Resolution 051/2000: Settlement of Obligations of the Intervened BBA for Forced Sale

BOARD RESOLUTION NO. 051/2000 SUBJECT: FINANCIAL ENTITIES – SETTLEMENT OF THE OBLIGATIONS OF THE INTERVENED BBA FOR ITS FORCED SALE REGARDING ALADI AGREEMENT OPERATIONS AND DEVELOPMENT CREDITS.

VIEWED: The Law No. 1670 of October 31, 1995. The Law No. 1977 of May 14, 1999. Resolution SB No. 053/99 of the Superintendence of Banks and Financial Entities (SBEF) of May 14, 1999. Note Cite: IV-JOT/608-2000 from the Selling Superintendent of the BBA of July 26, 2000. Memorandum SAJU BBA No. 16/2000 of July 4, 2000. Report from the Financial Entities Management GEF-SRRA No. 123-101/2000 of August 1, 2000. Note from the Legal Affairs Management No. 174/2000 of July 31, 2000.

CONSIDERING: That Law 1670, in its Article 86, authorizes the Central Bank of Bolivia (BCB) to receive assets in payment of debts. That Law 1977 has been regulated by Supreme Decrees No. 25681 of February 25, 2000, and No. 25768 of May 15, 2000, regarding the process of closing intervened financial intermediation entities for forced sale, authorizing the Selling Superintendent to settle their liabilities with the transfer of remaining assets.

//2. R.D. 051/2000 That the SBEF, by Resolution No. 053/99 of May 14, 1999, ordered the intervention of Banco Boliviano Americano S.A. for its forced sale. That the outstanding balance of principal and interest of the obligations pending payment by the BBA, regarding ALADI Agreement operations and Development credits as of August 1, 2000, amounts to the sum of $US 1,995,366.45. That according to Memorandum SAJU BBA No. 16/2000, there is a credit balance in favor of the BBA of $US 139,338.72, which by mutual agreement of the parties was established to be applied to the payment of the debt that the BBA holds with the BCB regarding operations under the ALADI Agreement and Development Credits. That Banco Boliviano Americano S.A., through note IV-JOT/608/2000 of July 26, 2000, has offered movable and immovable property owned by it to cancel operations of the ALADI Payments and Reciprocal Credits Agreement and credits originated with funds from the Development Financing Credit Lines.

That the Financial Entities Management indicates that it is necessary to proceed with the settlement of the aforementioned obligations, as the definitive closure of the BBA is scheduled for August 15, 2000, in application of what is established in Supreme Decree No. 25768 of May 15, 2000. That in the opinion of the Legal Affairs Management, there is no legal impediment for the BCB to receive the assets offered by the BBA in payment by diverse performance rather than the due one, for its obligations arising from operations within the ALADI Agreement and Development.

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

Article 1.- Authorize the Administration of the BCB to receive the assets detailed in the Annex to this Resolution, in payment of debts of Banco Boliviano Americano S.A. regarding ALADI Agreement operations and Development credits, for an amount settled to principal and interest as of August 1, 2000, of $US 1,995,366.45.

//3. R.D. 051/2000 Article 2.- Authorize the Administration to receive the BBA building, located at Nataniel Aguirre Street corner of Jordán in the city of Cochabamba, for a value of $US 638,007.00. There is a preventive annotation burdening this real estate; its transfer will be carried out as follows:

• The property will be transferred at its commercial value of $US 1,004,950.00 (ONE MILLION FOUR HUNDRED FORTY-NINE THOUSAND FIVE HUNDRED AND 00/100 US DOLLARS), minus a liability for an amount of $US 366,943.00 (THREE HUNDRED SIXTY-SIX THOUSAND NINE HUNDRED FORTY-THREE AND 00/100 US DOLLARS) which corresponds to the legal contingency in principal on which the preventive annotation was constituted. Therefore, the net imputable value as part payment by the BBA to the BCB is $US 638,007.00.
• The BCB will be legally enabled to, charged against said liability, first impute the payment of expenses incurred to liberate the property, and second, once the contingency is extinguished, pay the remainder, if any, with the delivery of goods received from the BBA in payment, either in favor of the BBA or the person it designates upon concluding its operations.
• Likewise, it will be established that if the legal contingency exceeds the value of the constituted liability, the BBA or the person it designates will be obligated to pay the difference to the BCB under its exclusive responsibility so as to liberate the property. For this last effect, the BBA will be obligated both to transfer said contingency, in writing, in favor of a third party and to notify that transfer to the BCB.

Article 3.- Authorize the Administration to receive as part payment of the obligations mentioned in Article 1 of this Resolution, the balance of $US 139,338.72 that exists in favor of the BBA, in application of clause eleventh of Memorandum SAJU BBA No. 16/2000, signed between the BCB and the BBA on July 4, 2000.

Article 4.- Authorize the President of the BCB to sign the respective contracts for payment of obligations by diverse performance rather than the due one with the Selling Superintendent of Banco Boliviano Americano S.A.

//4. R.D. 051/2000 Article 5.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, August 1, 2000

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Fernando Campero P.

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Armando Pinell S. Jaime Ponce G. Armando Méndez M.

//5. R.D. 051/2000 ANNEX ASSETS RECEIVED IN PAYMENT FOR ALADI AND DEVELOPMENT (Expressed in $US)

Client | Type of Asset | Location | Value (1)

• Own Asset | BBA Building | Nataniel Aguirre-Jordan (CBBA) | 638,007.00
• Own Assets | Office Movable Goods | LPZ, CBBA, ORURO | 69,055.26
• Own Asset | Parking 64 Edif. Estacionamientos Bueno | | 6,028.18 Plan Boliviano Americano | Asset purchased for sale | Land Lot El Alto | 9,181.76 BBA Values | Asset purchased for sale | Baulera 66 Edif. 3 Carabelas | 1,080.00 Corcosud | Adjudicated Asset | Tire Lot Altraser Deposit Sta. Cruz | 513,401.98 Ana María Rosso de Velez | Adjudicated Asset | Land Lot Achumani | 241,298.00 Albimex | Adjudicated Asset | Coffee Beneficiary Chijini Alto, El Alto | 227,975.97 Albimex | Adjudicated Asset | Lot and Constructions Chijini Alto, El Alto | 133,597.37 Cash | | | 16,402.21 Difference for substitution of assets observed by Colinas Santa Rita | | | 139,338.72 TOTAL | | | 1,995,366.45

(1) Own real estate: appraisal value Assets purchased for sale (real estate): appraisal value Own movable assets: book value Adjudicated movable and immovable assets: adjudication value

Note: The value of the building located between Nataniel Aguirre and Jordán streets in the city of Cochabamba results from subtracting the legal contingency in principal from the commercial appraisal value. ($US 638,007.00 = $US 1,004,950.00 - $US 366,943.00)