Resolution 022/99 - Liquidity Credit to Banco Boliviano Americano S.A.

BOARD RESOLUTION NO. 022/99 SUBJECT: FINANCIAL SYSTEM - LIQUIDITY CREDIT TO BANCO BOLIVIANO AMERICANO S.A. FOR $US 12,000,000.

SEEN: The Law No. 1670 of the Central Bank of Bolivia (BCB) of October 31, 1995. The Regulation on Legal Reserves for Institutions of the Financial System, approved by Board Resolution No. 180/97 of December 23, 1997. The Regulation on Liquidity Credits to Entities of the Financial Intermediation System, approved by Board Resolution No. 059/98 of June 9, 1998. The Note from Banco Boliviano Americano S.A. (BBA) GG/024/99 of March 29, 1999. The Resolution of the BCB Board No. 017/99 of March 11, 1999. The Report from the Financial System Management GSF-039/99 of March 31, 1999. The Report from the Economic Policy Advisory APEC-ARM y F (I) - No. 10/99 of March 31, 1999. The Report from the Legal Advisory ALEG No. 012/99 of March 31, 1999. The Act No. 14/99 of the Financial System Analysis Committee (COASIF) dated March 31, 1999.

CONSIDERING: That Article 36 of Law 1670 of October 31, 1995, empowers the BCB to grant liquidity credits to banks and financial intermediation entities, in duly justified and qualified cases by its Board by an absolute majority of votes.

//2. B.R. No. 022/99 That on March 11, 1999, the BCB granted BBA, through its Board Resolution No. 017/99, a liquidity credit of $US 8,000,000. That Banco Boliviano Americano S.A. has requested the granting of a new credit to meet temporary liquidity needs of $US 12,000,000. That the liquidity credit requested by BBA will be backed by a portfolio with rating 1 (normal), in a 2 to 1 proportion, thus guaranteeing the recovery of State funds.

That the Financial System Management indicates in its report that Banco Boliviano Americano S.A. meets the requirements established in the aforementioned Regulation, and therefore, in its opinion, the liquidity credit request from said financial entity is appropriate. That the Economic Policy Advisory establishes in its report that there is margin in the Monetary Program to attend to the liquidity credit requested by BBA. That in the opinion of the Legal Advisory, the BCB Board is empowered to grant liquidity credits in accordance with the Regulation on Liquidity Credits to Entities of the Financial Intermediation System. That in Act No. 14/99 of March 31, 1999, the favorable opinion of the Financial System Analysis Committee (COASIF) for the granting of the aforementioned liquidity credit in the amount requested by BBA appears.

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

Article 1.- Grant a liquidity credit to Banco Boliviano Americano S.A., in accordance with Law 1670 of October 31, 1995, and the requirements established in the Regulation on Liquidity Credits to Entities of the Financial Intermediation System, under the following conditions:

//3. B.R. No. 022/99 Amount: Up to the sum of $US 12,000,000. Currency: United States Dollars. Interest Rate: 16.27% per annum. Term: 45 days from the signing of the contract. Amortization: A single payment at maturity. BBA may pay the credit, including accumulated interest, in whole or in part, in advance. Guarantees: a) Automatic debit in its checking accounts and legal reserves that it maintains at the BCB; and b) Loan portfolio with own resources of Banco Boliviano Americano S.A., with rating 1 (normal) following the rating criteria established by the Superintendency of Banks and Financial Entities in its Resolution SB No. 155/98 of December 29, 1998. Said portfolio must, as far as possible, have real guarantees, to the full satisfaction of the BCB. The temporary assignment of credit will be documented by means of a contract. The sum of the guarantees must be equivalent to twice the amount of the credit.

Disbursements: $US 3,000,000 upon signing the contract. BBA will have five business days to complete the delivery of the legal documentation for the assignment of the portfolio as collateral for this first disbursement. The subsequent disbursements will be made as BBA constitutes the respective documentation of the portfolio as collateral, to the satisfaction of the BCB.

Article 2.- The resources will be disbursed prior to the signing of the contract for the temporary assignment of the portfolio, via credits to the foreign currency checking account that BBA maintains at the BCB, upon written request from BBA. These resources may only be used by Banco Boliviano Americano S.A. to cover its reserve deficiency, swap deficiencies in the Clearing House, as well as overdrafts in its checking account at the BCB.

//4. B.R. No. 022/99 Article 3.- From the date of subscription of the credit assignment contract, Banco Boliviano Americano S.A. may not grant new loans or make new investments. Article 4.- Instruct the BCB Administration to include Administrative Conditions in the credit assignment contract to be signed with BBA, in accordance with the Regulation on Liquidity Credits to Entities of the Financial Intermediation System. Article 5.- Request the Superintendency of Banks and Financial Entities to strictly monitor all provisions of this Resolution. Article 6.- Authorize the President of the BCB to sign the loan contract and temporary assignment of portfolio with Banco Boliviano Americano S.A. Article 7.- The Presidency and General Management are responsible for the execution and compliance with this Resolution.

La Paz, March 31, 1999

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G. Juan Medinaceli

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Fernando Campero P. Armando Méndez M.