100.0 100.0 100.0

Total

54.1

8.5

3.5

3.3

2.2

28.5

100.0

6.3

6 Months

12 Months

24 More than Months 24 Months

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

55

Total

ANNUAL REPORT 2005 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

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 24,235

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 51,810

Deposits

Total Non-Banking Financial Financial Institutions System

86 279 599 722 860 666 781 1,022 1,524 1,907 1,745 1,494 453 492 866 1,411

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 77,456

Public Banks

Private Banks

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 60,341

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 73,791

Total Non-Banking Financial Financial Institutions System

60 223 451 490 588 324 371 336 390 352 393 226 196 216 211 295

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 94,635 116,655 134,427

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

56

ANNUAL REPORT 2005 Statistical Appendix

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

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

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

Loans

Deposits

Public Banks

Private Banks

Non-Banking Financial Institutions

Total Financial System

Public Banks

Private Banks

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 31.3

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 66.9

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

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 44.9

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 54.9

Non-Banking 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

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.

57

ANNUAL REPORT 2005 Statistical Appendix

TABLE 28: Information by Group of Institutions November 2005 (in millions of Pesos) Group

Assets

Stockholders´ Equity

Loans to Private Sector (1)

Deposits of Private Sector

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

49,089 40,715 89,804 58,026 66,225 5,063 129,314 219,117 2,011

6,076 3,210 9,286 6,914 9,120 552 16,585 25,872 810

5,541 7,595 13,136 18,734 14,331 1,418 34,482 47,618 1,168

16,401 17,195 33,597 37,893 24,613 3,733 66,239 99,836 295

Total Financial System

221,128

26,682

48,786

100,130

(1) Net of provisions.

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

58

ANNUAL REPORT 2005 Statistical Appendix

TABLE 29: Information by Group of Institutions November 2005 (as a percentage) Group

Assets

Stockholders´ Equity

Loans to Private Sector (1)

Deposits of Private Sector

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

22.2 18.4 40.6 26.2 29.9 2.3 58.5 99.1

22.8 12.0 34.8 25.9 34.2 2.1 62.2 97.0

11.4 15.6 26.9 38.4 29.4 2.9 70.7 97.6

16.4 17.2 33.6 37.8 24.6 3.7 66.2 99.7

0.9

3.0

2.4

0.3

100.0

100.0

100.0

100.0

Total Financial System

(1) Net of provisions.

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

59

ANNUAL REPORT 2005 Statistical Appendix

TABLE 30: 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

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

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 53.76

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 72.48

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

60.56 58.73 68.13 68.76 71.43 79.54 80.37 82.77 83.66 85.31 85.17 85.02 84.02

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 89.18

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 10.82

Number of Banks 175 176 170 166 167 167 168 127 120 113 104 92 89 85 78 75 74 74

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

60

ANNUAL REPORT 2005 Statistical Appendix

TABLE 31: Concentration of Assets

(as a percentage) End of:

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

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

38.19 36.43 39.88 38.71 40.89 42.82 45.64 45.63 48.71 57.16 57.85 55.64 53.85

51.28 50.57 55.18 55.67 57.73 64.03 68.20 69.35 70.90 77.72 76.89 73.44 71.08

59.73 58.83 64.00 66.37 67.64 73.56 77.44 79.00 80.97 86.10 85.12 83.75 81.71

65.71 64.89 69.29 72.38 74.05 80.03 83.23 85.09 87.01 90.38 89.90 88.96 87.02

34.29 35.11 30.71 27.62 25.95 19.97 16.77 14.91 12.99 9.62 10.10 11.04 12.98

167 168 127 120 113 104 92 89 85 78 75 74 74

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

61

ANNUAL REPORT 2005 Statistical Appendix

TABLE 32: Tranches of Deposits

As of November 30, 2005 Tranches From

Individual To

Number

Amount

Legal Persons Number

In Millions of Pesos 0 300 301 500 501 1,000 1,001 2,500 2,501 5,000 5,001 10,000 10,001 25,000 25,001 50,000 50,001 100,000 100,001 250,000 250,001 500,000 500,001 1,000,000 1,000,001 2,500,000 2,500,001 5,000,000 5,000,001 10,000,000 10,000,001 25,000,000 25,000,001 50,000,000 50,000,001 100,000,000 100,000,001 Total

Amount

Total Number

In Millions of Pesos

Amount In Millions of Pesos

9,996,643 816,428 1,118,047 1,384,406 754,377 513,929 454,824 193,231 88,403 35,932 6,693 2,201 1,101 293 196 64 25 4 ...

574 542 916 2,481 2,741 3,877 7,128 7,003 5,883 5,277 2,264 1,478 1,374 953 1,676 2,926 1,083 1,077 ...

665,714 231,636 191,357 179,993 74,127 56,904 64,326 41,133 29,015 24,697 10,346 6,540 4,583 1,789 1,038 697 240 73 48

1,217 289 370 1,044 641 824 1,495 1,946 3,308 4,797 4,880 5,426 7,642 6,677 7,141 9,606 8,399 6,100 13,371

10,662,357 1,048,064 1,309,404 1,564,399 828,504 570,833 519,150 234,364 117,418 60,629 17,039 8,741 5,684 2,082 1,234 761 265 77 48

1,790 831 1,286 3,525 3,382 4,701 8,623 8,948 9,191 10,074 7,144 6,904 9,016 7,631 8,817 12,533 9,483 7,177 13,371

15,366,797

49,254

1,584,256

85,173

16,951,053

134,427

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

62

ANNUAL REPORT 2005 Statistical Appendix

TABLE 33: Loans by Type Type of Loan

December 2001

December 2002

Millions of Pesos

%

Millions of Pesos

%

22,689

32.3

44,337

60.9

Financial Sector

2,617

3.7

1,985

Private Sector (1)

51,994

74.1

6,410

Promissory Notes Mortgage Loans

December 2003 %

Millions of Pesos

%

33,228

56.6

30,866

2.7

1,417

2.4

38,470

52.8

33,398

9.1

4,535

6.2

11,221

16.0

7,268

16,037

22.9

Pledge Loans

3,666

Consumer Loans

November 2005 Millions of Pesos

%

46.7

25,698

33.2

1,697

2.6

3,033

3.9

56.9

41,054

62.1

54,223

70.0

4,427

7.5

5,883

8.9

8,591

11.1

10.0

6,150

10.5

8,209

12.4

11,795

15.2

11,411

15.7

9,337

15.9

8,844

13.4

8,817

11.4

5.2

1,953

2.7

1,307

2.2

1,688

2.6

2,305

3.0

4,530

6.5

2,410

3.3

2,335

4.0

4,081

6.2

6,699

8.6

Others

8,679

12.4

7,856

10.8

7,421

12.6

10,224

15.5

14,232

18.4

Interest accrued

1,451

2.1

3,038

4.2

2,421

4.1

2,125

3.2

1,785

2.3

Provisions

-7,128

-10.2

-11,952

-16.4

-9,374

-16.0

-7,500

-11.3

-5,498

-7.1

Total

70,173

100.0

72,840

100.0

58,668

100.0

66,117

100.0

77,456

100.0

Public Sector

Overdraft

Millions of Pesos

December 2004

(1) It includes loans to foreign residents.

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

63

ANNUAL REPORT 2005 Statistical Appendix

TABLE 34: Financing by Activity As a percentage Economic Activity

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

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

10.2

Manufacturing Industry

23.9

20.8

20.6

19.5

18.0

18.5

19.4

18.1

16.5

14.6

11.5

9.3

7.7

8.8

12.6

16.5

Electricity, gas and water

7.4

3.0

1.3

2.5

2.0

2.1

2.1

2.0

2.2

1.8

1.6

1.5

2.2

1.2

1.1

0.9

Construction

5.9

6.4

5.1

4.2

4.2

4.3

4.1

3.5

3.6

3.7

3.5

3.0

2.5

2.2

2.4

2.3

Commerce

6.6

11.4

15.1

17.0

15.7

13.9

12.3

11.6

10.5

9.8

8.7

6.3

4.3

4.5

5.2

6.0

Services

23.3

21.5

20.1

21.5

23.6

25.0

26.8

27.1

26.5

28.0

37.7

42.2

54.6

52.0

46.4

37.3

Individual Employees

21.7

22.6

20.7

18.1

20.2

20.2

21.7

23.9

24.9

28.3

24.8

24.1

16.6

16.4

16.7

19.7

Nonidentified

2.2

3.2

4.5

4.8

5.5

5.7

4.5

4.7

6.8

5.7

3.2

5.4

6.4

8.2

7.9

7.1

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

Primary Production

Total

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

64

2005

ANNUAL REPORT 2005 Statistical Appendix

TABLE 35: Non-Performing Loans by Activity As a percentage on total financing of each activity Economic Activity

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Primary Production

27.0

24.4

23.4

22.1

30.5

33.0

24.6

21.7

17.4

23.4

27.2

30.6

50.2

42.1

21.9

8.0

Manufacturing Industry

23.1

17.7

18.4

21.1

23.7

21.4

15.9

14.7

14.6

15.7

20.7

29.0

48.3

41.8

20.0

7.4

Electricity, gas and water

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

47.0

Construction

13.6

10.7

13.4

16.5

19.7

23.8

15.9

14.0

11.5

12.1

22.3

24.9

58.0

75.2

54.6

34.9

Commerce

19.7

18.1

16.8

18.0

23.9

31.9

25.5

22.8

20.0

22.4

28.1

30.1

49.7

45.1

27.8

10.1

Services

17.8

26.9

16.2

13.1

10.0

10.8

6.9

6.2

4.7

4.7

6.9

10.3

11.6

8.7

5.3

4.5

Individual Employees

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

24.5

18.2

11.9

Nonidentified

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

24.9

18.5

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

23.0

15.0

9.2

Total

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

65

2005

ANNUAL REPORT 2005 Statistical Appendix

TABLE 36: Financing by Tranches As of November 30, 2005 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

%

%

%

%

780,670 434,739 833,150 1,299,555 870,546 614,290 402,975 140,471 58,138 17,049 5,277 740 185 28 17 2 ... ... ...

