International SeminarInternational Seminar Punta del Este – Uruguay Punta del Este – Uruguay

October 26 – 28, 2005 October 26 – 28, 2005

Argentinean Public Debt change Argentinean Public Debt change organization under regulatororganization under regulator

perpective and Caja de Valores perpective and Caja de Valores involvement as clearing agentinvolvement as clearing agent

Luis María CorsigliaCaja de Valores - Argentina

Domestic MarketlDomestic MarketlThe debt in the´90sThe debt in the´90s

Further to the´90s the Argentine sovereign debt market was designed after the US model based on 3 instruments:

Treasury Notes in Pesos and Dollars (LETES) Treasury Bonds in Dollars (BONTES) Global Foreign Bonds in Dollars (Global)

As a result of the restructuring process (Brady Plan) the following instruments were placed:

Discount Par Bonds Floating Rate Bond

The structure and design of the market dramatically changed further to the Default declaration and the later pesification of the national, provincial and municipal public debt.

Classified as per their conditions of issue:

Applicable law: Argentina (Bontes, Bocones, PG, Boden, Exchange Bonds) Foreign (Global, Brady, Eurobonds, Exchange Bonds)

Types of debt: Compulsory (Brady, Bocones) Voluntary (Global, Bontes, Eurobonds) Restructured (Par, Discount, Quasipar)

Trading Market: International (Global, Brady, Exchange Bonds) Domestic (Bontes, Letes, Bocones, Boden, Exchange Bonds)

Domestic MarketDomestic MarketThe debt after year 2001 The debt after year 2001

Further to year 2002, other instruments of monetary regulation issued by BCRA were added, accounting for a $ 26 billion stock

BCRA Letras(LEBACs) In Pesos, CER-adjusted and Dollar-adjusted Pesos Short Term (under 24 months)

BCRA Notes (NOBACs) In Pesos, Pesos + BADLAR* and CER-adjusted Pesos Long Term (from 1 to 4 years)

Both are traded on MAE and BASE and placed through dutch auctions at a sole price

*BADLAR: Buenos Aires Deposit Large Amount Rate

Domestic MarketDomestic MarketThe debt after year 2The debt after year 2001 (Cont)001 (Cont)

Further to the public debt restructuring, the share issued in dollars diminished and conditions were

simplified. Performing debt equals the relevance of the new exchange securities.

Domestic MarketDomestic MarketThe debt after 2The debt after 2005 exchange005 exchange

Debt stock by creditorsas of March 31, 2005

InternationalEntities24%

Performing Debt37%

RestructuredDebt26%

Debt in Default13%

Stock of debt by currencyas of March 31, 2005

Others

12%

Pesos37%

Euros14%

Dollars37%

Map of bonds after the ExchangeMap of bonds after the Exchange

BODEN BONTEBOCON BOCON BOGAR IOULEBAC and NOBAC LETES

Restructured Debt FISCAL CREDITDISCOUNT GLOBALPAR BRADYQUASIPAR FOREIGN NOTESGDP EUROBONDS

SAMURAIPROVINCIAL

Sovereign DebtSovereign DebtYield Yield

October 2005

RS08

RF07

PAVP

DIVPPR13

RS14

PRE9

PRE8PR11

PR12

NF18

DIVY PAVA

DIVARA13

RG12

PAVY

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

0 5 10 15 20

Risk Modified Duration

Annual Yie

ld

Pesos + CER curve

Dollar curve

Source BASEOwn production

Sovereign DebtSovereign Debt issued in CER-adjusted Pesos

RF07RS08

PRE8

PR11

PR12NF18

PR13

RS08

RF07

PR11

PRE8

PR12

NF18

PR13

-2,00%

0,00%

2,00%

4,00%

6,00%

8,00%

10,00%

0 2 4 6 8 10 12 14

Risk Modified Duration

Annual Yie

ld

March 2005 curve

October 2005 curveQuotation above par

Source BASEOwn

production

Evolution of yieldsFurther to the Exchange results

Boden 12

Boden 13

Boden 13

Boden 12

Boden 06

0%

2%

4%

6%

8%

10%

12%

0 1 2 3 4 5

Risk Modified Duration

Annual

Yie

ld

Debt Exchange finished

During Debt Exchange

Source BASEOwn production

Sovereign Debt Sovereign Debt issuedissued in Dollars

Evolution of yields After the Exchange results

2.524.87

PRE8/PR11

RF07/RS08

PAVPDIVP

PR13

RS14

NF18PRE9

5.46PRE9/NF18

RS14

PR12

PR11

RF07RS08

PRE8

PR13DIVP

PAVP

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

0 5 10 15 20 25

Risk Modified Duration

Ann

ual Y

ield

New securities tradingstart

July 28th historicalmaximun

Source BCBAOwn production

Sovereign Debt Sovereign Debt issued in CER-adjusted issued in CER-adjusted Pesos

