Obligation Buenos Aires City 4% ( XS0234085461 ) en EUR

Buenos Aires City

100 % ▲

Argentine

XS0234085461 ( en EUR )

4% par an ( paiement semestriel ) - Obligation en défaut, paiements suspendus

30/04/2020 - Obligation échue

Prospectus brochure de l'obligation Buenos Aires XS0234085461 en EUR 4%, échue

1 000 EUR

28 583 730 814 EUR

Buenos Aires est une ville cosmopolite située sur le littoral de l'Argentine, connue pour son architecture européenne, sa culture vibrante, son tango emblématique et sa riche histoire.

L'instrument financier analysé, identifié par le code ISIN XS0234085461, est une obligation émise par Buenos Aires, la capitale politiquement et économiquement significative de l'Argentine, située dans le pays d'émission du même nom. Cette émission, d'une taille totale considérable de 28 583 730 814 EUR, était initialement libellée en euros et prévoyait un taux d'intérêt nominal de 4%, avec une fréquence de paiement semestrielle. Cependant, un événement critique est survenu : l'émetteur a fait défaut, ce qui signifie que les paiements de coupons ont cessé. Bien que le prix actuel sur le marché soit indiqué à 100%, cette valeur doit être interprétée dans le contexte du défaut déclaré, car les coupons ne sont plus versés et la maturité de l'obligation, fixée au 30 avril 2020, est passée sans remboursement du principal. La taille minimale à l'achat pour cette obligation était de 1 000 unités.

OFFERING MEMORANDUM
The Province of Buenos Aires

(A Province of Argentina)

Offers to Exchange

· USD Zero Coupon Notes due 2002,

· USD 12.50% Notes due 2002,

· Euro 7.875% Notes due 2002,

· Euro 9% Notes due 2002,

· Euro 10.25% Notes due 20 3
0 ,
· Step-Up Long Term Par Bonds d e
u 2035,

· Yen 4.25% Notes due 2003,
· Step-Up Medium Term Par Bond d
s ue 2020, and

· USD 12.75% Notes due 2003,
· Discount Bonds due 2017
For
· SFr 7.75% Notes due 2003,
(collectively, the "New Bonds"),

· Euro 10.375% Notes due 2004,

· Euro 9.75% Notes due 2004,

· Euro 10% Notes due 2004,

· Euro 10.75% Notes due 2005,

· Euro 10.625% Notes due 2006,
· USD FRNs Notes due 2006,
· USD 13.75% Notes due 2007, and
· USD 13.25% Notes due 2010
(collectively, the "Existing Bonds").

The Province of Buenos Aires (the "Province") is offering to exchange newly issued New Bonds for all of its outstanding Existing
Bonds (the "Offer"). The aggregate principal amount of all Existing Bonds outstanding as of the date of this offering memorandum
is
approximately U.S.$2.7 billion.
The New Bonds will be issued pursuant to a trust indenture that contains collective action clauses regarding future modifications to
the terms of the New Bonds that differ from those applicable to the Existing Bonds. Under these clauses, modifications to reserve
matters specified in the indenture, including modifications to payment and other key terms, may be made to the New Bonds with the
consent of the holders of at least 85% of the aggregate principal amount outstanding of the New Bonds and at least 66-2/3% in
aggregate principal amount outstanding of each series of New Bonds.
Application has been made to list the New Bonds on the Luxembourg Stock Exchange and for the New Bonds to trade on the
regulated market of the Luxembourg Stock Exchange. Application will be made to list the New Bonds on the Buenos Aires Stock
Exchange and the Argentine Mercado Abierto Electrónico.
The Offer expires at 4:00 P.M., Central European Time, on December 16, 2005, unless extended or terminated earlier (the
"Expiration Date"). You must tender your Existing Bonds in the manner described in this offering memorandum on or prior to
the Expiration Date in order to be eligible to participate in the Offer.
An investment in the New Bonds involves a high degree of risk. You should carefully consider the "Risk Factors" beginning
on page 21 of this offering memorandum before you make a decision to tender your Existing Bonds.
The New Bonds have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), or
with any securities regulatory authority of any state or other jurisdiction of the United States. The New Bonds are being offered only
to qualified institutional buyers (as defined in Rule 144A under the Securities Act) in the United States in transactions exempt from
the registration requirements of the Securities Act and to persons outside the United States in reliance on Regulation S of the
Securities Act. Prospective purchasers of New Bonds are hereby notified that sellers of the New Bonds may be relying on the
exemption from the provisions
h
of Section 5 of t e Securities Act provided by Rule 144A. For the description of certain restrictions on
offers, sales or transfers of the New Bonds, see "Transfer Restrictions." This offering memorandum constitutes a prospectus for the
purposes of Directive 2003/71/CE.
Citigroup
October 28, 2005