152.4 195.0 654.4 2,191.5 3,155.9 4,343.3 6,191.7 4,886.1 3,911.3 2,289.9 1,501.1 485.0 264.2 92.3 125.0 35.2 ... ... ...

20,557 2,099 3,500 6,257 6,401 7,504 11,608 8,985 9,040 7,999 6,887 2,933 2,097 855 515 362 164 92 83

2.7 0.9 2.7 10.8 23.8 54.9 191.4 325.2 648.9 1,137.6 2,154.0 2,072.2 3,271.6 2,965.1 3,610.6 5,539.0 5,724.7 6,470.1 42,077.7

14.3 8.0 15.3 23.8 16.0 11.3 7.4 2.6 1.1 0.3 0.1 0.0 0.0 0.0 0.0 0.0 ... ... ...

0.5 0.6 2.1 7.2 10.4 14.3 20.3 16.0 12.8 7.5 4.9 1.6 0.9 0.3 0.4 0.1 ... ... ...

21.0 2.1 3.6 6.4 6.5 7.7 11.9 9.2 9.2 8.2 7.0 3.0 2.1 0.9 0.5 0.4 0.2 0.1 0.1

0.0 0.0 0.0 0.0 0.0 0.1 0.3 0.4 0.9 1.5 2.8 2.7 4.3 3.9 4.7 7.3 7.5 8.5 55.2

5,457,832

30,474.4

97,938

76,283.9

100.0

100.0

100.0

100.0

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

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ANNUAL REPORT 2005 Statistical Appendix

TABLE 37: Financing by Tranches and Situation

As of November 30, 2005 (as a percentage) Tranches

Performing (1)

From

To

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

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

Total

Non-Performing (2)

Non-Collectible (3)

Number of Debtors

Debt Amount

Number of Debtors

Debt Amount

Number of Debtors

Debt Amount

82.8 82.1 82.2 83.6 83.2 79.6 71.9 68.0 67.1 65.7 67.0 74.0 78.2 81.1 82.5 85.1 87.0 86.6 98.5

82.3 82.2 82.3 83.7 83.2 79.5 71.4 68.1 66.8 65.5 67.7 74.5 78.5 81.1 82.9 85.5 87.1 87.6 99.4

2.8 2.5 2.7 2.8 2.3 1.7 1.7 1.9 1.6 1.6 2.0 3.7 4.5 5.3 5.7 6.8 5.1 3.7 1.5

2.7 2.5 2.7 2.9 2.3 1.7 1.8 1.9 1.6 1.6 2.0 3.7 4.6 5.6 5.5 6.7 5.2 3.1 0.6

14.4 15.4 15.1 13.5 14.4 18.7 26.3 30.1 31.3 32.7 31.0 22.2 17.4 13.6 11.9 8.1 7.9 9.8 …

15.0 15.3 15.0 13.5 14.5 18.9 26.8 30.0 31.6 32.9 30.3 21.8 16.9 13.3 11.6 7.8 7.6 9.4 …

81.5

84.8

2.5

2.6

15.9

12.6

(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.

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ANNUAL REPORT 2005 Statistical Appendix

TABLE 38: Concentration of Credit Assistance As of November 30, 2005 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

3,991,560 1,098,031 279,460 67,522 21,259

14,871.5 9,621.6 3,951.2 1,315.7 714.5

74,547 14,855 4,655 1,831 2,050

13,238.4 9,243.3 4,861.7 4,805.8 44,134.8

73.1 20.1 5.1 1.2 0.4

48.8 31.6 13.0 4.3 2.3

76.1 15.2 4.8 1.9 2.1

17.4 12.1 6.4 6.3 57.9

Total

5,457,832

30,474.4

97,938

76,283.9

100.0

100.0

100.0

100.0

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

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ANNUAL REPORT 2005 Statistical Appendix

TABLE 39: 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 ROA before income tax ROA before monetary adjustments ROA ROA adjusted (2)

1999

2000

2001

2002

2003

2004

2005

5.6 4.3 0.0 0.9 0.2 0.2 2.9 -2.1 -5.9 -0.4 -0.3 0.0 0.0 0.5 0.0

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

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

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

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

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

4.7 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

0.6 0.2 0.2 0.2

0.4 0.0 0.0 0.0

0.2 0.0 0.0 0.0

-8.7 -3.1 -8.9 -8.9

-2.7 -2.9 -2.9 -1.9

-0.3 -0.5 -0.5 0.7

1.2 1.0 1.0 2.0

1.7

0.0

-0.2

-59.2

-22.7

-4.2

7.7

142.5

147.4

143.3

189.1

69.3

124.8

153.4

…

13.0

15.2

11.8

13.1

10.3

128.0

…

5.3

7.3

9.2

5.7

1.8

2.4

Ratios - % ROE (Financial margin + net income on services) / Operating expenses Interest income (CER and CVS adjustments included) / Loans Interest expenses (CER and CVS adjustments included) / Deposits

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

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

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

Source: "Report on Banks", Central Bank.

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ANNUAL REPORT 2005 Statistical Appendix

TABLE 40: Income Statement – Private Banks

(As a percentage of net assets)

1999 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 ROA before income tax ROA before monetary adjustments ROA ROA adjusted (2)

2000

2001

2002

2003

2004

2005

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

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

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

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

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

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

4.4 1.7 1.0 0.5 1.2 0.1 2.7 -0.6 -5.1 -0.4 -0.2 -0.2 -1.0 0.9 0.0

0.8 0.3 0.3 0.3

0.6 0.1 0.1 0.1

0.5 0.2 0.2 0.2

-11.1 -3.8 -11.3 -11.3

-2.2 -2.4 -2.5 -1.2

-0.8 -1.0 -1.0 0.2

0.8 0.7 0.7 1.8

2.3

0.8

1.4

-79.0

-19.1

-8.1

5.1

146.0

151.9

150.9

199.3

92.6

115.0

140.3

...

13.9

16.1

24.7

9.0

8.2

11.0

...

5.7

7.8

21.9

5.8

2.2

3.0

Ratios - % ROE (Financial margin + net income on services) / Operating expenses Interest income (CER and CVS adjustments included) / Loans Interest expenses (CER and CVS adjustments included) / Deposits

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

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

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

Source: "Report on Banks", Central Bank.

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ANNUAL REPORT 2005 Statistical Appendix

TABLE 41: Non-Performing Loans - Financial System As a percentage

Dec. 1999

Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

11.5 14.0 11.7

12.9 16.0 13.7

13.1 19.1 21.4

18.1 38.6 43.8

17.7 33.5 38.9

10.7 18.6 22.1

5.2 7.6

21.5 16.6

22.8 17.3

17.3 17.5

46.3 31.4

28.0 28.0

27.9 11.0

59.6

61.1

66.4

73.8

79.2

102.9

124.7

(Non-performing loans - Provisions) / Total financing

4.7

5.0

4.4

4.7

3.7

-0.3

-1.3

(Non-performing loans - Provisions) / Equity

24.7

26.2

21.6

17.2

11.9

-1.0

-4.1

Non-performing loans Non-performing - Private Sector Commercial loans Commercial up to $200 thousands Consumer and Mortgage Provisions / Non-performing loans

9.3 4.8

Source: "Report on Banks", Central Bank.

