Resolution 024/2005 — BCB — BO

BOARD RESOLUTION NO. 024/2005
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
RENEWS CREDIT TO THE GENERAL TREASURY OF THE
NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs150,000,000.

HAVING REVIEWED:
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 Resolution No. 168/2004 of November 16, 2004.
The Private Contract SANO No. 122/2004 of August 20, 2004, and its Addendum.
The Memorandum of Understanding signed between the BCB and the Ministry of Finance on January 18, 2005.
The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 0398/05 of January 26, 2005.
The Report from the Monetary Operations Management SOSP 05/2005 of February 4, 2005.
The Report from the Economic Policy Advisory APEC-SMyF-009/2005 of February 10, 2005.
The Report from the Legal Affairs Management SANO No. 026/2005 of February 1, 2005.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0398/05, has requested the renewal of the credit of Bs150,000,000 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 005/2005, which recommends the conditions under which the credit renewal should be subject.

That the Economic Policy Advisory, in its Report APEC-SMyF-009/2005, considering that the renewal of the liquidity credit for Bs150.0 million does not affect the balance of liquidity credits and that the observed figures show trends consistent with the targets of the preliminary monetary program for the first and second quarters, recommends to the Board that it consider the request for the renewal of a liquidity credit for Bs150,000,000, with a maturity date of February 16, 2005, for a term of 90 days.

That the Legal Affairs Management, in its Report SANO No. 026/2005, establishes that there is no legal impediment for the Board of the Issuing Entity to consider the request presented by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 0398/05, for the renewal of a liquidity credit of Bs150,000,000, and that it meets the requirements established by current regulations.

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

Article 1.- Approve the second renewal of a credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:
Amount: Bs150,000,000.
Interest Rate: 8.80%
Term: 90 days
Renewal Date: February 16, 2005
Maturity Date: May 17, 2005.
Guarantee Instrument: Treasury Letters “C”.
Payment Method: At maturity, interest and principal, via automatic debit in the fiscal current accounts that the General Treasury of the Nation maintains 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 effectuate the total or partial early cancellation of the credit considering the accrued interest 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 10, 2005

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.

Jaime Apt B.