Regulatory Alerts1999-12-21 | Resolución 113/99Added · Updated
Resolution 113/99
The Board of Directors of the Central Bank of Bolivia approves the transfer of available funds from Sectoral Program II Loan No. 88 65 719 and Program No. BV-C2 to Nacional Financiera Boliviana SAM (NAFIBO SAM) as a loan on behalf of the Republic. The transfer is capped at US$1,600,000, disbursable in partial installments until December 31, 1999, subject to written request with three business days' notice. The loan carries a 7.15% annual interest rate, a fifteen-year term including a three-year grace period for principal amortization, and is secured by automatic debit from NAFIBO SAM's accounts at the Central Bank. The President of the Central Bank is authorized to sign the transfer agreement with the Ministry of Finance and NAFIBO SAM.
BOARD RESOLUTION NO. 113/99 SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVES TRANSFER TO NAFIBO SAM OF AVAILABILITIES FROM SECTORAL PROGRAM II LOAN NO. 88 65 719 PRIVATE SECTOR AND NO. BV-C2
HAVING SEEN: Law 1670 of October 31, 1995. The Statute of the Central Bank of Bolivia, approved by Board Resolution No. 082/97 of February 20, 1997. The Loan Contract signed between the Republic of Bolivia and the Federal Republic of Germany on March 21, 1989, for DM 25,000,000, and the other legal precedents of Sectoral Program II Loan No. 88 65 719 Private Sector. The Financial Adjustment Loan Agreement signed between the Republic of Bolivia and the International Cooperation Fund of Japan on October 17, 1989, for JPY 1,084,000,000, and the other legal precedents of Program No. BV-C2. The Report from the Financial Entities Management Department SRRA No. 098/99 of December 21, 1999. The Note from the Legal Affairs Management Department GAL No. 258/99 of December 21, 1999.
CONSIDERING: That the collection of external resources by the Republic has fulfilled the purpose of contributing to the promotion of the country's economic growth. That it is necessary to continue the activity of financial intermediation of development resources for the benefit of the national productive sector, providing this activity with institutional independence and management autonomy.
//2. B.D. No. 113/99 That Article 29 of Law 1670 establishes the functions that the Central Bank of Bolivia (BCB) may perform as the Government's Financial Agent. That the aforementioned Law 1670, in its Article 85, provides that the Board of Directors of the BCB will determine the dates and amounts in which the transfers of assets generated by resources administered by the former Development Management of the Issuing Institute will be made in favor of the Bolivian National Financial Corporation SAM (NAFIBO SAM), agreeing with this entity on the value and its method of payment. That in the last three years, despite the efforts made by the BCB, it has not been possible to transfer to NAFIBO SAM the assets and liabilities of the development resources, as provided in Article 85 of Law 1670 of October 31, 1995. That according to the legal precedents of Sectoral Program II Loan No. 88 65 719 Private Sector, the amounts resulting from the recovery of sub-loans can be reused in aspects of special interest for the development of Bolivia, provided they are not used for debt service. That according to the legal precedents of Program No. BV-C2, the loan resources are intended to support the Financial Sector Adjustment Program and the economic and social development of the country. That in the opinion of the Legal Affairs Management, there are no observations for the Board to approve the signing of the Transfer Deed of availabilities of the aforementioned development programs, under the loan modality, in accordance with the attribution granted by Article 14, paragraph p) of the BCB Statute. That the report from the Financial Entities Management Department SRRA No. 098/99 recommends the approval of the draft Deed prepared by the BCB, NAFIBO SAM, and the Ministry of Finance on behalf of the Republic, to implement the transfer of availabilities from Sectoral Program II Loan No. 88 65 719 Private Sector and No. BV-C2.
THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA
RESOLVES: //3. B.D. No. 113/99 Article 1.- Approve the transfer of availabilities from Sectoral Program II Loan No. 88 65 719 and No. BV-C2 in favor of the Bolivian National Financial Corporation SAM, under the following terms: Modality: Loan on behalf and mandate of the Republic. Amount: Up to the sum of US$1,600,000.- through partial disbursements until December 31, 1999, according to written request from NAFIBO SAM with three business days' advance notice. Term: Fifteen years computable from the first disbursement, including three years of grace for the amortization of the principal. Interest Rate: 7.15% annual on balances. Amortization: Equal and consecutive semi-annual installments. Destination: Within the framework of the Agreements signed between the Republic and the Financing Organizations, NAFIBO SAM will have free availability over the loan resources. Guarantee: Automatic debit in the accounts that NAFIBO SAM maintains at the BCB. Administration: The BCB will administer the compliance with the Transfer Deed and will continue to exercise the function of Executive Body of Sectoral Program II Loan 88 65 719 Private Sector and No. BV-C2, under the conditions agreed with the Republic.
Article 2.- Authorize the President of the BCB to sign the aforementioned Transfer Deed, under the loan modality, with the Ministry of Finance and the Bolivian National Financial Corporation SAM. //4. B.D. No. 113/99 Article 3.- 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.
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