Resolution 012/2001 — BCB — BO

BOARD RESOLUTION NO. 012/2001
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – OFFSETTING OF OBLIGATIONS AND CLAIMS AND REPROGRAMMING OF THE DEBT BALANCE OF THE DEPARTMENTAL FEDERATION OF MILK PRODUCERS (FEDEPLE) WITH THE BCB.

VIEWED:
Law No. 1670 of October 31, 1995.
Board Resolution of the BCB No. 086/2000 of November 21, 2000.
Letters from the Departmental Federation of Milk Producers (FEDEPLE) of the Santa Cruz Department OF.FEDEPLE No. 263/2000 of December 26, 2000 and OF.FEDEPLE No. 013/2001 of January 24, 2001. Report from the Financial Entities Management GEF No. 021/2001 of January 30, 2001. Reports from the Legal Affairs Management SAJU No. 063/2001 of January 17, 2001 and SAJU No. 091/2001 of January 29, 2001.

CONSIDERING:
That Article 54, paragraph j) of Law No. 1670 grants the Board of Directors of the Central Bank of Bolivia the authority to set and modify interest rates on credits granted by the BCB, taking into account market rates for similar operations and establishing their other terms and conditions.

That Report from the Financial Entities Management GEF No. 021/2001 encompasses the analysis of pending operations of the Departmental Federation of Milk Producers with the former International Bank for Development (BIDESA). Likewise, said report proposes the offsetting of obligations and claims of FEDEPLE with the BCB, as well as the reprogramming of the balance resulting from said offsetting.

//2. B.D. No. 012/2001
That through letter OF.FEDEPLE No. 263/2000, the Departmental Federation of Milk Producers presented to the Central Bank of Bolivia the following payment offer for its obligations with the Issuing Entity:

Payment of 100% of current interest
Payment of $60,000.00 to principal
Reprogram the remaining principal balance of $100,000.00, over 5 years, with the original credit guarantee and at an incentive interest rate.

That through letter OF.FEDEPLE No. 013/2001, FEDEPLE complemented the payment offer proposed in the aforementioned letter by offering to make an advance payment on its debt of $122,720.00 ($60,000.00 to principal and $62,720.00 to current interest) through CDs with a present value of $49,377.18 and cash of $73,342.82.

That in the same letter, FEDEPLE requests that the resulting balance of $100,000.00 be refinanced over 5 years, at an annual interest rate of 12%, with semi-annual payments of interest plus principal, maintaining for this purpose the original guarantee of the credit.

That in the opinion of the Legal Affairs Management, it corresponds to the Board of Directors of the BCB to consider the reprogramming proposal of the Departmental Federation of Milk Producers, in accordance with what is stated in Article 54, paragraph j) of Law 1670.

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

Article 1.- Accept the cash payment by FEDEPLE of $73,342.82 (Seventy-three thousand three hundred forty-two and 82/100 United States dollars).

Article 2.- Authorize the offsetting of the obligations and claims of the Departmental Federation of Milk Producers with the Central Bank of Bolivia as of January 30, 2001 with the following values:

FEDEPLE's obligations with the BCB, corresponding to principal and interest as of January 30, 2001, amount to $222,720.00 (Two hundred twenty-two thousand seven hundred twenty and 00/100 United States dollars) calculated at a current interest rate of 12% per annum.

//3. B.D. No. 012/2001

FEDEPLE's claims with the BCB as of January 30, 2001, amount to $49,377.18 (Forty-nine thousand three hundred seventy-seven and 18/100 United States dollars), which are the result of the calculation of the present value of the CDs in favor of said Federation, calculated at a discount rate of 8.22% per annum.

Article 3.- Authorize the reprogramming of the balance resulting from the cash payment and the offsetting of the obligations and claims of FEDEPLE with the BCB contemplated in articles 1 and 2 of this Resolution, under the following conditions:
Amount: The amount to be reprogrammed is $100,000.00 (One hundred thousand and 00/100 United States dollars) calculated as follows:
FEDEPLE Obligations $222,720.00
FEDEPLE Claims in CDs $(49,377.18)
Payment Offer in Cash $(73,342.82)
BALANCE PENDING PAYMENT TO BCB $100,000.00
Currency: United States dollars
Interest Rate: 12% per annum
Term: 5 years
Payment Plan: Fixed Installments
Amortization: Semi-annual
Guarantee: The guarantees granted in the original contracts.

PAYMENT PLAN FOR REPROGRAMMING OF $100,000.00 (EXPRESSED IN $)

DATE OF BALANCE CAPITAL INTEREST INSTALLMENT
PAYMENT OWED
29/07/2001 100,000.00 7,586.80 6,000.00 13,586.80 25/01/2002 92,413.20 8,042.00 5,544.79 13,586.80 24/07/2002 84,371.20 8,524.52 5,062.27 13,586.80 20/01/2003 75,846.68 9,036.00 4,550.80 13,586.80 19/07/2003 66,810.68 9,578.15 4,008.64 13,586.80 15/01/2004 57,232.53 10,152.84 3,433.95 13,586.80 13/07/2004 47,079.68 10,762.01 2,824.78 13,586.80 09/01/2005 36,317.67 11,407.74 2,179.06 13,586.80 08/07/2005 24,909.93 12,092.20 1,494.60 13,586.80 04/01/2006 12,817.73 12,817.73 769.06 13,586.80 TOTAL 0 100,000.00 35,867.96 135,867.96

//4. B.D. No. 012/2001
Article 4.- The Departmental Federation of Milk Producers must cancel professional fees and legal costs at the time of signing the contracts.

Article 5.- The President of the BCB is authorized to sign the corresponding reprogramming contract.

Article 6.- The Presidency and the General Management are in charge of the execution and compliance of this Resolution.

La Paz, January 30, 2001

Armando Pinell S.

Jaime Ponce G. Juan Medinaceli V.
––––––––––––––––––––––– –––––––––––––––––––––– Fernando Campero P. Armando Méndez M.