Resolution 042/2005

BOARD RESOLUTION NO. 042/2005
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
GRANTS CREDIT TO THE GENERAL TREASURY OF
THE NATION TO MEET TEMPORARY
LIQUIDITY NEEDS OF Bs160,000,000.-

HAVING 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.
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 note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 0951/05 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 Report from the Legal Affairs Management SANO No. 56/2005 of March 18, 2005.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0951/05, has requested the granting of a credit of Bs160,000,000.- to meet 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 GOM-SOSP-TGN 008/2005, which recommends the conditions to which the credit requested by the Ministry of Finance should be subject.

That the Economic Policy Advisory in Report APEC-SMyF-015/2005, states that it is appropriate for the Board to consider the granting of a new liquidity credit of Bs160.0 million for a term of 270 days, given that the new balance of the liquidity credit portfolio would be within the limit of the Memorandum of Understanding.

That the Legal Affairs Management, in its Report SANO No. 56/2005, establishes that the request for the granting of a liquidity credit presented by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 0951/05 meets the requirements established by current regulations, with no legal impediment for the Board of the Issuing Entity to consider the approval of the granting of a credit to the TGN for Bs160.0 million, provided that it is technically determined that it is 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 granting of a credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:
Amount: Bs160,000,000.-
Interest Rate: 8.70%
Term: 270 days
Granting Date: April 1, 2005
Maturity Date: December 27, 2005
Guarantee Instrument: Treasury Letters "C".
Disbursement Method: Into accounts of the General Treasury of the Nation, according to written request.
Repayment Method: At maturity, 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 effect total or partial early cancellation of the credit considering the interest accrued on the total amount of the 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, March 29, 2005

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Juan Antonio Morales A.

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Juan Medinaceli V. Enrique Ackermann A.

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José Luis Evia V. Fernando Paz B.