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Luis María Corsiglia Caja de Valores - Argentina

International Seminar Punta del Este – Uruguay October 26 – 28, 2005 Argentinean Public Debt change organization under regulator perpective and Caja de Valores involvement as clearing agent. Luis María Corsiglia Caja de Valores - Argentina. Domestic Marketl The debt in the´90s.

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Luis María Corsiglia Caja de Valores - Argentina

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  1. International Seminar Punta del Este – UruguayOctober 26 – 28, 2005 Argentinean Public Debt change organization under regulatorperpective and Caja de Valores involvement as clearing agent Luis María Corsiglia Caja de Valores - Argentina

  2. Domestic MarketlThe 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.

  3. Domestic MarketThe debt after year 2001 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)

  4. Domestic MarketThe debt after year 2001 (Cont) 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

  5. Domestic MarketThe debt after 2005 exchange 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.

  6. Map of bonds after the Exchange

  7. Sovereign DebtYield October 2005

  8. Sovereign Debtissued in CER-adjusted Pesos Evolution of yields Further to the Exchange results Source BASE Own production Quotation above par

  9. Sovereign Debt issued in Dollars Evolution of yields After the Exchange results

  10. Sovereign Debt issued in CER-adjusted Pesos Evolution of yields As a result of addition of new instruments Above par quotation

  11. Sovereign Debt issued in Dollars Evolution of yields as A result of addition of new instruments

  12. The RepublicTarget 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 Eligible Debt • 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 152 Eligible Bonds 11 New Bonds Eligible Bonds 8 Legislations 6 currencies New Bonds 4 Legislations 4 currencies

  13. Participants of the process Global Organizing Banks Exchange and Paying Agent Reception of old bonds, delivery of new bonds and execution of future payments Information Agent Information release during the exchange and reception of phone and internet consultation

  14. Partícipants of the process Domestic organizing Banks Domestic Clearing Agent

  15. Global Results Par Bonds 15,000 Exchanged Debt 62,248 35,238 Discount 11,909 QuasiPar 8,329 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 Leak Effect Source Mecon

  16. Caja de Valores Role Individual Offers through Caja 97,240 Par Bonds 76,524 Discount Bonds 17,911 Quasipar 605 Exchange Offers Global Offers sent to BoNY 10,053 Caja de Valores daily sent received offers grouped according to the selected bond

  17. International Links Clearstream DTC Euroclear Iberclear CBLC Cavali Deceval Indeval DCV

  18. CVSA links with Internationals Depositories C.V.S.A. is direct participant of: • Euroclear (Brussels), • Clearstream (Luxembourg), • DTC (USA)

  19. Operating reciprocal Accounts • Iberclear (Spain): • Since Nov´99; • Monthly average of 40 orders. • CBLC (Brazil): • Since July´04 • Authorized to receive orders.

  20. Connections Caja de Valores S.A. CBLC Iberclear Clearstream Euroclear DTCC Proprietary Systems Sistema S.W.I.F.T. S.W.I.F.T ISO 15.022

  21. Letters 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)

  22. Amount of balances in our custody system of securities in CDs

  23. Volumen of Custodyas of October ´05 in CDs (P/V in millions) • CLEARSTREAM 4,495 • EUROCLEAR 8,617 • DTC 1,886 • CRYL 111,167 • CVSA 48,212 _____________________________________ Overall Total 174,378

  24. Luis M. Corsiglia corsiglia@cajval.sba.com.ar www.cajval.sba.com.ar

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