Board Resolution No. 039/99

BOARD RESOLUTION NO. 039/99

FINANCIAL SUPPORT FOR THE FORCED SALE PROCESS OF THE Banco Boliviano Americano S.A. IN OPERATION

It is stated that the Central Bank of Bolivia may provide financial support for the forced sale process of the Banco Boliviano Americano S.A. in operation, as ordered by the Intendente Vendedor (Sales Agent). Its Board of Directors will establish the terms and conditions to address the requests of the Intendente Vendedor, within the framework of the asset and liability transfer procedure provided for in the Regulatory Decree of Law No. 1977.

SUBJECT: FINANCIAL SYSTEM – CREDIT LINE FOR BANCO BOLIVIANO AMERICANO S.A. IN OPERATION

$US. 50,000,000.-

SEEING:

Law No. 1670 of the Central Bank of Bolivia dated October 31, 1995.

Law No. 1977 dated May 14, 1999.

Resolution SB No. 053/99 of the Superintendence of Banks and Financial Entities (SBEF) dated May 14, 1999.

Note SB/ISB/Document 19743 from the SBEF dated May 14, 1999.

Note from the Central Bank of Bolivia PRES. No. 133/99.

Report from the Legal Advisory Office ALEG No. 032/99 dated May 16, 1999.

CONSIDERING:

That Article Third of the Law Modifying Legal Provisions of the Financial System No. 1977 of May 14, 1999, authorizes the Central Bank of Bolivia to provide financial support for the forced sale process of the Banco Boliviano Americano S.A. (BBA) in operation, as per Resolution No. 053/99 of the SBEF.

That the Superintendence of Banks and Financial Entities has requested, through note SB/ISB/Document 19743 of May 14, 1999, financial support for the forced sale process of the BBA.

That the Central Bank of Bolivia has responded to the aforementioned request, by note PRES. No. 133/99 of May 14, 1999, stating that it is willing to provide such support.

That in the opinion of the Legal Advisory Office, the Central Bank of Bolivia is empowered by Law No. 1977 of May 14, 1999, to provide financial support for the forced sale process of the BBA in operation.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the granting of a Credit Line of $US 50,000,000, in accordance with Law No. 1977 of May 14, 1999, and the request of the SBEF SB/ISB/Document 19743, under the following conditions:

Amount: $US 50,000,000.- Currency: United States Dollars. Interest Rate: 8.96%, the weighted average effective passive interest rate of the banking system in foreign currency, corresponding to the week of May 4 to 7, 1999. Term: 7 days from the signing of the contract. Amortization: Single payment at maturity. Collateral: Existing portfolio of the BBA, at the choice of the Central Bank of Bolivia. In the event that this is insufficient, other assets at the choice of the Central Bank of Bolivia.

Article 2.- The resources will be disbursed upon signing the respective contract, by the Intendente Vendedor of the BBA, to cover exchange deficiencies in the Clearing House and in its Current Account at the Central Bank of Bolivia.

Article 3.- The Intendente Vendedor of the BBA must present to the Central Bank of Bolivia a documented accounting of the resources used against this credit line, which will be audited by the Central Bank of Bolivia.

Article 4.- Authorize the President of the Central Bank of Bolivia to sign the credit contract with the Intendente Vendedor of the Banco Boliviano Americano S.A.

Article 6.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, May 16, 1999

---

Juan Antonio Morales A.

---

Armando Pinell S. Jaime Ponce G.

---

Fernando Campero P. Armando Méndez M.