Resolution 006/2004 — BCB — BO

BOARD RESOLUTION NO. 006/2004
SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES RENEWAL OF CREDIT TO THE GENERAL TREASURY OF THE NATION TO MEET TEMPORARY LIQUIDITY NEEDS OF Bs300,000,000.

SEEING:
The Law 1670 of October 31, 1995.
The Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations on Credits to the Public Sector.
The Board Resolution No. 121/2001 of November 29, 2001, which modifies Article 10 of Board Resolution No. 160/97, regarding the Financial Conditions of Credits to the Public Sector. The Board Resolution No. 114/2003 of October 15, 2003. The Memorandum of Understanding signed between the Central Bank of Bolivia (BCB) and the Ministry of Finance on December 4, 2003. The note from the Ministry of Finance, General Directorate of Public Credit (D.G.C.P.), Ref. No. 2576/03 of December 4, 2003. The Report from the Monetary Operations Management, SOSP 001/2004 of January 8, 2004. The Report from the Economic Policy Advisory, APEC/SMyF-004/2004 of January 12, 2004. The Report from the Legal Affairs Management, SANO/009/2004 of January 12, 2004.

CONSIDERING:
That the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. Ref. No. 2576/03, dated December 4, 2003, has requested the renewal of a credit for Bs300,000,000 to meet 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 001/2004, which recommends considering the credit conditions, once the Ministry of Finance complies with the requirements established for the renewal of the aforementioned loan.

That the Economic Policy Advisory, in its Report APEC/SMyF-004/2004, states that this credit falls within the Monetary Program.

That the Legal Affairs Management, in its Report SANO/009/2004, states that the authorized amounts must be within the limits of the monetary program, that the credit be documented with securities, that the term does not exceed one year, and that the Ministry of Finance complies with the requirements established by Law No. 1670.

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

Article 1.- Approve the first 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: 8.40%.
Term: 90 days.
Renewal Date: January 14, 2004.
Maturity Date: April 13, 2004.

Guarantee Instrument: Treasury Letters “C”.
Renewal Method: In accounts of the General Treasury of the Nation, according to written request.
Payment Method: 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.- 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 effect the 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 BCB financing 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.

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

La Paz, January 13, 2004.

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.

Jaime Apt B.