Obbligazione Argentina 8.75% ( XS0501195480 ) in USD

Emittente Argentina
Prezzo di mercato 100 USD  ⇌ 
Paese  Argentina
Codice isin  XS0501195480 ( in USD )
Tasso d'interesse 8.75% per anno ( pagato 2 volte l'anno)
Scadenza 02/06/2017 - Obbligazione è scaduto



Prospetto opuscolo dell'obbligazione Argentina XS0501195480 in USD 8.75%, scaduta


Importo minimo 1 USD
Importo totale 950 499 730 USD
Descrizione dettagliata L'Argentina è una nazione sudamericana caratterizzata da una grande varietà geografica, una ricca storia e una cultura vibrante, con influenze europee e indigene.

The Obbligazione issued by Argentina ( Argentina ) , in USD, with the ISIN code XS0501195480, pays a coupon of 8.75% per year.
The coupons are paid 2 times per year and the Obbligazione maturity is 02/06/2017







PROSPECTUS
Copies of this document shall not be furnished or transferred for any purpose unless permitted by applicable law,
further details of which are set out under "Jurisdictional Restrictions."
up to U.S.$1,000,000,000
The Republic of Argentina
8.75% Global Bonds due 2017
__________________________
The bonds will mature in 2017, or seven years after the settlement date. The maturity date will be announced on the
business day following the pricing date. The pricing date is expected to be on or about May 14, 2010. Argentina will pay interest on
the bonds semi-annually in arrears commencing approximately six months after the settlement date. The bonds will not be redeemable
before maturity and will not be entitled to the benefit of any sinking fund.
The bonds will be direct, unconditional, unsecured and unsubordinated obligations of Argentina, ranking pari passu, without any
preference, among themselves and with all of Argentina's other present and future unsecured and unsubordinated external indebtedness.
You should read the whole of this document and any documents incorporated herein by reference. In
particular, your attention is drawn to the section entitled "Risk Factors" in this document, which contains a discussion of
certain factors that you should consider in evaluating this offering.
__________________________
This document (including the documents incorporated by reference herein) constitutes a prospectus (the "Prospectus")
within the meaning of article 5 of European Union Directive 2003/71/EC (the "Prospectus Directive"). The Luxembourg
Commission de Surveillance du Secteur Financier (which we refer to as the "CSSF") has approved this Prospectus in compliance
with the Prospectus Directive and the Luxembourg Law on prospectuses for securities of July 10, 2005, implementing the
Prospectus Directive in Luxembourg. Argentina has, in accordance with the passporting provisions of the Prospectus Directive,
requested the CSSF to provide a certificate of approval and a copy of this Prospectus, together with a translation of the summary, if
applicable, to the Österreichische Finanzmarktaufsicht, being the relevant competent authority in Austria, the Bundesanstalt für
Finanzdienstleistungsaufsicht, being the relevant competent authority in Germany, the Stichting Autoriteit Financiële Markten,
being the relevant competent authority in the Netherlands, the Comisión Nacional del Mercado de Valores, being the relevant
competent authority in Spain, and the Financial Services Authority, being the relevant competent authority in the United Kingdom.
This offering is being made to potential investors in Austria, Germany, Luxembourg, the Netherlands, Spain and the
United Kingdom (the "EU Approved Offering Countries") and in the United States and Argentina (which together with the EU
Approved Offering Countries, are referred to as the "Approved Offering Countries"). Outside of the Approved Offering
Countries, this offering is being made only to persons to whom this Prospectus lawfully may be sent and to whom this offering
lawfully may be made pursuant to other applicable exemptions from the requirement to produce a prospectus under applicable
securities laws. To determine if they may review this Prospectus or participate in this offering, potential investors outside the
Approved Offering Countries should carefully read the sections entitled "Global Offering" and "Jurisdictional Restrictions."
The offer will commence on May 3, 2010 and end on the date on which final, conditional allocations are made, and settlement
instructions sent, to investors, which will be on or about May 27, 2010, unless extended as a result of delays in the concurrent invitation
or delays resulting from litigation. Any such extensions or delays will be published on the website of the Luxembourg Stock Exchange
(http://www.bourse.lu). We expect to determine the offer price together with the underwriters on or about May 14, 2010, with
preliminary indicative allocations to investors at that time or shortly thereafter. The determination of the offer price will depend on the
purchase offers for the bonds submitted by investors by the pricing date and collectively recorded in the order book. The offer price and
the expected aggregate offering amount will be published on the website of the Luxembourg Stock Exchange (http://www.bourse.lu) one
business day following the pricing date. Investors may withdraw from the offering at any time until the date on which final, conditional
allocations are made to investors. Delivery of the bonds will be made approximately three business days following the end of the offer.
However, the delivery of the bonds is subject to satisfaction of a number of conditions, including commencement of the early settlement
of the securities being issued under the concurrent invitation, and may be postponed or cancelled.
(cover continues on next page)
__________________________
Barclays Capital
Citi
Deutsche Bank
The date of this Prospectus is April 30, 2010.