TABLE OF CONTENTS
Page
Notices............................................................................................................................................................................i
Enforcement of Civil Liabilities .................................................................................................................................. iii
Defined Terms and Conventions ..................................................................................................................................iv
Presentation of Financial and Other Information........................................................................................................ vii
Forward-Looking Statements ..................................................................................................................................... vii
Summary........................................................................................................................................................................1
Summary Time Schedule For The Offer .....................................................................................................................20
Risk Factors .................................................................................................................................................................21
Terms of the Offer .......................................................................................................................................................29
The Province of Buenos Aires.....................................................................................................................................50
The Provincial Economy .............................................................................................................................................55
Public Sector Finances.................................................................................................................................................72
Public Sector Debt.......................................................................................................................................................95
Banco Provincia.........................................................................................................................................................109
Description of New Bonds.........................................................................................................................................118
Transfer Restrictions..................................................................................................................................................133
Taxation.....................................................................................................................................................................135
Jurisdictional Restrictions..........................................................................................................................................151
Official Statements ....................................................................................................................................................159
Validity of the Bonds.................................................................................................................................................159
General Information ..................................................................................................................................................159
Annex A Sample Calculations of New Bond Amounts..........................................................................................A-1
Annex B Form of Paper Acceptance Notice...........................................................................................................B-1
NOTICES
This offering memorandum contains important information that should be read carefully before any
decisions are made with respect to the Offer. The Province is furnishing the offering memorandum to you
solely for use in the context of the Offer. You should rely only on the information contained in this offering
memorandum. No person has been authorized to give any information or to make any representations with
respect to the matters described in this offering memorandum other than those contained herein or therein
and, if given or made, such information or representations must not be relied upon as having been authorized
by us or the dealer manager.
The Province, having taken all reasonable care to ensure that such is the case, confirms that the information
contained in this offering memorandum is, to the best of its knowledge, in accordance with the facts and contains no
omission likely to affect its import. Notwithstanding the foregoing, the information provided in this offering
memorandum that relates to the Republic of Argentina and its economy is based upon publicly available
information, and the Province does not make any representation or warranty with respect thereto.
The information contained herein is as of the date hereof and subject to change, completion or amendment
without notice. The delivery of this offering memorandum shall not under any circumstances create any implication
that the information contained herein is correct as of any time subsequent to the date hereof, or that there has been
no change in the information set forth herein or in any attachments hereto or in the affairs of the Province or any of
its agencies or political subdivisions since the date hereof.
In making an investment decision regarding acceptance of the Offer, you must rely on your own
examination of the Province and of the terms of the Offer and the New Bonds to be delivered in the Offer, including,
without limitation, the merits and risks involved. The Offer is being made on the basis of this offering
memorandum. Any decision to tender Existing Bonds in the Offer must be based solely on the information
contained herein. All references in this document to the Offer Website are inserted as inactive textual references to
i

