Resolution 110/2001

BOARD RESOLUTION NO. 110/2001
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – TERMS FOR REPROGRAMMING OF CREDITS DELIVERED IN ADMINISTRATION MANDATE TO FINANCIACOOP.

HAVING SEEN:
Law 1670 of October 31, 1995.
Board Resolution No. 044/99 of May 25, 1999.
The Agreement for the cancellation of extra-bankruptcy claims signed between the Central Bank of Bolivia and San José Obrero Ltda. Cooperative in Liquidation on October 11, 1999.
The Administration Mandate Contract A.E.C. No. 09/2000 signed between the BCB and FinanciaCoop on February 22, 2000.
The SAJU Contract No. 051/2001 for the renewal of Contract A.E.C. No. 09/2000 dated February 21, 2001.
The note from FinanciaCoop CITE CORRESP./FC/0167/GR/0167/2001.
The report from the Financial Entities Management GEF-SRRA No. 360/2001 of October 17, 2001.
The note from the Legal Affairs Management SAJU No. 1291/2001 of October 8, 2001.

CONSIDERING:
That through the agreement for the cancellation of extra-bankruptcy claims of the BCB signed on October 11, 1999, it is accepted that the San José Obrero Cooperative in Liquidation cancels 50% of the total owed to the Central Bank of Bolivia through a cash payment of $us 174,663.34 and the other 50% through the assignment of the current portfolio for an amount of $us 175,336.66.

That the Administration Contract A.E.C. 09/2000 in clause third, subsection a) states that the Mandatary (FinanciaCoop) on behalf of the Mandators, will carry out the collection management of the credit portfolio of the San José Obrero Ltda. Cooperative in Liquidation, within the framework of its internal rules and regulations, SBEF regulations, and according to generally accepted principles in this matter.

That within the framework of contract A.E.C. No. 09/2000, FinanciaCoop is authorized to effect reprogramments, having to grant the corresponding power, specifying in it with precision the terms and conditions to carry them out.

That through note CITE CORRESP./FC/0167/GR/0167/2001 FinanciaCoop submits the note requesting the reprogramming of credits presented by three borrowers from the portfolio of the San José Obrero Cooperative in Liquidation administered on behalf of the BCB.

That the Financial Entities Management through report GEF-SRRA No. 360/2001 puts forward the limits and criteria that should be contemplated in the power for the reprogramming of credits of the BCB in Administration Mandate.

That in the opinion of the Legal Affairs Management, it corresponds to the Honorable Board of Directors of the Central Bank of Bolivia, according to the powers conferred by Article 54 subsection a) of Law 1670, to issue the rules and adopt the decisions that correspond regarding the conditions or limits of the powers of the mandatary for reprogramments.

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

Article 1.- Approve the following terms and conditions to be applied in the reprogramming of operations of the portfolio delivered in administration mandate to FinanciaCoop Ltda.:

• Subject of reprogramming.- A loan, current or in default, whose borrower reasonably demonstrates the existence of positive and sufficient cash flows to honor its future financial obligations is considered a subject of reprogramming; the borrower must present the corresponding documentation.
• Interest Rate.- The original rate of 7.5% per annum is maintained.
• Maturity.- The reprogramming cannot agree on a maturity date for the obligation that extends beyond the term stipulated in the original contract.
• Debt Service.- Reprogrammings will establish monthly, bimonthly, quarterly, or semiannual amortizations. In no case will the amortizations be annual. Any payment will be destined, in the first instance, to cover accrued interest and if there is a remainder, to the amortization of capital.
• Waiver of penal interest.- The mandatary will waive accumulated penal interest up to December 31, 2001, only once, when the debtor pays the total obligation, regularizes the payment of pending installments, or reprograms the operation.
• Guarantees.- Sufficient real guarantees in a ratio of at least one to one, taking as a base 64% of the commercial value of the guarantee.
• Appraisal of Guarantees.- When the credit reprogramming process requires the update of appraisals of the guarantees, these will be carried out by professionals authorized by the Mandatary; the cost of said update will be covered by the client.
• Capitalization of accrued interest.- The reprogramming may consider what is provided by Article 800 of the Commercial Code.

Article 2.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, November 6, 2001

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Juan Antonio Morales A.

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Armando Pinell S. Armando Méndez M.

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Roberto Camacho S. Javier Comboni S.