Board Resolution No. 037/2004 — BCB — BO

BOARD RESOLUTION NO. 037/2004

SUBJECT: MONETARY OPERATIONS MANAGEMENT – RENEWAL OF CREDIT TO THE GENERAL TREASURY OF THE NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs80,000,000.

HAVING VIEWED:

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. 016/2004 of February 10, 2004.

Private Contract SANO No. 36/2004 of February 13, 2004.

The note from the Ministry of Finance, D.G.C.P. 05-016 D.D.I. OF. No. 0587/04 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. 057/2004 of March 18, 2004.

CONSIDERING:

That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0587/04, has requested the renewal of the credit of Bs80,000,000 to address 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 013/2004, which recommends the conditions under which 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 Bs80,000,000 with a maturity date of March 29, 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 Clause A) of Article I of the Memorandum of Understanding of December 4, 2003.

That the Legal Affairs Management, in its Report SANO No. 057/2004, establishes that there is no legal impediment for the Board of the Issuing Entity to consider the renewal of the Credit granted to the General Treasury of the Nation (TGN) for an amount of Bs80,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 0587/04, prior to compliance with what is established in the Regulations on Credits to the Public Sector and Clause A) of Article I of the Memorandum of Understanding of December 4, 2003, which states that “During the 2004 management period, the debt balance for 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 (SPNF). 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 first renewal of the credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:

Amount: Bs80,000,000.
Interest Rate: 7.75%
Term: 88 days.
Renewal Date: March 29, 2004
Maturity Date: June 25, 2004
Guarantee Instrument: Treasury Bills “C”.
Payment Method: Interest and principal, via automatic debit in the fiscal current 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 contracts with the Ministry of Finance.

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

Article 4.- Any rescheduling of the Credits will be subject to the BCB financing limits to the General Treasury of the Nation, and to the verification that the accumulation of deposits in the BCB of the rest of the Entities of the Non-Financial Public Sector (SPNF) is sustained, in accordance with what is 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.