Resolution 123/2003 — BCB — BO

BOARD RESOLUTION NO. 123/2003
SUBJECT: MONETARY OPERATIONS MANAGEMENT – GRANTS CREDIT TO THE GENERAL TREASURY OF THE NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS FOR Bs250,000,000.

HAVING REVIEWED:
The Law 1670 of October 31, 1995.
The Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations for Credits to the Public Sector.
The Board Resolution No. 121/2001 of November 29, 2001, which modifies Article 10 of Board Resolution No. 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. 2239/03 of October 30, 2003. The Report from the Monetary Operations Management SOSP 025/2003 of October 31, 2003. The Report from the Economic Policy Advisory APEC-SMyF-038/2003 of November 4, 2003. The Report from the Legal Affairs Management SANO No. 207/2003 of October 31, 2003.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 DDI OF. No. 2239/03, has requested a credit of Bs250,000,000 to address 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 025/2003, which recommends considering the credit conditions once the Ministry of Finance complies with the requirements established for the granting of said loan.

That the Economic Policy Advisory in its Report APEC-SMyF-038/2003, with the purpose of ensuring this credit falls within the Monetary Program, recommends granting it with a term no greater than 30 days.

That the Legal Affairs Management, in its Report SANO No. 207/2003, 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 granting of the credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:
Amount: Bs250,000,000.-
Interest Rate: 7.25%
Term: 29 days.
Disbursement Date: November 6, 2003.
Maturity Date: December 5, 2003.
Guarantee Instrument: Treasury Letters “C”.
Disbursement Method: Into accounts of the General Treasury of the Nation, according to written request.
Repayment 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 effect 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 reprogramming of BCB financing to the General Treasury of the Nation must be compatible with the quarterly limits agreed 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, and must be preceded by the signing of an Understanding Act between the Central Bank of Bolivia and the Ministry of Finance, which sets the limits of indebtedness of the TGN with the BCB for liquidity credits for the 2004 management period.

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

La Paz, November 4, 2003.

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.

Jaime Apt B.