On June 30,2015, the Board of Directors of BBVA Francés implemented changes to its Senior Management by accepting the resignation of Mr. Juan Eugenio Rogero Gonzalez, Director Risks, and appointing Mr. Gerardo Fiandrino to occupy this position.

Other Events


On July 27, 2015,the BCRA increased the minimum interest rate for long term deposits. augmenting the maximum amount covered to AR$ 1 million from AR$350 thousand. In addition to individuals, companies are now eligible to apply for these types of deposits,

On July 30, 2015, the Bank issued series 16 of its bonds (Obligaciones Negociables), which were fully subscribed and paid for a total amount of AR$ 204.4 million due in 24 months, with a variable interest rate equivalent to the Badlar rate plus 3.75%, with a quarterly payment of interests.


Economie Environment

The Monthly Estimator of Economie Activity (known by its acronym in Spanish as EMAE) increased by 0.8% (seasonally adjusted) in May 2015 compared to Aprii
2015, and 2.2% compared to May 2014.
The industriai sector activity, measured by the Monthly Industriai Estimator (EMI) increased by 0.8% compared to the previous quarter of 2015, while it decreased 0.5% compared to the second quarter of
2014.
Finally, the Synthetic lndex of Construction Activity increased by 6.0% compared to the first quarter of
2015 and 10.0% compared to the second quarter of
2014.
lnflation, measured by the National and Urban Consumer Price lndex (which is used to calculate the CER adjustment for some sovereign bonds) increased by 3.2% in the second quarter of 2015, measuring an accumulated inflation rate of 15.0% yoy and 6.7% in
2015.
The national public sector fiscal balance showed a primary deficit of AR$ 14.1 billion during Aprii and May
2015, registering a decrease of 477% compared to the surplus of AR$ 3.7 billion reached in the same period of the previous year.
Primary public sector spending grew 39.6 % and public sector revenues increased 27.6 % during the quarter.
lnterest payments increased by 66.4% and the total deficit reached AR$ 29.4 billion during the second quarter, an increase of 441.0% compared to the same period in 2014.
In the second quarter, tax revenues increased by
31.0% year over year. lncome tax grew by 47.0% while export duties remained weak and decreased 13.2% in the same period.
In the external sector, the accumulated trade surplus reached USD 1.1 billion during the second quarter of
2015, 66.5% lower than that recorded in the same period of 2014. The trade balance reached total exports of USD 16.8 billion (-19.7% yoy) and total imports of USO 15.8 billion (-11.3% yoy).
In the FX market, the exchange rate (BCRA reference rate) closed at AR$ 9.09 per U.S. dollar on June 30,
2015, increasing 3.0% compared to the AR$ 8.82 rate registered on March 31, 2015 and 11.7% compared to the second quarter of 2014.
As of June 30, 2015, the BCRA's stock of international reserves increased USD 2.4 billion reaching USD 33.9 billion. During the quarter, the Centrai Bank bought USD 3.0 billion in the FX market. The BCRA kept unchanged the bilatera! currency swap deal signed with the People's Bank of China.
The Badlar interest rate for private banks decreased
8 basis points. in the second quarter of 2015, averaging
20.4% compared to a 20.5% average in the first quarter of 2015.
During the second quarter private sector loans denominated in pesos increased 7.1% compared to the first quarter of 2015, while private sector loans denominated in dollars grew 22.3%.
Total deposits in pesos in the financial system increased by 8.2% in the second quarter of 2015 compared to the previous quarter. In the same period, private sector deposits denominated in pesos increased by 12.8% in pesos and those denominated in dollars increased 2.5%.

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