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CITIBANK, REPUBLIC OF ARGENTINA SET CLOSING DATE FOR PLAN

 /ADVANCE/NEW YORK, Feb. 23 /PRNewswire/ -- The Republic of Argentina and Citibank said today that the "closing" for the Argentine 1992 Financing Plan will take place on April 7.
 The date was made public in a joint announcement by Argentina's Minister of the Economy, Domingo Cavallo, and Citibank Vice Chairman William R. Rhodes. (Citibank chairs Argentina's Bank Advisory Committee).
 "We are pleased to announce that we are, once again, meeting a very demanding target. This closing is another step forward in reestablishing Argentina's credibility in the international financial markets, which is crucial to increasing the availability of foreign investment and financing," said Minister Cavallo.
 "This closing truly signals the end of the debt crisis for Argentina and the return of fully normal relations with the international financial community," said Rhodes. The Citibank vice chairman noted that the finalization of the Argentine debt accord is just the latest in a series of economic reform measures that have been implemented in the country. "Argentina's performance in managing its economy has placed it among the leaders of economic reform in Latin America and the rest of the developing world," he said.
 At the closing, Argentina will issue Par and Discount Bonds in exchange for approximately $20 billion of medium and long-term debt. Over 750 creditors holding 99 percent of the committed debt have already signed the debt accord with a few remaining banks to come in before the closing. Creditors have committed to exchange a minimum of 35 percent of their debt for discount bonds at a discount rate of 35 percent, with the remaining debt being exchanged for par bonds. The par bonds and discount bonds are 30-year bonds with a bullet repayment, with principal collateralized by 30-year U.S. Treasury Zero Coupon Bonds and interest collateralized for 12 months. The discount bond interest rate is LIBOR plus 13.16 percent; the par bond rate is fixed at 4 percent in Year 1, increasing gradually to 6 percent in year six through final maturity. The Argentine government will also be issuing floating rate bonds for approximately $8 billion of past-due interest. The floating rate bonds will be placed in escrow pending completion of the interest reconciliation. The final date for the floating rate bonds to be released is Sept. 1, 1993. The floating rate bonds are U.S. denominated, uncollateralized 12-year bonds with an interest rate of LIBOR plus 13/16. Argentina will also be making a $700 million cash payment on past due interest.
 The closing, which takes place with formal issuance of bonds to the holders of the country's commercial bank debt, comes one year to the day after the government reached an agreement-in-principle with the Bank Advisory Committee. The term sheet on the accord was agreed to on June 23, 1992; and the formal signing took place in Buenos Aires on Dec. 6, 1992.
 -0- 2/23/93/1430
 /CONTACT: John M. Anderson of Citibank, 212-559-2722/
 (CCI)


CO: Citibank; Republic of Argentina ST: New York IN: FIN SU: FNC

TS-OS -- NY032 -- 9338 02/23/93 10:26 EST
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Date:Feb 23, 1993
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