(cover page continued)
Application will be made to list the bonds on the Official List of the Luxembourg Stock Exchange and to have the
bonds admitted to trading on the Euro MTF market of the Luxembourg Stock Exchange, and application will be made to list the
bonds on the Buenos Aires Stock Exchange and to have the bonds admitted to trading on the Mercado Abierto Electrónico.
The bonds contain provisions regarding acceleration and future modifications to their terms. These provisions, which
are commonly referred to as "collective action clauses," are described in the sections entitled "Description of the Bonds--Default
and Acceleration of Maturity" and "Description of the Bonds--Collective Action Clauses" on pages 28 and 29, respectively, of
this Prospectus. Under those provisions, modifications affecting certain reserved matters, including modifications to payment
and other important terms, may be made to the bonds with the consent of the holders of 75% of the aggregate principal amount,
and to multiple series of new debt securities issued by Argentina under the trust indenture, with the consent of the holders of 85%
of the aggregate principal or notional amount outstanding of all affected series and 66% of the aggregate principal or notional
amount outstanding of each affected series.
Concurrently with this offering, Argentina is inviting owners of certain of its existing outstanding bonds to submit
offers to exchange their eligible securities for a combination of either discount bonds, 8.75% global bonds due 2017 and GDP-
linked securities or par bonds, a cash payment and GDP-linked securities. We refer to this offering as the "concurrent
invitation." See "Terms of the Offering--Concurrent Invitation" below for further information. The terms and conditions of the
8.75% global bonds due 2017 (the "2017 Globals") offered in the concurrent invitation are identical to those in this offering. The
2017 Globals issued on the concurrent invitation's early settlement will be fully fungible with the bonds offered in this offering.
The completion of the concurrent invitation is conditioned on Argentina's receipt of the proceeds from this offering and the other
conditions described in the concurrent invitation.
In this Prospectus, references to "we," "our" and "us" are to the Republic of Argentina, or "Argentina." References to
"you" or "your" are to potential investors. Terms not otherwise described herein have the meanings ascribed to them in this
Prospectus.
We are responsible for the information contained in this Prospectus and the documents incorporated herein by
reference. We have not authorized anyone to give you any other information, and we take no responsibility for any other
information that others may give you. Neither the delivery of this Prospectus nor any sale made pursuant hereto, under any
circumstances, shall create any implication that there has been no change in our condition since the date of this Prospectus.
Neither the U.S. Securities and Exchange Commission, or SEC, nor any other regulatory body has approved or
disapproved of these securities or passed upon the accuracy or adequacy of this document. Any representation to the
contrary is a criminal offense.
This Prospectus does not constitute an offer to sell securities in any jurisdiction where such offer or solicitation
is unlawful. The distribution of this Prospectus in certain jurisdictions may be restricted by law, and persons into whose
possession this Prospectus comes are requested to inform themselves about and to observe such restrictions.
ii



