Board Resolution No. 036/2004 — BCB — BO

BOARD RESOLUTION NO. 036/2004
SUBJECT: MONETARY OPERATIONS MANAGEMENT – CREDIT RENEWAL TO THE TREASURY GENERAL OF THE NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs100,000,000.-

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. 106/2003 of September 30, 2003.
Board Resolution No. 145/2003 of December 16, 2003.
Private Contract SANO No. 207/2003 of October 6, 2003.
Addendum No. 2/2004 of January 2, 2004.

The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 0588/04 of March 12, 2004. The Report from the Monetary Operations Management SOSP 013/2004 of March 16, 2004. The Report from the Economic Policy Advisory APEC-SMyF 013/2004 of March 18, 2004. The Report from the Legal Affairs Management SANO No. 056/2004 of March 18, 2004.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0588/04, has requested the renewal of the credit of Bs100,000,000.- to address temporary liquidity needs.

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That the Monetary Operations Management, in accordance with Article 5 of the Regulations on Credits to the Public Sector, has issued Report SOSP 013/2004, which recommends the conditions to which the credit renewals should be subject. That the Economic Policy Advisory in its Report APEC-SMyF-013/2004, establishes that the renewal of the Liquidity Credit for Bs100,000,000.- with maturity on March 30, 2004, falls within the limit of temporarily expanded liquidity credits 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. 056/2004, 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 Bs100,000,000, requested by the Ministry of Finance, through note from D.G.C.P. 05-016 D.D.I. OF. No. 0588/04, 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 deposits at the BCB from the rest of the Entities of the Non-Financial Public Sector (NFPS). This balance may be reviewed 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: Bs100,000,000.-
Interest Rate: 7.75%
Term: 90 days.
Renewal Date: March 30, 2004
Maturity Date: June 28, 2004
Guarantee Instrument: Treasury Letters “C”.

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Payment Method: Interest and principal, via automatic debit in the current accounts fiscal that the General Treasury of the Nation maintains at the Central Bank of Bolivia.
Article 2.- Authorize the President of the Central Bank of Bolivia to
subscribe to the respective contracts with the Ministry of Finance.
Article 3.- The General Treasury of the Nation may carry out the
early cancellation total or partial of the credits considering the interest accrued on the total of the Credits up to the date of early cancellation.
Article 4.- Any rescheduling of the present Credit must be
compatible with the BCB financing limits to the Treasury General of the Nation 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, March 18, 2004

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.