ASSETS

Note 1: Cash and other monetary assets

a) Banks

The balance includes bank accounts operated by:

In Pesos ($)

Balances of the bank accounts operated by the Treasury are taken from the registrations made by said Body in the book opened to that effect, according with the information obtained from the Automatic Bank Conciliation Subsystem of the Integrated System of Financial Information (S.I.D.I.F.).

Said balances include deposits of the Single Account of the Treasury (S.A.T), a system coordinated by the Treasury, and as of December 31, 2003, there were still certain Financial Administrative Services not incorporated to said regime.

Among the bank accounts that operate outside the S.A.T. and which are shown in the document “Result of Verifications Carried Out”, aimed at the Control Agencies, are the ones belonging to the Central Administration Services, mainly belonging to the Legislative Branch, The Judiciary Branch, the Public Ministry and the Executing Units of Foreign Loans (UEPEX).

Also, the balance of the account as of December 31, 2003 includes $88,263,524.55.- representing an equal amount in Provincial Bonds (LECOP), with the following detail:

In Pesos ($)

b) Revolving Funds

The balance is formed by the authorized amounts in the hands of each Financial Administrative Service, under the regime for Revolving Funds and Cash in hand (Decree Law # 2380/94 and amendments) and which, being at closing time deposited in bank accounts which are not administered through the bank conciliation subsystem abovementioned, are disaggregated to the body level according to the following:

In Pesos ($)

It is worth mentioning that, for this fiscal year, the criteria used for the disclosure of revolving funds has been changed. As of fiscal year 2002, the same represented their constitution amounts plus/less their adjustments, and net of the expenses to be repaid, which were disclosed in the accrued debt payable. For this fiscal year, and in order to improve the information given, the non repaid portion has not been netted and has been disclosed in the accrued debt payable.

In order to compare the balances expressed in 2002, under the disclosure criteria of the same, we should say that if the criteria used were kept, the balance of the revolving funds for 2003 would be of $41,902,870.35, as the balances due which should have been netted are of $14,566,983.49, amount which for the period under analysis, is included in the accrued debt payable.

Note 2: Financial Investment

The balance of the accounts included in this item is integrated as follows:

a) Term Investment

The amount disclosed represents the funds provided by the Treasury, destined to the Fund provided for in Article 9 of Law # 25,152 and amendments and supplementary regulations.

The balance disclosed represents US$ 8,144,516.53.- invested in cash, equivalent to $ 23,900,083.76.- according to the information provided by the Treasury.

b) Bills and Bonds

The items included are as follows:

In Pesos ($)

(1)   According to the information provided by the Treasury, they are meant to guarantee the interest of financial operations within the Brady Plan, thus not being openly available. The balance represents operations due in January 2004, for US$ 31,310,000.00.- and € 2,688,154.02.-

(2)   It includes several amounts received by the Treasury form the liquidated companies, as follows:

In Pesos ($)

Note 3: Short Term Credit

The balance of the accounts included in this item is formed as follows:

a) Accounts Receivable

In Pesos ($)

(1)   This includes debt born for this concept by several bodies of the National Administration with the Treasury, according to the contributions set in the corresponding Budget laws. The amount disclosed includes $106,542,343.59 which is owed by the Central Administration, and thus in part of the Current Liabilities.

(2)   Its detail by debtor is as follows:

In Pesos ($)

(3)   It represents deposits available at the Central Bank, from tax revenue, to guarantee the payment of interest on capital and interest of the debt issued under Decree 1646/2001.

(4)   Credit originally due in year 2000, extended first until July 31, 2001, under Resolution 11/2001 of the Secretariat of Energy and Mining of the Ministry of Economy, then until December 10, 2002 under Resolution 41/2002 of the Secretariat of Energy of the Ministry of Economy and finally until April 10, 2003 under Resolution 201/2002 of the Secretariat of Energy of the Ministry of Economy

(5)   Its detail by debtor is as follows: 

In Pesos ($)

(*)It includes the amount of $ 707,175.74 for the installments of capital due at closing of fiscal year, $ 1,402,871.00 for installments of capital due during year 2004, and $ 3,744,036.74 for accessories accrued at closing over the total debt. The non current portion of the credit against said company are exclusively for installments of capital as shown in Note 6, point a). 

