Resolution 029/2005 — BCB — BO

BOARD RESOLUTION NO. 029/2005
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
RENEWS CREDIT TO THE GENERAL TREASURY OF THE
NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs200,000,000.

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 Private Contract SANO No. 204/2004 of December 1, 2004.

The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 0595/05 of February 10, 2005.

The Report from the Monetary Operations Management SOSP 006/2005 of February 17, 2005.

The Report from the Economic Policy Advisory APEC-SMyF 011/2005 of February 21, 2005.

The Report from the Legal Affairs Management SANO 034/2005 of February 15, 2005.

CONSIDERING:

That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0595/05, has requested the renewal of the credit of Bs200,000,000 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 006/2005, which recommends the conditions under which the credit renewal should be subject.

That the Economic Policy Advisory in its Report APEC SMyF No. 011/2005, states that it is appropriate for the Board to consider the renewal for a term of 90 days, of the liquidity credit for Bs200 million with maturity on March 1, 2005.

That the Legal Affairs Management, in Report SANO No. 034/2005, states that the request presented by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 0595/05, must be considered by the Board of the Issuing Entity provided that it is technically established that the renewal of this credit is within the financing limits established in the Memorandum of Understanding and prior to compliance with what is provided in the Regulations on Credits to the Public Sector.

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

Article 1.- Approve the first renewal of the credit granted to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:

Amount: Bs200,000,000.
Interest Rate: 7.00%
Term: 87 days
Renewal Date: March 1, 2005
Maturity Date: May 27, 2005
Guarantee Instrument: Treasury Letters “C”.
Form of Renewal: In accounts of the General Treasury of the Nation, according to written request.
Form of Payment: Interest and principal, through 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 contract with the Ministry of Finance.

Article 3.- The General Treasury of the Nation may carry out 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 in charge of the execution and compliance with this Resolution.

La Paz, February 22, 2005.

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

Fernando Paz B. José Luis Evia.

Jaime Apt B.