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ANNUAL REPORT 2005 Statistical Appendix

TABLE 42: Non-Performing Loans - Private Banks

As a percentage

Dec. 1999

Dec. 2000

Dec. 2001

Dec. 2002

Dec. 2003

Dec. 2004

Dec. 2005

Non-performing loans Non-performing - Private Sector Commercial loans Commercial up to $200 thousands Consumer and Mortgage

7.6 8.9 6.2 11.7 12.5

8.3 9.8 7.6 14.6 11.9

9.9 14.0 15.2 16.4 12.4

19.8 37.4 44.5 46.4 26.0

15.7 30.4 39.9 26.8 17.2

8.9 15.3 18.8 13.2 10.0

4.4 6.3

Provisions / Non-performing loans

69.4

67.7

75.7

73.4

79.0

95.7

114.3

2.3

2.7

2.4

5.3

3.3

0.4

-0.6

11.5

13.4

11.4

18.6

11.2

1.3

-2.2

(Non-performing loans - Provisions) / Total financing (Non-performing loans - Provisions) / Equity

7.3 4.2

Source: "Report on Banks", Central Bank.

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ANNUAL REPORT 2005 Statistical Appendix

TABLE 43: Minimum Cash Requirements (as a percentage)

Since: Item

December 2004

January 2005

May 2005

June 2005

July 2005

August 2005

December 2005

1. Deposits in current accounts.

2. Deposits in savings accounts.

2.1. In Pesos.

2.2. In Foreign Currency.

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

3.1. In Pesos.

3.2. In Foreign Currency.

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

4.1. In Pesos.

4.2. In Foreign Currency.

18

16

16

16

16

15

18 30

16 30

16 30

16 30

16 30

15 30

18 30

16 30

16 30

16 30

16 30

15 30

18 30

16 30

16 30

16 30

16 30

15 30

5. Unused overdrafts funds.

18

16

16

16

16

15

100

100

100

100

0 (1)

0

100

100

100

100

100

100

8. Time deposits, "acceptance" obligations -including liabilities for credit sale or assignment to persons other than financial institutions-, repos, stockrelated collaterals and repos, constant term investments, with advance settlement option or with renewal term for a fixed term and with variable compensation, and other term obligations, except for deposits comprised in items 12, 15 and 16, according to their remaing term: 8.1. In Pesos: i) Up to 29 days. ii) From 30 to 59 days. iii) From 60 to 89 days. iv) From 90 to 179 days. v) From 180 to 365 days. vi) More than 365 days.

18 14 10 5 3 0

16 13 9 4 2 0

16 13 9 4 2 0

16 13 9 4 2 0

16 13 9 4 2 0

14 11 7 2 1 0

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

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

35 28 20 10 6 0

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

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

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ANNUAL REPORT 2005 Statistical Appendix

TABLE 43: Minimum Cash Requirements (as a percentage)

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

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

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

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

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

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

14. Special demand accounts denominated in foreign currency.

15. Deposits -whichever their instrumentation- of mutual funds, (except those included in item 6): 15.1. In Pesos: 15.2. In Foreign Currency: 16. Special deposits linked to foreign capital inflows -Decree 616/05-

0

0

0

0

0

0

18 14 10 5 3 0

16 13 9 4 2 0

16 13 9 4 2 0

16 13 9 4 2 0

16 13 9 4 2 0

14 11 7 2 1 0

35 28 20 10 60 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

35 28 20 10 6 0 0

0

0

0

0

0

0

10 15

10 15

10 15

8 15

8 15

8 15

100

100

100

100

100

100

100

100

100

100

100

100

25 40

25 40

25 40

25 40

25 40

18 40

100

100

100

100

(1) In force since 8.16.05

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ANNUAL REPORT 2005 Appendix

APPENDIX Principal Measures of Banking, Exchange and Financing Policies

Communication "A" 4274. CONAU - 1 - 692. (01.05.05).

The Central Bank modified the frequency -from a weekly to a monthly basis- for filing the Reporting Regime on Judicial Resolutions.

Communication "B" 8382. (01.05.05).

The Central Bank communicated a one-time reporting requirement related to the estimated impact of accounting statements on the application of the Deferred Income Tax Approach to the Income Tax on 12.31.04.

Communication "A" 4275. CONAU - 1 - 693. (01.06.05).

The Central Bank modified the maturity date for filing the Business and Projections Plan, and it set forth March 31 of each year, instead of February 28.

Communication "A" 4276. REMON - 1 - 792. (01.09.05).

The rule on "Minimum Cash Requirements" was amended, and a two-percent points reduction was set forth for sight deposits in Pesos and for residual term deposits (less than 30 day-term), and a one-percent reduction was set forth for those term deposits having residual terms of 30 days or more.

Communication "A" 4282. REMON - 1 - 793. (01.14.05).

The Central Bank communicated the operating procedure to carry out debt balance bids for financial assistance for lack of liquidity funded according to the provisions of Chapter II of Decree 739/03, of Decree 1262/03 and of regulatory provisions.

Communication "A" 4285. CAMEX - 1 - 505. (01.17.05).

The Central Bank made effective a new regulatory regime applicable to subscription and cancellation of derivative transactions, both for the financial and for the non-financial private sector.

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ANNUAL REPORT 2005 Appendix

Press Release Number 48,160. (01.17.05).

Within the framework of the Uniform Federal Compensation (Compensación Federal Uniforme), the Central Bank reminded that, according to the provisions of Communication "B" 8300 and of Letter of Agreement executed on 11.02.04 between the President of the Central Bank and incumbent members of Bank Associations, as of 01.14.05, the term to make retail electronic transfers in Pesos throughout the country was reduced from 48 to 24 hours.

Communication "B" 8398. (01.31.05).

The Central Bank left without effect SISCEN-0010 task: “Public bond holdings”. Thus, the last information that institutions had to submit before the Central Bank was the one dated 12.31.04.

Communication "A" 4295. CONAU - 1 - 700. (02.11.05).

As of January 2005, the Central Bank made possible the accounting recording of positive balances by way of application of the Minimum Presumed Income Tax (Impuesto a la Ganancia Mínima Presunta - IGMP).

Likewise, institutions were able to elect to account for such assets in advance, for the quarter or year ended on 12.31.04.

Prior to registration of positive balances, institutions had to file a Special Report from the external auditor about compliance with requirements (tax projection of recoverability of active balances, estimate of future accounting results, estimate of future tax adjustments and history of payments on account of minimum presumed income) set forth by the Central Bank to activate positive balances on account of the Minimum Presumed Income Tax. Communication "A" 4296. LISOL - 1 - 435. (02.11.05).

The Central Bank set forth the treatment of positive balances through the application of the Minimum Presumed Income Tax for the purposes of technical relations of "Fixed Assets" and of "Minimum Capital Requirements".

Regarding Fixed Assets, they shall be deemed as an included item. Regarding Minimum Capital Requirements, the Central Bank provided for that, in order to determine the basic net worth that is part of the Computable Equity, the amount of the positive balance shall be deducted applying the Minimum Presumed Income Tax exceeding 10% of the total amount of basic net worth items of the relevant period, or 10% of the computable equity corresponding to the previous month, whichever is less.

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ANNUAL REPORT 2005 Appendix

Communication "A" 4298. OPASI - 2 - 364. (02.11.05).

The Central Bank increased the minimum term for term deposits with Reference Stabilization Ratio (Coeficiente de Estabilizaci贸n de Referencia - CER) clause from 90 to 270 days.

Communication "A" 4301. CREFI - 2 - 43. (02.28.05).

The Central Bank admitted the setting up of branches of financial institutions at credit unions and/or associations premises in cities having less than 30,000 inhabitants, provided there are no financial institutions authorized to conduct business within 10 kilometers from such branches. The services shall be rendered by the relevant financial institution's staff.

Likewise, the financial institution shall carry out business exclusively to meet the requirements of the relevant credit union and/or association of which it is member, and of their employees and associates.

Communication "A" 4302. CONAU - 1 - 703. (03.01.05).

The Central Bank set forth a one-time reporting requirement related to the Exchange of the Public Debt under Restructuration (Decree 1735/04 and supplementary rules).

Financial institutions which had in their own portfolio species subject to restructuration had to report to this Institution a series of data before 03.10.05.

Communication "A" 4308. CAMEX - 1 - 510. (03.04.05).

Effective as of 03.07.05, the Central Bank provided for that securities transactions carried out in self-regulated Stock Exchanges and Securities Exchanges shall be paid in Pesos using the various modalities allowed by payment systems; in foreign currency through wire transfer from and to sight accounts held in local financial institutions, and through wire transfer on foreign accounts.

Net acquisition of foreign currency at the local exchange market for the purchase of these securities or, as the case may be, the net sale of foreign currency arising from transactions carried out with these securities, in the last three calendar months shall not be higher than 5% of the Computable Equity in US Dollars at the reference exchange rate, considered in the determination of the maximum threshold of the General Exchange Position of the relevant month.

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ANNUAL REPORT 2005 Appendix

Communication "A" 4310. LISOL - 1 - 436 and OPRAC - 1 - 581. (03.06.05).

The Central Bank approved a series of provisions tending to facilitate access to financial system's credit, mainly to small- and medium-sized companies.

First, the amount of assistance to commercial debtors that a financial institution may elect to classify exclusively regarding compliance with payment (days of delay) of debts owed to the institution was raised from $200,000 to $500,000.

