Market Update ASLF 2016 Ingrid Collazo Securities Services Head

Capital Market Source: Mercado Abierto Electrónico – Buenos Aires Stock Exchange Source: Buenos Aires Stock Exchange Source: Cámara Argentina de Fondos Comunes de Inversión Goverment Bonds 222% 6,71% Source: Buenos Aires Stock Exchange – Argentinean Capital Markets Institute Equity Market Capitalization

Recent Market Developments Key Development Change Client Impact FX Market The Government has unified the FX market removing capital inflow restrictions -The 30% reserve requirement previously imposed on capital inflow has been eliminated FX Regulations Repatriation Restrictions Government announced the end of the called “cepo” the FX restrictions in place since New portfolio investments entering the market will have no limit to repatriate - Investments must remain in the country 120 days - USD 2500 per month is available to repatriate Securities transfers to ICSD’s BCRA & CNV have removed the requirement for the three business days holding period - Financial entities are allowed to transfer to international depositories with no need to maintain the securities 3 business days in the account

Recent Market Developments Key Development Change Client Impact New Instruments available to foreign investors BCRA Issued new series of Lebac’s & Nobab’s which can be acquired by residents and non-residents -Non-residents can purchase Treasury Bills (Lebac´s) and Treasury Notes (Nobac´s) issued in pesos by the BCRA and in USD as of December 2015 New Market Infrastructure New Clearing agency on MAE (MAE-CLEAR) New markets specialized on SME’s (MAV) New trading Sessions (SENEBI) -Bilateral Trading Segment for Fixed Income at Merval New CCP environment at MAE (OGGC) for guaranteed operations Trading Platform Connectivity MERVAL-ROFEX & MAE- MATBA signed interconnection agreements Investors can trade and settle products on equal terms and without the requirement of owning a membership of the other market Exemption on Credit & Debit Tax Government has extended the exemption on credit and debit tax for non-residents until December 2017 Foreign investors will continue to be exempt during 2016 and 2017 from bank accounts Debit & Credit tax if it’s used for financial investment.

Forthcoming Initiatives BYMA: Bolsa y Mercados Argentinos as a result of the merger of Bolsa de Comercio and Merval Standarization of Issuer’s announcements at Stock Exchange (BCBA) Government continues to adapt market infrastructures to comply with new law requirements Creation of Central Counterparties (CCPs) and New Clearing Agencies Citi closely monitoring regulatory agenda Market Development

Country Hot Topic. Agreement with the defaulted bond holders Lifting of currency restrictions Regain credibility and access to international markets Plan to reduce inflation rates by 25% and fiscal deficit by cutting subsides in gas and electricity Devaluation of 40% Generate confidence in the new monetary policy framework Withholding taxes reduced to 0% on agricultural, cattle, fishery and industrial products, except for soybean Dismantle the foreign exchange and import controls Reduction of public employees Salary increase negotiation with labour unions New Government

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