(**) Balance totally due and unpaid.

(6)   Amount of five equal installments of $ 395.000,00, of ARTEAR S.A., which are due at closing of fiscal year.  

(7)   The balance is a 3.5% portion of the Judiciary Branch over the non tax resources which at closing have not been transferred from the Treasury to said jurisdiction, and said amount is included in the current liabilities.

b) Documents Receivable

In Pesos ($)

(1)   Corresponds to the financial application in favor of the Treasury under Decree 1383/03.

(2)   Its detail is as follows:

(*) It corresponds to the original amount of the net installment of partial cancellation of $ 2,000,000.00 made during fiscal year 2001.

(3)   Document representing the last installment due on 05/06/2004, under the Agreement dated 10/15/1999 celebrated between the National Government and said company, approved by Resolution 533/2000 of the Ministry of Economy. It includes non accrued interest registered under Deferred Liabilities.

c) Imprests

In Pesos ($)

(1)   Its detail by Province is as follows:

In Pesos ($)

(2)   For the rights counterpart of the assets, financed with public debt.

(3)   Balance to be recovered made to the Administrators of Pension Funds, Under Decree 625, dated October 26, 1995.

(4)   Its detail by creditor body is as follows:

In Pesos ($)

d) Loans Granted

The balance corresponds to the current part of the loans granted to the electricity cooperatives through the Provincial Electricity Fund (FEDEI), and includes the amount of $ 2,325,826.53.- for due installments which were unpaid as of December 31, 2002.

e) Other Credits

The balance disclosed in the Financial Statements is integrated as follows:

In Pesos ($)

(1)   It refers to two installments paid by the Treasury, as aval of a loan agreement of said company with the Banco de la Nación Argentina, not cancelled by the former.

(2)   Debt consolidated on behalf of the Banco Central de la República Argentina, of the Government of the City of Buenos Aires and of the Federal Bureau of Public Revenue.

(3)   It refers to debit in the accounts of the Treasury because of judiciary seizures, on which, through Memo MEMO-EDPROCON-100057/2004, the National Accounting Office has consulted with the Legal Department of the Ministry of Economy on their situation, but has not received an answer on the point at the moment of elaborating these Financial Statements.

Note 4: Other Short Term Assets to be Allocated

This item includes $ 433,132,969.66 from reimbursements to the Treasury informed by the Trust Fund for Provincial Development in its Financial Statements as of December 31, 2001, as a decrease of the Net Position. At the time of these financial statements, the situation has not changed, but it is estimated that during fiscal year 2004 the same will be settled.

A similar concept has been adopted for the amount of $ 129,772,271.88 corresponding to the Trust Fund for the Assistance of Financial and Insurance Entities, and for $ 2,898,456.10 informed by the Trust Fund for the Banco de Inversión y Comercio Exterior.

Note 5: Long Term Financial Investment

This item is composed as follows:

a) Shares:

b) Bills and Bonds

In Pesos ($)

Source: National Treasury Office

(1)   According to the information provided by the Treasury, they guarantee the capital of the financing operations within the Brady Plan framework, and thus are not freely available. The balance is US$ 355,344,202.71 and € 38,044,026.71.

(2)   The balance disclosed is exclusively for interest coupons due.

(3)   The balance disclosed includes interest coupons due, for US$ 1,005,440.00.- for F.R.B. Arg.

Note 6: Long Term Credit

The balances of the accounts which are part of this item are composed as follows:

a) Accounts receivable

In Pesos ($)

(1)   The balance has not been reconciled with the Financial Statements of said Entity as of Dec. 31, 2003, as the same were not audited at issuance time of these Statements.

(2)   There follows a detail of the balances owed by the Provinces to the Treasury:

In Pesos ($)

(3)   It includes the pending balances of re-loan agreements between the Nation and the Provinces, for the financing of several programs and projects.

(4)   The balance represents debt of the Banco Central de la República Argentina transferred to the Nation, according to the amendment of the Bylaws of the same, under Law 24,144. According to the information provided by said entity, the same acknowledges an amount of $20,997,037.37 for said concept. Thus, and due to the fact that there is a possibility that the residual amount does not correspond to the balances in favor of the Treasury, the same were provisioned for an amount of $ 980,560,278.56.