Complementarily, the assistance threshold from which financial institutions must verify that financing granted to a debtor does not exceed its net worth was raised from $200,000 to $500,000.

On the other hand, the period of default of debtors under agreement with creditors in order that they are rated by financial institutions as uncollectible was extended from 1 year to 1 and a half year (situation 5).

Additionally, the amount for an involuntary petition in bankruptcy as of which financial institutions shall rate the debtor as high-insolvency-risk debtor was raised from 5% to 20% of the debtor’s net worth (situation 4).

Communication “A� 4317. RUNOR - 1 - 729. (03.15.05).

The Central Bank communicated that the Judicial Written Communications System (Sistema de Oficios Judiciales - SOJ) used by the AFIP to request information, to order or release attachments, or to request the transfer of funds subject to attachment under judicial provisions arising from legal proceedings commenced by the AFIP shall also be used for the release of written communications ordered in legal proceedings commenced by provincial tax authorities.

Likewise, the rule included the guidelines that govern the extension of joint liability of financial institutions not compliant with orders of attachment.

Last, the Central Bank made clear that, although attachments affect funds and securities existing on the date the Communication is served upon the financial institution, and also those funds deposited in the future up to the amount of the attachment, should there be any outstanding balance about which the release of the attachment had not been communicated, it shall also be affected by the order.

Communication "A" 4318. CONAU - 1 - 707. (03.16.05).

Effective as of 01.01.05, the Central Bank provided for new maturity dates for the following reporting regimes: 78

ANNUAL REPORT 2005 Appendix • •

Paragraph C -Additional information about major debtors- of the Reporting Regime "Financial System Debtors": It shall be filed semiannually, instead of quarterly.

Chart 13 -Itemized list of related companies or institutions- of the Reporting Regime for Quarterly/Semiannual/Annual Supervision: It shall be filed annually.

In addition, a series of reports were eliminated, and the last repot filed will be that corresponding to 12.31.04: Paragraph H of Financial System Debtors Reporting Regime and Charts 4 -Itemized list of Public Bonds- and 7 -Itemized list of real property- of the Reporting Regime for Quarterly/Semiannual/Annual Supervision.

Communication "A" 4321. CAMEX - 1 - 512. (03.17.05).

The settlement term for loans for up to 50 million US Dollars was extended from 30 to 90 days.

Communication "A" 4322. CAMEX - 1 - 513. (03.17.05).

Effective as of 03.18.05 included, the Central Bank excluded the prior authorization requirement for purchases made by local financial institutions of credits granted by foreign financial institutions to non-financial private sector’s residents, to the extent they are credits that qualify for the application of foreign currency deposits loanable capacity.

Communication "A" 4323. CAMEX - 1 - 514. (03.17.05).

Effective as of 03.18.05 included, the Central Bank excluded Official Credit Agencies (Public or semipublic credit institutions oriented to finance foreign commerce) from the prior authorization requirement for foreign currency sales to non-residents.

Communication "A" 4325. LISOL - 1 - 437 and OPRAC - 1 - 583. (03.17.05).

The Central Bank amended the rules on "Debtors Rating" and "Credit Management", and authorized financial institutions to use statistical methods to assess the granting of consumer loans -personal loans, credit cards, current account overdraw limit, etc. - of up to a $15,000 amount, therefore, it shall not be necessary to show customer’s income.

These systems are known as "credit scoring", which support the payment capacity analysis in the assessment of reliable data included in various databases, whether proprietary of the institution or owned by third parties, including information about credit history, financial debts, age, occupation, etc., without requiring the filing of the borrower’s salary receipts or income sworn statements.

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Communication "A" 4329. CONAU - 1 - 711. (04.01.05).

The Central Bank extended the term of maturity for filing the General Exchange Position from 8 a.m. to 10 a.m. of the business day following the date subject to reporting.

Communication "A" 4330. CONAU - 1 - 712. (04.01.05).

The Central Bank issued the new ordered text of the Monthly Accounting Reporting Regime "Term Transactions" and set forth, effective as of 04.01.05, that the maturity date for filing the report shall be at 3 p.m. of the business day following the last day corresponding to the statistical week subject to reporting.

Communication "A" 4331. OPASI - 2 - 365. (04.04.05).

The Central Bank increased in 90 days -from 270 to 365- the fund-raising term for deposits adjustable to CER. Communication "A" 4337. OPASI - 2 - 366. (04.14.05).

In relation to the disqualified current account holders Hub posted on the Central Bank’s website through the Internet, the Central Bank communicated that the complete basis of disqualified holders in force, ordered according to competent judicial authority, shall be updated daily as news from the Courts are received.

Press Release Number 48,232. (04.17.05).

In order to extend the array of financial instruments available to the Central Bank to meet its monetary policy goals, the Central Bank announced that, on 04.19.05, Central Bank’s NOBAC denominated in Pesos at a variable interest rate for a two (2) year term, for a nominal value of 60 million Pesos would be offered through a bid.

The new bond to be issued shall pay a quarterly coupon comprising a floating component plus a 2.5% annual spread. The floating component shall be determined as the simple arithmetic mean of the interest rate for fixed-term deposits plus one million Pesos BADLAR general mean- calculated considering rates published by the Central Bank from two business days before the commencement of each coupon until two business days before each coupon maturity date.

To date, the Central Bank has used as sterilization instrument, Bonds and Notes issued by the Central Bank in Pesos and in Pesos adjustable to the Reference Stabilization Ratio (Coeficiente de Estabilización de Referencia - CER) and Bonds in US Dollars.

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Likewise, development of a secondary market for new bonds shall be promoted, which may also be used as underlying assets in repos transactions.

Communication "A" 4343. OPRAC - 1 - 584. (05.02.05).

Through this rule, the Central Bank made clear that bonds issued under the conditions set forth by Decree 1735/04 received within the framework of the National Public Debt Restructuration in exchange for eligible bonds existing before 03.31.03, shall not amount to any excesses over the “Non-financial public sector’s transaction thresholds” and over thresholds applicable to the “Credit risk fractioning”.

Communication "A" 4344. CAMEX - 1 - 516. (05.03.05).

The Central Bank provided for that, as of 05.04.05 included, amounts collected in foreign currency by residents in exchange for the disposition of non-financial assets not produced, such as: sports transfers; patents; trademarks; copyrights; royalties; license rights; concessions; leases and other assignable contracts, shall be paid in and settled at the local exchange market within 30 calendar days as of the date of receipt of the funds in the country or abroad or as of their crediting in foreign accounts.

Communication "A" 4345. CAMEX - 1 - 517. (05.03.05).

The Central Bank accepted, as of 05.04.05 included, the use of electronic and digital signatures for exchange transactions, to the extent they comply with any and all applicable requirements and features.

Communication "A" 4346. CONAU - 1 - 719. (05.05.05).

Effective as of the reporting corresponding to 05.05.05, the Central Bank suspended the remittance by institutions of the Reporting Regime on Available Funds, Deposits and Other Obligations.

Communication "A" 4347. CAMEX - 1 - 518. (05.05.05).

The Central Bank extended the investment possibilities of financial institutions within the limits of the General Exchange Position, allowing them to maintain their foreign public bond holdings from OCDE countries and their low-risk fixed-term certificates of deposit, with a minimum risk rating of AA.

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Communication “A” 4349. CAMEX - 1 - 519. (05.12.05).

Effective as of 06.13.05 included, the Central Bank provided for that individuals and legal persons residing in the country and not included in the financial sector shall have access to the Single Free Exchange Market for the creation of foreign assets, to the extent that they do not have any due and payable debts unpaid abroad on account of capital and interest of any kind of debts.

This provision shall not apply to bills and traveler’s checks purchases for amounts not exceeding the equivalent of 10,000 US Dollars per calendar month.

Communication “A” 4350. LISOL - 1 - 438. (05.12.05).

As of 05.01.05, the Central Bank suspended the application of the positive threshold to the foreign currency net global position (30% of computable equity or of own liquid resources, whichever is less), and the additional short-term threshold.

Communication “A” 4351. LISOL - 1 - 439 and CONAU - 1 - 721. (05.18.05).

The Central Bank set forth that those institutions having notes and other debt instruments of the National Government that, if eligible, have not been filed for exchange within the framework of the restructuration of the Argentine debt, shall constitute provisions for devaluation risk amounting to 100% of the book value.

Communication “A” 4352. CREFI - 2 - 44. (05.18.05).

The Central Bank included in the Rules regulating the “Setting up of premises intended for the rendering of certain services” the activities of opening and operation of savings accounts and fixed-term deposits (making, renewal and cancellation), provided they are intended exclusively for the beneficiaries of social security benefits collecting their pensions at the relevant premises and at the beneficiaries’ option.

Communication “A” 4353. RUNOR - 1 - 734. (05.24.05).

