Resolution 045/2004 — BCB — BO

BOARD RESOLUTION NO. 045/2004

SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES RENEWAL OF CREDIT TO THE GENERAL TREASURY OF THE NATION TO MEET TEMPORARY LIQUIDITY NEEDS OF Bs300,000,000.

HAVING REVIEWED:

Law No. 1670 of October 31, 1995.

Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations on Credits to the Public Sector.

Board Resolution No. 121/2001 of November 29, 2001, which modifies Article 10 of Board Resolution 160/97 regarding the Financial Conditions of Credits to the Public Sector.

Board Resolution No. 114/2003 of October 15, 2003.

Board Resolution No. 006/2004 of January 13, 2004.

Board Resolution No. 016/2004 of February 10, 2004.

The Memorandum of Understanding signed between the BCB and the Ministry of Finance on December 4, 2003.

The Addendum to the Memorandum of Understanding, dated April 1, 2004.

The Private Contract SANO No. 233/2003 of October 16, 2003.

The SANO Addendum No. 15/2004 of January 14, 2004.

The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 0673/04 of March 26, 2004.

The Report from the Monetary Operations Management SOSP 016/2004 of March 31, 2004.

The Report from the Economic Policy Advisory APEC-SMyF 014/2004 of March 31, 2004.

The Report from the Legal Affairs Management SANO No. 064/2004 of March 30, 2004.

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CONSIDERING:

That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0673/04, has requested the renewal of the credit of Bs300,000,000 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 SOSP 016/2004, which recommends the conditions under which the credit renewal should be subject.

That the Economic Policy Advisory, in its Report APEC-SMyF-014/2004, states that the request by the TGN regarding the renewal of the liquidity credit for Bs 300,000,000, with maturity on April 13, 2004, falls within the limit of liquidity credits fixed in the Memorandum of Understanding and temporarily expanded by the Board on February 10 of the current year, through Board Resolution No. 016/2004.

That the Legal Affairs Management, in its Report SANO No. 064/2004, establishes that there is no legal impediment for the Board of the Issuing Entity to consider the renewal of a credit to the TGN for an amount of Bs300,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 0673/04, prior to compliance with what is established in the Regulations on Credits to the Public Sector and clause A) of Article I of the Memorandum of Understanding of December 4, 2003, which states that “During the 2004 management period, the balance of debt for liquidity credits will be subject to a limit that may be exceptionally increased if there is a sustained accumulation of deposits in the BCB from the rest of the Entities of the Non-Financial Public Sector (SNPF). This balance may be reviewed downward according to the monetary and financial program agreed upon for the 2004 management period.”

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

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

Amount: Bs300,000,000.
Interest Rate: 8%
Term: 90 days.
Renewal Date: April 13, 2004
Maturity Date: July 12, 2004

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Guarantee Instrument: Treasury Bills “C”.
Payment Method: Interest and principal, through automatic debit in the current 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 contracts 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 of the credit, up to the date of early cancellation.

Article 4.- Any rescheduling of the present Credit must be compatible with the financing limits of the BCB to the General Treasury of the Nation established in the Memorandum of Understanding signed between the BCB and the Ministry of Finance on December 4, 2003, and the Addendum of April 1, 2004, to said Memorandum.

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

La Paz, April 6, 2004

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.

Jaime Apt B.