TABLE OF CONTENTS
Page
Table of Contents......................................................................................................................................................... iii
Introduction ...................................................................................................................................................................1
Data Dissemination........................................................................................................................................................2
Global Offering .............................................................................................................................................................2
Certain Legal Restrictions .............................................................................................................................................2
Summary........................................................................................................................................................................3
The Republic of Argentina ........................................................................................................................................3
General ..................................................................................................................................................................3
The Economy; Public Sector Debt.........................................................................................................................3
History and Background ....................................................................................................................................3
The Collapse of the Convertibility Regime ­ 2002 ...........................................................................................4
Public Sector Finances.......................................................................................................................................4
Public Sector Debt .................................................................................................................................................4
Debt Record.......................................................................................................................................................4
Debt Management following the 2001 Crisis ....................................................................................................5
2005 Debt Exchange..........................................................................................................................................5
Liability Management Transactions in 2009 .....................................................................................................6
Debt with International Financial Institutions ...................................................................................................6
Economic Recovery...........................................................................................................................................6
Terms of the Offering ................................................................................................................................................8
Offer Price and Offer Period..................................................................................................................................8
Use of Proceeds .....................................................................................................................................................8
Concurrent Invitation.............................................................................................................................................8
Tax Consequences .................................................................................................................................................9
The Bonds................................................................................................................................................................10
Listing and Admission to Trading ...........................................................................................................................11
Risk Factors .............................................................................................................................................................11
Risk Factors Relating to Argentina......................................................................................................................11
Litigation .............................................................................................................................................................12
Risks Relating to the Offering and the Bonds .....................................................................................................12
Underwriting............................................................................................................................................................13
Expenses ..............................................................................................................................................................13
Documents Obtainable by the Public.......................................................................................................................14
Risk Factors .................................................................................................................................................................15
Risk Factors Relating to Argentina..........................................................................................................................15
Litigation .................................................................................................................................................................19
Risks Relating to the Offering and the Bonds .........................................................................................................20
Recent Developments ..................................................................................................................................................23
Terms of the Offering ..................................................................................................................................................25
Offer Price and Offer Period....................................................................................................................................25
Use of Proceeds .......................................................................................................................................................25
Concurrent Invitation...............................................................................................................................................25
Description of the Bonds .............................................................................................................................................27
General Terms of the Bonds ....................................................................................................................................27
Payments..................................................................................................................................................................28
Paying Agents and Transfer Agent ..........................................................................................................................28
Class Voting; Fungibility.........................................................................................................................................28
Further Issues...........................................................................................................................................................28
Additional Amounts ................................................................................................................................................29
Seniority ..................................................................................................................................................................29
Negative Pledge.......................................................................................................................................................29
Default and Acceleration of Maturity......................................................................................................................31
iii