the "uniform resource locators" or "URLs" and are for informational reference only. Information on the Offer
Website is not incorporated by reference in this offering memorandum.
None of the Province, the dealer manager, the information agent, the exchange agent, the trustees or fiscal
agents under the trust indentures or fiscal agency agreements, as the case may be, for the Existing Bonds, the trustee
under the indenture for the New Bonds, any paying agent for the New Bonds or any of their delegates or agents
makes any recommendation in connection with the Offer. You should not construe the contents of this offering
memorandum as investment, legal or tax advice. You should consult your own counsel, accountant and other
advisors as to legal, tax, business, financial and related aspects of an exchange of your Existing Bonds for any New
Bonds to be issued and delivered pursuant to the Offer. We make no representation to you regarding the legality of
a tender of your Existing Bonds in exchange for New Bonds issued and made available pursuant to the Offer under
appropriate legal investment or similar laws. You must make your own decision as to whether to tender your
Existing Bonds and, if so, the principal amount to tender.
Notwithstanding anything in this offering memorandum to the contrary, we and each prospective investor
(and any employee, representative or other agent of ours or any prospective investor) may disclose to any and all
persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this
offering memorandum and all materials of any kind (including opinions or other tax analyses) that are provided to it
relating to such tax treatment and tax structure. However, any such information relating to the tax treatment or tax
structure is required to be kept confidential to the extent necessary to comply with any applicable federal or state
securities laws.
Neither the U.S. Securities and Exchange Commission, any state securities commission nor any other U.S.
regulatory authority has approved or disapproved the New Bonds, nor have any of the foregoing authorities passed
upon or endorsed the merits of this offering or the accuracy or adequacy of this offering memorandum. Any
representation to the contrary is a criminal offense.
For further information relating to the Offer, please call or e-mail the dealer manager or the information
agent at the telephone numbers or the e-mail addresses set forth on the back cover of this offering memorandum. To
obtain hard copies of this offering memorandum, please contact the information agent.
The distribution of this offering memorandum or any part of it and the offering, sale and delivery of the
New Bonds in certain jurisdictions may be restricted by law. Persons who receive this offering memorandum are
required to inform themselves about and to observe any such restrictions. This offering memorandum does not
constitute an offer to sell or a solicitation of an offer to buy any New Bonds in any jurisdiction to any person to
whom it is unlawful to make the offer or solicitation in such jurisdiction. For a description of certain further
restrictions on offers, sales and deliveries of the New Bonds and on the distribution of this offering memorandum
and any other offering material relating to the New Bonds, see "Jurisdictional Restrictions."
The New Bonds are subject to restrictions on transferability and resale and may not be transferred or resold
except as permitted under the Securities Act and applicable state securities laws pursuant to registration thereunder
or exemption therefrom. See "Transfer Restrictions."
FOR NEW HAMPSHIRE RESIDENTS
NEITHER THE FACT THAT A REGISTRATION STATEMENT OR AN APPLICATION FOR A
LICENSE HAS BEEN FILED UNDER RSA 421-B WITH THE STATE OF NEW HAMPSHIRE NOR THE
FACT THAT A SECURITY IS EFFECTIVELY REGISTERED OR A PERSON IS LICENSED IN THE STATE
OF NEW HAMPSHIRE CONSTITUTES A FINDING BY THE SECRETARY OF STATE THAT ANY
DOCUMENT FILED UNDER RSA 421-B IS TRUE, COMPLETE AND NOT MISLEADING. NEITHER ANY
SUCH FACT NOR THE FACT THAT AN EXEMPTION OR EXCEPTION IS AVAILABLE FOR A SECURITY
OR TRANSACTION MEANS THAT THE SECRETARY OF STATE HAS PASSED IN ANY WAY UPON THE
MERITS OR QUALIFICATIONS OF, OR RECOMMENDED OR GIVEN APPROVAL TO, ANY PERSON,
SECURITY, OR TRANSACTION. IT IS UNLAWFUL TO MAKE, OR CAUSE TO BE MADE, TO ANY
PROSPECTIVE PURCHASER, CUSTOMER OR CLIENT, ANY REPRESENTATION INCONSISTENT WITH
THE PROVISIONS OF THIS PARAGRAPH.
ii

ENFORCEMENT OF CIVIL LIABILITIES
The Province is a political subdivision of a sovereign state. Consequently, it may be difficult for investors
to obtain or realize in the United States or elsewhere upon judgments against the Province. To the fullest extent
permitted by applicable law, the Province will irrevocably submit to the non-exclusive jurisdiction of any New York
state or U.S. federal court sitting in The City of New York, Borough of Manhattan, and any appellate court thereof,
in any suit, action or proceeding arising out of or relating to the bonds or the Province's failure or alleged failure to
perform any obligations under the bonds, and the Province will irrevocably agree that all claims in respect of any
such suit, action or proceeding may be heard and determined in such New York state or U.S. federal court. The
Province will irrevocably waive, to the fullest extent it may effectively do so, the defense of an inconvenient forum
to the maintenance of any suit, action or proceeding and any objection to any proceeding whether on the grounds of
venue, residence or domicile. To the extent that the Province has or hereafter may acquire any sovereign or other
immunity from jurisdiction of such courts (whether through service of notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise), the Province will, to the fullest extent permitted under
applicable law, including the U.S. Foreign Sovereign Immunities Act of 1976, irrevocably waive such immunity in
respect of any such suit, action or proceeding. However, under the U.S. Foreign Sovereign Immunities Act of 1976,
it may not be possible to enforce in the Province a judgment based on such a U.S. judgment, and under the laws of
Argentina any attachment or other form of execution (before or after judgment) on the property and revenues of the
Province will be subject to the applicable provisions of the Code of Civil and Commercial Procedure of Argentina.
See "Description of New Bonds--Governing Law" and "--Submission to Jurisdiction."
iii

