Resolution 013/2005 — BCB — BO

BOARD RESOLUTION NO. 013/2005
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
RENEWS CREDIT TO THE GENERAL TREASURY OF THE
NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs120,000,000.

SEEING:

Law No. 1670 of October 31, 1995.

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

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

The Memorandum of Understanding signed between the BCB and the Ministry of Finance on January 18, 2005.

Board Resolution No. 153/2004 of October 8, 2004.

The Private Contract SANO No. 120/2004 of August 16, 2004.

The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 0135/05 of January 10, 2005.

The Report from the Monetary Operations Management SOSP 002/2005 of January 13, 2005.

The Report from the Economic Policy Advisory APEC-SMyF 004/2005 of January 18, 2005.

The Reports from the Legal Affairs Management SANO No. 015/2005 of January 17, 2005 and SANO No. 018/2005 of January 18, 2005.

CONSIDERING:

That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0135/05, has requested the renewal of a credit of Bs120,000,000 to address 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 002/2005, which recommends the conditions under which the credit requested by the Ministry of Finance should be subject.

That the Economic Policy Advisory in Report APEC-SMyF-004/2005, states that it is appropriate for the Board to consider the renewal of the credit for Bs120,000,000 for a term of 90 days, granted within the framework of the Addendum and the 2003 Memorandum and the 2004 Addendum, considering that such renewal does not alter the ceiling of the credit balance for liquidity fixed for the 2005 management period in the new Memorandum of Understanding.

That the Legal Affairs Management, in its Reports SANO No. 015/2005 and SANO No. 018/2005, opines that there is no legal impediment for the Board of the Issuing Entity to consider the renewal of the credit to the TGN for an amount of Bs120,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 0135/05, prior to compliance with what is established in the Regulations on Credits to the Public Sector and the financing limits for the 2005 management period fixed in the Memorandum of Understanding.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

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

Amount: Bs120,000,000.
Interest Rate: 8.40%
Term: 90 days
Renewal Date: January 21, 2005.
Maturity Date: April 21, 2005
Guarantee Instrument: Treasury Letters “C”.
Disbursement 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 that the General Treasury of the Nation holds at the Central Bank of Bolivia.

Article 2.- Authorize the President of the Central Bank of Bolivia to sign the respective contracts 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 interest accrued on the total of the credits up to the date of early cancellation.

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

La Paz, January 18, 2005

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

Fernando Paz B. Jaime Apt B.