Resolution 051/2005 — BCB — BO

BOARD RESOLUTION NO. 051/2005
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
RENEWS CREDIT TO THE GENERAL TREASURY OF THE
NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs80,000,000.

HAVING 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 Resolution No. 018/2005 of January 27, 2005.
The Memorandum of Understanding signed between the BCB and the Ministry of Finance on January 18, 2005.
The Private Contract SANO 031/2005 of February 1, 2005.
The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 1285/05 of April 18, 2005.

The Report from the Monetary Operations Management GOM-SOSP-TGN 010/2005 of April 19, 2005.

The Report from the Economic Policy Advisory APEC-SMyF 019/2005 of April 19, 2005.

The Report from the Legal Affairs Management SANO No. 089/2005 of April 20, 2005.

CONSIDERING:

That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 1285/05, has requested the renewal of the credit of Bs80,000,000 to address 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 010/2005, which recommends the conditions under which the credit renewal should be subject.

That the Economic Policy Advisory in its Report APEC-SMyF 019/2005, states that it is appropriate for the Board to consider the renewal of the liquidity credit of Bs80,000,000 for a term of 245 days.

That the Legal Affairs Management in its Report SANO No. 089/2005, establishes that there is no legal impediment for the Board to consider the request presented by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 1285/05, for the renewal of a liquidity credit of Bs80,000,000, prior to compliance with what is determined in the Regulations on Credits to the Public Sector and always that the credit is within the limits of the BCB Financing to the TGN established in the Memorandum of Understanding of January 18, 2005.

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

Article 1.- Exceptionally attend to the consideration of the request from the Ministry of Finance regarding the renewal of a Credit to the TGN to address temporary liquidity needs.

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

Amount: Bs80,000,000.00
Interest Rate: 10.20%
Term: 244 days
Renewal Date: April 29, 2005.
Maturity Date: December 29, 2005
Guarantee Instrument: Treasury Letters “C”.
Payment Method: At maturity, Interest and principal, via automatic debit in the fiscal checking 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 contract with the Ministry of Finance.

Article 4.- The General Treasury of the Nation may effect the total or partial early cancellation of the credit considering the interest accrued on the total of the Credit 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, April 26, 2005

Juan Antonio Morales A.

Fernando Paz B. José Luis Evia

Jaime Apt B.