DEFINED TERMS AND CONVENTIONS
Certain Defined Terms
All references in this offering memorandum to:
· the "Province," "we," "our" and "us" are to the issuer,
· "Banco Provincia" are to Banco de la Provincia de Buenos Aires,
· the "Central Bank" are to the Central Bank of the Republic of Argentina,
· "Argentina" are to the Republic of Argentina, and
· the "federal government" are to the non-financial sector of the central government of Argentina, excluding the
Central Bank.
The terms set forth below have the following meanings for purposes of this offering memorandum:
· Gross domestic product, or GDP, is a measure of the total value of final products and services produced in
Argentina or the Province, as the case may be, in a specific year.
· Exports are calculated based upon statistics reported to Argentina's customs agency upon departure of goods
originated in the Province on a free-on-board (FOB) basis.
· The rate of inflation or inflation rate provides an aggregate measure of the rate of change in the prices of goods
and services in the economy. The inflation rate is generally measured by the rate of change in the consumer
price index or CPI, between two periods unless otherwise specified. The annual percentage rate of change in
the CPI as of a particular date is calculated by comparing the index as of that date against the index as of the
date 12 months prior. The CPI is calculated on a weighted basket of consumer goods and services that reflects
the pattern of consumption of Argentine households using a monthly averaging method. The federal
government also compiles statistics on the wholesale price index, or WPI. The annual percentage rate of change
in the WPI as of a particular date is calculated by comparing the index as of that date against the index as of the
date 12 months prior. The WPI is based on a basket of goods and services that reflects the pattern of
consumption of Argentine retailers. The CPI measures changes in the price level of goods and services to the
final consumer and therefore tends to reflect changes in the cost of living in Argentina. While the WPI also
provides a measure of inflation, it is more limited in scope since it measures changes in the price of goods and
services paid by retailers and not the end consumers.
· Coeficiente de Estabilización de Referencia, or CER, is a unit of account adopted on February 3, 2002, the
value in pesos of which is indexed to consumer price inflation. The nominal amount of a CER-based financial
instrument is converted to a CER-adjusted amount, and interest on the financial instrument is calculated on the
CER-adjusted balance.
· Coeficiente de Variación Salarial, or CVS, is a unit of account used from October 1, 2002, through March 31,
2004, the value in pesos of which was determined based on changes in an index of public and private sector
wages. The nominal amount of a CVS-based financial instrument is converted to a CVS-adjusted amount, and
interest on the financial instrument is calculated on the CVS-adjusted balance.
· The Conurbano Bonaerense is an industrialized and heavily populated urban area surrounding the City of
Buenos Aires. The scope and coverage of this area are defined by federal government agencies to represent a
diverse demographic sample of Argentina's urban population based upon selected socio-economic variables for
use in the development and implementation of national public policies. The area consists of several
municipalities of the Province that surround the City of Buenos Aires and does not include the City of Buenos
Aires. Approximately 63% of the Province's population resides within the Conurbano Bonaerense.
iv

