Resolution 013/2004 Approving Credit to the General Treasury of the Nation — BCB — BO

RESOLUTION OF THE BOARD OF DIRECTORS NO. 013/2004

SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES CREDIT GRANT TO THE GENERAL TREASURY OF THE NATION TO ADDRESS TRANSITORY LIQUIDITY NEEDS OF Bs355,000,000.

HAVING SEEN:

Law No. 1670 of October 31, 1995.

Board of Directors Resolution No. 160/97 of October 21, 1997, which approves the Regulations for Credits to the Public Sector.

Board of Directors Resolution No. 121/2001 of November 29, 2001, which modifies Article 10 of Board of Directors Resolution No. 160/97 regarding the Financial Conditions of Credits to the Public Sector.

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.), D.D.I. OF. No. 0164/04 of January 22, 2004.

The Report from the Monetary Operations Management, SOSP 004/2004 of January 27, 2004.

The Report from the Economic Policy Advisory, APEC-SMyF 006/2004 of January 27, 2004.

The Report from the Legal Affairs Management, SANO No. 017/2004 of January 27, 2004.

CONSIDERING:

That the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 0164/04, has requested the granting of a credit of Bs375,000,000 to address transitory liquidity needs.

That the Monetary Operations Management, in accordance with Article 5 of the Regulations for Credits to the Public Sector, has issued Report SOSP 004/2004, which recommends considering the credit conditions once the Ministry of Finance complies with the requirements established for the granting of said loan.

That the Economic Policy Advisory, in its Report APEC-SMyF 006/2004, states that this credit falls within the Monetary Program.

That the Legal Affairs Management, in Report SANO No. 017/2004, indicates that the authorized amounts must be within the limits of the monetary program, that the credit be documented with securities, that the term not exceed one year, and that the Ministry of Finance comply with the requirements established by Law 1670.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the granting of a credit to the Ministry of Finance for the attention of transitory liquidity needs, under the following conditions:

Amount: Bs355,000,000.
Interest Rate: 8.00%.
Term: 88 days.
Disbursement Date: February 2, 2004.
Maturity Date: April 30, 2004.

Guarantee Instrument: Treasury Bills “C”.
Disbursement Method: Into accounts of the General Treasury of the Nation, according to written request.
Repayment Method: Interest and principal, via automatic debit in the current fiscal 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 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 reprogramming 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 27, 2004

Juan Medinaceli V.

Enrique Ackermann A. José Luis Evia V.

Fernando Paz B. Jaime Apt B.