Through this rule, the Central Bank made a series of amendments to the ordered text of the rules governing the Prevention of Money Laundering and other Illegal Activities and Terrorism Financing. In such sense, particular importance was given to remedies and measures that the institutions shall apply in order to comply with the policy internationally known as “know your client”.

Likewise, a distinction was drawn between regular clients (those with whom the institution has a permanent relationship) and occasional clients (those conducting one-time transactions 82

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or occasional transactions, it being understood that this is the case where no sight accounts are held at the institution). Also, a series of identification requirements were defined, which shall be complied with by individuals and/or legal persons.

On the other hand, this Communication set forth the obligation to create a “Control and Prevention of Money Laundering Committee”, which shall be in charge of planning, coordinating and taking care of compliance with policies set forth and approved by the Board of Directors or by the highest country authority in charge of branches of foreign financial institutions Communication “B” 8474. (05.20.05).

The Central Bank reversed the authorization granted to the Argentine branch of Lloyds TSB Bank plc to operate as retail commercial bank.

Communication “A” 4354. CAMEX - 1 - 520. (05.26.05).

The Central Bank regulated the Resolution 292/05 issued by the Ministry of Economy and Production, through which the minimum term of permanence of funds entering the country was extended from 180 to 365 days, amending exchange rules effective as of 05.26.05 included.

Communication “A” 4359. CAMEX - 1 - 522. (06.10.05).

By virtue of the provisions of Decree 616/05, which makes the treatment of speculative funds harsher, the Central Bank regulated such Decree.

Among some of the items included in the Communication, and in relation to the reserve provided by the above mentioned decree, it was set forth that deposits shall be constituted in US Dollars for 30% of the equivalent amount in such currency of the total amount of the operation that gave rise to the constitution of the deposit. In the event of income in foreign currencies other than the US Dollar, the types of repos at the exchange market closing quoted by Banco Nación on the business day immediately before the date of constitution shall be taken into account.

On the other hand, it was set forth that events of noncompliance detected by institutions authorized to operate in changes to these measures shall be reported by means of a note addressed to the Central Bank's Non-Financial Institutions Control Management within 5 business days following the acknowledgement of the relevant events, in order to initiate the relevant action.

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Communication "A" 4360. OPASI - 2 - 368 and REMON - 1 - 794. (06.10.05).

The Central Bank included in the Ordered Text governing “Term Deposits and Investments” the regulations corresponding to special provisions related to the entry of foreign funds set forth in Decree 616/05.

Likewise, it was set forth that the mandatory deposit of 30% of foreign currency entering the country shall have a 100% reserve for the rules governing Minimum Cash Requirements.

Communication "A" 4361. CAMEX - 1 - 523. (06.13.05).

Effective as of 06.14.05, the Central Bank increased from 90 to 120 days the additional term for the effective settlement of foreign currency from goods and services exports.

Communication "A" 4363. CAMEX - 1 - 524. (06.16.05).

As of 06.16.05, the Central Bank increased from 10% to 15% of the Computable Equity the maximum threshold of the General Exchange Position.

Communication "A" 4364. CONAU - 1 - 723. (06.17.05).

The Central Bank left without effect the “Reporting Regime of Preliminary Injunctions relating to Decree 1570/01”.

Communication "A" 4365. CONAU - 1 - 724. (06.17.05).

The Central Bank amended Annex IV of the Minimum Requirements for Financial Institutions’ External Audits, including the obligation of the external auditor to issue a semiannual special report including its conclusion about the verification of the information to be sent by the institutions to the Central Bank, about people in charge of reversals included and their eventual cancellations, in accordance with the relevant regulations, and of those disqualified to operate current accounts under a judicial order due to nonpayment of penalties, or for other legal reasons.

Communication "A" 4366. RUNOR - 1 - 735. (06.17.05).

Effective for filings made as of 08.22.05, regardless of the period to which they apply, rules governing "Filing of Information to the Central Bank" were amended.

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In such respect, a new identification method was created, referred to as Single Filing Code (Clave Unica de Presentaciones - CUP), which shall be used both for filing fiber-optic-supported information as for those filed through the Internet.

Communication “A” 4368. OPASI - 2 - 369, LISOL - 1 - 440 and CREFI - 2 - 45.

(06.17.05).

The Central Bank modified minimum capital requirements, drawing a difference between location, class and operating volume of the financial institutions. Credit funds compliant with their specific minimum capital requirements (from $100,000 to 1 million Pesos) were excluded.

In such respect, four categories were defined according to the jurisdictions were the institutions are located (the past minimum capital requirement was 10 million Pesos for wholesale commercial banks and 15 million Pesos for the rest of financial institutions): Category

Banks

I II III IV

25 14 12.5 10

Category I II

III

IV

Rest of institutions (except Credit Funds) -In millions of Pesos10 8 6.5 5 Jurisdiction

City of Buenos Aires.

Cities of Bahía Blanca (including General Cerri), Mar del Plata (including Batán), Neuquén (including Plottier) and Río Cuarto. Greater Buenos Aires, Greater Córdoba, Greater Mendoza and Greater Rosario. Provinces of Chubut and Tierra del Fuego.

Cities of Corrientes, Salta, Santiago del Estero (including La Banda) and Posadas. Greater Resistencia, Greater San Juan and Greater Tucumán (including Tafí Viejo). Provinces of Catamarca, Entre Ríos, La Pampa, La Rioja, Río Negro, San Luis and Santa Cruz. Rest of the following provinces: Buenos Aires, Córdoba, Mendoza, Neuquén, and Santa Fe. Rest of the country.

Likewise, the royalty payable to the Central Bank by financial institutions that are not banks (except for Credit Funds) was reduced to $400,000, and the royalty applicable to new banks remained unchanged at $900,000.

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These provisions were applicable for institutions authorized to operate as of 07.01.05, including transformation cases. Meanwhile, financial institutions operating on 06.30.05 shall comply with the minimum capital requirement provided for new institutions in that area, which shall not be more than 15 million Pesos.

On the other hand, the opening of commercial bank classification was modified (these banks were previously divided into retail banks, wholesale banks and second-degree banks). The new rule only provided for the existence of first-degree commercial banks (which may conduct lending, borrowing and service transactions) and second-degree commercial banks (which may conduct lending, borrowing and service transactions set forth for first-degree banks, but shall not be able to receive deposits from holders outside the country’s financial sector, except for foreign banks, and they shall be subject to credit risk fractioning ratios provided for by applicable rules).

Last, it was clarified that institutions compliant with wholesale bank features on the issue date of this Communication shall automatically operate as first-degree commercial banks.

Communication "A" 4369. CAMEX - 1 - 525. (06.21.05).

The Central Bank modified the rules governing the General Exchange Position. In such respect, it set forth that the minimum threshold shall be increased to 5 million US Dollars if the financial institutions conduct exchange transactions with 15 or more branches.

Additionally, and cumulatively, this threshold shall be increased up to a maximum equivalent to 2 million US Dollars for foreign currency holdings in bills not corresponding to US Dollars and/or Euros; to a maximum of 1 million US Dollars for checks drawn against foreign banks purchased from third parties, outstanding crediting in corresponding bank accounts; and up to a maximum equivalent to 3 million US Dollars for the balance of US Dollar or Euro bills transferred to the United States Federal Reserve or to the European Central Bank, pending crediting after 72 hours as of the date of shipment thereof.

Communication "A" 4372. CAMEX - 1 - 526. (06.23.05).

Effective as of 06.24.05 included, the Central Bank provided for that access to the Single Free Exchange Market to make payments for purchases of consumer and end-user goods shall be prior to the date of dispatch of such goods.

Communication "A" 4375. CAMEX - 1 - 527. (06.28.05).

The Central Bank extended from 06.30.05 to 12.31.05 included, the effectiveness of the transactions provided for by Communication “A” 3998, and supplementary communications, whereby non-financial private sector’s individuals and legal persons may have access to the Single Free Exchange Market to make portfolio investments abroad, to 86

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the extent such investments and any rent obtained thereof are intended for the repurchase and/or cancellation of debt services abroad to 03.31.03 restructured as of 08.15.03, on account of bonds, syndicated financial loans, financial loans to foreign banks, other debts with foreign banks, and other direct debts or debts secured by official credit agencies, and to the extent certain conditions are met.

The term for application of funds acquired under such regime was also extended to 12.31.05.

Communication "A" 4377. CAMEX - 1 - 529. (06.29.05).

By virtue of Resolution 365/05 of the Ministry of Economy and Production, the Central Bank modified the list of transactions bound to constitute a 30% deposit as published in Decree 616/05 and supplementary rules, and incorporated those transactions excepted thereof.

Communication "A" 4378. RUNOR - 1 - 738. (07.05.05).

The Central Bank provided for that those financial institutions, which in turn shall appoint an office in charge to receive customers’ claims, shall be in charge of receiving and taking care of filings transferred to or filed with them by the Central Bank and by other national, provincial or local entities regarding customer service.

