Obligation Buenos Aires City 9.625% ( XS0290125391 ) en USD

Buenos Aires City

100 % ▼

Argentine

XS0290125391 ( en USD )

9.625% par an ( paiement semestriel )

17/04/2028 - Obligation échue

Prospectus brochure de l'obligation Buenos Aires XS0290125391 en USD 9.625%, échue

100 000 USD

400 000 000 USD

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'Obligation émise par Buenos Aires City ( Argentine ) , en USD, avec le code ISIN XS0290125391, paye un coupon de 9.625% par an.
Le paiement des coupons est semestriel et la maturité de l'Obligation est le 17/04/2028

LUXEMBOURG LISTING PROSPECTUS

The Province of Buenos Aires
(A Province of Argentina)
U.S.$ 400,000,000
9.625% Notes due 2028

The Province will pay interest on the notes on April 18 and October 18 of each year, beginning October 18,
2007. The notes will mature on April 18, 2028. The Province will pay the principal of the notes in three
substantially equal installments on April 18, 2026, then on April 18, 2027, and with the final installment payable on
April 18, 2028.
The notes will be direct, unconditional, unsecured and unsubordinated obligations of the Province, ranking
pari passu, without any preference, among themselves and with all other present and future unsecured and
unsubordinated indebtedness from time to time outstanding of the Province, except as otherwise provided by law.
The Province will apply to list the notes on the Luxembourg Stock Exchange, and to have the notes
admitted to trading on the Euro MTF market of the Luxembourg Stock Exchange, and to list the notes on the Buenos
Aires Stock Exchange and the Argentine Mercado Abierto Electrónico.
Investing in the notes involves risks that are described in the "Risk Factors" section
beginning on page 11 of this listing prospectus.

Per Note
Total
Price to investors(1) ..............................................................
100%
U.S.$ 400,000,000
Initial purchasers' discount..................................................
.15%
U.S.$ 600,000
Proceeds, before expenses, to the Province .........................
99.85%
U.S.$ 399,400,000
(1) Plus accrued interest from April 18, 2007, if settlement occurs after that date.
The notes have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities
Act"), or the securities laws of any other jurisdiction. Unless they are registered, the notes may be offered only in
transactions that are exempt from registration under the Securities Act or the securities law of any other jurisdiction.
Accordingly, the notes are being offered only to qualified institutional buyers pursuant to Rule 144A under the
Securities Act and persons outside the United States in reliance on Regulation S of the Securities Act. For further
details about eligible offerees and resale restrictions, see "Notice to Investors."
The notes will be ready for delivery on or about April 18, 2007.
Joint Lead Managers
Barclays Capital
Deutsche Bank
Local Co-Manager
Banco de la Provincia de Buenos Aires

The date of this listing prospectus is April 23, 2007

TABLE OF CONTENTS
Page
Enforcement of Civil Liabilities .................................................................................................................................. iii
Defined Terms and Conventions ................................................................................................................................. iii
Presentation of Financial and Other Information..........................................................................................................vi
Forward-Looking Statements .......................................................................................................................................vi
Summary........................................................................................................................................................................1
Risk Factors .................................................................................................................................................................11
Use of Proceeds ...........................................................................................................................................................16
Recent Developments ..................................................................................................................................................17
The Province of Buenos Aires.....................................................................................................................................34
The Provincial Economy .............................................................................................................................................39
Public Sector Finances.................................................................................................................................................56
Public Sector Debt.......................................................................................................................................................84
Banco Provincia.........................................................................................................................................................100
Description of Notes..................................................................................................................................................110
Notice to Investors.....................................................................................................................................................124
Taxation.....................................................................................................................................................................126
Plan of Distribution ...................................................................................................................................................132
Official Statements ....................................................................................................................................................134
Validity of the Notes..................................................................................................................................................134
General Information ..................................................................................................................................................134

You should rely only on the information contained in this listing prospectus. The Province has not, and the
initial purchasers have not, authorized any other person to provide you with different information. If anyone
provides you with different or inconsistent information, you should not rely on it. The Province is not, and the
initial purchasers are not, making an offer to sell these securities in any jurisdiction where the offer or sale is not
permitted. You should assume that the information appearing in this listing prospectus is accurate only as of the
date on the front cover of this listing prospectus and may have changed since that date.
The Province is relying on an exemption from registration under the Securities Act for offers and sales of
securities that do not involve a public offering in any jurisdiction. By purchasing notes, you will be deemed to have
made the acknowledgements, representations, warranties and agreements described under the heading "Notice to
Investors" in this listing prospectus. You should understand that you will be required to bear the financial risks of
your investment for an indefinite period of time.
This listing prospectus may only be used for the purposes for which it has been published. It may be
distributed and its contents disclosed only to the prospective investors to whom it is provided. By accepting delivery
of this listing prospectus, you agree to these restrictions. See "Notice to Investors."
This listing prospectus has been prepared by the Province and is based on sources that the Province
believes are reliable. The Province cannot assure you that this information is accurate or complete. This listing
prospectus summarizes certain documents and other information and the Province refers you to them for a more
complete understanding of what the Province discusses in this listing prospectus. In making an investment decision,
you must rely on your own examination of the Province and the terms of the offering and the notes, including the
merits and risks involved.
After having made all reasonable inquires, the Province confirms that it accepts responsibility for the
information it has provided in this listing prospectus and assumes responsibility for the correct reproduction of the
information contained herein.
The Province and the initial purchasers are not making any representation to any purchaser of notes
regarding the legality of an investment in the notes by such purchaser under any legal investment or similar laws or

