Buenos Aires, June 1, 2004.

To the

National Securities Commission of Argentina

                                                             Re: Matter at Issue
Dear Sirs,

     We have the pleasure to write to you in order to ensure compliance with

pending obligations under the Banco Galicia Uruguay S.A. agreement.  The

regulatory authorities of Argentina and Uruguay have decided to authorize the

establishment of a trust, which will offer additional backing for the debt

obligations of Banco Galicia Uruguay S.A.

     Similarly, it has been decided that in conjunction with the implementation

of said trust, the Central Bank of Uruguay will restore the statutory authority

of Banco Galicia Uruguay S.A. to carry out activities necessary to meet said

debt obligations.

     Given that it is not necessary to rely on the authorization to act as a

commercial bank in order to carry out these activities, it has been decided to

keep the authorization to function given by the Executive Power and to set

aside the authorization by the Central Bank of Uruguay, continuing the Central

Bank's intervention until the trust's establishment is confirmed.

     The adoption of this decision by the Central Bank of Uruguay does not

change any of the current terms or rights of the depositors and debt holders

deriving from the agreement approved by the Uruguayan courts and from the

company's successive swap agreements.


                                             Yours sincerely,

                                             Patricia M. Lastiry

                                             Responsible Deputy

                                             Market Relations