Evolution of yieldsAs a result of addition of new instruments

Above par quotation

DIVY

RG12

RA13

RA13

RG12

RE06

DIVAPAVA

PAVYDIVY

6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

0 2 4 6 8 10 12 14 16

Risk Modified Duration

Annual Yie

ld

New securities tradingstart

July 28th historicalmaximun

Source BCBAGeneración propia

Evolution of yields asA result of addition of new instruments

Sovereign Debt Sovereign Debt issued iissued in Dollars

The RepublicThe RepublicTarget and characteristics of the Eligible DebtTarget and characteristics of the Eligible Debt

To achieve sustainable debt dynamics• To match the requirements of debt services and payment

capacity of the new Argentine economic structure• To create the conditions for the strengthening of fiscal

previsibility• To lower vulnerability from foreign shocks

• Total: U$S 81.800 million • Including interests accrued and

unpaid as of Dec. 31, 2001(aprox. U$S 2.1 mm)

• 152 bonds– Amounting to 178 financial products

11 New Bonds

152 Eligible Bonds

Eligible Bonds8 Legislations6 currencies

New Bonds4 Legislations4 currencies

Eligible Debt

Participants of the processParticipants of the process

Global Organizing BanksGlobal Organizing Banks

Exchange and Paying AgentExchange and Paying Agent

Reception of old bonds, delivery of new bonds and execution of future payments

Information AgentInformation Agent

Information release during the exchange and reception of phone and internet consultation

Partícipants of the processPartícipants of the process

Domestic organizing Banks

Domestic Clearing Agent

Global ResultsGlobal Results

Par 15,000

Offers on Par 20,318

Leak on Discount Bonds 5,318

* 1.792 in new Discount Bonds

Quasi-Par 8,329

Offers on Par Bond 10,486

Leak on Discount Bond 2,156

* 1.039 in new Discount Bonds

Source Mecon

Exchanged Debt 62,248 35,238

Par Bonds 15,000

Discount 11,909

QuasiPar 8,329

Leak

Effect

Caja de Valores RoleCaja de Valores Role

Individual Offers

through Caja

97,240

Par Bonds 76,524

Discount Bonds 17,911

Quasipar 605

Global Offers sent to BoNY

10,053

Caja de Valores daily sent received offers grouped

according to the selected bond

Exchange Offers

International Links

Euroclear

Euroclear

Clearstream

Clearstream

DTC DTC

CBLC CBLC

Cavali Cavali Deceval

Deceval

Indeval Indeval

Iberclear

Iberclear

DCV

DCV

CVSA links with Internationals CVSA links with Internationals DepositoriesDepositories

C.V.S.A. is direct participant of:

Euroclear (Brussels),

Clearstream (Luxembourg),

DTC (USA)

Operating reciprocal AccountsOperating reciprocal Accounts

Iberclear (Spain): Since Nov´99; Monthly average of 40 orders.

CBLC (Brazil): Since July´04 Authorized to receive orders.

Connections

Caja de Valores S.A.

DTCC IberclearEuroclear CBLC

Proprietary Systems

Clearstream

Sistema S.W.I.F.T.

S.W.I.F.T ISO 15.022

Letters of Intent withLetters of Intent with

Cavali ICLV S.A. (Peru) Depósito Central de Valores S.A.(Chile) Central Depository of Ukrania, NDU

Progress in negotiation for the opening of reciprocal Accounts with INDEVAL (Mexico)

Amount of balances in our custody system of securities in CDs

CVSA28%

Clearstream3%

Euroclear5%

DTC1%

CRYL63%

ClearstreamEuroclearDTCCRYLCVSA

Volumen of CustodyVolumen of Custodyas of October ´05 in CDs (P/V in millions)

CLEARSTREAM 4,495EUROCLEAR 8,617DTC 1,886CRYL 111,167 CVSA 48,212

_____________________________________ Overall Total 174,378

Luis M. Corsiglia

corsiglia@cajval.sba.com.ar

www.cajval.sba.com.ar