(5)   These correspond to the loans obtained for tax obligations due as from January 1, 2003, under Decree 979/2001 and implemented through the issuance of Fiscal Credit Certificates, sent to the Trust Fund as reimbursable documents.

(6)   The balance remains the same as the amount expressed in the financial statements of fiscal year 2002, as it was impossible to get reliable information to quantify the variations of the same, at closing time of this fiscal year.

(7)   Dated 09/19/2001, the company has entered bankruptcy procedures, under First Instance National Commercial Tribunal 9, Secretariat 18, thus, the balance as of Dec. 31, 2000 and  the variations suffered during fiscal year 2001, was reclassified in this account at closing of said fiscal year.

(8)   The balance represents debt in favor of the National Government in relation to the company Correo Argentino S.A., for the Cannon of the Concession contract of the Postal, Monetary and Telegraph Services, with a detail of the installments due at closing of fiscal year, for the percentage of the Treasury (70%), plus accrued interest, under the corresponding Agreement:

(*)  For the balance receivable after Payment Order 86.129/2000 applicable to the owed cannon for the Company, a total amount of $ 430,538.86 for services compensated during 2002 and a recovery of $ 18,676,602.83 during this fiscal year. We should say that the amount disclosed for fiscal year 2002, includes the post concourse cannon owed at closing of this fiscal year.

(**) Interest has been calculated as of the date of presentation of bankruptcy procedures (9/19/2001), for the part included in the procedures, plus accrued amounts at closing of the fiscal year under analysis, for the post concourse part. 

(9)   The balance, which amount and elements have not shown variations during the fiscal year, represents debt of the Nation, as a consequence of the collocation of Treasury Bills for the financing of several provinces, as follows:

(9)   The balance represents debt of the Nation for privatization processes, and its detail by debtor is as follows:

In Pesos ($)

(*) It was removed from the financial statement of the Central Administration, because said credit is registered in the financial statements of the Decentralized Body “National Parks Administration”.

(10) It includes the amounts of $ 10,184,800.00 corresponding to the Intervention Law  22.229 “Grupo Greco”, and $ 5,192,657.06 for “Several Imprests”, both provisioned in point g).

b) Documents Receivable

In Pesos ($)

c) Long Term Imprests

The balance is for imprests granted to Suppliers and Contractors of the Argentine Air Force and the Argentine Navy.

In Pesos ($)

d) Loans Granted

In Pesos ($)

(1)   There follows a detail of each of the elements of the Shared Property Program:

In Pesos ($)

e) Trust Funds

The balance is the total amount of the net positions, and their management statements were obtained from the corresponding trust fund administrators:

In Pesos ($)

The Net Position integrated for the Provincial Development Trust Fund is the one informed as of Dec. 31, 2003, but as said Fund presented its Financial Statements on June 7, 2004, the adjustment of its net position was made with a counterpart in the account “Current Liabilities to be allocated”, as it was impossible to analyze completely the causes of the variation in relation to 2002. Said situation will be corrected during fiscal year 2004.

f) Other Credit receivable

The balance disclosed in the Balance Sheet follows the detail indicated below:

In Pesos ($)

(1)   According to previous balances, the Secretariat of Financing is a creditor of Parques Interama S.A., which is undergoing bankruptcy procedures.

On the other hand, said company had introduced a claim against the ex – Municipality of the City of Buenos Aires for the collection of pesos, which is under First Instance Commercial Tribunal 24, Secretariat 47, and in relation to which first and second instance sentences have been in favor of the plaintiff.

Due to the liquidations made by the Ruling Body as of December 31, 2000, according to sentence procedures, the amount against the ex – Municipality of the City of Buenos Aires is approximately of 4,024.2 million, which covers the credit of the National Government, thus it is kept as a long term credit.

In relation to the status of the claim, as well as others in which the Secretariat of Financing acts as the plaintiff, it is not possible to be more accurate, as the National Accounting Office has not received a proper answer to the requirements made to the Department of Legal Affairs of the Ministry of Economy and Production.

(2)   Both credits have been provisioned, under point g).

