Resolution 095/97

BOARD RESOLUTION NO. 095/97
SUBJECT: FINANCIAL SYSTEM - APPROVES RENEWAL OF LIQUIDITY CREDIT GRANTED TO BHN MULTIBANCO S.A. FOR $US 13,523,742.99.

HAVING REVIEWED:
The Law No. 1670 of the Central Bank of Bolivia (BCB) of October 31, 1995.
The Board Resolution No. 148/95 of November 23, 1995.
The Regulations to Address Temporary Liquidity Needs of the Financial System, approved by Board Resolution No. 025/94 of February 17, 1994.
The Note from BHN MULTIBANCO S.A. GNOA.063/97 dated March 25, 1997.
The Report from the Financial System Management No. GSF-081/97 of March 25, 1997.
The Report G-AL No. 071/97 from the Legal Affairs Management of March 25, 1997.
The Report No. 018/97 from the Economic Studies Management of March 25, 1997.
The Extraordinary Act of the Financial Assistance Administration Committee (CADAF) No. 013/97 of March 25, 1997.

CONSIDERING:
That BHN MULTIBANCO S.A. has requested the BCB, via note GNOA. 063/97, the renewal of the liquidity credit granted via B.R. No. 088/97 dated February 28, 1997, whose disbursed amount reaches $US 13,523,742.99, to address temporary liquidity needs due to the decline in its deposits and because, having exhausted all efforts within its reach, it has no other financing alternatives for the stated purpose, also stating that this situation could jeopardize the success of its Patrimonial Strengthening Plan currently being readjusted and adjusted by FONDESIF.

That in Act No. 013/97 of March 25, 1997 of the Financial Assistance Administration Committee (CADAF), the favorable opinion of the same for the granting of the aforementioned liquidity credit renewal in favor of BHN MULTIBANCO S.A. is recorded.

That according to the Report from the Financial System Management, it is established that BHN MULTIBANCO S.A. complies with the equity requirements established in Article 47 of the Law of Banks and Financial Entities to proceed with its application.

That in the opinion of the Legal Affairs Management, there is no legal impediment for the Board of Directors of the Central Bank of Bolivia to proceed with the aforementioned application, provided the case is justified and qualified.

That according to the Report from the Economic Studies Management, the evolution of the main financial variables of BHN MULTIBANCO S.A., as well as the margin existing in the Monetary Program regarding Net Credit to the Financial Sector, allow attending to the request of BHN MULTIBANCO S.A.

That Article 36 of the Law of the Central Bank of Bolivia No. 1670 of October 31, 1995, in duly justified and qualified cases by its Board of Directors, by an absolute majority of votes, authorizes the BCB to grant liquidity credits to banks and financial intermediation entities.

Therefore,

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

Article 1.- Renew the liquidity credit granted to BHN MULTIBANCO S.A. via B.R. 088/97 of February 28, 1997, whose disbursed amount reaches $US 13,523,742.99, in accordance with the requirements established in the Regulations to Address Temporary Liquidity Needs of the Financial System and Law No. 1670 of October 31, 1995.
The same conditions originally agreed upon are maintained, with the exception of the term which is extended by 30 days computable from the expiration and the interest rate which amounts to 15.61% annually, the average active rate of the system for 30 days, in United States Dollars, prevailing in the market during the week of March 17 to 21, 1997.

Article 2.- Debit the Foreign Currency Current Account of BHN MULTIBANCO S.A. for the concept of current interest accrued up to the date of renewal of the credit.

Article 3.- In view of what is provided for in Article 8 of the Regulations to Address Temporary Liquidity Needs of the Financial System, BHN MULTIBANCO S.A. must send daily to the Central Bank of Bolivia, through the Financial System Management, the following information:
a) Current and overdue portfolio (consolidated). b) Public deposits by class of deposits (consolidated). c) Passive rates by class of deposit. d) Daily projected liquidity flow for the next 7 days comprising obligations with the public, portfolio recovery, and obligations with the exterior.

Article 4.- During the validity of the credit, BHN MULTIBANCO S.A. may not increase its loan or investment portfolio in accordance with Article 15 of the aforementioned Regulations.
The BCB will request the Superintendency of Banks for strict monitoring of the preceding provisions.

Article 5.- Authorize the President of the BCB to sign the loan renewal contract with BHN MULTIBANCO S.A.

Article 6.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

25.III.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.