Resolution 041/2005 — BCB — BO

BOARD RESOLUTION NO. 041/2005
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
RENEWS CREDITS TO THE GENERAL TREASURY OF THE
NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs157,000,000 AND Bs143,000,000.

SEEN:
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 Resolutions 151/2004 of October 5, 2004 and 195/2004 of December 21, 2004; and 153/2004 of October 8, 2004 and 196/2004 of December 21, 2004. The Memorandum of Understanding signed between the BCB and the Ministry of Finance on January 18, 2005. The Addendum to the Memorandum of Understanding, dated March 14, 2005. The Private Contracts SANO No. 166/2004 of October 6, 2004 and SANO No. 169/2004 of October 11, 2004. The SANO Addenda No. 002/2005 and SANO No. 003/2005 of January 3, 2005. The notes from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 0952/05 and D.G.C.P. 05-016 D.D.I. OF. No. 0953/05 of March 15, 2005. The Report from the Monetary Operations Management GOM-SOSP-TGN 008/2005 of March 23, 2005. The Report from the Economic Policy Advisory APEC-SMyF 015/2005 of March 28, 2005. The Reports from the Legal Affairs Management SANO No. 57/2005 and SANO No. 58/2005 of March 18, 2005.

CONSIDERING:
That the Ministry of Finance, through notes D.G.C.P. 05-016 D.D.I. OF. No. 0952/05 and D.G.C.P. 05-016 D.D.I. OF. No. 0953/05, has requested the renewal of the credits of Bs157,000,000 and Bs143,000,000.

That the Monetary Operations Management, in accordance with Article 5 of the Regulations on Credits to the Public Sector, has issued Report GOM-SOSP TGN 008/2005, which recommends the conditions to which the requested credit renewals by the Ministry of Finance should be subject.

That the Economic Policy Advisory in Report APEC-SMyF-015/2005, establishes that it is appropriate for the Board to consider the renewal of the credits for Bs157,000,000 and Bs143,000,000, maturing on April 4, 2005, and, given that the new Regulations on Credits to the Public Sector allow for a longer term, recommends extending the renewal of the liquidity credits to a longer term maturing on September 26, 2005.

That the Legal Affairs Management, in Reports SANO No. 57/2005 and SANO No. 58/2005, establishes that there is no legal impediment for the Board of the Issuing Entity to consider the second renewal of the liquidity credits for Bs157,000,000 and Bs143,000,000, provided that it is technically determined that they are within the financing limit of the BCB to the TGN established in the Memorandum of Understanding.

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

Article 1.- Approve the second renewal of the credit granted to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:
Amount: Bs157,000,000
Interest Rate: 10.50%
Term: 175 days.
Renewal Date: April 4, 2005
Maturity Date: September 26, 2005
Guarantee Instrument: Treasury Bills “C”.
Payment Method: Interest and principal, via automatic debit in the fiscal current accounts that the General Treasury of the Nation holds at the Central Bank of Bolivia.

Article 2.- Approve the second renewal of the credit granted to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:

Amount: Bs143,000,000
Interest Rate: 10.50%
Term: 175 days.
Renewal Date: April 4, 2005
Maturity Date: September 26, 2005
Guarantee Instrument: Treasury Bills “C”.
Payment Method: Interest and principal, via automatic debit in the fiscal current accounts that the General Treasury of the Nation holds at the Central Bank of Bolivia.

Article 3.- Authorize the President of the Central Bank of Bolivia to sign the respective contracts with the Ministry of Finance.

Article 4.- 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 of the credits 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, March 29, 2005

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.