Regulatory Alerts1999-09-28 | Resolución 081/99Added · Updated
Resolution 081/99
The Board of Directors of the Central Bank of Bolivia approves the return of US$3,500,000 in capital from Inter-American Development Bank Program 564/OC-BO to the General Treasury of the Nation. Upon effective return, the General Treasury assumes direct responsibility for paying amortization installments and interest on the returned capital to the Financing Body. The President is authorized to sign the Amendment to the Subsidiary Agreement with the Ministry of Finance, and the Presidency and General Management are tasked with executing this resolution.
BOARD RESOLUTION NO. 081/99 SUBJECT: FINANCIAL SYSTEM – APPROVES RETURN OF ASSETS AND LIABILITIES OF THE IDB PROGRAM 564/OC-BO TO THE GENERAL TREASURY OF THE NATION (TGN).
HAVING SEEN: Law No. 1670 of October 31, 1995. The Statute of the Central Bank of Bolivia of February 20, 1997. Supreme Decree No. 25453 of July 9, 1999. Loan Contract No. 564/OC-BO, signed on January 30, 1989, between the Republic of Bolivia and the Inter-American Development Bank (IDB) for US$40,000,000, as well as the other background documents of the IDB Program 564/OC-BO. The Note from the Ministry of Finance D.G.C.P. 05-016 Of. 478/99 of July 8, 1999. The Report from the Financial System Management SELF-DGLD No. 061/99 of September 27, 1999. The Note ALEG No. 153/99 from the Legal Advisory Office of September 27, 1999.
CONSIDERING: That through note D.G.C.P. 05-016 Of. 478/99 of September 23, 1999, the Ministry of Finance has requested the BCB to return resources from the IDB Credit Line 564/OC-BO in the amount of US$3,500,000, with the objective of creating a Development Credit Line in favor of the country's Peasant Sector. That the resources of the aforementioned Credit Line are intended to support the economic reactivation of Bolivia, through the financing of social investment projects.
//2. R.D. No. 081/99 That Law 1670, in its Article 29, establishes the functions that the BCB may perform as the Government's Financial Agent.
That in the opinion of the Legal Advisory Office, there are no observations for the Board to approve the signing of the Amendment to the Subsidiary Agreement of the IDB Loan 564/OC-BO, in accordance with the attribution granted by Article 14, paragraph p) of the BCB Statute.
That the Financial System Management recommends the return to the TGN of the resources requested by the Ministry of Finance, given that they will be used for objectives similar to those established in the aforementioned Program, and indicates that the TGN's request does not contradict the spirit of Article 85 of Law 1670, since NAFIBO SAM is not willing to assume the exchange rate risk of the IDB Program 564/OC-BO.
THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Approve the return of resources from the IDB Program 564/OC-BO to the General Treasury of the Nation, for a capital amount of US$3,500,000. From the date on which the return becomes effective, the General Treasury of the Nation assumes the obligation to pay directly to the Financing Body the amortization installments and interest corresponding to the returned capital amount.
Article 2.- Authorize the President to sign the Amendment to the Subsidiary Agreement with the Ministry of Finance.
Article 3.- The Presidency and the General Management are tasked with the execution and compliance of this Resolution.
La Paz, September 28, 1999
Jaime Ponce G.
Juan Medinaceli V.
Fernando Campero P. Armando Méndez M.
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