Resolution 121/97

BOARD RESOLUTION NO. 121/97
SUBJECT: FINANCIAL SYSTEM - REGULARIZATION OF THE ACCRUAL OF INTEREST ON THE CREDIT GRANTED TO FONDESIF WITH RESOURCES FROM THE BCB.

VIEWING:
Law No. 1670 of October 31, 1995.
Supreme Decree No. 24110 of September 1, 1995, which creates the Financial System Development Fund and Support for the Productive Sector (FONDESIF).
Board Resolution No. 156/95 of December 12, 1995.
Circular from the Presidency of the BCB No. 03/96 of June 21, 1996.
Minutes No. 027/97 of the BCB Board of Directors of May 20, 1997.

Report No. S-AYO-126/97 from the Financial System Management of June 11, 1997.
Note A.L. No. 075/97 from the Legal Advisory of the BCB dated June 25, 1997.
Note U. AUDI No. 231/97 from the Internal Audit Unit of June 26, 1997.

CONSIDERING:
That Law No. 1670 of October 31, 1995, empowers the Board of Directors to approve the Financial Statements of the Institution.
That item b) of Article 3 of Supreme Decree No. 24110 establishes that national counterpart resources lent by the BCB to FONDESIF will be granted under the same terms and conditions as the Special Funds of Multilateral Credit Organizations.

//2. B.D. No. 121/97
That by Board Resolution No. 156/95 of December 12, 1995, the granting of a credit to FONDESIF of $US 40,000,000.- with the BCB's own resources was approved, the interest on which has been accrued in the 1996 and 1997 fiscal periods at a rate of 6.0282%, in accordance with the initial communication from the Financial System Development Fund and Support for the Productive Sector No. 496/96 of December 27, 1996.

That in the opinion of the BCB Board of Directors, compliance with item b) of Article 3 of Supreme Decree 24110 must be given, which establishes the terms and conditions of the credits to be granted to FONDESIF; therefore, it was decided that the applicable interest rate for said loan must be equal to that corresponding to the Special Operations Funds of the IDB.

That Loan 939/SF-BO of the Inter-American Development Bank, which finances the operations of FONDESIF, establishes an interest rate of 1% annually.

That it is necessary to regularize the interest accruals made in the 1996 fiscal period, charged to the Results of the same, in accordance with the procedure established in Circular No. 03/96 from the Presidency of the BCB of June 21, 1996.

That in the opinion of the Legal Advisory and the Internal Audit Unit, the regularization proposed by the Financial System Management is appropriate.

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

Article 1.- Authorize the accounting adjustment of the interest accrued in the previous fiscal period of the credit granted to FONDESIF via Board Resolution No. 156/96, charged to the account Adjustment of Results Fiscal Period 1996, for the amount of Bs5,248,992.20.-

//3. B.D. No. 121/97
Article 2.- The Presidency and the General Management are tasked with executing this Resolution.

26.VI.97
____________________ Juan Antonio Morales A.

---

Armando Pinell S. Jaime Ponce G.

---

Juan Medinacelli V. Fernando Campero P.