· The unemployment rate represents the percentage of the Province's labor force that has not worked a minimum
of one hour with compensation or 15 hours without compensation during the week preceding the date of
measurement. The labor force refers to the sum of the population of the four main urban centers of the Province
(La Plata, Bahía Blanca, Mar del Plata and the Conurbano Bonaerense) that has worked a minimum of one hour
with compensation or 15 hours without compensation during the week preceding the date of measurement plus
the population that is unemployed but actively seeking employment.
· The underemployment rate represents the percentage of the Province's labor force that has worked fewer than
35 hours during the week preceding the date of measurement and seeks to work more.
· Patacones are quasi-currency treasury bonds issued by the Province in 2001 and 2002 to finance its fiscal
deficits during Argentina's economic crisis.
· Boconba are bonds that the Province began to issue in 1991 to claimants who have prevailed in legal actions
brought against the Province or its municipalities in satisfaction of their legal claims. The terms of these bonds
vary depending on the dates on which the events giving rise to a claimant's legal action occur. These bonds
were originally denominated in pesos or dollars at the option of the claimant. The dollar-denominated Boconba
were converted to CER-adjusted pesos at a rate of Ps.1.40 per U.S.$1.00 as part of the pesification process in
2002. Boconba issued after the pesification process are denominated in pesos.
· Eurobonds are bonds issued by the Province in the international capital markets since 1995, including securities
issued under the Province's U.S.$3.2 billion Euro Medium-Term Note program ("EMTN Program") established
in 1998. All of the Existing Bonds are Eurobonds.
· Boden are bonds that the federal government began to issue in 2002 to compensate individuals and financial
institutions affected by some of the emergency measures adopted by the federal government during the recent
economic crisis.
· Bogar are bonds issued by the federally administered Fondo Fiduciario para el Desarrollo Provincial
(Provincial Development Fund) in order to restructure debt obligations of Argentina's provinces, including the
Province. The Province indirectly guarantees payments on these bonds, up to an amount equal to 15% of the
federal tax co-participation revenues to which it is entitled, through an assignment to the Provincial
Development Fund of such portion of those revenues. Although the federal government instructs the trustee of
the Provincial Development Fund to make any remaining payments due on these bonds, the Province has an
obligation to reimburse the Provincial Development Fund for any amounts paid on these bonds.
Currency of Presentation
Unless otherwise specified, references in this offering memorandum to "dollars," "U.S. dollars," "U.S.$"
and "$" are to the currency of the United States of America, references to "euros" or "" are to the currency of the
European Union, references to "pesos" and "Ps." are to Argentine pesos, references to "Swiss francs" and "Sfr." are
to the currency of Switzerland and references to "yen" and "¥" are to the currency of Japan.
The Province publishes most of its economic indicators and other statistics in pesos. From April 1, 1991
through January 6, 2002, the amounts presented to reflect economic indicators were the same in dollars and in pesos
due to the fixed one-to-one dollar/peso exchange rate that prevailed during this period. For figures reflecting flows
of peso amounts during a specified period, the average dollar-peso exchange rate for that period is used. For figures
reflecting amounts as of a specific date, the exchange rate applicable on that date is used.
During the period from January 6, 2002, through February 11, 2002, the following two separate peso-dollar
exchange rates were in place:
· the official rate, set at Ps.1.40 per U.S. dollar, used for export transactions, selected imports and capital
payments, and
v

· the unofficial rate (or market exchange), a floating rate that applied to all other transactions.
Since February 2002, the peso floats against other currencies, although the Central Bank purchases or sells
U.S. dollars on the currency exchange market on a regular basis in order to minimize fluctuations in the value of the
peso. The table below sets forth nominal exchange rate figures:
Nominal Exchange Rates (pesos per U.S. dollar)

Average
Period-end
2000 .................................................. 1.00
1.00
2001 .................................................. 1.00
1.00
2002 .................................................. 3.07
3.36
2003 .................................................. 2.95
2.94
2004 .................................................. 2.94
2.98
January ............................... 2.89
2.93
February ............................. 2.93
2.92
March ................................. 2.89
2.86
April ................................... 2.83
2.84
May .................................... 2.92
2.96
June .................................... 2.96
2.96
July ..................................... 3.00
2.98
August ................................ 3.01
3.00
September........................... 2.99
2.98
October............................... 2.97
2.97
November........................... 2.95
2.94
December ........................... 2.97
2.98
2005
January ............................... 2.94
2.92
February ............................. 2.92
2.94
March ................................. 2.85
2.92
April ................................... 2.90
2.91
May .................................... 2.89
2.89
June .................................... 2.88
2.89
July ..................................... 2.87
2.86
August ................................ 2.89
2.91
September........................... 2.91
2.91

Source: Central Bank
Currency conversions, including conversions of pesos into U.S. dollars, are included for the convenience of
the reader only and should not be construed as a representation that the amounts in question have been, could have
been or could be converted into any particular denomination, at any particular rate or at all.
vi

