New economic measures to restrict funds flowing out of the country

In an attempt to stop the flight of deposits from the local financial system, the Argentine Federal Government has issued Decree 1570, as amended by Decree 1606/01, imposing a number of restrictions on the withdrawal of funds from the banking system, the remittance of funds out of the country and the exchange of export proceeds. According to the Decree, the measures will remain in force until the local and international foreign debt swap currently under way and scheduled to be finalised in 90 days is completed. The Central Bank of the Republic of Argentina (BCRA), as regulatory authority in charge of applying the Decree, is issuing new regulations virtually non-stop and even using the telephone to implement the new economic measures.