Prescription..............................................................................................................................................................32
Meetings ..................................................................................................................................................................32
Collective Action Clauses........................................................................................................................................32
Notices.....................................................................................................................................................................35
Governing Law ........................................................................................................................................................35
Jurisdiction, Consent to Service, Enforceability and Immunities from Attachment................................................35
Registration and Book-Entry System ......................................................................................................................36
Definitive Securities ................................................................................................................................................37
Clearance and Settlement ............................................................................................................................................39
The Clearing Systems ..............................................................................................................................................39
Clearstream, Luxembourg ...................................................................................................................................39
Euroclear..............................................................................................................................................................39
Caja de Valores....................................................................................................................................................40
Settlement ................................................................................................................................................................40
Secondary Market Trading ......................................................................................................................................40
Taxation.......................................................................................................................................................................42
Argentine Federal Income Tax Consequences.........................................................................................................42
U.S. Federal Income Tax Consequences .................................................................................................................42
Luxembourg Tax Consequences..............................................................................................................................44
Withholding Tax..................................................................................................................................................44
Non-Residents .................................................................................................................................................44
Residents..........................................................................................................................................................45
Income deriving from the Bonds .........................................................................................................................45
Non-Luxembourg Resident Holders ................................................................................................................45
Luxembourg Resident Holders - General ........................................................................................................45
Luxembourg Resident Individuals...................................................................................................................45
Luxembourg Resident Companies...................................................................................................................46
Luxembourg Companies Benefiting from a Special Tax Regime ...................................................................46
Net Wealth Tax................................................................................................................................................46
Other Tax Consequences .....................................................................................................................................46
Stamp Taxes and Transfer Taxes.....................................................................................................................46
Gift Taxes ........................................................................................................................................................46
Value-added Tax..............................................................................................................................................46
Withholding Tax under EU Regulation 809/2004 ...................................................................................................47
Austria .................................................................................................................................................................47
Germany ..............................................................................................................................................................50
The Netherlands...................................................................................................................................................53
Spain ....................................................................................................................................................................53
United Kingdom ..................................................................................................................................................54
EU Savings Income Taxation Directive ..................................................................................................................54
Underwriting................................................................................................................................................................56
Expenses ..............................................................................................................................................................57
Documents Obtainable by the Public.......................................................................................................................57
Jurisdictional Restrictions............................................................................................................................................58
Argentina .................................................................................................................................................................58
Austria .....................................................................................................................................................................58
Bahrain ....................................................................................................................................................................58
Belgium ...................................................................................................................................................................59
Canada (Ontario and Québec Only).........................................................................................................................59
Cayman Islands........................................................................................................................................................61
Channel Islands (Jersey Only) .................................................................................................................................61
Denmark ..................................................................................................................................................................61
European Economic Area ........................................................................................................................................61
France ......................................................................................................................................................................62
Germany ..................................................................................................................................................................62
Hong Kong ..............................................................................................................................................................62
Ireland......................................................................................................................................................................63
iv



Italy..........................................................................................................................................................................63
Japan........................................................................................................................................................................64
Luxembourg.............................................................................................................................................................64
Monaco ....................................................................................................................................................................64
The Netherlands.......................................................................................................................................................65
The Netherlands Antilles .........................................................................................................................................65
Portugal....................................................................................................................................................................65
Russia ......................................................................................................................................................................65
Singapore.................................................................................................................................................................66
Spain ........................................................................................................................................................................66
Switzerland ..............................................................................................................................................................67
United Kingdom ......................................................................................................................................................67
Uruguay ...................................................................................................................................................................67
Forward-Looking Statements ......................................................................................................................................68
Validity of the Bonds...................................................................................................................................................68
Official Statements ......................................................................................................................................................68
Authorized Representative...........................................................................................................................................68
Further Information .....................................................................................................................................................69
Ratings.....................................................................................................................................................................69
Yield of the Bonds ...................................................................................................................................................69
Total Amount of Issue .............................................................................................................................................69
Authorization ...........................................................................................................................................................69
Interests of Related Persons.....................................................................................................................................70
Listing and Admission to Trading; Listing Agent ...................................................................................................70
Documents Incorporated by Reference....................................................................................................................70
Responsibility Statement .........................................................................................................................................72
Documents Filed with the Luxembourg Stock Exchange........................................................................................72
Documents Relating to the Bonds ...........................................................................................................................72
No Representations Other than those in this Prospectus..........................................................................................72
No Investment Advice .............................................................................................................................................72
Disclaimer................................................................................................................................................................73
Notices.....................................................................................................................................................................73
Issuer Contact Information ......................................................................................................................................73
Clearing ...................................................................................................................................................................73
__________________________
v



