Resolution 044/2000

BOARD RESOLUTION NO. 044/2000

SUBJECT: FINANCIAL ENTITIES MANAGEMENT - APPROVES PARTIAL DISBURSEMENT OF $US 2,000,000 TO BBA.

HAVING REVIEWED:

Law No. 1670 of the Central Bank of Bolivia dated October 31, 1995. Law No. 1977 dated May 14, 1999. Supreme Decree No. 25681 dated February 25, 2000. Resolution SB No. 053/99 of the Superintendence of Banks and Financial Entities (SBEF) dated May 14, 1999. Note IV-FCU 562/2000 from the Selling Trustee of Banco Boliviano Americano S.A. (BBA) dated June 27, 2000. Report from the Financial Entities Management SRRA No. 089/2000 dated July 4, 2000.

Internal Communication GAL No. 155-B/2000 from the Legal Affairs Management dated July 4, 2000.

CONSIDERING:

That Law No. 1979, which modifies legal provisions of the Financial System, empowers the Central Bank of Bolivia to provide financial support for the process of forced sale of intervened financial entities.

That the SBEF, through Resolution No. 053/99 of May 14, 1999, ordered the intervention of Banco Boliviano Americano S.A. for its forced sale.

That through Board Resolution No. 031/2000 of May 9, 2000, the Central Bank of Bolivia approved the granting of a credit of up to $US 3,000,000 to the intervened Banco Boliviano Americano for its forced sale, subject to compliance with the conditions set forth in Articles 2 and 3.

That the Selling Trustee of the BBA, through note IV-FCU 557/2000 dated June 26, 2000, communicated to the Central Bank of Bolivia the lifting of preventive annotations on the collateral assets granted to the Central Bank of Bolivia, requesting the disbursement of the credit approved through Board Resolution No. 031/2000.

That the Selling Trustee of the BBA, through note IV-FCU 562/2000 dated June 27, 2000, submitted a provisional portfolio list for the restitution of the Irregular Mercantile Deposit (DIM), reiterating the request for the disbursement of the credit approved through Board Resolution No. 031/2000, with the firm commitment to sign the contract for the Resolution of the DIM once the delivery of this portfolio is concluded.

That the Financial Entities Management in its Report SRRA No. 089/2000 of July 4, 2000, states that the BBA has partially complied with the conditions established in Articles 2 and 3 of Board Resolution No. 031/2000; that the agreed substitution of the portfolio is in the process of being signed; that most of the portfolio and asset delivery has been carried out; and that the receipt of the DIM portfolio is in process.

That in the opinion of the Legal Affairs Management, the Central Bank of Bolivia is empowered by Law No. 1977 of May 14, 1999, to provide financial support to the intervened BBA for its forced sale.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the Administration to disburse to the benefit of the BBA up to $US 2,000,000, charged against the credit approved through Board Resolution No. 031/2000.

Article 2.- For the disbursement of the balance of $US 1,000,000, the BBA must close all pending operations with the Central Bank of Bolivia, such as: the total delivery of portfolio and assets and the restitution of the DIM.

Article 3.- The disbursement will be made prior to the signing of the respective contract upon written and duly justified request from the Selling Trustee of the BBA.

Article 4.- The maturity deadline set forth in Article 1 of Board Resolution 031/2000 is extended by an additional 30 days to the 60 days granted in said Resolution.

Article 5.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, July 4, 2000

---

Juan Antonio Morales A.

---

Armando Pinell S.

Jaime Ponce G.

Juan Medinaceli V.

---

---

Fernando Campero P.

Armando Méndez M.