Resolution 062/2005

BOARD RESOLUTION NO. 062/2005 SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT - APPROVES REDUCTION OF THE EMERGENCY ADMINISTRATION COMMISSION PERCENTAGE FOR THE RESOURCE TRANSFER CONTRACT AND CONDITIONS FOR TRUST ADMINISTRATION.

HAVING SEEN: Law No. 1670 of October 31, 1995. The Statute of the Central Bank of Bolivia (BCB) approved by Board Resolution No. 128/2001 of December 13, 2001. The Fund Transfer and Resource Administration Agreement ICO Credit - FAD Resources - Strengthening of Municipal Agricultural Activity, signed between the Republic of Bolivia, represented by the Minister of Finance, and the BCB on April 20, 2004, hereinafter referred to as the Agreement. The Resource Transfer Contract and Trust Administration Conditions SANO No. 75/2004, signed on May 10, 2004, between the Ministry of Finance, the BCB, and the Financial Development and Support Fund for the Productive Sector (FONDESIF). The note from the Ministry of Finance M.H.-VPSF-DGIFSC No. 083/2005 of April 11, 2005. The Internal Communication from the International Operations Management GOI-SOE No. 026/2005 of April 25, 2005. The Report from the Legal Affairs Management SANO No. 109/2005 of May 9, 2005.

CONSIDERING: That pursuant to Article 29, subsection f) of Law No. 1670, the BCB, in its capacity as Financial Agent of the Government, is authorized to provide services to carry out trust and administration operations.

That in its subsection 46), Article 11 of the Statute provides that the Board of Directors of the BCB is responsible for establishing annually the table of commissions that the Issuing Entity must charge for the services it provides.

That the Agreement aims to transfer resources, originating from the Credit Line granted by the Official Credit Institute of the Kingdom of Spain in favor of the Republic of Bolivia, of March 25, 2004, for their administration in the capacity of a trust by the BCB; and in consideration for the service, the Issuing Entity will receive an administration commission equivalent to one percent (1%) annually calculated on debtor balances.

That Contract SANO No. 075/2004 states that FONDESIF, charged to the resources deposited in the trust account and on behalf of the Ministry of Finance, will pay the BCB an administration commission equivalent to one percent (1%) annually, calculated on debtor balances.

That as stated in the aforementioned note M.H.-VPSF-DGIFSC No. 083/2005, the Ministry of Finance expresses its acceptance to modify the payment of the administration commission in favor of the BCB emerging from the signing of Contract SANO No. 075/2004.

That the Internal Communication GOI-SOE No. 026/2005, the International Operations Management, recommends attending to the request to reduce the administration commission received by the Issuing Entity for Contract SANO No. 075/2004, equivalent to one percent (1%) annually, to a percentage equivalent to half a percent (0.5%) annually calculated on debtor balances.

That the Legal Affairs Management considers that there is no legal impediment to modify the amount for the concept of Administration Commission.

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

Article 1.- Approve the reduction of the Administration Commission received by the Central Bank of Bolivia pursuant to what is determined in the Fund Transfer and Resource Administration Agreement ICO Credit - FAD Resources – Strengthening of Municipal Agricultural Activity and in the Resource Transfer Contract and Trust Administration Conditions, SANO No. 75/2004, corresponding to one percent (1%) annually, to a percentage equivalent to half a percent (0.5%) annually, on debtor balances.

Article 2.- The new Administration Commission will be applied from the date of approval of this Resolution.

Article 3.- 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.