Resolution 073/98 — BCB — BO

BOARD RESOLUTION NO. 073/98
SUBJECT: FINANCIAL SYSTEM - ESTABLISHES PENAL INTEREST RATE TO BE CHARGED ON THE LIQUIDITY CREDIT GRANTED TO BANCO DE LA PAZ S.A.

HAVING SEEN:
Law No. 1670 of the Central Bank of Bolivia (BCB) dated October 31, 1995.
Board Resolutions 019/98, 056/98, and 062/98 dated February 27, May 27, and June 30, 1998, respectively.
Supreme Decree No. 06497 dated June 27, 1963.

Legal Advisory Report ALEG No. 257/98 dated July 24, 1998.

CONSIDERING:
That through Board Resolution No. 062/98 of June 30, 1998, it was decided to extend until July 10 of the current year the deadline for the cancellation of the liquidity credit for $20,000,000 granted to Banco de La Paz S.A.

That upon the expiration of the aforementioned deadline, the credit began to accrue penalty interest at a rate of 3% per annum, which is the maximum rate provided for in Supreme Decree No. 06497 of June 27, 1963, when the delay does not exceed 30 days.

That the CREDICORP financial group assumed the commitment to cancel, through the Banco de Crédito de Bolivia, the liquidity loan granted by the BCB to Banco de La Paz S.A., within the negotiations that allowed it to acquire the majority shareholding in the aforementioned Bank.

That CREDICORP has requested the BCB to waive the penalty interest appearing in the settlement of the aforementioned credit, in order to finalize the cancellation of the liquidity loan granted to Banco de La Paz S.A. plus the current interest accrued to date.

That in order to facilitate the immediate payment of the 20 million dollars granted to Banco de La Paz S.A., it is necessary to reduce the penalty interest accrued to date.

That in the opinion of the Legal Advisory, the Board is authorized to determine the penalty interest rate to be charged based on the scale established in Supreme Decree No. 06497.

THEREFORE

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Fix at 1.5% the annual penalty interest rate to be charged on the liquidity credit granted to Banco de La Paz S.A., from the day of its maturity, which is within the maximum limit permitted for credits whose delay does not exceed thirty days according to the scale established in Article 7 of Supreme Decree No. 06497 of June 27, 1963.

Article 2.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, July 24, 1998

Juan Medinaceli V.

Armando Pinell S. Jaime Ponce G.

Fernando Campero P.