Regulatory Alerts1998-05-19 | Resolución 054/98Added · Updated
Board Resolution No. 054/98
The Board of Directors of the Central Bank of Bolivia authorizes a credit of Bs30,000,000 to the General Treasury of the Nation to address national emergency expenses arising from the El Niño phenomenon. The loan carries a four-year term, with interest calculated based on the 51-week Treasury Bill rate effective on the disbursement date, payable semi-annually. Repayment of principal and interest is secured by automatic debits from the Treasury's current accounts at the Central Bank, backed by public offer bonds issued by the Treasury. A 90-day promissory note must be issued as interim collateral until the bonds are delivered.
BOARD RESOLUTION NO. 054/98 SUBJECT: CURRENCY AND CREDIT - CREDIT TO THE GENERAL TREASURY OF THE NATION FOR Bs30,000,000.
SEEING: Law No. 1670 of October 31, 1995. Supreme Decree No. 24857 of September 22, 1997. Supreme Decree No. 24962 of February 20, 1998. Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations for Credits to the Public Sector. Letter from the Ministry of Finance F.E.N. No. 017/98 of May 20, 1998. Report from the Economic Policy Advisory Office APEC No. 093/98 of May 25, 1998. Report from the Currency and Credit Management No. 010/98 of May 22, 1998. Report from the Legal Advisory Office ALEG No. 180/98 of May 22, 1998.
CONSIDERING: That, in accordance with Article 148 of the Political Constitution of the State and as a consequence of the climatological phenomenon known as "El Niño," through Supreme Decree No. 24857 of September 22, 1997, the Executive Power declared a state of emergency throughout the national territory, a situation that generates extraordinary expenses to attend to urgent needs derived from public calamities.
That Supreme Decree No. 24962 of February 20, 1998, authorizes the General Treasury of the Nation to request from the Board of Directors of the Central Bank of Bolivia the granting of a credit of up to Bs60,000,000, intended to meet the needs derived from the disasters caused by this phenomenon.
That the Ministry of Finance, through letter F.E.N. No. 017/98 of May 20, 1998, requests a credit of Bs30,000,000, which corresponds to the balance of the Bs60,000,000 authorized by Supreme Decree No. 24962, for a term of 4 years and the interest rate corresponding to the cut-off rate of 51-week Treasury Bills in effect on the day of disbursement, with the guarantee of public offer bonds issued by the General Treasury of the Nation and other conditions established in the Regulations for Credits to the Public Sector.
That the Economic Policy Advisory Office, in its Report APEC No. 093/98, states that this loan originates an unanticipated expansion of net internal credit to the non-financial public sector in the Monetary Program, but that this effect could be neutralized through the placement of securities.
That the Currency and Credit Management, in accordance with Article 5 of the Regulations for Credits to the Public Sector, has issued Report No. 10/98 specifying the outstanding debt balance as of the date and the future payment maturities of the General Treasury of the Nation to the Central Bank of Bolivia.
That the Legal Advisory Office, in its Report ALEG No. 180/98, states that the requirements established for the granting of the aforementioned loan to the General Treasury of the Nation have been met.
THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Authorize a credit to the General Treasury of the Nation to attend to the national emergency declared by the Executive Power, under the following conditions:
Amount: Bs30,000,000. Currency: Bolivianos. Interest Rate: The yield rate corresponding to the cut-off rate of national currency Treasury Bills at 51 weeks, in effect on the day of disbursement. Interest Payment: Semi-annual. Term: Four years from the date of the first disbursement. Instrument: Public offer bonds issued by the General Treasury of the Nation. Payment Method and Guarantee: 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.- The General Treasury of the Nation must issue a promissory note maturing in 90 days, until the issuance and delivery of the Bonds to the Central Bank of Bolivia is finalized.
Article 3.- Authorize the President of the BCB to sign the respective contract.
Article 4.- The Presidency and the General Management are tasked with the execution and compliance of this Resolution.
La Paz, May 26, 1998
Juan Medinaceli V.
Armando Pinell S. Jaime Ponce G.
Fernando Campero P.
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