Resolution 054/2004 — BCB — BO

BOARD RESOLUTION NO. 054/2004

SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES RENEWAL OF CREDIT TO THE GENERAL TREASURY OF THE NATION TO MEET TEMPORARY LIQUIDITY NEEDS OF Bs355,000,000.

HAVING REVIEWED:

Law No. 1670 of October 31, 1995.

Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations for 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. 013/2004 of January 27, 2004.

Private Contract SANO No. 26/2004 of February 2, 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 note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 0867/04 of April 16, 2004.

The Report from the Monetary Operations Management SOSP 020/2004 of April 23, 2004.

The Report from the Economic Policy Advisory APEC-SMyF-020/2004 of April 27, 2004.

The Report from the Legal Affairs Management SANO 85/2004 of April 22, 2004.

CONSIDERING:

That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 0867/04, has requested the renewal of the credit of Bs355,000,000 to meet temporary liquidity needs.

That the Monetary Operations Management, in accordance with Article 5 of the Regulations for Credits to the Public Sector, has issued Report SOSP 020/2004, which recommends the conditions under which the credit renewal should be subject.

That the Economic Policy Advisory, in its Report APEC-SMyF-020/2004, states that the request by the TGN for the renewal of the liquidity credit of Bs355,000,000, with maturity on April 30, 2004, falls within the expanded limit of liquidity credits approved by the BCB Board, according to the Addendum of April 1, 2004, to the Memorandum of Understanding signed between the Ministry of Finance and the BCB.

That the Legal Affairs Management, in its Report SANO No. 85/2004, 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 Bs355,000,000, requested by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 0867/04, prior to compliance with what is established in the Regulations for Credits to the Public Sector and subsection A) of Article I of the Memorandum of Understanding of December 4, 2003, and its corresponding Addendum of April 1, 2004.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

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

Amount: Bs355,000,000.
Interest Rate: 8%.
Term: 90 days.
Renewal Date: April 30, 2004.
Maturity Date: July 29, 2004.
Guarantee Instrument: Treasury Letters “C”.
Payment Method: Interest and principal, via automatic debit in the fiscal 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 effect total or partial early cancellation of the credit considering the accrued interest on the total credit up to the date of early cancellation.

Article 4.- Any rescheduling of the credit must be compatible with the BCB financing limits 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 27, 2004

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.