Resolution 068/2005 — BCB — BO

BOARD RESOLUTION NO. 068/2005
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
GRANTS CREDIT TO THE GENERAL TREASURY OF
THE NATION TO MEET TRANSITORY LIQUIDITY NEEDS OF Bs160,000,000.-

HAVING VIEWED:
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.
The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 1521/05 of May 19, 2005.
The Report from the Monetary Operations Management GOM-SOSP-TGN 013/2005 of May 20, 2005.
The Report from the Economic Policy Advisory APEC-SMyF 023/2005 of May 23, 2005.
The Report from the Legal Affairs Management SANO No. 125/2005 of May 23, 2005.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 1521/05, has requested the granting of a credit of Bs160,000,000.- to meet transitory 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 013/2005, which recommends the conditions under which the granting of the credit should be subject.

That the Economic Policy Advisory in Report APEC-SMyF-023/2005, states that it is appropriate for the Board to consider the granting of a liquidity credit of Bs160.0 million for a term of 360 days, given that the limit for liquidity credits provided for in the 2005 Memorandum of Understanding is met.

That the Legal Affairs Management in its Report SANO No. 125/2005, establishes that there is no legal impediment for the Board of the Issuing Entity to consider the granting of a liquidity credit of Bs160.0 million in favor of the TGN, prior to compliance with what is established in the Regulations on Credits to the Public Sector and in the 2005 Memorandum of Understanding.

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

Article 1.- To exceptionally attend to the request of the Ministry of Finance regarding the granting of a credit to the TGN to meet transitory liquidity needs.

Article 2.- To approve the granting of a credit to the Ministry of Finance for the attention of transitory liquidity needs, under the following conditions:
Amount: Bs160,000,000.-
Interest Rate: 10.60%
Term: 359 days
Granting Date: May 25, 2005
Maturity Date: May 19, 2006
Guarantee Instrument: Treasury Letters “C”.
Disbursement Method: In accounts of the General Treasury of the Nation, according to written request.
Repayment Method: At maturity, interest and principal, via automatic debit in the fiscal current accounts that the General Treasury of the Nation maintains at the Central Bank of Bolivia.

Article 3.- To authorize the President of the Central Bank of Bolivia to sign the respective contract with the Ministry of Finance.

Article 4.- 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 5.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, May 24, 2005

Juan Antonio Morales A.

Enrique Ackermann A. José Luis Evia V.

Fernando Paz B.