Resolution 023/2005 — BCB — BO

BOARD RESOLUTION NO. 023/2005
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
RENEWS CREDIT TO THE GENERAL TREASURY OF THE
NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs160,000,000.

VIEWING:
Law No. 1670 of October 31, 1995.
Board Resolution No. 021/2005 of February 1, 2005, which approves the Regulations for Credits to the Public Sector.
Board Resolutions No. 043/2004 of April 1, 2004, 060/2004 of May 11, 2004, 076/2004 of June 8, 2004, 099/2004 of July 13, 2004, 124/2004 of July 24, 2004, 150/2004 of October 5, 2004, 169/2004 of November 16, 2004, and 193/2004 of December 21, 2004.

The Memorandum of Understanding signed between the Central Bank of Bolivia (BCB) and the Ministry of Finance on January 18, 2005.
The Private Contract SANO No. 056/2004 of April 5, 2004.
The SANO Addendas No. 83/2004 of May 14, 2004, SANO No. 94/2004 of June 14, 2004, SANO No. 112/2004 of July 23, 2004, SANO No. 125/2004 of September 1, 2004, SANO No. 168/2004 of October 11, 2004, SANO No. 198/2004 of November 19, 2004, and SANO No. 252/2004 of December 29, 2004. The note from the Ministry of Finance, General Directorate of Public Credit (D.G.C.P.), D.D.I. OF. No. 0213/05 of January 14, 2005. The Report from the Monetary Operations Management SOSP 003/2005 of January 19, 2005. The Report from the Economic Policy Advisory APEC-SMyF-008/2005 of January 27, 2005. The Report from the Legal Affairs Management SANO No. 016/2005 of January 17, 2005.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0213/05, has requested the renewal of the credit of Bs160,000,000 to address temporary liquidity needs.
That the Monetary Operations Management, in accordance with Article 5 of the Regulations for a Credit to the Public Sector, has issued Report SOSP 003/2005, which recommends the conditions under which the credit renewal should be subject. That the Economic Policy Advisory, in its Report APEC-SMyF-008/2005, states that it is appropriate for the Board to consider the renewal of a liquidity credit of Bs160,000,000 for a term of 40 days, given that it does not affect the preliminary monetary program for the first quarter of 2005 nor alter the ceiling for the balance of liquidity credits established in the Memorandum of Understanding. That the Legal Affairs Management, in its Report SANO No. 016/2005, opines that there is no legal impediment for the Board to consider the renewal of the credit requested by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 0213/05, provided that the renewal is within the limits of the monetary program and complies with what is stipulated in the Memorandum of Understanding.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Approve the eighth renewal of a credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:
Amount: Bs160,000,000.
Interest Rate: 10.50%.
Term: 59 days.
Renewal Date: February 4, 2005.
Maturity Date: April 4, 2005.
Guarantee Instrument: Treasury Letters “C”.
Payment Method: At maturity, interest and principal, via automatic debit in the current fiscal 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 credit 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, February 1, 2005

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

Fernando Paz B.