Regulatory Alerts2005-04-20 | Resolución 052/2005Added · Updated
Resolution 052/2005
The Board of Directors of the Central Bank of Bolivia authorizes a temporary liquidity credit of Bs160,000,000 to the General Treasury of the Nation. The loan carries an interest rate of 10.20%, a term of 358 days, and is secured by Treasury Letters "C". Repayment of principal and interest is due on April 21, 2006, via automatic debit from the Treasury's current accounts at the Central Bank, with provisions for early partial or total cancellation.
BOARD RESOLUTION NO. 052/2005 SUBJECT: MONETARY OPERATIONS MANAGEMENT – GRANTS CREDIT TO THE GENERAL TREASURY OF THE NATION TO MEET TRANSITORY LIQUIDITY NEEDS OF Bs160,000,000.-
VIEWING: The Law No. 1670 of October 31, 1995. The 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 note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 1262/05 of March 15, 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. 088/2005 of April 20, 2005.
CONSIDERING: That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 1262/05, has requested the granting of a credit of Bs160,000,000.- to meet transitory 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 granting of the credit should be subject.
That the Economic Policy Advisory in Report APEC-SMyF-019/2005, states that it is appropriate for the Board to consider the granting of a new liquidity credit to the TGN, for Bs160.0 million for a term of 360 days, in view of the fact that the new balance of the liquidity credit portfolio is within the limit provided for in the Memorandum of Understanding.
That the Legal Affairs Management in its Report SANO No. 088/2005, establishes that there is no legal impediment for the Board to consider, in an exceptional manner, the request for the granting of a liquidity credit for Bs160.0 million, presented by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 1262/05 prior to compliance with what is determined by the Regulations on Credits to the Public Sector and what is established in the Memorandum of Understanding.
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 application for a Credit to the TGN to meet transitory liquidity needs.
Article 2.- Approve the granting of a credit to the Ministry of Finance for the attention of transitory liquidity needs, under the following conditions: Amount: Bs160,000,000.- Interest Rate: 10.20% Term: 358 days Granting Date: April 28, 2005 Maturity Date: April 21, 2006 Guarantee Instrument: Treasury Letters “C”. Payment Method: At maturity, interest and principal, via automatic debit in the fiscal current accounts that the General Treasury of the Nation maintains 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 accrued interest on the total 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 V.
Jaime Apt.
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