INTRODUCTION
We are responsible for the information contained in this Prospectus and the documents incorporated herein
by reference. We have not authorized anyone to give you any other information, and we take no responsibility for
any other information that others may give you. Neither the delivery of this Prospectus nor any sale made pursuant
hereto shall, under any circumstances, create any implication that there has been no change in our condition since
the date of this Prospectus.
Argentina is furnishing this Prospectus to you solely for use in the context of this offering and for
Luxembourg listing purposes.
Argentina is a foreign sovereign state. Consequently, it may be difficult for you to obtain or realize upon
judgments of courts or arbitral awards in the United States and other jurisdictions against Argentina.
The bonds that Argentina issues in the United States are being offered under Argentina's registration
statement (file no. 333-163784) initially filed with the United States Securities and Exchange Commission (the
"SEC") under Schedule B of the Securities Act of 1933, as amended (the "Securities Act"), on December 16, 2009,
and declared effective by the SEC on April 13, 2010.
None of Argentina, any underwriter, or the Luxembourg listing agent has expressed any opinion as to
whether the terms of this offering are fair. None of Argentina, any underwriter, or the Luxembourg listing agent
makes any recommendation that you purchase the bonds, and no one has been authorized by Argentina, any
underwriter, or the Luxembourg listing agent to make any such recommendation.
1



DATA DISSEMINATION
Argentina is a subscriber to the Special Data Dissemination Standard, or SDDS, developed by the
International Monetary Fund, or IMF, which is designed to improve the timeliness and quality of information of
subscribing member countries. The SDDS requires subscribing member countries to provide schedules indicating,
in advance, the date on which data will be released or the so-called "Advance Release Calendar." For Argentina,
precise dates or "no-later-than-dates" for the release of data under the SDDS are disseminated in advance through
the Advance Release Calendar, which is published on the Internet under the IMF's Dissemination Standards Bulletin
Board. Summary methodologies of all metadata to enhance transparency of statistical compilation are also provided
on the Internet under the IMF's Dissemination Standards Bulletin Board. The Internet website is located at
http://dsbb.imf.org. Neither Argentina nor the underwriters accept any responsibility for information included on
that website, and its contents are not intended to be incorporated by reference into this document.
GLOBAL OFFERING
This offering is being made in the United States on the basis of the prospectus and the prospectus
supplement filed by Argentina with the SEC (the "US Prospectus"). This offering is being extended to investors in
Luxembourg and certain Member States of the European Economic Area ("EEA") (each, a "Member State") that
have implemented the Prospectus Directive (Directive 2003/71/EC) (each, a "Relevant Member State") on the basis
of this Prospectus. This offering is also being made on the basis of the US Prospectus, or on the basis of this
Prospectus, in certain jurisdictions where Argentina and the underwriters are relying on exemptions from regulatory
approval by the relevant authorities.
The offering being made pursuant to this Prospectus and this offering being made pursuant to the US
Prospectus constitute one and the same offering, subject to the same terms and conditions (as set forth in this
document), except as required by applicable law or as otherwise noted in this document.
This offering is only being extended where permitted by law, and only in accordance with the applicable
laws, rules and regulations of the relevant jurisdiction.
No action has been or will be taken in any jurisdiction (except the United States and, subject to certain
conditions, Argentina, Austria, Germany, Luxembourg, the Netherlands, Spain and the United Kingdom) that would
permit a public offering of the bonds, or the possession, circulation or distribution of this Prospectus, the US
Prospectus or any offering materials where action for that purpose is required. Accordingly, the bonds may not be
offered, sold or exchanged, directly or indirectly, and neither this Prospectus, the US Prospectus nor any other
offering material or advertisement in connection with this offering may be distributed or published, in or from any
such jurisdiction, except in compliance with any applicable rules or regulations of any such country or jurisdiction.
A holder outside the United States may participate in this offering only as provided under "Jurisdictional
Restrictions."
CERTAIN LEGAL RESTRICTIONS
The distribution of materials related to this offering and the transactions contemplated by this offering may
be restricted by law in certain jurisdictions. If materials related to this offering come into your possession, you are
required by Argentina to inform yourself of and to observe all of these restrictions. The materials related to this
offering do not constitute, and may not be used in connection with, an offer or solicitation in any jurisdiction where
offers or solicitations are not permitted by law. Participants in this offering outside the United States and
Luxembourg should carefully review the restrictions and limitations applicable in certain jurisdictions and the
manner in which this offering will be made in such jurisdictions, as set forth under "Jurisdictional Restrictions."
If a jurisdiction requires that this offering be made by a licensed broker or dealer and any underwriter or
any affiliate of any underwriter is a licensed broker or dealer in that jurisdiction, this offering shall be deemed to be
made by such underwriter or such affiliate on behalf of Argentina in that jurisdiction.
2



