Argentina reinforces rights of depositors

In an attempt to restore confidence in the local banking system, the Argentine Congress recently passed Law No. 25,466 ('the Law') on the intangibility of bank deposits, which prohibits the Federal Government from taking any measure ordering mandatory conversion, freezing or restructuring or in any manner affecting deposits in Argentine pesos or foreign currency. Clearly influenced by the current economic crisis, the Senate confirmed with no objections, and in a matter of minutes, passage the bill approved by the Chamber of Representatives which was promulgated on September 24, 2001