i

regulations. You should not consider any information in this listing prospectus to be legal, business or tax advice.
You should consult your own attorney, business advisor and tax advisor for legal, business and tax advice regarding
an investment in the notes.
Neither the Securities and Exchange Commission nor any state securities commission has approved or
disapproved of the securities or determined if this listing prospectus is truthful or complete. Any representation to
the contrary is a criminal offense.
In connection with the issue of the notes, the initial purchasers (or persons acting on behalf of the initial
purchasers) may over-allot notes or effect transactions with a view to supporting the market price of the notes at a
level higher than that which might otherwise prevail. However, there is no assurance that the initial purchasers (or
persons acting on their behalf) will undertake stabilisation action. Such stabilising, if commenced, may be
discontinued at any time and, if begun, must be brought to an end after a limited period. Any stabilisation action will
be undertaken in accordance with applicable laws and regulations.
This document is only being distributed to and is only directed at (i) persons who are outside the United
Kingdom or (ii) to investment professionals falling within Article 19(5) of the Financial Services and Markets Act
2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth entities, and other persons to whom it
may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being
referred to as "relevant persons"). The notes are only available to, and any invitation, offer or agreement to
subscribe, purchase or otherwise acquire such notes will be engaged in only with, relevant persons. Any person who
is not a relevant person should not act or rely on this document or any of its contents.

NOTICE TO 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 notes or the Province's failure or alleged failure to
perform any obligations under the notes, 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 Notes--Governing Law" and "--Submission to Jurisdiction."

DEFINED TERMS AND CONVENTIONS
Certain Defined Terms
All references in this listing prospectus to:
· the "Province" are to the issuer,
· "Banco Provincia" are to Banco de la Provincia de Buenos Aires,
· the "Central Bank" are to the Banco Central de la República Argentina, 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 listing prospectus:
· Boden are bonds that the federal government began to issue in 2002 originally to compensate
individuals and financial institutions affected by some of the emergency measures adopted by the
federal government during the recent 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. The laws pursuant to which the Boconba were issued established payment
priority classes according to the nature of the right giving rise to the credit, determining also that

iii

claims within the same class would be cancelled according to the dates on which they were definitively
recognized by court or administrative procedure.
· 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.
· CER, or Coeficiente de Estabilización de Referencia, 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.
· 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.
· Exchange Bonds are the three series of bonds--Step-Up Long Term Par Bonds due 2035, Step-Up
Medium Term Par Bonds due 2020, and Discount Bonds due 2017--issued by the Province pursuant
to the restructuring exchange offer launched in November 2005 to holders of its then outstanding
Eurobonds (as defined below). Approximately 94.7% of the principal amount of the then outstanding
Eurobonds were tendered and cancelled pursuant to the exchange offer, which expired in December
2005.
· 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.
· 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.
· 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.
· 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

iv

by retailers and not the end consumers. Beginning in November 2005, the Province has reported CPI
within its territory. The provincial CPI has registered a rate of change substantially similar to the rate
of change of the national CPI during the same period. For consistency, all references in this listing
prospectus to CPI are to the national CPI.
· Patacones are quasi-currency treasury bonds issued by the Province in 2001 and 2002 to finance its
fiscal deficits during Argentina's economic crisis.
· 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.
· 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.
Currency of Presentation and Exchange Rates
Unless otherwise specified, references in this listing prospectus 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 and references to "pesos" and "Ps." are to Argentine pesos.
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
· the unofficial rate (or market exchange), a floating rate that applied to all other transactions.

v

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 following table sets forth nominal exchange rate figures:
Nominal Exchange Rates (pesos per U.S. dollar)

Average
Period-end
2002 .................................................. 3.07
3.36
2003 .................................................. 2.95
2.94
2004 .................................................. 2.94
2.98
2005 .................................................. 2.92
3.03
2006 ..................................................
3.07
3.06
2007

January ...............................
3.09
3.10
February ............................. 3.10
3.10
March ................................. 3.10
3.10

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.

PRESENTATION OF FINANCIAL AND OTHER INFORMATION
All annual information presented in this listing prospectus is based upon January 1 to December 31 periods,
unless otherwise indicated. Totals in some tables in this listing prospectus 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 listing prospectus is preliminary in nature and reflects the
most recent reliable data readily available to the Province as of the date of this listing prospectus.

