Regulatory Alerts2004-05-11 | Resolución 060/2004Added · Updated
Board Resolution No. 060/2004
The Board of Directors of the Central Bank of Bolivia approves the renewal of a Bs230,000,000 credit to the Ministry of Finance for the General Treasury of the Nation to address temporary liquidity needs. The loan carries an 8% interest rate, a 31-day term, and is secured by Treasury Letters 'C', with repayment via automatic debit from fiscal accounts. The resolution authorizes the Bank's President to sign the respective contracts and permits early repayment of the credit, subject to existing financing limits.
BOARD RESOLUTION NO. 060/2004
SUBJECT: MONETARY OPERATIONS MANAGEMENT – RENEWS CREDIT TO THE GENERAL TREASURY OF THE NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs230,000,000.
SEEING:
Law No. 1670 of October 31, 1995.
Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations for Credits to the Public Sector.
Board Resolution No. 121/2001 of November 29, 2001, which modifies Article 10 of Board Resolution 160/97 regarding the Financial Conditions of Credits to the Public Sector.
Board Resolution No. 043/2004 of April 1, 2004.
The Memorandum of Understanding signed between the BCB and the Ministry of Finance on December 4, 2003.
The Addendum to the Memorandum of Understanding, dated April 1, 2004.
The Private Contract SANO No. 56/2004 of April 5, 2004.
The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 0957/04 of April 29, 2004.
The Report from the Monetary Operations Management SOSP 014/2004 of March 31, 2004.
The Report from the Economic Policy Advisory APEC-SMyF 023/2004 of May 10, 2004.
The Report from the Legal Affairs Management SANO No. 095/2004 of May 4, 2004.
CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0957/04, has requested the renewal of a credit of Bs230,000,000 to address temporary liquidity needs.
That the Addendum of April 1, 2004, to the Memorandum of Understanding, contemplates the possibility of granting liquidity credits to the TGN, provided there is a temporary accumulation of deposits from the rest of the Non-Financial Public Sector Entities, which allows neutralizing the expansion of Monetary Emission.
That the Addendum of April 1, 2004, defines the calculation to determine the amount of sustained and temporary accumulation of deposits.
That the Monetary Operations Management, in accordance with Article 5 of the Regulations for Credits to the Public Sector, has issued Report SOSP 023/2004, which recommends the conditions under which the credit requested by the Ministry of Finance should be subject.
That the Economic Policy Advisory in Report APEC-SMyF-023/2004, establishes a temporary accumulation of deposits from the rest of the Non-Financial Public Sector Entities of Bs528,000,000, which allows the Board to consider the renewal of the credit of Bs230 million with a maximum term of 40 days, in accordance with the Addendum of April 1, 2004, to the Memorandum of Understanding.
That the Legal Affairs Management, in its Report SANO No. 063/2004, establishes that there is no legal impediment for the Board of the Issuing Entity to consider the renewal of a credit to the TGN for an amount of Bs230,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 0957/04, prior to compliance with what is established in the Regulations for Credits to the Public Sector and subsection A) of Article I of the Memorandum of Understanding.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1.- Approve the renewal of a credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:
Amount: Bs230,000,000. Interest Rate: 8% Term: 31 days. Renewal Date: May 14, 2004 Maturity Date: June 14, 2004
Guarantee Instrument: Treasury Letters “C”. Payment Method: Interest and principal, via automatic debit in the fiscal current accounts 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 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 credit considering the accrued interest on the total credit up to the date of early cancellation.
Article 4.- Any rescheduling of the credit will be subject to the BCB financing limits to the General Treasury of the Nation, in conformity with what is established in numeral 4) of the Addendum to the Memorandum of Understanding signed between the BCB and the Ministry of Finance on December 4, 2003, of April 1, 2004.
Article 5.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, May 11, 2004
Juan Antonio Morales A.
Juan Medinaceli V. Enrique Ackermann A.
José Luis Evia V. Fernando Paz B.
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