The rule also made clear that institutions shall made visible to the general public at their branches signs announcing the existence of the customer service, indicating the names of persons in charge of claims and data necessary to contact them in person or in writing.

The customer service should be available to users as of September 1, 2005.

Communication "A" 4380. CONAU - 1 - 729. (07.06.05).

The Central Bank withdrew the Reporting Regime “Authorized Accounts”.

Communication "A" 4381. CONAU - 1 - 730 and LISOL - 1 - 441. (07.07.05).

The valuation criteria to be adopted by financial institutions for “Quasipar Bonds maturing in December 2045” and for the corresponding “Negotiable instruments related to the GDP” issued under the conditions set forth by Decree 1735/04, which were received in the framework of the debt restructuration.

In such respect, the Central Bank made clear that, until there is not a market quote, they shall be recorded at their current value considering fund flow (interest and amortization)

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under contractual conditions set forth and at a rate reflecting the simple mean of internal rates of return of “Par Bonds” and of “Discount Bonds” in Pesos, calculated using the last quote registered each month at closing in national institutionalized markets.

Estimates of the future evolution of CER or returns expected due to GDP growth shall not be considered for the valuation of these bonds.

Last, it was defined that the resulting amount shall be compared to the book value of instruments delivered in exchange, and the difference that may arise shall be registered as income.

Communication "A" 4382. CREFI - 2 - 46. (07.07.05).

In relation to the authorization to be obtained by financial institutions to set up branches in the country and abroad, it was set forth that the Central Bank shall not only weigh the characteristics of each project in order to make a decision as to time and convenience of accepting such request, but also shall verify the complete compliance of requirements to be complied with by banks to such effect and shall analyze aspects such as consistency of the project with the business plan filed by the institution in accordance with the Central Bank’s policies prone to a greater bancarization of the population, specially in areas with scarce or insufficient financial services.

On the other hand, as it refers to transfer and closing of branches in the country, it was set forth that the transfer of a branch to a lower-category jurisdiction, in relation to the category where it is currently operating, or within the same city or location, may be carried out prior communication sent to the Superintendence of Financial and Exchange Institutions and, for the rest of the cases, the transfer of branches shall be subject to the prior authorization by the Central Bank, which shall take into account the characteristics of each project.

Last, the Central Bank pointed out that institutions that, at the date of publication of this communication have branches pending relocation by virtue of authorizations timely granted by the Central Bank, shall have an available term until 06.30.06 to set up such branches, save they have a longer term expressly stated that, therefore, shall apply.

Communication "A" 4383. RUNOR - 1 - 739. (07.07.05).

The Central Bank modified the rules governing "Prevention of Money Laundering and Other Illegal Activities" as regards the Control and Prevention of Money Laundering Committee, which shall be composed by at least two members of the Board of Directors, as applicable, and by the officer in charge of the relevant area.

Through this Communication it was provided for that, in the case of exchange entities whose bylaws or corporate charters provide for the creation of the board of directors with a number of members insufficient to comply with the requirement mentioned above, such 88

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Committee may be created and composed by one member from such body and the officer in charge.

Likewise, the effective date applicable to amendments introduced by Communication "A" 4353 to subsection 1.7. "Maintenance of a database" of Section 1 of the rules above mentioned was extended until 08.01.05, and it was set forth that one of the obligations of financial institutions was the maintenance of a database including data both from regular customers as of occasional customers carrying out transactions -considered individually- for amounts equal to or higher than $30,000 or its equivalent in other currencies.

Communication "B" 8508. (07.07.05).

By virtue of the provisions of section 24 of Decree 1218/04, the Central Bank set forth that the financial institutions should require, as of 07.18.05 and at least for a year, the filing of a certificate of compliance with the National Economic Census 2004-2005 in order to conduct the following transactions: opening of deposit accounts and of any other kind of accounts implying fund raising; granting of credits and their respective renewals; opening of documentary credits; opening of custody accounts; granting of bonds and securities loans and rental of safe boxes.

Communication "A" 4384. RUNOR - 1 - 740. (07.08.05).

The Central Bank made clear that whenever in compliance with a Resolution issued by the Ministry of Foreign Affairs, International Trade and Religion, in reference to decisions made by the United Nations Security Council in the war against terrorism, funds and other property pertaining to any individuals or entities sanctioned by the respective institutions should be blocked, financial institutions shall immediately notify the competent Federal Court as to Criminal and Correctional Matters, and made them available thereto, to the extent no different destination has been expressly provided for by the said International Council.

Communication "A" 4388. REMON - 1 - 795. (07.15.05).

Effective as of 07.01.05, the Central Bank modified the minimum cash requirement for sight and term deposits made in Pesos under Court order with funds arising from cases at issue, and for their fixed balances.

In this sense, the requirement mentioned was reduced in 2 percentage points (from 10% to 8%). As regards the minimum cash requirement for these foreign currency transactions, it remained unchanged at 15%.

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Press Release Number 48,309. (07.19.05).

The Central Bank reported that, on 07.22.05, the Uniform Federal Compensation (Compensación Federal Uniforme - CFU) will be operational. This Compensation shall make the electronic compensation available to the entire national territory in a unique 48-hour term.

This measure will be applicable for written instruments (checks and money orders) under $5,000.

Likewise, the amount of checks subject to trunking at the depositor institution was raised to $5,000, too, and the system was extended to the entire country.

Both measures are part of an improvement program, which was made effective on 11.02.04 through a Letter Agreement signed by the President of the Central Bank and by incumbent members of Bank Associations.

Communication "A" 4390. CAMEX - 1 - 532. (07.19.05).

The Central Bank amended subsection 3 of Communication “A” 4349, which set forth that obligations abroad without maturity date shall be deemed due and payable debts as of 180 calendar days following the date of their issue.

This remained unchanged, but, regarding this point, it was made clear that, in the case of debts for import of goods, due and unpaid transactions shall not be considered, to the extent the 180-calendary day term as of the date of shipment has not elapsed.

Communication "A" 4393. REMON - 1 - 796. (07.25.05).

Effective as of June 2005, the Central Bank incorporated to the foreign currency reserve remuneration calculation base special guarantee accounts in favor of electronic clearing houses and for the coverage of ATM transactions settlement.

Deposits created under Decree 616/05, related to the entry of funds from abroad, were excluded from such base.

Communication "A" 4395. OPRAC - 1 - 585. (07.29.05).

The Central Bank left without effect the possibility for financial institutions to apply foreign currency deposits’ borrowing capacity to the acquisition of Central Bank bonds in US Dollars.

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Communication "A" 4399. REMON - 1 - 797. (08.05.05).

As of 08.08.05, the Central Bank implemented a new repos modality, under which it shall accept repos transactions at each day business closing, applying LEBACs in Pesos subject to a series of conditions.

Communication "A" 4401. RUNOR - 1 - 743. (08.12.05).

The effective date of amendments introduced by Communication "A" 4353 to subsection 1.7 "Maintenance of a database" of section 1 of rules governing "Prevention of Money Laundering and Other Illegal Activities" was extended until 10.01.05.

This last Communication had amended subsection 1.7. of the above referred rules setting forth that one obligation of financial institutions was the maintenance of a database including information both of regular and occasional customers conducting transactions -considered individually- for amounts equal to or higher than $30,000 -or its equivalent in other currencies.

Communication "A" 4402. LISOL - 1 - 442. (08.12.05).

The Central Bank extended until 12.31.08 the possibility of not computing preliminary judicial injunctions (amparos) in the Fixed Asset Technical Ratio.

Communication "A" 4405. REMON - 1 - 799. (08.16.05).

As of 09.01.05, the Central Bank amended the rules governing “Minimum Cash Requirements” and increased the carry forward from 10% to 20%.

Communication "A" 4406. REMON - 1 - 800. (08.17.05).

Effective as of 08.17.05, the Central Bank left without effect the provision of rules governing “Minimum Cash Requirements” relating to the 100% requirement to be met by sight deposits that, at least, must constitute the assets of unit trusts (according to the Rules of the National Exchange Commission).

Communication "A" 4415. CAMEX - 1 - 535. (09.08.05).

The Central Bank provided for a series of requirements governing entry to the local market of advance payments of customers and goods export prefinancing: on the one hand, it was determined that these transactions should have an effective contract or purchase order and,

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on the other hand, a term was set to carry out the shipment intended for new transactions entering as of 09.09.05.

Communication "A" 4416. CONAU - 1 - 738. (09.09.05).

The obligation of maintaining a database of “Prevention of Money Laundering and Other Illegal Activities”, which shall contain data of customers conducting repos with financial institutions, was incorporated.

Communication "A" 4420. CAMEX - 1 - 536. (09.15.05).

As of 09.16.05 included, the Central Bank admitted the application of foreign currency collections on account of exports of goods to the payment of capital and interest of new financial debts for: i) issue of bonds abroad, ii) financial loans from international entities, official credit agencies, multilateral banks and other foreign banks, and iii) foreign currency debts to local financial institutions funded in foreign lines of credit, or in other sources of financing of local institutions where specifically allowed by applicable rules, to the extent a series of requirements are met.

