Regulatory Alerts1999-03-02 | Resolución 011/99Added · Updated
Resolution 011/99 Approving Transfer of Funds from Sectoral II Loan No. 88 65 719 and Program No. BV-C2 to NAFIBO
The Board of Directors of the Central Bank of Bolivia approves the transfer of available funds from Sectoral II Loan No. 88 65 719 and Program No. BV-C2 to the National Bolivian Financial Corporation (NAFIBO) as a loan on behalf of the Republic. The transfer is capped at US$35,000,000, disbursed in partial installments by December 31, 1999, subject to NAFIBO's written request ten business days in advance. The loan carries a 7.15% annual interest rate, a fifteen-year term including a three-year grace period for principal amortization, and is secured by automatic debit from NAFIBO's accounts at the Central Bank. The Central Bank retains its role as the Executive Body for these programs while authorizing the President to sign the transfer agreement with the Ministry of Finance and NAFIBO.
BOARD RESOLUTION NO. 011/99
SUBJECT: FINANCIAL SYSTEM - APPROVES TRANSFER TO NAFIBO OF AVAILABLE FUNDS FROM SECTORAL II PROGRAM LOAN NO. 88 65 719 PRIVATE SECTOR AND NO. BV-C2.
HAVING VIEWED:
Law 1670 of October 31, 1995.
The Statute of the Central Bank of Bolivia, approved by Board Resolution No. 082/97 of February 20, 1997.
The Loan Contract signed between the Republic of Bolivia and the Federal Republic of Germany on March 21, 1989, for DM 25,000,000.-, and the other legal precedents of Sectoral II Program Loan No. 88 65 719 Private Sector.
The Financial Adjustment Loan Agreement signed between the Republic of Bolivia and the International Economic Cooperation Fund of Japan on October 17, 1989, for ¥9,108,400,000, and the other legal precedents of Program No. BV-C2.
The Report from the Financial System Management SEL No. 124/99 of February 25, 1999.
The Note from the Legal Affairs Unit No. 127/99 of February 26, 1999.
CONSIDERING:
That the raising of external resources by the Republic has fulfilled the purpose of contributing to the promotion of the country's economic growth.
That it is necessary to continue the activity of financial intermediation of development resources for the benefit of the national productive sector, providing this activity with institutional independence and management autonomy.
That Law 1670, in its Article 85, provides that the Board of Directors of the Central Bank of Bolivia (BCB) will determine the dates and amounts in which the transfers of assets generated by resources administered by the former Development Management of the Issuing Institute will be made in favor of the National Bolivian Financial Corporation S.A.M. (NAFIBO), agreeing with it the modality, value, and form of payment. Likewise, Article 29 of the aforementioned Law establishes the functions that the BCB may perform as Financial Agent of the Government.
That in the last three years, despite the efforts made by the BCB, it has not been possible to transfer to NAFIBO the assets and liabilities of the development resources, as provided in Article 85 of Law 1670 of October 31, 1995.
That according to the legal precedents of Sectoral II Program Private Sector Loan No. 88 65 719, the amounts resulting from the recovery of sub-loans can be reused in aspects of special interest for the development of Bolivia, provided they are not used for debt service.
That according to the legal precedents of Program No. BV-C2, the loan resources are intended to support the Financial Sector Adjustment Program and the economic and social development of the country.
That in the opinion of the Legal Affairs Unit, there are no observations for the Board to approve the signing of the Transfer Minute of available funds from the aforementioned development programs, under the loan modality, in accordance with the attribution conferred by Article 14, paragraph p) of the BCB Statute.
That the Report from the Financial System Management SEL No. 124/99 recommends the approval of the draft Minute prepared by the BCB, NAFIBO, and the Ministry of Finance on behalf of the Republic, to implement the transfer of available funds from Sectoral II Program Loan No. 88 65 719 Private Sector and No. BV-C2.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES:
Article 1.- Approve the transfer of available funds from Programs Sectoral II Loan No. 88 65 719 and No. BV-C2 in favor of the National Bolivian Financial Corporation S.A.M., under the following terms:
Modality: Loan on behalf and mandate of the Republic Amount: Up to the sum of US$35,000,000.- through partial disbursements until December 31, 1999, according to written request from NAFIBO with ten business days' notice. Term: Fifteen years computable from the first disbursement, including three years of grace for the amortization of capital. Interest Rate: 7.15% annual on balances. Amortization: Equal and consecutive semi-annual installments. Destination: Within the framework of the Agreements signed between the Republic and the Financing Organizations, NAFIBO will have free availability over the loan resources. Guarantee: Automatic debit in the accounts that NAFIBO maintains at the BCB. Administration: The BCB will administer the compliance with the Transfer Minute and will continue to exercise the function of Executive Body of Programs Sectoral II Loan 88 65 719 Private Sector and No. BV-C2, under the conditions agreed with the Republic.
Article 2.- Authorize the President of the BCB to sign the aforementioned Transfer Minute, under the loan modality, with the Ministry of Finance and the National Bolivian Financial Corporation S.A.M.
Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, March 2, 1999
Juan Antonio Morales A.
Armando Pinell S. Jaime Ponce G.
Juan Medinaceli Fernando Campero P.
More like this from BCB
BCB published 4 documents in the last 30 days. We email you each new one the day it's published.