Resolution 059/99

BOARD RESOLUTION NO. 059/99
SUBJECT: FINANCIAL SYSTEM – APPROVES RETURN OF ASSETS AND LIABILITIES OF PROGRAM BV-C2 TO THE GENERAL TREASURY OF THE NATION (TGN).

HAVING REVIEWED:
Law No. 1670 of October 31, 1995.
The Statute of the Central Bank of Bolivia of February 20, 1997.
The Financial Adjustment Loan Agreement signed on October 17, 1989, between the Republic of Bolivia and the International Economic Cooperation Fund of Japan, for JPY 9,108,400,000, and the other background documents of Program No. BV-C2. The Note from the Ministry of Finance D.G.C.P. 05-016 343/99 of July 8, 1999. The Report from the Financial System Management SEFL-DGLD No. 046/99 of July 9, 1999. The Note UAJUR No. 468/99 from the Legal Affairs Unit of July 13, 1999.

CONSIDERING:
That through note D.G.C.P. 05-016 343/99 of July 8, 1999, the Ministry of Finance has requested the BCB to return resources from the Japanese Credit Line BV-C2 in an amount equivalent to US$10,000,000, with the objective of creating a Development Credit Line in favor of the country's Peasant Sector.

That the resources of the aforementioned Credit Line are intended to support the Financial Sector Adjustment Program and the economic and social development of the country.

That Law 1670, in its Article 29, establishes the functions that the BCB may perform as the Government's Financial Agent.

That in the opinion of the Legal Affairs Unit, there are no observations for the Board to approve the signing of the Second Amendment to the Subsidiary Agreement of the OECF Loan BV-C2, in accordance with the attribution granted by Article 14, paragraph p) of the BCB Statute.

That the Financial System Management recommends the return to the TGN of the resources requested by the Ministry of Finance, given that they will be used for objectives similar to those established in the aforementioned Program. However, it points out that the transfer can only be effective in the amount of Yen equivalent to US$6,500,000.- according to the existing availability in the Program. Likewise, it indicates that the TGN's request does not contradict the spirit of Article 85 of Law 1670, since NAFIBO S.A.M. has given its consent for the transfer of assets and liabilities of the Japanese Program BV-C2.

THEREFORE

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

Article 1.- Approve the return of resources from the BV-C2 Program to the General Treasury of the Nation, for a capital amount in Yen equivalent to US$6,500,000, according to the exchange rate in effect on the day of disbursement. From that date, the General Treasury of the Nation assumes the obligation to pay directly to the Financier the amortization quotas and interest corresponding to the returned capital amount.

Article 2.- Authorize the President to sign the Amendment to the Subsidiary Agreement with the Ministry of Finance.

Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, July 13, 1999

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G. Armando Méndez M.