PRESENTATION OF FINANCIAL AND OTHER INFORMATION
All annual information presented in this offering memorandum is based upon January 1 to December 31
periods, unless otherwise indicated. Totals in some tables in this offering memorandum may differ from the sum of
the individual items in those tables due to rounding.
Unless otherwise stated, prices and figures are stated in current values of the currency presented.
Certain statistical information included in this offering memorandum is preliminary in nature and reflects
the most recent reliable data readily available to the Province as of the date of this offering memorandum.
Certain information presented in this offering memorandum relating to the national economy of Argentina
is included only for the purpose of providing context for the information presented relating to the economy of the
Province. General information relating to the national economy of Argentina can be found in the Registration
Statement of the Republic of Argentina, dated January 27, 2005, on file with the U.S. Securities and Exchange
Commission. Such information may only be accurate as of the date indicated therein, however, and the Province
makes no representation regarding the accuracy or completeness of such information.
FORWARD-LOOKING STATEMENTS
This offering memorandum may contain forward-looking statements, which are statements that are not
historical facts, including statements about the Province's beliefs and expectations. These statements are based on
the Province's current plans, estimates and projections. Therefore you should not place undue reliance on them.
Forward-looking statements speak only as of the date they are made. The Province undertakes no obligation to
update any of them in light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties, including, but not limited to, those set
forth in "Risk Factors" in this offering memorandum. A number of important factors could cause actual results to
differ materially from those contained in any forward-looking statement. The information contained in this offering
memorandum identifies important factors that could cause such differences. Such factors include, but are not limited
to:
· adverse domestic factors, such as increases in inflation, high domestic interest rates and exchange rate volatility.
Each of these factors could lead to lower economic growth;
· adverse external factors, such as changes in international prices (including commodity prices) for goods
produced within the Province, high international interest rates and recession or low economic growth in
Argentina's trading partners. Changes in international prices and recession or low economic growth in
Argentina's trading partners could decrease the value of exports from the Province, induce a contraction of the
Province's economy and, indirectly, reduce tax revenues and other public sector revenues and adversely affect
the Province's accounts; and
· other adverse factors, such as climatic or political events, international or domestic hostilities and political
uncertainty.
vii

SUMMARY
The following constitutes a summary of the main characteristics and risks associated with the Province and
the New Bonds. This summary does not purport to be complete and must be read as an introduction to this offering
memorandum. Any decision to invest in the New Bonds should be based on a consideration of this offering
memorandum as a whole, including the risks described under "Risk Factors." Following the implementation of the
relevant provisions of the Prospectus Directive (Directive 2003/71/EC) in each Member State of the European
Economic Area, no civil liability will attach to the Province in any such 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 offering memorandum. Where a claim relating to the information contained in this
offering memorandum is brought before a court in a Member State of the European Economic Area, the plaintiff
may, under the national legislation of the Member State where the claim is brought, be required to bear the costs of
translating the Prospectus before the legal proceedings are initiated.
Selected Economic Information
(in billions of pesos unless otherwise indicated)

For the year ended as of December 31,
2000 2001 2002 2003(1) 2004(1)
ECONOMY

Real GDP (in billions of 1993 pesos) .......................
93.6 88.8 79.4 88.1 96.7
Rate of change from prior year.................................
(2.0)% (5.0)% (10.6)% 10.9% 9.9%
Provincial GDP as a % of National GDP .................
34.4% 34.9% 34.9% 35.9% 36.1%
Nominal GDP ...........................................................
97.9 93.8 109.1 135.0 161.6
Inflation (as measured by CPI) .................................
(0.7)% (1.5)% 41.0% 3.7% 6.1%
Unemployment rate(2) ...............................................
16.7% 20.8% 20.4% 17.8% 14.9%

PUBLIC SECTOR FINANCES

Total Revenues .........................................................
8.7 7.7 9.4 11.2 14.9
As a % of GDP .........................................................
9.0% 8.4% 8.8% 8.7% 9.7%
Total Expenditures (excluding interest expenses) ....
10.3 11.4 9.9 10.9 14.1
As a % of GDP .........................................................
10.7% 12.5% 9.3% 8.5% 9.2%
Primary fiscal balance(3) ...........................................
(1.7) (3.8) (0.5) 0.3 0.8
As a % of GDP .........................................................
(1.7)% (4.1)% (0.5)% 0.2% 0.5%
Total Surplus (Deficit)(4)...........................................
(2.0) (4.4) (0.8) (0.2) 0.2
As a % of GDP .........................................................
(2.1)% (4.8)% (0.8)% (0.2)% 0.3%
Overall financial result .............................................
(0.1) (1.4) 1.6 0.2 0.5
As a % of GDP .........................................................
(0.1)% (1.5)% 1.5% 0.1% 0.3%

