Board Resolution No. 076/99 — BCB — BO

BOARD RESOLUTION NO. 076/99
SUBJECT: FINANCIAL SYSTEM – APPROVES RESTRICTED CREDIT LINE TO BANCO BOLIVIANO AMERICANO S.A. INTERVENED FOR FORCED SALE FOR $US 18,056,033.

SEEING:
The BCB Law No. 1670 of October 31, 1995.
The Law No. 1977 of May 14, 1999.
Superintendence of Banks and Financial Entities (SBEF) Resolution No. 053/99 dated May 14, 1999.
Board Resolutions of the Central Bank of Bolivia (BCB) No. 039/99 of May 16, 1999 and No. 074/99 of September 13, 1999.

Note IV-JOT-188/99 from the Selling Trustee of Banco Boliviano Americano S.A. (BBA) dated September 14, 1999.
Report from the Financial System Management SGA No. 152/99 of September 14, 1999.

Note from the Legal Affairs Unit UAJUR No. 602/99 of September 14, 1999.

CONSIDERING:
That Article Three of Law No. 1977, which modifies legal provisions of the Financial System, states that the Central Bank of Bolivia may provide financial support to the forced sale process of intervened financial entities. That the SBEF, by Resolution No. 053/99 of May 14, 1999, ordered the intervention for forced sale of Banco Boliviano Americano S.A. That Board Resolution No. 039/99 approved the granting of a credit line to the BBA for an amount of $50 million, which was increased to $80 million according to Act No. 023/99 of the Extraordinary Board Meeting of May 18, 1999, and extinguished on September 14 of the current year through Board Resolution No. 074/99.

That the Selling Trustee of the BBA, through note IV-JOT-188/99 of September 14, 1999, requests financial support to continue the forced sale process of said operating entity, attaching an operational budget of administrative expenses and liquidity requirements. That the Financial System Management, in its report SGA No. 152/99 of September 14, 1999, recommends granting the BBA a restricted credit line for the amount foreseen in its operational budget. That in the opinion of the Legal Affairs Unit, the Central Bank of Bolivia is authorized by Law No. 1977 of May 14, 1999 to provide financial support to the intervened BBA for its forced sale.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Approve the granting of a Credit Line to Banco Boliviano Americano S.A. intervened for forced sale, under the following conditions:
Amount: Up to $18,056,033.
Currency: United States Dollars.
Interest Rate: 8.67%, the weighted average effective passive interest rate of the banking system in foreign currency, corresponding to the week of September 1 to 3, 1999. Maturity: December 14, 1999. Repayment: Single payment at maturity.

Article 2.- Disbursements shall be made prior to signing the respective contract, upon written request from the Selling Trustee of the BBA, to meet the obligations recorded in the Budget presented by said financial entity attached to its note IV-JOT-188/99 of September 14, 1999.

Article 3.- The Selling Trustee of the BBA must present to the BCB a documented accounting of the resources used from this credit line on a weekly basis, which will be audited by the Central Bank of Bolivia.

Article 4.- Authorize the President of the BCB to sign the credit contract with the Selling Trustee of Banco Boliviano Americano S.A.

Article 5.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, September 14, 1999

BOARD RESOLUTION NO. 017/99
SUBJECT: FINANCIAL SYSTEM – LIQUIDITY CREDIT TO BANCO BOLIVIANO AMERICANO S.A. FOR $US 8,000,000.

SEEING:
BCB Law No. 1670 of October 31, 1995.
The Legal Reserve Regulation for Institutions of the Financial System, approved by Board Resolution No. 180/97 of December 23, 1997.
The Liquidity Credits Regulation for Entities of the Financial Intermediation System, approved by Board Resolution No. 059/98 of June 9, 1998.
Note from Banco Boliviano Americano S.A. (BBA) GOF-083/99 of March 9, 1999.
Note from the Central Bank of Bolivia SGA No. E-024/99 of March 10, 1999.

Note from the Superintendence of Banks and Financial Entities SB/ISB/DOCUMENTO 9572 of March 10, 1999.
Report from the Financial System Management GSF-020/99 of March 10, 1999.

Report from the Economic Policy Advisory APEC-ARM and F-No. 007/99 of March 10, 1999.
Report from the Legal Advisory ALEG No. 011/99 of March 10, 1999.
Act No. 10/99 of the Financial System Analysis Committee (COASIF) dated March 10, 1999.

CONSIDERING:
That Article 36 of Law 1670 of October 31, 1995, authorizes the BCB to grant liquidity credits to banks and financial intermediation entities, in duly justified cases qualified by its Board by an absolute majority of votes. That Banco Boliviano Americano S.A. has requested the granting of a liquidity credit of $8,000,000 to constitute legal reserves in securities and meet temporary liquidity requirements. That the liquidity credit requested by Banco Boliviano Americano S.A. will be backed by a portfolio with rating 1 (normal), in a 2 to 1 proportion, thus guaranteeing the recovery of State funds.

That the Financial System Management states in its report that Banco Boliviano Americano meets all the requirements established in the aforementioned Regulation, so in its criterion the liquidity credit request of said financial entity is appropriate. That the Economic Policy Advisory establishes in its report that there is margin in the Monetary Program to attend the liquidity credit requested by Banco Boliviano Americano S.A. That in the opinion of the Legal Advisory, the Board of Directors of the BCB is authorized to

grant liquidity credits in accordance with the Liquidity Credits Regulation for Entities of the Financial Intermediation System.
That in Act No. 10/99 of March 10, 1999, the favorable opinion of the Financial System Analysis Committee (COASIF) for the granting of the aforementioned liquidity credit in the amount requested by the BBA appears.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Grant a liquidity credit to Banco Boliviano Americano S.A., in accordance with Law 1670 of October 31, 1995 and the requirements established in the Liquidity Credits Regulation for Entities of the Financial Intermediation System, under the following conditions:
Amount: Up to the sum of $8,000,000.
Currency: United States Dollars.
Interest Rate: 16.27% per annum (average nominal active interest rate of the banking system for 360 days, prevailing in the market in the preceding week, from March 1 to 5, 1999). Term: 90 days from the signing of the contract. Amortization: Single installment at maturity. The BBA may pay the credit, including accumulated interest, in total or partially, in advance.

Juan Antonio Morales A.

Armando Pinell S. Jaime Ponce G.

Fernando Campero P. Armando Méndez M.

Juan Medinaceli Fernando Campero P.
Armando Méndez M.