Resolution 021/2000

BOARD RESOLUTION NO. 021/2000
SUBJECT: FINANCIAL ENTITIES MANAGEMENT - AUTHORIZES RECEIPT OF THE IRREGULAR COMMERCIAL DEPOSIT PORTFOLIO AND RESOLUTION OF THE CREDIT ASSIGNMENT CONTRACT WITH REDEMPTION PACT FOR INSTALLMENTS SIGNED BETWEEN THE BCB AND THE BBA ON MARCH 1, 1996.

SEEN:
The Law No. 1977 of May 14, 1999.
The SB Resolution No. 053/99 of the Superintendence of Banks and Financial Entities (SBEF) dated May 14, 1999.
The Supreme Decree No. 25681 of February 25, 2000.

The Board Resolution of the Central Bank of Bolivia (BCB) No. 015/96 dated January 26, 1996.
The Addendum to the Credit Assignment Contract with Redemption Pact for Installments signed between the BCB and the Boliviano Americano Bank S.A. (BBA) on March 1, 1996.
The Note IV-FCU-070/2000 from the Selling Administrator of the BBA dated February 23, 2000.
The Report from the Financial Entities Management No. 045/2000 of March 22, 2000.
The Internal Communication from the Legal Affairs Management GAL No. 100/2000 of March 27, 2000.

CONSIDERING:
That in accordance with the provisions of the Board Resolution of the Central Bank of Bolivia No. 015/96, on March 1, 1996, the BCB and the BBA signed a Credit Assignment Contract with Redemption Pact for Installments for $us. 53,526,729.77, whose execution and unavoidable compliance was scheduled over 15 years, including a three-year grace period, calculable from the date of its signing.

//2. B.R. No. 021/2000
That in the addendum to the Credit Assignment Contract with Redemption Pact for Installments, it was agreed to modify the payment term for the successive benefits from March 1 to March 29.
That likewise, through the aforementioned instrument and as long as the corresponding redemption payments are met, the BCB entrusted the BBA with the administration of the assigned portfolio in Irregular Commercial Deposit (DIM). That in application of Law 1977, Modifier of Provisions of the Financial System, the SBEF issued SB Resolution No. 053/99 ordering the intervention of the BBA for its forced sale. That Supreme Decree 25681, Regulatory of Law 1977, regulates the conclusion of the intervention process of the BBA, authorizing the Selling Administrator of said Bank to, within a period of 12 months calculable from the date of issuance of the aforementioned decree, cancel the remaining liabilities and contingencies with credit assignments or payments in kind of other assets, until the total extinction of the legal personality of the intervened entity. That through note IV-FCU-070/2000 of February 23, 2000, the BBA proposes the return of the portfolio delivered in Irregular Commercial Deposit with the credits listed in the attached list to this Resolution. That the BBA contracted the services of the Audit Firm KPMG Marwick SRL to carry out a legal, technical, and financial audit of the Irregular Commercial Deposit, whose report establishes that the portfolio to be returned to the BCB by the DIM amounts to $us. 52,626,304. That within the framework of what is provided in Clause Seventh of the Credit Assignment Contract with Redemption Pact for Installments, the BBA canceled to the BCB the distribution corresponding to two-thirds of the effective recoveries of Annex 2 of the aforementioned contract, thereby covering in cash the difference between the value of the assigned portfolio and the flow of successive payments. That in its report No. 045/2000, the Financial Entities Management states that the BBA's proposal meets the contractual conditions regarding the restitution of a credit portfolio equal in genre, quality, rating, and quantity.

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That in the opinion of the Legal Affairs Management, contained in its Internal Communication GAL 100/2000, the intervention of the BBA for its forced sale created a supervening impossibility for this entity to honor its obligations agreed upon in the March 1, 1996 contract, which is why the Board of Directors of the BCB should authorize the receipt of the credit portfolio from the DIM, as well as the resolution of the respective Contract.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Authorize the Administration of the BCB to receive the portfolio of credits delivered in Irregular Commercial Deposit to the BBA, according to the attached list that forms part of this Resolution, with a cutoff date of January 31, 2000, for $us. 52,626,304.40. Any recovery of capital and interest after the cutoff date will be in favor of the BCB.

Expressed in $us.

NO. OF CREDITS | CATEGORY | FACIAL VALUE
50 | 1 | 2,955,953.62
101 | 2 | 795,056.23
130 | 3 | 3,065,520.64
84 | 4 | 9,433,176.36
579 | 5 | 36,376,597.55
944 | | 52,626,304.40

Article 2.- Once the portfolio from the DIM is received, authorize the resolution of the Credit Assignment Contract with Redemption Pact for Installments signed between the BCB and the BBA on March 1, 1996.

Article 3.- Authorize the President of the Central Bank of Bolivia to sign the respective document with the Selling Administrator of the BBA.

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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.