Regulatory Alerts2004-05-18 | Resolución 066/2004Added · Updated
Board Resolution No. 066/2004
The Board of Directors of the Central Bank of Bolivia approves the renewal of a Bs300,000,000 credit to the Ministry of Finance to address temporary liquidity needs. The loan carries an 8% interest rate, a 90-day term, and is secured by Treasury Letters 'C', with repayment via automatic debit from the Treasury's current accounts at the Central Bank. The President of the Central Bank is authorized to sign the contract, and any future reprogramming of financing must remain compatible with the limits set in the December 2003 Memorandum of Understanding and its April 2004 Addendum.
BOARD RESOLUTION NO. 066/2004
SUBJECT: MONETARY OPERATIONS MANAGEMENT – RENEWAL OF CREDIT TO THE GENERAL TREASURY OF THE NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs300,000,000.
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. 095/2003 of August 26, 2003.
Board Resolution No. 133/2003 of November 18, 2003.
Board Resolution No. 018/2004 dated February 17, 2004.
Private Contract SANO No. 173/2003 of August 27, 2003.
Addendum SANO No. 252/2003 of November 25, 2003.
The note from the Ministry of Finance, DGCP 05-016 D.D.I. OF. No. 1033/04 of May 6, 2004.
The Report from the Monetary Operations Management SOSP/024/2004 of May 14, 2004.
The Report from the Economic Policy Advisory APEC-SMyF 024/2004 of May 17, 2004.
The Report from the Legal Affairs Management SANO No. 098/2004 of May 10, 2004.
CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 1033/04, has requested the renewal of the credit of Bs300,000,000 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 024/2004, which recommends the conditions under which the credit renewal should be subject.
That the Economic Policy Advisory, in its Report APEC-SMyF 024/2004, establishes that the renewal of the liquidity credit of Bs300,000,000 with a maturity date of May 20, 2004, for a term of 90 days, is appropriate, considering that this does not affect the balance of the established liquidity credit portfolio set forth in Clause A) of Article I of the Memorandum of Understanding of December 4, 2003.
That the Legal Affairs Management, in its Report SANO No. 024/2004, establishes that there is no legal impediment for the Board of Directors of the issuing entity to consider the renewal of the Credit granted to the General Treasury of the Nation (TGN) for an amount of Bs300,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 1033/04, 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, and its corresponding Addendum of April 1, 2004.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1.- Approve the latest renewal of the credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:
Amount: Bs300,000,000. Interest Rate: 8% Term: 90 days. Renewal Date: May 20, 2004 Maturity Date: August 18, 2004 Guarantee Instrument: Treasury Letters “C”. Payment Method: Interest and principal, via automatic debit in the current fiscal 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 contract with the Ministry of Finance.
Article 3.- The General Treasury of the Nation may effectuate total or partial early cancellation of the credit considering the accrued interests on the total of the Credit up to the date of early cancellation.
Article 4.- Any Reprogramming of financing by the BCB to the General Treasury of the Nation must be compatible with the limits established in the Memorandum of Understanding signed between the BCB and the Ministry of Finance on December 4, 2003, and the Addendum 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 18, 2004
Juan Antonio Morales A.
Juan Medinaceli V. Enrique Ackermann A.
José Luis Evia V. Fernando Paz B.
Jaime Apt B.
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