The obligation to constitute a 30% deposit according to Decree 616/05 and supplementary rules shall not apply to foreign financing transactions incorporated to this type of operations.

Communication "A" 4421. CREFI - 2 - 47, LISOL - 1 - 443, OPASI - 2 - 370, OPRAC - 1 - 586, REMON - 1 - 801 and RUNOR - 1 - 751. (09.23.05).

The Central Bank modified the rules applicable to cooperative credit funds, and flexibilized certain aspects thereof. The main amendments were as follows: •

• •

•

The interest that public utilities cooperatives may have in credit fund capital was increased. The criteria setting forth that this interest must be higher than that of the other associates was maintained but, different from the rule previously in force, the participation of other types of cooperatives was admitted.

The capital interest of cooperatives inversely related to the population was set forth at 10% for more populated areas.

It was admitted that the interest of public utilities cooperatives in credit funds may reach 50% in the case of cooperatives located in districts or departments having not more than 40,000 inhabitants. In the case of cooperatives having a different purpose (consumption, agricultural, etc.), the interest may be up to 25% of the institution’s equity for this same number of inhabitants.

To the extent the institution meets the minimum capital requirement, it shall no longer be mandatory that each associate pays in the capital at the time of subscription, except in the case of cooperatives, which must pay in all the subscribed capital.

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• •

• • • • •

The maximum amount of term deposits was increased from $12,000 to $20,000.

The margin available for credit funds to grant financing with lump sum payment upon maturity or in non-periodic installments was increased. An increasing threshold scheme was provided for according to the time the credit fund has been active. These thresholds, for the total portfolio of this type of loans, amount to an approximate maximum amount of 30% of the institution’s equity during the first year, up to reaching a maximum amount of 100% in the fourth year.

With an increasing scheme over time, the threshold for loans credited in sight accounts was increased up to 200% of the institution’s equity in the fourth year.

The prohibition to install ATMs was repealed.

Experience requirements to be met by the members of the Direction Committee were flexibilized.

Terms for filing the information required for the granting and assessment of the credit fund opening project were extended.

The approval of a simplified reporting regime was provided for.

Communication "A" 4424. RUNOR - 1 - 753. (10.06.05).

The Central Bank extended until 01.01.06 the effective date of amendments introduced by Communication "A" 4353, as amended, to subsection 1.7 "Maintenance of a database” of section 1 of the rules governing "Prevention of Money Laundering and Other Illegal Activities".

This last Communication had amended subsection 1.7. of the above mentioned rules setting forth that financial institutions were bound to maintain a database including information both from regular as from occasional clients carrying out transactions -considered individually- for amounts equal to or higher than $30,000 -or its equivalent in other currencies.

Likewise, Communication “A” 4424 amended the manner in which transactions to be included in such database shall be accumulated.

Communication "A" 4425. RUNOR - 1 - 754. (10.06.05).

Through this Communication, new control requirements for the Prevention of Terrorism Financing were set forth, among which the obligation to consult the lists of individuals or organizations suspected of being related to terrorist acts, prepared by the European Union, the United States, and Canada should be highlighted.

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Communication "B" 8576. (10.12.05).

As of 10.12.05, companies devoted to transportation of monies and securities may withhold Argentine Pesos and US Dollar bills presumably forged presented by customers, giving to such customers the same treatment as that given by Institutions included in the Financial Institutions Act. Communication "A" 4427. CAMEX - 1 - 537. (10.17.05).

Effective as of 06.29.05, the Central Bank excepted foreign financing funds created and repaid within a mean life of at least two years from the constitution of the 30% deposit set forth by Decree 616/05 and supplementary rules, including in the calculation of such funds payments on account of capital and interest, made by foundations and civil organizations, to the extent they comply with a series of conditions set forth in the Communication.

Communication "C" 43,457. (11.03.05).

According to the provisions of section 1 of Decree 1361/05, the Central Bank reported that 11.04.05 shall be a holiday for financial institutions' branches located in the city of Mar del Plata.

Communication "A"4429. RUNOR - 1 - 756. (10.25.05).

The Central Bank made clear that officers in charge of receiving customer claims shall not be bound to meet the requirements related to judicial or administrative actions legally provided for, if by virtue of the internal procedure set forth by the institution they should be solved in other areas.

Likewise, it was mentioned that, according to internal procedures implemented by financial institutions for claims and questions, other officers in charge may be appointed per branch or per area.

Communication "A" 4433. CAMEX - 1 - 539. (10.28.05).

Effective as of 11.01.05, the Central Bank amended Communication “A� 4308, setting forth that foreign currency net purchases or sales at the Single Free Exchange Market carried out by financial institutions as a consequence of transactions with securities carried out in selfregulated Stock Exchanges and Securities Exchanges, during the last three calendar months and during the first three statistical weeks of each month (7, 15, and 23), shall not be higher than 5% of the Computable Equity measured in US Dollars at the reference exchange rate considered to determine the maximum threshold of the General Exchange Position.

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Communication "A" 4438. CONAU - 1 - 745. (11.17.05).

The product “Products Package” was included in the Transparency Monthly Accounting Reporting Regime, which was effective as of reporting corresponding to the month of November of 2005.

Communication "A" 4439. CONAU - 1 - 746 and LISOL - 1 - 444. (11.17.05).

It was set forth that, as of December 2005, the monthly amortization of active amounts according to the provisions of subsections 1 and 2 of Communication “A” 3916 may be deferred for the granting of new long-term loans, in accordance with the procedure set forth in the Communication.

Institutions may have access to this benefit only to the extent they grant new loans to nonfinancial private sector commercial portfolio customers, with a mean term of 2 years upon granting thereof, whichever the purpose and modality of instrumentation, excluding holdings of instruments issued by financial trusts.

The mechanism allows deferring the accounting of losses for exchange differences registered on the institutions balance sheets for an amount equivalent to 50% of new commercial loans.

It was provided for as a requirement that the institution shall not reduce the total amount of the rest of its commercial portfolio.

Only financing actually disbursed shall be considered. In this framework, also portfolio purchases compliant with the minimum two-year term at the time of the purchase transaction may be computed.

Communication "A" 4443. CAMEX - 1 - 541. (11.22.05).

Effective as of 11.24.05 included, the Central Bank amended Communication “A” 4415 regarding rules and regulations applicable to export advance payments and prefinancing income, and the most relevant amendments were as follows: • It was introduced the possibility of using, within certain indebtedness thresholds, records of securities exported during the last twelve months by the exporter as an alternative to the obligation to demonstrate that there are contracts and purchase orders to secure indebtedness.

• If the exporter chooses this alternative, his indebtedness on account of advance payments and prefinancing shall not be higher than 25% of the amount exported during the last twelve months, if the term of shipment is less than 365 days.

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• If the term of shipment is 365 days or more, the indebtedness threshold shall be extended to six months of exports mean during the last twelve months.

• Maximum terms for the shipment of goods whose collection allows repaying financing received by the exporter were extended.

• A new category was created for exports of some regional economy products. The term set forth for these products (365 days) includes financing granting by exporters to local micro-producers throughout the production campaign.

• The extension of terms for causes not ascribable to the exporter was also contemplated, such as: union conflicts, natural disasters, warehouse problems or, in cases such as that of fishing, closed seasons.

• It was provided a special treatment for transactions carried out within the framework of granting of medium- and long-term foreign lines of credit.

• In order that the exporter may continue receiving advance payment and prefinancing financing inflow, it was included the condition that the exporter shall not incur any delays in his shipments regarding the maximum term.

• For new exchange income on account of prefinancing registered as of 03.01.06, it was set forth the requirement that -within the previous 60 calendar days- the exporter must not have made advance payments or prefinancing through any mechanism other than the application of foreign currency corresponding to shipments carried out by the exporter.

• The debt qualification as “commercial transaction” was maintained, even though there are delays in shipments, provided it is paid with foreign currency from export collections.

• The conversion of advance payments or prefinancing transactions not cancelled applying foreign currency obtained from shipments to financial loans was maintained.

• In these cases, exchange rules in force corresponding to financial loans shall apply, including the constitution of the non-interest-bearing one-year term deposit amounting to 30% of foreign currency received.

Communication "A" 4447. CAMEX - 1 - 542. (11.30.05).

The Central Bank excepted the constitution of the 30% deposit provided for by Decree 616/05 and supplementary rules to entry of foreign currency corresponding to direct investment contributions in the country and to sales of interests in local companies to direct investors, to the extent there is enough documentation to verify two points: the final capitalization of the capital contribution, and the purchase of the capital share paid with funds arising from the exchange settlement through the relevant contract.

In the event of not having both supporting documents available at the time of the exchange transaction, the said deposit shall be constituted, which may be released 365 days after its constitution or upon filing of recording documents above mentioned.