SUMMARY
This summary must be read as an introduction to, and in conjunction with, the full text of this Prospectus
and any decision to invest in the bonds should be based on a consideration of this Prospectus as a whole, including
the "Risk Factors" section, and the documents incorporated by reference. Investors should therefore read this
entire document and not solely this summary. Following the implementation of the relevant provisions of the
Prospectus Directive in each Relevant Member State, no civil liability will attach to Argentina in any such Relevant
Member State solely on the basis of this summary, including any translation thereof, unless it is misleading,
inaccurate or inconsistent when read together with the other parts of this Prospectus. Where a claim relating to the
information contained in this Prospectus is brought before a court in a Relevant Member State, the plaintiff may,
under the national legislation of the Relevant Member State where the claim is brought, be required to bear the
costs of translating this Prospectus before the legal proceedings are initiated. All defined terms have the meaning
set forth in this Prospectus.
The Republic of Argentina
General
Argentina is a representative democracy located in southeastern South America with an estimated
population of 36.3 million as of 2001, the date of the most recent census. Argentina has recovered from a severe
economic recession that began in the fourth quarter of 1998 and culminated, after a decade of relative stability and
economic prosperity, in unprecedented social, economic and political crises in 2001 and 2002. From 1999 through
2002, Argentina's economy contracted significantly and poverty and unemployment reached record levels. The
administration of President Fernando de la Rúa, which took office in October 1999, was unable to restore economic
growth.
In December 2001, the Government imposed restrictions on the withdrawal of bank deposits to safeguard
the viability of the banking system. These restrictions triggered widespread social unrest that resulted in the
resignation of President de la Rúa. Through the end of 2003, Congress, in accordance with the Constitution,
appointed successive presidents of Argentina until the election of Néstor Kirchner as president in December 2003.
President Kirchner's term expired on December 10, 2007. President Kirchner's term in office was marked by
economic growth and large-scale debt renegotiations with a 76.2% acceptance by the holders of defaulted Argentine
bonds of the Government's 2005 debt exchange. Poverty and unemployment were also reduced as the economy
improved during President Kirchner's term.
On October 28, 2007, presidential and congressional elections were held in Argentina. Cristina E.
Fernández de Kirchner was elected and became Argentina's President on December 10, 2007. Her term will expire
on December 10, 2011. Fernández de Kirchner's administration has continued the policies of the previous
government, including pursuing strong economic growth, maintaining fiscal and trade surpluses, preserving a weak
currency and low interest rates, suppressing inflation and redistributing income through food, energy, and transport
subsidies. Fernández de Kirchner intends to combat inflation by negotiating a "social pact" between business and
trade unions that would control wage claims, slow price increases and provide a stable environment for investment.
The Economy; Public Sector Debt
History and Background
During the 1980s, high levels of state intervention in the economy, combined with high levels of inflation,
frequent changes in Government policy and financial market instability, inhibited any significant growth in the
Argentine economy. During the 1990s, the Menem administration adopted a fixed exchange rate regime (known as
"Convertibility") and neo-liberal economic policies that included privatization, deregulation and trade liberalization
programs. It also sought to improve Argentina's relations with its creditors.
The regime (the "Convertibility Regime") imposed by the convertibility Law No. 23,928 in 1991 (the
"Convertibility Law") and the Government's free market initiatives temporarily achieved price stability, increased
the efficiency and productivity of the Argentine economy and attracted significant foreign investment. From 1993
through 1998, GDP grew in real terms at an average annual rate of 4.0%, despite a 2.8% contraction in 1995 due to
the Mexican financial crisis of 1994.

