Board Resolution No. 018/2004 — BCB — BO

BOARD RESOLUTION NO. 018/2004

SUBJECT: MONETARY OPERATIONS MANAGEMENT – CREDIT RENEWAL TO THE GENERAL TREASURY OF THE NATION TO MEET TEMPORARY LIQUIDITY NEEDS OF Bs300,000,000.

HAVING SEEN:

Law No. 1670 of October 31, 1995.

Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations on Credits to the Public Sector.

Board Resolution No. 121/2001 of November 29, 2001.

Board Resolution No. 095/2003 of August 26, 2003.

Board Resolution No. 133/2003 of November 18, 2003.

Board Resolution No. 016/2004 dated February 10, 2004.

Private Contract SANO No. 173/2003 of August 27, 2003.

Addendum SANO No. 252/2003 of November 25, 2003.

The note from the Ministry of Finance, DGCP 05-016 D.D.I. OF. No. 0330/04 of February 10, 2004.

The Report from the Monetary Operations Management, SOSP 008/2004 of February 16, 2004.

The Report from the Economic Policy Advisory, APEC-SMyF 010/2004 of February 16, 2004.

The Report from the Legal Affairs Management, SANO No. 030/2004 of February 13, 2004.

CONSIDERING:

That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0330/04, has requested the renewal of the credit of Bs300,000,000 to meet temporary liquidity needs.

That the Monetary Operations Management, in accordance with Article 5 of the Regulations on Credits to the Public Sector, has issued Report SOSP 008/2004, which recommends the conditions under which the credit renewal should be subject.

That the Economic Policy Advisory in its Report APEC-SMyF 010/2004 establishes that the renewal of the Liquidity Credit for Bs300,000,000 million maturing on February 23, 2004, falls within the limit of liquidity credits temporarily expanded by the Board on February 10 of the current year through Board Resolution No. 016/2004, in consideration of Subsection A) of Article I of the memorandum of understanding of December 4, 2003.

That the Legal Affairs Management, in its Report SANO No. 030/2004, establishes that there is no legal impediment for the Board of the issuing entity to consider the renewal of the Credit granted to the TGN for an amount of Bs300,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 0330/04, prior to compliance with what is established in the Regulations on Credits to the Public Sector and subsection A) of Article I of the Memorandum of Understanding of December 4, 2003, which states that “During the 2004 management period, the balance of debt from liquidity credits will be subject to a limit that may be exceptionally increased if there is a sustained accumulation of deposits in the BCB from the rest of the Entities of the Non-Financial Public Sector (NFPS). This balance may be revised downward according to the monetary and financial program agreed upon for the 2004 management period.”

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the second renewal of the credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:

Amount: Bs300,000,000.
Interest Rate: 8%
Term: 90 days.
Disbursement Date: February 20, 2004
Maturity Date: May 20, 2004
Guarantee Instrument: Treasury Bills “C”.

Disbursement Method: In accounts of the General Treasury of the Nation, according to written request.
Payment Method: Interest and principal, through automatic debit in the current fiscal accounts held by the General Treasury of the Nation at the Central Bank of Bolivia.

Article 2.- Authorize the President of the Central Bank of Bolivia to sign the respective contract with the Ministry of Finance.

Article 3.- The General Treasury of the Nation may effect the total or partial early cancellation of the credit considering the accrued interest on the total of the Credit up to the date of early cancellation.

Article 4.- Any Reprogramming of BCB financing to the General Treasury of the Nation must be compatible with the limits established in the memorandum of understanding signed between the BCB and the Ministry of Finance on December 4, 2003.

Article 5.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, February 17, 2004

Juan Antonio Morales A.

Juan Medinaceli V. José Luis Evia V.

Fernando Paz B.