Resolution 120/2003 — BCB — BO

BOARD RESOLUTION NO. 120/2003

SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES RENEWAL TO THE GENERAL TREASURY OF THE NATION TO MEET TEMPORARY LIQUIDITY NEEDS OF Bs 375,000,000.

HAVING SEEN:

Law 1670 of October 31, 1995.

Board Resolution 160/97 of October 21, 1997, which approves the Regulations for Credits to the Public Sector.

Board Resolution 121/2001 of November 29, 2001, which modifies Article 10 of RD 160/97 regarding the Financial Conditions of Credits to the Public Sector.

The note from the Ministry of Finance, D.G.C.P. 05-016 D.D.I. OF. No. 2194/03 of October 22, 2003.

The Report from the Monetary Operations Management, SOSP 023/2003 of October 24, 2003.

The Report from the Economic Policy Advisory, APEC-SMyF 036/2003 of October 28, 2003.

The Report from the Legal Affairs Management, SANO No. 200/2003 of October 24, 2003.

CONSIDERING:

That the Ministry of Finance, through note DGCP 05-016 DDI OF. No. 2194/03, has requested the renewal of a credit for Bs 375,000,000 to meet temporary liquidity needs.

That the Monetary Operations Management, in accordance with Article 5 of the Regulations for Credits to the Public Sector, has issued Report SOSP 023/2003, recommending that the credit conditions be considered once the Ministry of Finance complies with the requirements established for the renewal of the aforementioned loan.

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That the Economic Policy Advisory, in its Report APEC-SMyF 036/2003, states that this credit falls within the Monetary Program.

That the Legal Affairs Management, in Report SANO 200/2003, states that the authorized amounts must be within the limits of the monetary program, that the credit be documented with securities, that the term not exceed one year, and that the Ministry of Finance comply with the requirements established by Law 1670.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the latest renewal of the credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:

Amount: Bs. 375,000,000.
Interest Rate: 7.25%
Term: 90 days.
Renewal Date: November 4, 2003.
Maturity Date: February 2, 2004
Guarantee Instrument: Treasury Letters “C”
Payment Method: 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.- Authorize the President of the Central Bank of Bolivia to sign the respective contract with the Ministry of Finance.

Article 3.- The General Treasury of the Nation may effectuate total or partial early cancellation of the Credit considering the accrued interest on the total Credit up to the date of early cancellation.

Article 4.- Any rescheduling of financing from the BCB to the General Treasury of the Nation must be compatible with the quarterly limits agreed upon for the net credit of the BCB to the non-financial Public Sector in the Stand-By Agreement with the IMF, corresponding to the 2003 management period.

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Article 5.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, October 28, 2003.

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.

Jaime Apt B.