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Communication "A" 4449. REMON - 1 - 802. (12.02.05).

Effective as of 12.01.05, the Central Bank provided for a one-percent decrease of the minimum cash requirement applicable to sight deposits in Pesos, and a two-percent decrease for fixed-term deposits in Pesos.

Likewise, minimum cash requirements corresponding to December, January, and February were unified.

Communication "A" 4450. REMON - 1 - 803. (12.02.05).

The Central Bank classified reverse repos purchase transactions into spot and term transactions. In the case of spot transactions, guidelines applicable regarding the time of execution remained unchanged, that is, LEBAC debit from the institution's “own portfolio” CRYL account shall be carried out between 5:30 p.m. and 7 p.m.

On the other hand, in the case of repos purchase term transactions, the debit shall be carried out as of 1 p.m. and until 3 p.m.

Last, the time of closing for crediting of one-day term repos was changed from 12 a.m. to 11 a.m. of the business day following the date of the transaction.

Communication "A"4451. CONAU - 1 - 749 and LISOL - 1 - 445. (12.05.05).

For the purposes of the valuation of “Discount Bonds” and of the corresponding “Negotiable instruments tied to the GDP”, the Central Bank set forth that, apart from reducing the amount of services collected (without computing interest or accrued updates), it shall be reduced in amounts collected for the sale of the corresponding “Negotiable instruments tied to the GDP”, or, as the case may be, for the collection of the respective services, if any.

In addition, and in relation to the valuation of Quasipar Bonds and the corresponding “Negotiable instruments tied to the GDP”, it was provided for that, as of the time the “Negotiable instruments tied to the GDP” are negotiated independently, they be registered at the market value.

Communication "A" 4453. OPRAC - 1 - 588 and LISOL - 1 - 446. (12.09.05).

The Central Bank accepted that financial institutions apply the loanable capacity of foreign currency deposits to the granting of financing to commercial portfolio customers and to commercial customers receiving the treatment of consumption or home loans, whose purpose is the import of capital goods, increasing the production of goods intended for the domestic market.

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To the effects of the granting of such financing, institutions shall verify that customers have a sufficient payment capacity, which shall be measured taking into account at least two scenarios contemplating significant variations in the exchange rate of various magnitude within a maximum term of one year, higher than the last estimate available arising from the Market Expectations Survey (Relevamiento de Expectativas de Mercado - REM) published by the Central Bank.

Communication "A" 4454. CAMEX - 1 - 543. (12.09.05).

As of 01.06.06, the Central Bank shall start operating in the Electronic Open Market’s Compensated Term Transactions (Operaciones Compensadas a Término del Mercado Abierto Electrónico - OCT-MAE) market, bilaterally purchasing and selling to authorized financial institutions underlying assets to be settled without being physically delivered, through the payment in Pesos of a quote difference.

This new transaction method shall allow the execution of hedging agreements for up to one-year term, settled for the difference in Pesos, and shall require guarantees granted by financial institutions.

Communication "A" 4455. LISOL - 1 - 447 and CONAU - 1 - 750. (12.12.05).

The Central Bank set forth that, as of 12.01.05, institutions registering surplus to credit risk fractioning thresholds for non-financial public sector financing arising from transactions existing before 03.31.03 and/or from transactions carried out after such date and expressly admitted, may conduct transactions -purchase and sale or intermediation transactions- with national public bonds susceptible of complying with the minimum capital requirement for market risk, that, is, with the volatility informed by the Central Bank, without being bound to reduce the surplus.

The admitted margin shall not be higher that the equivalent to 15% of the Computable Equity of the last day of the month prior to the relevant month.

Communication "A" 4457. RUNOR - 1 - 764. (12.19.05).

The instructions for the preparation of the Database of the Reporting Regime of Money Laundering and Other Illegal Activities (Base de Datos del Régimen Informativo de Prevención de Lavado de Activos y Otras Actividades Delictivas - LAVDIN) that institutions shall maintain available to the Central Bank were issued.

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Communication "C" 43,915. (12.22.05).

The Central Bank communicated the holidays to be observed by financial institutions during the year 2006.

Communication "A" 4459. RUNOR - 1 - 766. (12.26.05).

The Central Bank made amendments to the ordered texts on Prevention of Money Laundering and Financing of Terrorism.

Among the amendments introduced, it should be highlighted the amendment that sets forth that accounts for crediting of compensation related to the payment of social programs, it shall only be necessary the receipt and analysis of the information provided by employers and by competent national, provincial or local entities, respectively, to the extent the amount of the loans is not higher than $30,000 per month.

On the other hand, one of the identification requirements of occasional customers was limited. Previously, occasional customers had to provide their name, Identity Document, and domicile, and a description of their main activity; now, these data shall only be required for transactions higher than $1,000.

Likewise, another additional requirement was included in the case of individual or cumulative exchange transactions that, within a given month, are higher than $30,000 (with delivery of cash). From now on, a sworn statement on the legality and origin of the funds with the relevant supporting documents and/or information supporting the stated origin of the funds shall be required.

Another change refers to a new requirement included in the subsection “Funds from other institutions”, according to which whenever these funds are from countries qualified as low or zero tax countries, the ordering foreign institution shall be required an express statement of compliance with the verification of the “know your customer” principle.

Communication "A" 4460. REMON - 1 - 804. (12.27.05).

The Central Bank modified the time for term purchases for the closing of repos of transactions carried out at REPO rounds.

The crediting of Pesos in institution’s accounts shall be carried out at 11 a.m. on the maturity date.

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Communication "A" 4461. CAMEX - 1 - 544. (12.29.05).

The Central Bank extended from 12.3.05 to 06.30.06 included the effectiveness of the transactions provided for in Communication “A” 3998 and supplementary communications, also extending up to such date the term for application of funds acquired under such regime, whereby non-financial private sector individuals and legal persons may have access to the Single Free Exchange Market for the constitution of portfolio investments abroad, to the extent these investments and the rents obtained thereof shall be intended for the repurchase and/or payment of debt services abroad until 03.31.03 restructured as of 08.15.03, on account of securities, syndicated financial loans, financial loans with foreign banks, other debts to foreign banks, and other direct debts or debts secured by official credit agencies, to the extent certain conditions are met.

Communication "A" 4464. OPASI - 2 - 371. (12.30.05).

In relation to the rules governing “Regulations of the current account”, the Central Bank reported that it extended until 2.31.06 the limitation on check endorsements.

Communication "A"4465. LISOL - 1 - 448 y OPRAC - 1 - 589. (12.30.05).

In relation to the regulatory treatment of guarantees for domestic funds, ordered texts were updated in order to consider as “A” preferred guarantee those surety granted by domestic insurance funds.

Likewise, it was made clear that they are subject to the treatment mentioned in the Insurance Fund for the Micro-, Small- and Medium-Sized Company (Micro, Pequeña y Mediana Empresa FoGaPyME), Act Number 25,300, subject to the compliance with the requirements set forth in the rules governing “Mutual Guarantee Companies (Section 80 of Act Number 24,467)” for those companies recorded in the relevant registry open at the Superintendence of Financial and Exchange Institutions.

Communication "A" 4466. RUNOR - 1 - 767. (12.30.05).

The Central Bank informed that it approved the recording of the risk rating agency Evaluadora Latinoamericana S.A. Calificadora de Riesgo in the Central Bank’s registry in order to participate in the assessment of assets referred to in rules governing "Investments made with resources from retirement and pension funds. Asset Rating".

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Communication "A" 4467. LISOL - 1 - 449. (12.30.05).

The Central Bank amended the Rules Governing Debtors Rating, Credit Rating and Minimum Capital Requirements for Uncollectibility Risk. In this sense, the main amendments were the following: • The possibility that commercial portfolio debtors that, since 06.30.02, have executed payment agreements resulting from authorized judicial or extrajudicial agreements with creditors, or private arrangements executed jointly with creditor financial institutions, or private arrangements with the financial institution, may be reclassified to a normal situation, provided they have the prior approval from the Board of Directors or equivalent authority, was extended until 06.30.06.

• The possibility that credit assistance implying new fund disbursements higher than 300% of the customer’s RPC, provided it has the prior approval from the Board of Directors or equivalent authority, was extended until 06.30.06.

• The exclusion of Compensatory Bonds or Notes received according to sections 28 and 29 of Decree 905/02, as amended, for the purposes of determining the risk concentration ratio of rules governing Credit Risk Fractioning (which cannot be higher than 10% of the institution’s RPC), was extended until 12.31.08.

• Regarding refinancing of debts agreed upon or to be agreed upon corresponding to commercial portfolio debtors in which capital reductions are carried out, the criteria of reducing the minimum capital requirement for uncollectibility risk to the amount of the debt reduction, rating the debtor in the superior-level category corresponding to the resulting provision, was made permanent, provided the remaining conditions set forth for this category are met.

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