Resolution 104/98

BOARD RESOLUTION NO. 104/98
SUBJECT: CURRENCY AND CREDIT – CREDIT TO THE GENERAL TREASURY OF THE NATION FOR BS. 112,400,000 TO MEET TRANSITORY LIQUIDITY NEEDS

VIEWED:
The Law of the Central Bank of Bolivia No. 1670 of October 31, 1995.
The Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations on Credits to the Public Sector.
The Note from the Undersecretary of the Treasury and Public Credit VM.T.C.P. No. 1268/98 of November 30, 1998.
The report from the Economic Policy Advisory APEC-ARMyF No. 210/98 of December 1, 1998.
The report from the Currency and Credit Management No. 013/98 of November 30, 1998.
The report from the Legal Advisory ALEG No. 043/98 of December 1, 1998.

CONSIDERING:
That the Ministry of Finance, through note VM.T.C.P. No. 1268/98, has requested a credit equivalent in bolivianos to $us. 20,000,000 to meet transitory liquidity needs. That the Currency and Credit Management, in accordance with Article 5 of the Regulations on Credits to the Public Sector, has issued Report No. 013/98 specifying the outstanding debt balance as of the date and the future payment maturities of the General Treasury of the Nation to the Central Bank of Bolivia.

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That the Economic Policy Advisory in its Report APEC-ARMyF No. 210/98 states that although this loan originates an expansion of net internal credit to the non-financial public sector, it does not affect compliance with the monetary targets of this management period. That in the opinion of the Legal Advisory, the requirements established for granting the aforementioned loan to the General Treasury of the Nation have been met.

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

Article 1.- Authorize a credit to the General Treasury of the Nation to meet transitory liquidity needs, under the following conditions:

Amount: Up to Bs 112,400,000.
Currency: National.
Interest Rate: 12.27%, the yield rate corresponding to the cut-off rate of the auction of National Currency Treasury Bills, effective since the last allocation. Term: Up to ninety days from the date of disbursement. Instrument: National Currency Treasury Bills issued by the General Treasury of the Nation.

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Payment Method and Guarantee: Interest and principal, via automatic debit in the current fiscal accounts held by the General Treasury of the Nation at the Central Bank of Bolivia.

Article 2.- The General Treasury of the Nation must issue a promissory note maturing in 30 days, until the issuance and delivery of the Treasury Bills to the Central Bank of Bolivia is finalized.

Article 3.- Authorize the President of the BCB to sign the respective contract.

Article 4.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, December 1, 1998

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Juan Antonio Morales A.

_______________ _______________ __________________ Armando Pinell S. Jaime Ponce G. Fernando Campero