3


The Collapse of the Convertibility Regime ­ 2002
From 1999 to 2001, Argentina experienced severe economic problems, which led to the worst economic
crisis in Argentina's history. In 2002, in response to a massive run on bank deposits and capital flight, the
Government ended the peg of the peso to the U.S. dollar. Following the collapse of the Convertibility Regime, the
peso lost significant value, both against foreign currencies and in terms of domestic purchasing power. In the first
six months of 2002, the peso lost approximately 74.2% of its value against the U.S. dollar, reaching a low of
U.S.$0.258 per one peso on June 26, 2002.
During 2002, Argentina experienced a 10.9% reduction in real GDP. As a result of strict restrictions
imposed by the Government on bank withdrawals and foreign exchange transactions, economic activity declined
dramatically, with gross investment and private consumption decreasing by 36.4% and 14.4%, respectively, in 2002.
During this year, Government consumption also declined, by 5.1%. Beginning in the second half of the year,
however, the devaluation of the peso caused a shift in domestic consumption. As the price of imported goods
increased due to the devaluation of the peso, Argentine consumers shifted their purchases away from foreign
products and towards domestic products. This import substitution process reactivated domestic production, which
triggered the economic recovery.
Public Sector Finances
In the 2004 to 2008 period, Argentina had positive primary fiscal and overall balances. During this period,
the primary surplus increased by a total of Ps.15.2 billion or 87.7%, to Ps.32.5 billion in 2008 from Ps.17.3 billion in
2004. The average 17.2% increase per year in the primary surplus resulted primarily from a significant increase in
fiscal revenues, partly offset by an increase in primary expenditures. As a response to the impact of the global
financial crisis, Argentina, like many other countries, implemented a countercyclical fiscal policy during 2009 in
order to mitigate the effects of the shocks of the global financial crisis on the domestic economy. The primary
surplus decreased from Ps.32.5 billion in 2008 to Ps.17.3 billion in 2009, representing a 46.9% decrease.
Fiscal revenues increased by 172.8% to Ps.286.2 billion in 2008, from Ps.104.9 billion in 2004, primarily
as a result of an across-the-board increase in tax revenue due to the economic recovery, the Government's efforts to
reduce tax evasion and higher prices for Argentina's exports, which increased revenues from export taxes. Primary
expenditures on the other hand, increased 189.6% (from Ps.87.6 billion in 2004 to Ps.253.7 billion in 2008)
primarily as a result of an increase in transfers to provinces, social security benefits, National Administration wages,
capital expenditures and other transfers, including exports and private sector subsidies and transfers to autonomous
public entities. In 2009, fiscal revenues increased 16.2% to Ps.332.7 billion, from Ps.286.2 billion in 2008, showing
a deceleration as compared with previous years. This resulted mainly from the impact of the global financial crisis
on the local economy and the drought that undermined the harvest of Argentina's main export products.
The increase in the Government's primary balance led to an overall fiscal surplus in each of the years in the
2004-2008 period. The overall fiscal results in 2004 and 2005 benefited from the Government's suspension of
payments on a substantial portion of its debt beginning in December 2001. During the year ended December 31,
2008, the Government registered an overall fiscal surplus of Ps.14.7 billion (1.4% of nominal GDP). In 2009, the
Government implemented countercyclical fiscal policies. These policies, coupled with a decrease in fiscal revenues
due to the lessening of economic activity and trade, resulted in an overall fiscal deficit of Ps.7.1 billion (0.6% of
nominal GDP for 2009).
Public Sector Debt
Debt Record
Argentina has entered into two restructurings of external debt in default during the past 20 years.
In April 1992, Argentina announced a refinancing agreement under the Brady Plan relating to medium- and
long-term debt owed to commercial banks. The Brady Plan applied to an estimated U.S.$28.5 billion in debt,
including an estimated U.S.$9.3 billion in interest arrears, representing over 96% of the commercial bank debt then
outstanding. The Brady Plan effected a reduction of approximately U.S.$3 billion in the nominal amount of
Argentina's foreign debt, as well as a nominal debt reduction of 35%.

