Regulatory Alerts1999-07-06 | Resolución 057/99Added · Updated
Resolution 057/99
The Board of Directors of the Central Bank of Bolivia approves a credit facility of up to $30,000,000 equivalent in Bolivianos to the General Treasury of the Nation for temporary liquidity needs. The loan carries an interest rate of 14.48%, determined by the yield of the last 91-day national currency Treasury Bill auction, with a maturity date of September 30, 1999. Repayment of principal and interest is secured through automatic debits from the Treasury's current accounts at the Central Bank, backed by foreign currency Treasury Bills issued by the Treasury. Until the issuance and delivery of these bills, the Treasury must issue a 30-day promissory note, and the President is authorized to sign the corresponding contract with the Ministry of Finance.
BOARD RESOLUTION NO. 057/99 SUBJECT: CURRENCY AND CREDIT – CREDIT TO THE GENERAL TREASURY OF THE NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS FOR THE EQUIVALENT IN BOLIVIANOS OF $US30,000,000.-
HAVING VIEWED: Central Bank of Bolivia 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. Note from the Undersecretariat of Treasury and Public Credit D.G.C.P. 05-016 OF No. 332/99 of July 1, 1999. Report from the Economic Policy Advisory APEC-ARMyF No. 25/99 of July 5, 1999. Report from the Legal Advisory ALEG No. 040/99 of July 5, 1999.
CONSIDERING: That the Undersecretary of Treasury and Public Credit, through note DGCP 05-016 OF No. 332/99, has requested a credit for the equivalent in Bolivianos of $US30,000,000.- to address temporary liquidity needs.
That the Currency and Credit Management, in accordance with Article 5 of the Regulations on Credits to the Public Sector, has issued Report No. 029/99 specifying that there are no pending payment balances from the General Treasury of the Nation to the Central Bank of Bolivia for previous credits.
That the Economic Policy Advisory, in its report APEC-ARMyF No. 25/99, states that this loan complies with the Monetary Program.
That in the opinion of the Legal Advisory, the requirements established for granting the aforementioned loan to the General Treasury of the Nation have been met.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Approve the granting of a credit to address temporary liquidity needs to the General Treasury of the Nation, under the following conditions: Amount: Up to the equivalent of $US30,000,000.- Currency: Bolivianos Interest Rate: 14.48%, the yield rate of the auction of Treasury Bills in national currency for 91 days, corresponding to the last adjudication. Term: Until September 30, 1999. Instrument: Treasury Bills in foreign currency issued by the General Treasury of the Nation. Payment Method and Guarantee: Interest and principal, through automatic debit in the fiscal current accounts held by the General Treasury of the Nation at the Central Bank of Bolivia.
Article 2.- The General Treasury of the Nation must issue a promissory note with a maturity of 30 days, until the issuance and delivery of the Treasury Bills to the Central Bank of Bolivia is finalized.
Article 3.- Authorize the President to sign the respective contract with the Ministry of Finance.
Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, July 6, 1999
Juan Antonio Morales A.
Armando Pinell S.
Jaime Ponce G.
Juan Medinaceli
Fernando Campero P.
Armando Méndez M.
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