Resolution 066/2002

BOARD RESOLUTION NO. 066/2002
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVES MODIFICATION TO THE INTEREST RATE OF THE LOAN WITH RESOURCES FROM SECTORAL PROGRAM II LOAN NO. 88 65 719 PRIVATE SECTOR AND PROGRAM BV-C2 TO NAFIBO SAM.

HAVING SEEN:
Law 1670 of October 31, 1995.
Board Resolution No. 011/99 of March 2, 1999.
Board Resolution No. 113/99 of December 21, 1999.
Board Resolution No. 006/2002 of January 8, 2002.
Board Resolution No. 039/2002 of April 16, 2002.
Note from the Undersecretariat of Treasury and Public Credit DGCP 05-016 UDPE 679/02 of May 31, 2002.
Report from the Financial Entities Management GEF No. 154/2002 of June 18, 2002.
Report from the Legal Affairs Management SANO 618/2002 of June 17, 2002.

CONSIDERING:
That Board Resolution No. 011/99 approves the transfer of availability from Programs Sectorial II Loan No. 88 65 719 and No. BV-C2 in favor of the Bolivian National Financial Corporation SAM (NAFIBO SAM), under the modality of loan on behalf and mandate of the Republic up to the sum of $us.35 million for a term of 15 years, including 3 years of grace for capital amortization, at a rate of 7.15% annual on balances.

That Board Resolution No. 113/99 approves the transfer of availability from Programs Sectorial II Loan No. 88 65 719 and No. BV-C2 in favor of the Bolivian National Financial Corporation SAM, under the modality of loan on behalf and mandate of the Republic up to the sum of $us.1.6 million, for a term of 15 years, including 3 years of grace for capital amortization, at a rate of 7.15% annual on balances.

That Board Resolution No. 006/2002 approves the readjustment effective January 1, 2002, of the interest rate of the loan granted by the BCB to NAFIBO SAM on behalf of the Republic from Programs Sectorial II Loan No. 88 65 719 and No. BV-C2 from 7.15% annual to a variable interest rate calculated based on the LIBOR rate for six months in effect the month prior to the due date of each loan amortization installment, applicable until the conclusion of the loan, plus 3%.

That Board Resolution No. 039/2002 approves the readjustment effective January 1, 2002, of the interest rate of the loan granted by the BCB to NAFIBO SAM on behalf of the Republic from Programs Sectorial II Loan No. 88 65 719 and No. BV-C2, from 7.15%, to a variable interest rate calculated based on the LIBOR rate for 6 months in effect 180 days before the due date of each loan amortization installment, plus 3%, applicable until the conclusion of the loan.

That through note from the Undersecretariat of Treasury and Public Credit DGCP 05-016 UDPE 679/02, proposals for modifying addendas to clause seventh of the Transfer of Availability contracts of March 11 and December 23, 1999, are submitted for consideration and issuance by the BCB, in which it is stated that NAFIBO SAM will pay semiannually to the BCB on the dates stipulated in the transfer of availability contracts, interest on daily debtor balances of the loan, at a rate equivalent to that determined by the Board of NAFIBO SAM.

That Report GEF No. 154/2002 recommends modifying the interest rate indicated in Article 1 of Board Resolution No. 039/2002, to a variable LIBOR interest rate +1% (one hundred basis points).

That Report SANO 618/2002 concludes that, in compliance with what is provided in Article 54 subsection j) of Law 1670, it is the attribute of the Board of the Issuing Entity to consider the request of the Undersecretariat of Treasury and Public Credit regarding the definition of the LIBOR Rate for the loan granted by the BCB – Program Sectorial II No. 88 65 719 and BV-C2 for $us.36,600,000.

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

Article 1.- Modify Article 1 of Board Resolution No. 039/2002 in the following manner:
SAYS:
Article 1.- Authorize the readjustment effective January 1, 2002, of the interest rate of the loan granted by the BCB to NAFIBO SAM on behalf of the Republic from Programs Sectorial II Loan No. 88 65 719 and No. BV-C2, from 7.15%, to a variable interest rate calculated based on the LIBOR rate for 6 months in effect 180 days before the due date of each loan amortization installment, plus 3%. This rate will apply until the conclusion of the loan.

SHOULD SAY:
“Article 1.- Authorize the readjustment effective January 1, 2002, of the interest rate of the loan granted by the BCB to NAFIBO SAM on behalf of the Republic from Programs Sectorial II Loan No. 88 65 719 and No. BV-C2, from 7.15%, to a variable interest rate calculated based on the LIBOR rate for 6 months in effect 180 days before the due date of each loan amortization installment, plus 1% (one hundred basis points). This rate will apply until the conclusion of the loan. In this way, the fixed nature of the interest rate appearing in Article 1 of Board Resolutions 11/99 and 113/99 is modified.”

Article 2.- Notify NAFIBO that any future placement with resources recovered from these development lines will be carried out in UFV at a LIBOR rate for 180 days +3% interest rate.

Article 3.- Authorize the President of the BCB to sign modifying minutes to article seventh of the minutes dated March 11, 1999 and December 23, 1999 respectively, with the Ministry of Finance and the Bolivian National Financial Corporation SAM.

Article 4.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, June 25, 2002

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Juan Antonio Morales A.

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Juan Medinaceli V. Armando Méndez M.

__________________ __________________ ___________________ Roberto Camacho S. Javier Comboni S. Enrique Ackermann A.