Resolution 091/97 - Special Operations - Partial Debt Settlement via Land Transfer from BLADESA

BOARD RESOLUTION NO. 091/97 SUBJECT: SPECIAL OPERATIONS - PARTIAL DEBT SETTLEMENT VIA TRANSFER OF BLADESA LAND TO THE BCB AND CHARGING WRIT-OFFS AGAINST PROVISIONS.

HEARD: The General Banking Law of July 11, 1928. Law No. 1670 of October 31, 1995. Resolution No. 132/96 of February 6, 1996, issued by the First Ordinary Civil Court Judge of the Judicial District of La Paz. The Internal Audit Management Report No. 007/97 of February 21, 1997. The Special Operations Management Report No. 003/97 of February 27, 1997. The Legal Affairs Management Report No. 099/97 of February 27, 1997. The Accounting Management Report No. G.CON.I.089/97 of February 27, 1997.

CONSIDERING: That it is the responsibility of the Board of Directors, in accordance with Article 54, paragraph p) of Law No. 1670, to authorize the requirements for the acquisition, alienation, and leasing of movable and immovable property owned by the Central Bank of Bolivia, so that the General Management carries out the bidding, contracting, and corresponding supervision processes, in accordance with current legal norms and internal regulations of the BCB.

//2. B.R. No. 091/97 That the First Ordinary Civil Court Judge, in charge of the judicial liquidation process of the Banco Latinoamericano de Desarrollo S.A. (BLADESA), declared, through Resolution 132/96 of February 6, 1996, the suspension of the liquidation procedure due to lack of assets, while authorizing the National Liquidation Directorate of said financial entity to give to the Central Bank of Bolivia, as partial payment and as the only pending creditor, $us.24,000.- for a prescribed debt, Bs.486,786.63 and the accrued interest held in its availability account, as well as the land located in the city of El Alto, named ex-Fundo Ventilla, for the value recorded in the books of Bs.1,843,764.08.-

That the Special Operations Management Report suggests, once the liquidation process has been declared suspended due to lack of assets, to execute the transfer of the ex-Fundo Ventilla land at the book price of Bs.1,843,764.08, for its application against the obligations of the Banco Latinoamericano de Desarrollo S.A. in Liquidation, in accordance with the Sentence of Degrees and Priorities. Likewise, that the unpaid balances of the accounts receivable be written off against the provisions made.

That the Legal Affairs Management recommends compliance with what is established in Resolution No. 132/96, issued by the First Ordinary Civil Court Judge of the Judicial District of La Paz, with the approval of the draft transfer agreement for the debt settlement to the BCB of the ex-Fundo Ventilla.

That the Internal Audit Management, in agreement with the opinion of the Legal Affairs Management, recommends attending to the Judge's decision, as well as managing before the Superintendence of Banks and Financial Entities the compliance with Article 131 of the General Banking Law of 1928 to recover the pending payment balances.

Therefore, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES: //3. B.R. No. 091/97 Article 1.- Authorize the transfer to the BCB of the ex-Fundo Ventilla owned by the Banco Latinoamericano de Desarrollo S.A. in Liquidation, as partial debt settlement, for the book value of Bs.1,843,764.08 established by the judicial, unappealable Resolution No. 132/96 of February 6, 1996, the respective draft agreement to be signed for this purpose.

Article 2.- Once the price of the transfer of the real estate is registered, the difference between the market price and the book value will be imputed as a loss of the BLADESA liquidation and applied against the provisions made.

Article 3.- The unpaid balances of the accounts receivable will be written off against the provisions made and the remaining provisions will be reversed, with the accounting withdrawal of the Accrued Interest Receivable accounts from the Group Registration Accounts authorized.

Article 4.- The Legal Affairs Management will be responsible for managing before the Superintendence of Banks and Financial Entities the application of Article 131 of the General Banking Law of July 11, 1928 against the debtors of the BCB, in order to recover the unpaid balance to date.

Article 5.- The Presidency and the General Management are charged with executing this Resolution.

11.III.97

____________________ Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G.

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Fernando Campero P. Edgar Millares A.