Resolution 081/97

RESOLUTION OF THE BOARD OF DIRECTORS NO. 081/97 SUBJECT: CURRENCY AND CREDIT - CREDIT TO THE GENERAL TREASURY OF THE NATION FOR THE EQUIVALENT IN DOLLARS OF Bs.130,000,000.-

HAVING VIEWED:
Law of the Central Bank of Bolivia No. 1670 of October 31, 1995.
Supreme Decree No. 24491 of February 8, 1997.
Note from the Ministry of Finance MH. D.M. No. 137/97 of February 18, 1997.
Technical Report S.M. 09/97 from the Economic Studies Management of February 18, 1997.
Report G-AL No. 30/97 from the Legal Affairs Management of February 18, 1997.

CONSIDERING:
That in accordance with Article 148 of the Political Constitution of the State, the Executive Power has declared a national emergency through Supreme Decree No. 24491, a situation that implies the expenditure of extraordinary funds to meet urgent needs derived from public calamities.

That the Minister of Finance, under the authority of the preceding provision, requests a credit for the General Treasury of the Nation (TGN) intended to timely meet the emerging needs caused by intense rainfall, which have resulted in floods, river overflows, landslides, deterioration of roads, isolation of populations, rupture of the gas export pipeline to the Argentine Republic, and other natural disasters.

That the Economic Studies Management in its Report S.M. 09/97 of February 18, 1997, states that although the required loan will determine an expansion of net internal credit to the non-financial public sector, which was not anticipated, its effects on the Monetary Program can be neutralized through the placement of securities with the public.

//2. R.D. No. 081/97

That the Legal Affairs Management in its Report G-AL No. 30/97 of February 18, 1997, states that there is no legal impediment to granting the loan because it complies with the provisions of Article 22 of Law No. 1670.

Therefore,

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

Article 1.- Exceptionally, grant a credit to the General Treasury of the Nation to address the national emergency declared by the Executive Power, under the following conditions:

Amount: Up to the equivalent in US dollars of Bs.130,000,000.- Currency: United States Dollars.
Interest Rate: The yield rate corresponding to the cut-off rate of 51-week Treasury Bills, effective on the date of disbursement.
Interest Payment: Semi-annually.
Disbursement Method: 25% upon signing the contract. The subsequent disbursements will be subject to the presentation by the TGN of a report on the use of resources from the first disbursement and a plan for the utilization of the remainder. Term: 4 years from the date of the first disbursement. //3. R.D. No. 081/97 Instrument: Public offer bonds issued by the General Treasury of the Nation. Payment Method and Guarantee: Interest and principal, via automatic debit from the Fiscal Current Accounts that the TGN holds at the Central Bank of Bolivia.

Article 2.- The General Treasury of the Nation must issue a promissory note maturing in 60 days, until the issuance and delivery of the Bonds to the Central Bank of Bolivia is finalized.

Article 3.- Authorize the President of the Central Bank of Bolivia to sign the respective contract with the General Treasury of the Nation.

Article 4.- The Presidency and the General Management are charged with executing this Resolution.

18.II.97
____________________ Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G. Juan Medinacelli V.

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Fernando Campero P. Edgar Millares A.