Resolution 024/2000 Approving Credit to Banco Boliviano Americano S.A. for Forced Sale — BCB — BO

RESOLUTION OF THE BOARD OF DIRECTORS NO. 024/2000 SUBJECT: FINANCIAL ENTITIES MANAGEMENT - APPROVES CREDIT TO BANCO BOLIVIANO AMERICANO S.A. INTERVENED FOR FORCED SALE UP TO $US 2,000,000.

VISTOS (VIEWED):
The Law No. 1670 of the Central Bank of Bolivia dated October 31, 1995.
The Law No. 1977 dated May 14, 1999.
Supreme Decree No. 25681 dated February 25, 2000.
Resolution SB No. 053/99 of the Superintendence of Banks and Financial Entities (SBEF) dated May 14, 1999.
Note GNC-EC-028/2000 from the Selling Intendant of Banco Boliviano Americano S.A. (BBA) dated March 14, 2000.
Report from the Financial Entities Management GEF No. 046/2000 dated March 24, 2000.

Internal Communication GAL No. 102/2000 from the Legal Affairs Management dated March 28, 2000.
Note from the Presidency of the Central Bank of Bolivia PRES. No. 043/2000 dated April 10, 2000.
Report from the Financial Entities Management No. 063/2000 dated April 11, 2000.

CONSIDERING (CONSIDERATIONS):
That Article Three of Law No. 1977, which modifies legal provisions of the Financial System, states that the Central Bank of Bolivia may provide financial support to the forced sale process of intervened financial entities. That the SBEF, by Resolution No. 053/99 of May 14, 1999, ordered the intervention for the forced sale of Banco Boliviano Americano S.A.

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That on May 17, 1999, the Central Bank of Bolivia granted BBA a Financial Support Credit Line for its forced sale process of $US 50 million, which was increased to $US 80 million with an addendum dated May 19, 1999. That of the aforementioned amount, BBA utilized $US 66.5 million, a sum that was promptly cancelled with portfolio, assets given in payment, and in cash. That on September 14, 1999, BBA received from the Central Bank of Bolivia a Restricted Credit Line of up to $US 18.06 million, of which it employed $US 9.9 million for the return of deposits from FOCOSSMAF and FONADAL. That the Selling Intendant of BBA, through note GNC-EC-028/2000 dated March 14, 2000, states that the intervention is facing the payment of various liabilities and expenses with its own resources and that, to continue with the sale process of said financial entity, it requires the granting of a credit line of $US 5,000,000.

That after analyzing the available assets of the BBA intervened for forced sale, the Financial Entities Management in Report No. 063/2000 dated April 11, 2000 has selected a set of assets that, under current circumstances, can constitute adequate backing as collateral for the credit for the amount of up to $US 2,000,000. That in the opinion of the Legal Affairs Management, the Central Bank of Bolivia is authorized by Law No. 1977 of May 14, 1999 to provide financial support to the BBA intervened for forced sale.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Approve the granting of a credit to Banco Boliviano Americano S.A. intervened for forced sale, intended for the payment of social benefits related to the closure of its operations and to cover operating expenses, under the following terms:

Amount: Up to $US 2,000,000.

Currency: United States Dollars.
Annual Interest Rate: 7.88%, the average weighted effective passive annual interest rate of the banking system in foreign currency, corresponding to the week of April 3 to 7, 2000.

Maturity: May 11, 2000.
Guarantees: Assets in a 1 to 1 ratio, according to the detail in Annex 1.
Payment Method: Upon expiration of the term, the BBA intervened for its forced sale will pay the Central Bank of Bolivia, in a single amortization, the resources used from the credit, including principal and interest, in cash or, failing that, with the giving in payment of the assets detailed in Annex 1, up to the owed amount.

Article 2.- Prior to disbursement, BBA must comply with the following conditions:
a) Present to the Central Bank of Bolivia a plan and schedule of actions leading to the definitive closure of its operations and the extinction of the legal personality of the Bank. b) Said plan must contain a Pro Forma Balance Sheet of the Closing Financial Statements of BBA, which includes the proposed adjustments for the extinction of its operations.
Article 3.- In order to regularize the support granted by the Central Bank of Bolivia previously, BBA must close all pending operations with the Central Bank of Bolivia, such as: the agreed substitution of portfolio, the restitution of the DIM, and the delivery of portfolio and assets. BBA must inform in writing to the Central Bank of Bolivia, within a period of up to five business days from the signing of the contract, regarding the measures adopted to comply with these obligations.

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Article 4.- Disbursements will be made prior to the signing of the respective contract, upon written and duly justified request from the Selling Intendant of BBA.
Article 5.- Authorize the President of the Central Bank of Bolivia to sign the credit contract with the Selling Intendant of Banco Boliviano Americano S.A.
Article 6.- The Presidency and the General Management are tasked with the execution and compliance of this Resolution.

La Paz, April 11, 2000

Juan Antonio Morales A.
__________________ __________________ ________________ Armando Pinell S. Jaime Ponce G. Juan Medinaceli V.

Fernando Campero P. Armando Méndez M.