PUBLIC SECTOR DEBT

Peso-denominated debt.............................................
0.6 2.1 14.9 16.1 17.2
Foreign currency denominated debt(4) ......................
6.4 8.8 11.8 11.3 12.0
Total debt(5)...............................................................
6.9 10.9 26.8 27.4 29.2
Total debt (in billions of U.S.$)(5).............................
6.9 10.9 7.9 9.3 9.8
Debt as a % of GDP(5)...............................................
7.2% 11.9% 25.0% 21.3% 19.0%
Debt as a % of total revenues(5) ................................
80.1% 141.8% 284.0% 244.6% 196.0%

(1) Preliminary
data.
(2)
As of October of each of 2000, 2001 and 2002, and for the second half of each of 2003 and 2004.
(3)
Excluding interest payments and net borrowings (repayments).
(4)
Excluding net borrowings (repayments).
(5)
Excluding past due interest payments.
Sources: Provincial Office of Statistics; Ministry of Economy of the Province; Federal Ministry of Economy and Production.

The Province
Introduction
General
The Province is the largest of the 23 provinces of Argentina, with a population of approximately 13.8
million inhabitants. It is located in the central-eastern part of the country, in a region known as the "Pampas". The
capital of the Province is the city of La Plata.
Provincial Government, Political Parties and Recent Political History
The provincial government consists of an executive branch, a legislative branch and a judicial branch. The
executive branch consists of a Governor and a Vice Governor, both of whom are elected by popular vote, and a
number of ministries, secretariats and other provincial governmental agencies. The legislative branch consists of the
Senate and the House of Representatives. The judicial branch consists of trial courts, courts of appeals and the
Supreme Court, which have jurisdiction over civil, commercial, administrative, labor, family and criminal matters
within the Province. In addition, the provincial constitution provides for the existence of certain provincial agencies
that do not fall under any of the three branches of government.
Each of the Province's 134 municipalities has its own government, responsible for providing basic local
services. Pursuant to provincial law, the Province's municipalities are entitled to receive a percentage of the taxes
collected by the Province and the federal government. In addition, several municipalities are entitled to collect
certain provincial taxes.
Historically, the two largest and most traditional political parties in Argentina have been the Partido
Justicialista, or the PJ Party and the Unión Cívica Radical, or the UCR Party, which have broad-based support
across the country, followed by Afirmación para una República Igualitaria, or the ARI Party, and Recrear para el
Crecimiento, or the Rebuild for Growth Party. Recently, however, former members of the PJ Party led by the
President of Argentina, Néstor Kirchner, and the Governor of the Province, Felipe Solá, formed a new rival political
party known as Frente para la Victoria, or Front for Victory, which obtained the most votes in the national and
provincial legislative elections held in October 2005. The current terms of the President of Argentina and the
Governor of the Province both expire in December 2007.
The Provincial Economy
Overview
Historically, the economy of the Province has represented a significant part of the overall Argentine
economy and has tracked growth and recessionary cycles in the larger Argentine economy.
In 1991, the federal legislature enacted the Convertibility Law, which established a fixed exchange rate of
the peso and the dollar at Ps.1.00 per U.S.$1.00 in order to stabilize the inflation rate. Although the Convertibility
regime and other free-market initiatives of the federal government temporarily achieved price stability, increased the
efficiency and productivity of the economies of Argentina and the Province and attracted significant foreign
investment to Argentina, including the Province, the dependence of Argentina's economy on the in flow of foreign
capital increased its vulnerability to external shocks, led to over-reliance on certain economic sectors, and restricted
the Central Bank's ability to provide credit.
During the second half of 2001, the Province, along with all of Argentina, entered a state of severe
economic crisis. During the months leading up to the onset of the crisis, the Province took measures intended to
brace its economy for the impending crisis, including the issuance of Patacones, a provincial quasi-currency bond.
As a consequence of this highly unstable political and economic situation, the Province's real GDP declined in 2001
and 2002 and its unemployment rate increased.
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