Klagen die beim PBA-Umtausch 2005 anhängig waren

In recent years, various investors have used litigation against sovereign debtors to target payments made by
sovereigns to, among others, bondholders that have agreed to a debt restructuring by accepting new securities in an
exchange offer.  As noted below, the Province is a defendant in various suits by bondholders in the United States,
Germany and Switzerland, some of which have resulted in judgments against the Province. There can be no
assurance that a creditor pursuing similar or different arguments or strategies will not be able to interfere with
payments made pursuant to the completion of the Offer or subsequently under any New Bonds issued in connection
with the Offer

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Holders of Existing Bonds have initiated lawsuits against the Province in the United States, Germany and
Switzerland for failure to make payments.  In the United States, eight individual lawsuits have been filed since
March 2002 for a total principal amount of U.S.$1.4 million and €201,000, plus interest, including one lawsuit that
was filed following the Province’s public announcement of the tentative terms of the Offer.  One plaintiff has 
obtained two judgments against the Province totaling approximately U.S.$1.4 million for principal and interest.  The
total amount claimed in bondholder proceedings against the Province in Germany is €470,000, plus interest, and in
Switzerland Sfr.400,000, plus interest.  The Province can give no assurance that further litigation will not result in
even more substantial judgments against the Province.  Present or future litigation could result in the attachment or
injunction of assets of the Province that it intends for other uses, and could have a material adverse effect on the
Province’s public finances and on the market price of the New Bonds.

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Litigation
In May 1999, the Province awarded a concession to Azurix Buenos Aires (“Azurix”), a subsidiary of
Enron, for the provision of water and wastewater services in 48 of the Province’s 134 municipalities.  In January
2001, Azurix alleged that the Province had failed to comply with certain provisions of the concession and, following
several months of unsuccessful negotiations, in October 2001 Azurix renounced the concession agreement and filed
a request for arbitration against the federal government with the International Centre of Settlement of Investment
Disputes (ICSID) on the grounds that Argentina had violated the 1991 Treaty Concerning the Reciprocal
Encouragement and Protection of Investment between the Republic of Argentina and the United States of America
(the “BIT”) and seeking compensation for its alleged damages and requesting the adoption by Argentina of all
necessary measures to avoid further damages to its investment.  In December 2001, Azurix also initiated a separate
legal proceeding against the Province before the Supreme Court of Provincial Justice seeking the formal rescission
of the concession and U.S.$525 million in legal damages resulting from the loss of its investment.  In March 2002,
the Province revoked Azurix’s concession and declared a public sanitary and social emergency in the 48
municipalities that were subject to the concession and assumed the provision of water and wastewater services in
these municipalities through the newly-created Aguas Bonaerenses S.A., which is jointly owned by the Province
(90%) and its employees (10%).  Both the arbitration proceedings and the legal proceedings before the Province’s
Supreme Court are pending.
Bondholders have initiated lawsuits against the Province in the United States, Germany and Switzerland
relating to the Province’s default on its public external debt obligations.  In the United States, eight individual
lawsuits have been filed since March 2002 seeking repayment of approximately U.S.$1.4 million and €201,000 in
bonds issued by the Province that were subject to the suspension of payments announced in January 2002.  These
suits are pending in the United States District Court for the Southern District of New York (which we refer to as the
“District Court”) before Judge Thomas P. Griesa.  As of the date of this offering memorandum, judgment has been
entered against the Province in two cases (brought by the same plaintiff) for matured principal and interest in a total
amount of approximately U.S.$1.4 million.  The Province appealed the ruling entered by the District Court in the
action for matured principal and interest, which the United States Court of Appeals for the Second Circuit
subsequently affirmed in July 2005.  The plaintiff in that case, along with other judgment creditors of Argentina, has
sought post-judgment execution discovery concerning the existence of commercial property of Argentina, the
Province and their agencies and instrumentalities.  The Province last responded to this discovery on July 2, 2004 and
has not received any response from the judgment creditor concerning the discovery.  There are also six individual
lawsuits pending in the District Court in which no judgment has been entered; motions for summary judgment are
pending in three of these suits.  The total principal amount claimed by the plaintiffs in these six actions is
U.S.$424,000 and €201,000.
The total principal amount claimed in bondholder proceedings against the Province in Germany is
€470,000, plus interest, and in Switzerland Sfr.400,000, plus interest.  The Province answered the Swiss complaint
on July 4, 2005.  The Zurich District Court has acknowledged receipt of the Province’s answer and ordered the
plaintiff to submit its reply by October 31, 2005.

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