Resolution 020/2000

BOARD RESOLUTION NO. 020/2000 SUBJECT: FINANCIAL ENTITIES MANAGEMENT - AUTHORIZES SUBSTITUTION OF ASSETS IN THE CREDIT ASSIGNMENT DEED SIGNED BETWEEN THE BCB AND THE BBA ON NOVEMBER 30, 1999.

HAVING SEEN: Law No. 1977 of May 14, 1999. Board Resolution No. 075/99 of September 13, 1999. The Credit Assignment Deed signed between Banco Boliviano Americano S.A. (BBA) and the Central Bank of Bolivia (BCB) on November 30, 1999. Notes GNC-EC-011-2000 and GNC-EC-031-2000 from the Selling Trustee of the BBA, dated January 20 and March 22, 2000. Report from the Financial Entities Management Department No. 051/2000 of March 24, 2000. Internal Communication from the Legal Affairs Management GAL No. 04/2000 dated February 2, 2000.

CONSIDERING: That in application of Law 1977, Modifier of Provisions of the Financial System, the Selling Trustee of Banco Boliviano Americano S.A. requested financial support from the BCB. That based on what is established by Law 1977 and numeral ii, Article 11 of Supreme Decree No. 25382, by Board Resolution No. 075/99 and the aforementioned Credit Assignment Deed dated November 30, 1999, the Central Bank of Bolivia authorized the receipt of the credit portfolio returned by Banco de Crédito de Bolivia S.A. for an amount of US$ 47,591,575.05, in exchange for the issuance of bonds in payment of the guarantee committed by the BCB in favor of said banking entity.

//2. B.R. No. 020/2000 That by note GNC-EC-011-2000 of January 20, 2000, the BBA communicated to the BCB its willingness to substitute 20 credit operations that do not meet the guarantee documentation required by the BCB or that cannot be documented. That by note GNC-EC-031-2000 of March 22, 2000, the BBA communicated to the BCB its willingness to deliver computer equipment and effect the substitution of the loan in the name of Carlos Barragán Arce, in place of 19 credit cards and a loan in the name of Isaac Edgar Portocarrero Cuevas. That in its report No. 051/2000, the Financial Entities Management Department recommends accepting the BBA's proposal, suggesting that the substitution be made with the credit listed in the name of Carlos Barragán Arce (principal and interest) for US$10,028.26, cash for US$1,140.05, and computer equipment at their appraisal value of US$23,017.00. That in the opinion of the Legal Affairs Management, contained in its Internal Communication GAL 04/2000, the Board of Directors of the BCB is empowered to authorize the substitution of the aforementioned assets.

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

Article 1.- Approve the substitution of the 20 credit operations identified with problems in the process of receiving the portfolio returned by Banco de Crédito de Bolivia S.A., which amount to a total of US$34,185.31.

Article 2.- The substitution of the credit operations will be carried out with the following assets: Cash US$ 1,140.05 Portfolio of Carlos Barragán (principal) US$ 9,897.40 Portfolio of Carlos Barragán (interest) US$ 130.86 Computer equipment US$ 23,017.00 TOTAL US$ 34,185.31

//3. B.R. No. 020/2000 The BBA will reimburse the corresponding interest from September 1, 1999, until the date on which the portfolio substitution is effectively carried out.

Article 3.- Authorize the President of the Central Bank of Bolivia to sign with the Selling Trustee of the BBA the Deed that modifies the Credit Assignment Contract dated November 30, 1999.

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

La Paz, March 29, 2000

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Juan Antonio Morales A.

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Armando Pinell S. Juan Medinaceli V.

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Fernando Campero P. Armando Méndez M.