Resolution 007/2000

BOARD RESOLUTION NO. 007/2000
SUBJECT: MONETARY OPERATIONS – MODIFIES REGULATIONS ON OPERATIONS WITH SECURITIES ISSUED BY THE GENERAL TREASURY OF THE NATION FOR FISCAL POLICY PURPOSES AND FOR MONETARY REGULATION PURPOSES

HAVING SEEN:
Law No. 1670 of October 31, 1995.
The Inter-institutional Agreement signed on January 6, 1999, between the Central Bank of Bolivia and the Ministry of Finance.
Supreme Decree No. 23380 of December 29, 1992, which authorizes the General Treasury of the Nation to issue securities.
The Open Market Operations Regulation, approved by Board Resolution No. 074/98 of August 11, 1998.
The Regulation on Operations with Securities Issued by the General Treasury of the Nation for Fiscal Policy Purposes, approved by Board Resolution No. 010/99 of March 2, 1999. The Regulation on Operations with Securities Issued by the General Treasury of the Nation for Monetary Regulation Purposes, approved by Board Resolution No. 021/99 of March 30, 1999. The Report from the Monetary Operations Management No. 003/2000 of January 31, 2000. The Internal Communication from the Legal Affairs Management GAL No. 036/2000 of January 31, 2000.

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CONSIDERING:
That Article 29, subsection e) of Law No. 1670 of October 31, 1995, authorizes the Central Bank of Bolivia, in its capacity as Financial Agent of the Government, to participate in the issuance, administration, and placement of public debt securities.

That the Inter-institutional Agreement signed between the CBB and the Ministry of Finance on January 6, 1999, establishes the administrative guidelines for the issuance, placement, administration, and redemption of securities from the GTN.

That Report from the Monetary Operations Management No. 003/2000 recommends expanding the maximum percentage allocated to auctions in non-competitive mode, for which modifications must be introduced to the Regulations on Operations with Securities Issued by the General Treasury of the Nation for Fiscal Policy Purposes and for Monetary Regulation Purposes.

That in the opinion of the Legal Affairs Management, there is no legal impediment to approving the proposed modifications to the aforementioned Regulations.

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

Article 1.- Modify Article 22, subsection a) third paragraph, and subsection b) first paragraph, of the Regulation on Operations with Securities Issued by the General Treasury of the Nation for Fiscal Policy Purposes, approved by Board Resolution No. 010/99 of March 2, 1999, in the following manner:

SAYS:
Article 22 (Awarding).
a) [...] The offer available under this modality will be calculated after deducting the amount demanded in modality b), which will represent up to 25% of the offer in the auction. b) [...] The amount offered through this modality will be a maximum of 25% of the total amount.

SHOULD SAY:
a) “[...] The offer available under this modality will represent at least 60% of the total offer in the auction.” b) “[...] The amount offered through this modality will be a maximum of 40% of the total amount.”

Article 2.- Modify Article 12, subsection a) third paragraph, and subsection b) first paragraph, of the Regulation on Operations with Securities Issued by the General Treasury of the Nation for Monetary Regulation Purposes, approved by Board Resolution No. 021/99 of March 30, 1999, in the following terms:

SAYS:

Article 12 (Awarding).
a) [...] The offer available under this modality will be calculated after deducting the amount demanded in modality b), which will represent up to 25% of the offer in the auction. b) [...] The amount offered through this modality will be a maximum of 25% of the total amount.

SHOULD SAY:

a) “[...] The offer available under this modality will represent at least 60% of the total offer in the auction.” b) “[...] The amount offered through this modality will be a maximum of 40% of the total amount.”

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Article 3.- The modifications to the aforementioned Regulations will enter into force on the date of this resolution.

Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, February 1, 2000

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G. Juan Medinaceli V.

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Fernando Campero P. Armando Méndez M.