Investor Roadshow Presentation January 2005

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Argentina Can Afford To Pay More! Argentina’s foreign reserves have grown to approximately $20 billion, doublingsince the default! Argentina’s economy has rebounded strongly, with tax revenues reaching $36billion in 2004. Allocating 20% of those revenues to total annual debt service,an amount similar to other emerging economies, would make $7.2 billionavailable, compared to the $4.3 billion implied by Argentina’s exchange offer! Argentina’s primary budget surplus likely reached 5% of GDP in 2004.Maintenance of the current, higher fiscal effort would be in line with that ofsimilar indebted countries, and would represent significant value tobondholders! “Ability to Pay” must continue to be the guiding principle for debtrestructurings5
Argentina Can Afford to Pay MoreArgentina’s WillingnessArgentina’s AbilityCash Up Front $1.2 billion $6.0 billionAverage Annual Debt Serviceon New Debt, <strong>2005</strong>-2008 $1.3 billion $3.0 billionDate to Access Capital Markets No defined goal 2009Primary Surplus (% of GDP) 4.0%Target Participation Rate 50.0% >90.0%NPV as a % of principal 26.0% 55.2%6
Page 3 and 4: PresentersDr. Nicola StockCo-Chair,
Page 5: What All Bondholders Should Know! O
Page 9 and 10: Argentina’s Exchange Offer is Inc
Page 11 and 12: Recent Comments from the Official S
Page 13 and 14: The “Most Favored Creditor” Cla
Page 15 and 16: GCAB’s Approach! Reject Argentina
Page 17 and 18: Bondholders Who Reject the Offer Ha
Page 19: www.gcab.org

Investor Roadshow Presentation January 2005

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