Regulatory Alerts2005-05-10 | Resolucion 061/2005Added · Updated
Resolution 061/2005
The Board of Directors of the Central Bank of Bolivia approves the second renewal of a Bs200,000,000 credit to the Ministry of Finance for temporary liquidity needs. The loan carries a 10.70% interest rate, a 180-day term expiring on November 23, 2005, and is secured by Treasury Letters "C". Repayment of principal and interest is executed via automatic debit from the General Treasury's current accounts at the Central Bank.
BOARD RESOLUTION NO. 061/2005 SUBJECT: MONETARY OPERATIONS MANAGEMENT – RENEWS CREDIT TO THE GENERAL TREASURY OF THE NATION TO MEET TEMPORARY LIQUIDITY NEEDS OF Bs200,000,000.
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 179/2004 of November 30, 2004 and 029/2005 of February 22, 2005. The Private Contract SANO No. 204/2004 of December 1, 2004. The SANO Addendum 049/2005 of February 25, 2005. The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 1392 of May 5, 2005. The Report from the Monetary Operations Management GOM-SOSP-TGN 012/2005 of May 9, 2005. The Report from the Economic Policy Advisory APEC-SMyF 021/2005 of May 9, 2005. The Report from the Legal Affairs Management SANO No. 111/2005 of May 10, 2005.
CONSIDERING: That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 1392/05, has requested the renewal of the credit of Bs200,000,000 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 012/2005, which recommends 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 of Bs200,000,000, for a term of 270 days expiring on May 27, 2005, in attention to the fact that the limit of liquidity credits provided in the 2005 Memorandum of Understanding is met.
That the Legal Affairs Management, in its Report SANO No. 112/2005, opines that there is no legal impediment for the Board of the Issuing Entity to consider the approval of the first renewal of the credit to the TGN for an amount of Bs200,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 1392/05, 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 second renewal of the credit granted to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions: Amount: Bs200,000,000. Interest Rate: 10.70% Term: 180 days Renewal Date: May 27, 2005 Maturity Date: November 23, 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 holds at the Central Bank of Bolivia.
Article 2.- Authorize the President of the Central Bank of Bolivia to sign the respective contract with the Ministry of Finance.
Article 3.- The General Treasury of the Nation may effect the total or partial early cancellation of the credit considering the accrued interests on the total of the 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.
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