Regulatory Alerts2003-07-08 | Resolución 077/2003Added · Updated
Resolution 077/2003: Extension of Deadline for FONDESIF to Submit Proposal to Cancel Obligations with the Central Bank of Bolivia and Forgiveness of Penal Interest
The Board of Directors of the Central Bank of Bolivia grants the Financial Development Fund of the Financial System and Support for the Productive Sector (FONDESIF) an 180-day extension, effective July 1, 2003, to submit a proposal for restructuring its credits funded by the Central Bank and IDA Line 1925/BO. The resolution accepts FONDESIF's proposal to pay current interest and postpones principal amortization until a restructuring agreement is reached. Additionally, the Central Bank forgives penal interest amounting to $884,888.89 accrued between December 31, 2002, and June 30, 2003, regarding the IDA Line 1925/BO credit.
BOARD RESOLUTION NO. 077/2003 SUBJECT: FINANCIAL ENTITIES MANAGEMENT: EXTENSION OF DEADLINE FOR SUBMISSION OF PROPOSAL TO CANCEL FONDESIF OBLIGATIONS WITH THE CENTRAL BANK OF BOLIVIA AND FORGIVENESS OF PENAL INTEREST.
VIEWED: The Law 1670 of October 31, 1995. The Board Resolution No. 156/95 of December 12, 1995. The Board Resolution No. 123/97 of July 8, 1997. The Loan Contract signed on March 11, 1996, between the Central Bank of Bolivia, the National Treasury Secretariat, and FONDESIF. The Loan Contract signed on December 30, 1997, between the Central Bank of Bolivia and the Financial System Development Fund and Support for the Productive Sector FONDESIF. The Minutes of the Board Meetings of the Central Bank of Bolivia No. 009/2003 and No. 013/2003 of March 25, 2003, and May 6, 2003, respectively. The note from the Financial System Development Fund and Support for the Productive Sector (FONDESIF) FSF-DFFI-E-1581/03 of June 12, 2003. The note from the Financial System Development Fund and Support for the Productive Sector (FONDESIF) FSF-DFFI-E-1671/2003 of June 26, 2003. The Report GEF-SOPI No. 201/2003 from the Financial Entities Management of June 30, 2003. The Report from the Legal Affairs Management SANO No. 122/2003 of June 20, 2003. The Internal Communication from the Legal Affairs Management SANO No. 620/2003 of July 2, 2003.
//2. B.R. No. 077/2003 CONSIDERING:
That the contract signed on March 11, 1996, between the Central Bank of Bolivia, the National Treasury Secretariat, and FONDESIF, arising from Board Resolution No. 156/95, establishes equal and consecutive annual amortizations to capital, plus accrued interest, which shall be paid to the Central Bank of Bolivia (BCB) at the maturity of each year.
That the contract signed on December 30, 1997, between the Central Bank of Bolivia and FONDESIF, arising from Board Resolution No. 123/97, establishes equal and consecutive semi-annual amortizations to capital plus unpaid interest, which shall be paid to the BCB at the maturity of each semester.
That through Board Meeting Minutes of the BCB No. 009/2003 and No. 013/2003, the BCB Board extended twice the deadline for FONDESIF to present its proposal for the restructuring of credits granted with BCB own resources and IDA Line 1925, whose deadline expired on June 30, 2003.
That FONDESIF, through note FSF-DFFI-E-1671/2003, requests the BCB, due to mismatch problems, an extension of 180 days for the submission of a proposal to cancel obligations with the Issuing Entity and the forgiveness of penal interest, offering to pay current interest.
That the Report from the Financial Entities Management recommends considering the extension of the deadline for FONDESIF to present a restructuring proposal in order to regularize its obligations with the Issuing Entity.
That the Legal Affairs Management establishes that there is no legal impediment for the BCB Board to consider the request for extension of the deadline and the request for forgiveness of the corresponding penal interest for the financing of Line 1925/BO, under the provisions of Article 54, paragraphs a) and j) of Law 1670.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Grant a deadline of up to 180 days from July 1, 2003, for FONDESIF to present to the Issuing Entity a proposal for the restructuring of credits granted with resources from the BCB and IDA Line 1925/BO.
//3. B.R. No. 077/2003 Article 2.- Accept FONDESIF's proposal to pay current interest and postpone principal amortization from July 1, 2003, corresponding to the credit granted with resources from IDA Line 1925/BO, until the restructuring mentioned in Article 1 of this Resolution is agreed upon.
Article 3.- Forgive penal interest amounting to $884,888.89 corresponding to the period from December 31, 2002, to June 30, 2003, of the credit granted with resources from IDA Line 1925/BO.
Article 4.- The Presidency and the General Management are entrusted with the execution and compliance of this Resolution.
La Paz, July 8, 2003.
Juan Antonio Morales A.
Juan Medinaceli V. Armando Méndez M.
Enrique Ackermann A.
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