4


In December 2001, the Government declared a moratorium on a substantial portion of Argentina's public
debt (U.S.$89.1 billion at the time) and restructured its public external debt in an exchange offer in 2005. The
aggregate value of securities tendered in the 2005 debt exchange was approximately U.S.$62.3 billion, representing
76.15% of the aggregate value of eligible securities. Defaulted debt on securities that were eligible for, but were not
tendered in, the 2005 debt exchange totaled approximately U.S.$29.0 billion as of December 31, 2008. As of
December 31, 2009, this amount totaled approximately U.S.$29.8 billion.
The calculation of the net present value reduction that tendering holders accepted in the 2005 debt
exchange is subjective and may vary over time depending on elements such as the performance of interest rates and
other factors. Argentina does not maintain any statistics ascertaining the precise value of the debt reduction to
bondholders. Nevertheless, private analysts at the time estimated that the debt reduction was of approximately 65%
to 75% of the original value of the securities tendered in the 2005 debt exchange.
The Government's default on a substantial portion of its public debt has prompted a number of lawsuits in
various jurisdictions by plaintiffs seeking to collect on bonds issued by the Government.
Debt Management following the 2001 Crisis
Following the default in late 2001, the Government began to issue a new type of bond (known as a Boden).
Several types of Boden have been issued, primarily for the purpose of providing compensation to individuals and
financial institutions affected by various measures adopted by the Government during the 2001 economic crisis.
2005 Debt Exchange
On January 14, 2005, Argentina launched a global voluntary offer to exchange 152 different series of
securities on which it had defaulted in 2001 for new par, quasi-par and discount bonds, and GDP-linked securities.
In December 2001, the Government declared a moratorium on U.S.$89.1 billion of gross public debt. The aggregate
value of securities that were eligible to participate in the exchange (including nominal value of the eligible securities
and accrued past due interest accumulated as of December 31, 2001) was approximately U.S.$81.8 billion.
Argentina did not recognize accrued past due interest accumulated from December 31, 2001 to December 31, 2003
for purposes of calculating eligible amounts to participate in the 2005 debt exchange. The aggregate value of
securities tendered in the exchange was approximately U.S.$62.3 billion, representing 76.15% of the aggregate
value of eligible securities.
Depending on the security tendered and the time of tender, holders of eligible securities who participated in
the offer were entitled to receive, in exchange for their securities, different combinations of the following:

2005 Pars;

2005 Discounts;

2005 Quasi-Pars; and

2005 GDP-linked Securities.
Participants in the 2005 debt exchange have the right to participate in any future offer by Argentina to
repurchase, exchange or amend any of the debt that was not tendered in the 2005 debt exchange. In addition, in an
effort to reassure tendering bondholders and increase the level of participation in the 2005 debt exchange, Congress
passed Law No. 26,017, known as the "Lock Law." The Lock Law prohibited the Executive Branch from reopening
the 2005 debt exchange without Congressional approval and also prohibited any type of settlement involving
untendered securities that were eligible to participate in the 2005 debt exchange. In December 2009, Congress
passed Law No. 26,547, which suspended the operation of Articles 2, 3 and 4 of the Lock Law until the earlier of
December 31, 2010 and the date on which the Executive Branch, through the Ministry of Economy and Public
Finance, announces the conclusion of the process of restructuring of Argentina's debt securities.
The 2005 debt exchange settled on June 2, 2005.

5