Resolution 059/2005 — BCB — BO

BOARD RESOLUTION NO. 059/2005
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
RENEWS CREDIT TO THE GENERAL TREASURY OF THE
NATION TO MEET TEMPORARY LIQUIDITY NEEDS OF Bs150,000,000.-

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.
The Memorandum of Understanding signed between the BCB and the Ministry of Finance on January 18, 2005.
Board Resolutions 121/2004 of August 19, 2004, 168/2004 of November 16, 2004, and 024/2005 of February 10, 2005.
The Private Contract SANO No. 122/2004 of August 20, 2004.
The SANO Addenda 197/2004 of November 18, 2004, and SANO 039/2005 of February 16, 2005.
The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 1327/05 of April 26, 2005.
The Report from the Monetary Operations Management GOM-SOSP-TGN 011/2005 of May 5, 2005.
The Report from the Economic Policy Advisory APEC-SMyF 021/2005 of May 9, 2005.
The Report from the Legal Affairs Management SANO 103/2005 of April 29, 2005.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 1327/05, has requested the renewal of the credit of Bs150,000,000.-, to meet 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 011/2005 recommending the conditions under which the credit renewal should be subject.

That the Economic Policy Advisory in its Report APEC-SMyF 021/2005, states that it is appropriate for the Board to consider the renewal of the liquidity credit for Bs150,000,000.-, for a term of 90 days expiring on May 17, 2005, in view of the fact that the limit of liquidity credits provided for in the 2005 Memorandum of Understanding is met.

That the Legal Affairs Management, in its Report SANO No. 103/2005, opines that there is no legal impediment for the Board of the Issuing Entity to consider the third renewal of the credit to the TGN for an amount of Bs150,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 1327/05, prior to compliance with what is established in the Regulations on Credits to the Public Sector and the financing limits for the 2005 management fixed in the Memorandum of Understanding.

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

Article 1.- Approve the third and final renewal of the credit granted to the Ministry of Finance to address temporary liquidity needs, under the following conditions:
Amount: Bs150,000,000.-
Interest Rate: 10.70%
Term: 90 days
Renewal Date: May 17, 2005
Maturity Date: August 15, 2005
Guarantee Instrument: Treasury Letters “C”.
Renewal Method: In accounts of the General Treasury of the Nation, according to written request.
Payment Method: Interest and principal, via automatic debit in the current fiscal accounts that the General Treasury of the Nation maintains at the Central Bank of Bolivia.

Article 2.- Authorize the President of the Central Bank of Bolivia to subscribe the respective contract 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.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, May 10, 2005

Juan Antonio Morales A.

Enrique Ackermann A. Fernando Paz B.

José Luis Evia V. Jaime Apt B.