(3)   It includes the amount of $ 21,425,268.41 corresponding to several debtors under legal procedures, which have been provisioned, under point g).

g) Provision for Uncollectible amounts

Apart from the provisions estimated as of Dec. 31, 2000, during this fiscal year there has been a provision made for removed assets of the BCRA (See Note 6, point a) item 3):

Note 7: Property, Plant and Equipment

The tasks of valuation and registration of real estate provided for by Administrative Decision 56/1999 were continued by the National Accounting Office and the National Assessments Tribunal, which caused a rise of $ 192,029.26 in the account “Real Estate”.

Annex A of these Financial Statements shows a detail of the accounts which are part of this item.

Note 8: Contributions and Capital Shares

According to point 5 of article 87 of Law # 24,156 and corresponding amendments and regulations, the following concepts are integrated in the Financial Statements of the Central Administration: Net Position of Decentralized Agencies, Social Security Institutions, National Universities and Governmental Companies, which are reflected in this account as follows:

In Pesos ($)

In Annex B there is a detail of the patrimony of each body and company, with information about the date of the last audited Financial Statements.

The National Accounting Office has adjusted the Net Position of the Decentralized Bodies and National Universities due to omissions of registration by said entities, as indicated in points a) and b) below.

a)      Contributions owed to the Treasury

b)     Impertinence of credit acknowledgment

The National Universities listed below have considered as a credit against the Central Administration the amounts of the non executed budget of several fiscal years, for the part that can be financed by said Administration.

Due to the impertinence of said acknowledgment, the corresponding Net Positions have been decreased, so as to cancel the impact of such registrations, as indicated below:

c)      Decentralized Bodies: Comments on relevant issues

The most relevant variations in the net equity of Decentralized Bodies are due to the Fiscal Year results. However, it is necessary to mention the variations of the following:

103 – National Council of Scientific and Technical Investigations.

The Net Equity at closing of fiscal year 2003 is of $ 138,477,377.26, showing a positive variation in relation to fiscal year 2002 of $ 102,037,436.88. The same is mainly due to an increase in the revenue of $ 68,706,341.79 because of differences in exchange rates and lower expenses for $ 26,407,134.59 due to a reclassification of the registration of subsidies.

117 – National Institute of Theatre.

The Net Equity at closing of fiscal year 2003 is of $ 7,831,295.27 showing a positive variation in relation to fiscal year 2002 of $ 4,917,723.13. This variation is mainly due to the Fiscal Year Results which reach an amount of $ 4,972,068.39.

201 – National Migrations Department.

The Net Equity at closing of fiscal year 2003 is of $ 9,942,473.40, showing a negative variation in relation to fiscal year 2002 of ($ 6,759,880.60). This variation is mainly due to the Results of Previous Fiscal Years and to the Fiscal Year Results.

470 – Institute of Financial Assistance for the Payment of Military Pensions and Terminations.

The Net Equity at closing of fiscal year 2003 is of $ 184,411,515.70, showing a positive variation in relation to fiscal year 2002 of $ 1,049,823,305.25 mainly due to the Capitalization System.

622 – National Institute of Industrial Property Rights.  

The Net Equity at closing of fiscal year 2003 is of $ 7,260,918.72, showing a positive variation in relation to closing of fiscal year 2002 of $ 5,339,930.09. The main incidence in the variation is due to the results of previous fiscal years and the result of the fiscal year.

852 – Superintendency of Labor Risks.

The Net Equity at closing of fiscal year 2003 is of $ 15,104,081.73, showing a positive variation in relation to fiscal year 2002 of $ 11,625,981.26. The main incidence in the variation is due to the result of the fiscal year which reaches an amount of $ 12,924,304.26.

Note 9: Other Non Current Assets to be Allocated

The balance includes the amount of $ 4,440,006,772.84, showing the assets transferred by Ferrocarriles Argentinos (under liquidation.) and Ferrocarriles Metropolitanos S.A. to the Ex Ente Nacional de Bienes Ferroviarios (ENABIEF) and to the National Committee of Transport Regulation (C.N.R.T.), situation which had impacted on the Financial Statements of the first two, but which were not taken for the last two; and this is the same for this fiscal year and the situation has not been corrected by the National Assets Administration Body, as successor of the Ex ENABIEF.

Also, in accordance with the criteria applied as from fiscal year 2000, this item groups the representative amounts of the positive Net Equities of liquidated or closed Government Business Companies, until it is verified that the Central Administration has definitely assumed the assets and liabilities of said entities.

The corresponding balance is formed as follows:

In Pesos ($)