Resolution 111/99 — BCB — BO

BOARD RESOLUTION NO. 111/99
SUBJECT: MONETARY OPERATIONS MANAGEMENT – LOAN TO THE GENERAL TREASURY OF THE NATION UP TO Bs180,000,000 TO ADDRESS TEMPORARY LIQUIDITY NEEDS

HAVING 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 Loans to the Public Sector.

The Note from the Undersecretariat of Treasury and Public Credit D.G.C.P. 05-016 U.D.P.I. OF. No. 1234/99 of December 17, 1999.

The Report from the Monetary Operations Management SOSP No. 039/99 of December 20, 1999.

The Report from the Economic Policy Advisory APEC-ARMyF No. 043/99 of December 21, 1999.

The Note from the Legal Affairs Management GAL No. I-256/99 of December 20, 1999.

CONSIDERING:

That the Undersecretary of Treasury and Public Credit, through note DGCP 05-016 U.D.P.I. OF No. 1234/99 dated December 17, 1999, has requested a loan equivalent in Bolivianos to US$30,000,000 to address temporary liquidity needs.

That the Monetary Operations Management, in accordance with Article 5 of the Regulations on Loans to the Public Sector, has issued Report No. SOSP No. 039/99 stating that, although there is a pending balance of payment of the debt of the General Treasury of the Nation to the Central Bank of Bolivia, it will be fully cancelled on December 29, 1999, in accordance with the note from the Undersecretariat of Treasury and Public Credit DGCP 05-016 U.D.P.I. OF No. 1234/99.

That the Economic Policy Advisory, in its report APEC-ARMyF No. 043/99 of December 21, 1999, indicates the effects this loan will have on the Monetary Program.

That in the opinion of the Legal Affairs Management, the Undersecretariat of Treasury and Public Credit has met the requirements established for the granting of the aforementioned loan.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the granting of a loan to the General Treasury of the Nation for the attention of temporary liquidity needs, under the following conditions:

Amount: Bs180,000,000.
Currency: Bolivianos
Interest Rate: 12.00% per annum, yield rate of the auction of Treasury Bills in national currency for 91 days, corresponding to the last allocation (December 15, 1999). Term: 28 days. Maturity Date: January 31, 2000. Disbursement Date: January 3, 2000.

Instrument: Treasury Bills in national currency issued by the General Treasury of the Nation.

Payment Method and Guarantee: Interest and principal, via automatic debit in the fiscal current 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 15 days, while the issuance and delivery of the Treasury Bills to the Central Bank of Bolivia is finalized.

Article 3.- Authorize the President to sign the respective contract with the Ministry of Finance.

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

La Paz, December 21, 1999

Juan Antonio Morales A.

Armando Pinell S. Jaime Ponce G.

Fernando Campero P. Armando Méndez M.