Resolution 014/98: Credit to the General Treasury of the Nation for Bs30,000,000 — BCB — BO

BOARD RESOLUTION NO. 014/98
SUBJECT: CURRENCY AND CREDIT - CREDIT TO THE GENERAL TREASURY OF THE NATION FOR Bs30,000,000.

SEEING:
Law 1670 of October 31, 1995.
Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations for Credits to the Public Sector.
Supreme Decree No. 24857 of September 22, 1997.
Supreme Decree No. 24962 of February 20, 1998.
Note from the Ministry of Finance M.H. - A.L. No. 477 of February 25, 1998.
Report from the Economic Policy Advisory APEC-ARMyF 026/98 of February 26, 1998.
Report from the Currency and Credit Management No. 07/98 of February 26, 1998.
Report from the Legal Advisory ALEG No. 062/98 of February 26, 1998.

CONSIDERING:
That, in accordance with Article 148 of the Political Constitution of the State and as a consequence of the climatological phenomenon known as "El Niño," the Executive Power declared a state of emergency throughout the national territory by Supreme Decree No. 24857 of September 22, 1997, a situation that implies the expenditure of extraordinary funds to attend to urgent needs derived from public calamities.

That Supreme Decree No. 24962 of February 20, 1998, authorizes the General Treasury of the Nation to request from the Board of Directors of the Central Bank of Bolivia the granting of a credit of up to Bs60,000,000, intended to attend to needs derived from disasters caused by the natural phenomenon of "El Niño."

That the Ministry of Finance, through note M.H. - A.L. No. 477 of February 25, 1998, requests a credit of Bs30,000,000 charged against the sixty million authorized by Supreme Decree No. 24962, for a term of 4 years, at the interest rate corresponding to the cut-off rate of 51-week Treasury Bills, valid on the day of disbursement, with the guarantee of public offer bonds issued by the TGN and other conditions established in the Regulations for Credits to the Public Sector.

That Article 22, subsection a) of Law 1670, grants the BCB the faculty to grant credits to the TGN in case of urgent needs occasioned by public calamities.

That the Economic Policy Advisory in its Report APEC-ARMyF 026/98, states that this loan will determine an expansion of net internal credit to the non-financial public sector, which was not anticipated, although its effects on the Monetary Program can be neutralized through the placement of securities with the public.

That the Currency and Credit Management, in accordance with Article 5 of the Regulations for Credits to the Public Sector, has issued Report No. 07/98 specifying the outstanding debt balance as of the date and the future payment maturities of the TGN to the BCB.

That the Legal Advisory in its Report ALEG No. 062/98, states that the requirements established for the granting of the aforementioned loan to the TGN have been met.

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

Article 1.- Exceptionally, grant a credit to the General Treasury of the Nation to attend to the national emergency declared by the Executive Power, under the following conditions:
Amount: Bs30,000,000.-
Currency: Bolivianos.
Interest Rate: The yield rate corresponding to the cut-off rate of 51-week Treasury Bills, valid on the day of disbursement.
Interest Payment: Semi-annually.
Term: 4 years from the date of the first disbursement.
Instrument: Public offer bonds issued by the General Treasury of the Nation.
Payment Method and Guarantee: Interest and principal, via automatic debit in the Fiscal Current Accounts that the TGN holds at the BCB.

Article 2.- The General Treasury of the Nation must issue a promissory note maturing in 60 days, until the issuance and delivery of the Bonds to the BCB is finalized.

Article 3.- Authorize the President of the BCB to sign the respective contract with the General Treasury of the Nation.

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

La Paz, February 26, 1998

Juan Antonio Morales A.

Armando Pinell S. Jaime Ponce G.

Fernando Campero P. Juan Pablo Zegarra A.