FORWARD-LOOKING STATEMENTS
This listing prospectus 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 listing prospectus. 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 listing
prospectus 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, any of which could lead to lower economic growth;

vi

· adverse external factors, such as changes in international prices (including commodity prices) for
goods produced within the Province, changes in international interest rates, recession or low economic
growth in Argentina's trading partners, which 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
This summary highlights selected economic and financial information about the Province. It is not
complete and may not contain all of the information you should consider before purchasing the notes. You should
carefully read the entire listing prospectus, including "Risk Factors," before purchasing the notes.
Selected Economic Information
(in billions of pesos unless otherwise indicated)

For the year ended as of December 31,

2002
2003
2004
2005
2006(1)
ECONOMY

Real GDP (in billions of 1993 pesos).. Ps.
79.4
Ps.
89.0
Ps. 98.3
Ps. 109.2
n.a.
Rate of change from prior year............
(10.6)% 12.1% 10.5% 11.0%
n.a.
National Real GDP Growth.................
(10.9)% 8.8% 9.0% 9.2% 8.5%
Provincial GDP as a % of National GDP
33.8%
34.8%
35.2%
35.8%
n.a.
Nominal GDP...................................... 109.1
135.0 161.6 192.1
n.a.
Inflation (as measured by CPI)............
41.0%
3.7% 6.1% 12.3% 9.8%
Unemployment rate(2).......................... 20.4%
17.8% 14.9% 12.7% 11.3%

PUBLIC SECTOR FINANCES

Total Revenues.................................... Ps.
9.5
Ps.
11.3
Ps.
14.9
Ps.
18.4
Ps.
22.4
As a % of nominal GDP......................
8.7% 8.3% 9.2% 9.6% n.a.
Total Expenditures (excluding interest expenses)
9.9
10.9
14.1
18.2
22.7
As a % of nominal GDP......................
9.1% 8.1% 8.7% 9.5% n.a.
Primary Fiscal Balance(3) .................... (0.5)
0.3
0.8 0.2 (0.3)
As a % of nominal GDP......................
(0.4)% 0.2% 0.5% 0.1% n.a.
Total Surplus/(Deficit)(4) ..................... (0.8)
(0.2)
0.3
(0.3)
(1.1)
As a % of nominal GDP......................
(0.7)% (0.1)% 0.2% (0.1)% n.a.
Overall Financial Result(5)................... 1.6
0.2
0.5 0.0 (0.0)
As a % of nominal GDP......................
1.5% 0.2% 0.3% 0.0% n.a.

PUBLIC SECTOR DEBT(6)

Peso-denominated debt(7) .................... Ps.
14.7
Ps.
15.8 Ps.
17.2 Ps.
19.2 Ps.
20.9
Foreign-currency-denominated debt(8) 12.1
11.6
12.0
10.5
12.5
Total debt(8) ......................................... 26.8
27.4 29.2 29.7 33.4
Total debt (in billions of U.S.$)(8) ....... 7.9
9.3
9.8
9.8
10.9
Debt as a % of nominal GDP(8) ........... 24.6%
20.3%
18.1%
15.5%
n.a.
Debt as a % of total revenues(8) ........... 283.1%
242.9% 196.6% 162.0% 149.2%

(1) Preliminary
figures.
(2)
As of October of each of 2001 and 2002, and for the second half of each of 2003, 2004, 2005, and 2006.
(3)
Excluding interest payments.
(4)
Represents the Primary Fiscal balance minus interest payments.
(5)
Represents total surplus/(deficit) plus borrowings, minus debt repayments.
(6)
Figures at December 31, 2005 reflect the effect of the Province's external public debt restructuring. In November 2005, the Province
launched an offer to eligible holders of its foreign-currency-denominated bonds (on which the Province had ceased making payments) to
cancel these bonds in exchange for three new series of U.S. dollar- and Euro-denominated bonds. As of December 16, 2005, the
expiration date of the exchange offer, holders of approximately 94% of the aggregate principal amount of the Province's outstanding
bonds had consented to cancel these bonds in exchange for the new bonds, which is reflected in the table above.
(7)
Includes debt denominated in CER-adjusted pesos.
(8)
Excluding past due interest payments.

Sources: Provincial Office of Statistics; Ministry of Economy of the Province; Federal Ministry of Economy and Production.

1

The Province
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.
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 the 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. Currently, members of the Front for Victory hold a greater
number of seats (although not a majority) in both the provincial House of Representatives and the provincial Senate
than those held by members of other political parties.
The current terms of the President of Argentina and the Governor of the Province expire in December
2007. The next general elections for the President of Argentina and Governor of the Province will be held in
October 2007.
The Provincial Economy
The Province has a diversified economy. The most significant of the Province's economic production
sectors are manufacturing, real estate and other business activities, wholesale and retail commerce, transportation,
storage and communications, education, health and social services, agriculture, livestock, hunting and forestry, and
construction. Historically, the Province's manufacturing sector is the single largest contributor to provincial GDP.
The manufacturing sector is highly diversified and, historically, food and beverage production and chemicals have
been the most significant contributors to production within this sector. Although all areas of manufacturing were
severely affected by the economic crisis in 2001, beginning in 2003 the Province's manufacturing sector has
recovered significantly and manufacturing output has increased in each of 2003, 2004 and 2005 as compared to prior
year levels.
The economy of the Province represents 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 peso-dollar exchange rate 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 inflow 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.

2