Regulatory Alerts2005-02-10 | Resolución 028/2005Added · Updated
Resolution 028/2005
The Board of Directors of the Central Bank of Bolivia authorizes a temporary liquidity loan of Bs100,000,000 to the General Treasury of the Nation. The loan carries an interest rate of 5.60%, has a term of 88 days, and is secured by Treasury Letters "C". Repayment of principal and interest is to be made via automatic debit from the Treasury's current accounts at the Central Bank, with the President of the Central Bank authorized to sign the corresponding contract.
BOARD RESOLUTION NO. 028/2005 SUBJECT: MONETARY OPERATIONS MANAGEMENT – GRANTS CREDIT TO THE GENERAL TREASURY OF THE NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs100,000,000.-
VIEWED:
Law No. 1670 of October 31, 1995.
Board Resolution No. 021/2005 of February 1, 2005, which approves the Regulations on Credits to the Public Sector.
Board Resolution No. 179/2004 of November 30, 2004.
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. 0676/05 of February 17, 2005.
The Report from the Monetary Operations Management SOSP 007/2005 of February 21, 2005.
The Report from the Economic Policy Advisory APEC-SMyF 011/2005 of February 21, 2005.
The Report from the Legal Affairs Management SANO No. 040/2005 of February 22, 2005.
CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0676/05, has requested the granting of a credit of Bs100,000,000.-, to address temporary liquidity needs.
That the Monetary Operations Management, in accordance with Article 5 of the Regulations on Credits to the Public Sector, has issued Report SOSP 007/2005, which recommends the conditions under which the renewal of the credit should be subject.
That the Economic Policy Advisory in its Report APEC-SMyF-011/2005, states that it is appropriate for the Board to consider the granting of the liquidity credit of Bs100 million, given that the balance of the liquidity credit portfolio is within the limit of the Memorandum of January 18, 2005.
That the Legal Affairs Management, in Report SANO No. 040/2005, establishes that there is no legal impediment for the Board of the Issuing Entity to consider the granting of a credit to the TGN for an amount of 100 million Bolivianos requested by the Ministry of Finance note D.G.C.P. 05-016 D.D.I. OF. No. 0676/05, prior to compliance with what is stipulated in the Memorandum of Understanding and what is established in the Regulations on Credits in the Public Sector.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Exceptionally accept the consideration of the request from the Ministry of Finance, regarding the granting of a credit to the TGN to address temporary liquidity needs.
Article 2.- Approve the granting of a credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:
Amount: Bs100,000,000.- Interest Rate: 5.60% Term: 88 days Disbursement Date: February 28, 2005 Maturity Date: May 27, 2005 Guarantee Instrument: Treasury Letters "C". Payment Method: Interest and principal, via automatic debit in the current accounts that the General Treasury of the Nation maintains at the Central Bank of Bolivia.
Article 3.- Authorize the President of the Central Bank of Bolivia to sign the respective contract with the Ministry of Finance.
Article 4.- The General Treasury of the Nation may effect the early cancellation of the total or partial credit considering the accrued interest on the total Credit up to the date of early cancellation.
Article 5.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, February 22, 2005.
Juan Antonio Morales A.
Juan Medinaceli V. Enrique Ackermann A.
José Luis Evia V. Fernando Paz B.
Jaime Apt B.
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