Resolution 129/2001

BOARD RESOLUTION NO. 129/2001
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVES PORTFOLIO TO BE TRANSFERRED TO THE RURAL DEVELOPMENT FUND (RESIDUAL)

HAVING VIEWED:
Law 1670 of the Central Bank of Bolivia dated October 31, 1995.
Article 14, subsection p) of the Statute of the Central Bank of Bolivia.
Law 2201 dated May 18, 2001.
Supreme Decree 26339 dated September 29, 2001, regulating Law 2201 of May 18, 2001, published on October 16, 2001.
Circular Letter SB/IEN 823 dated November 16, 2001.
Report from the Financial Entities Management and Legal Affairs Departments GAL - GEF No. 132/412/2001 dated December 12, 2001.

CONSIDERING:
That Article Two of Law No. 2201 establishes the forgiveness of current and penalty interest, fines, commissions, judicial costs, accessories, and principal of overdue and executed credits granted with public resources, in favor of small farmers and rural producers, whose outstanding principal balances on the date of publication of the Law are equal to or less than five thousand United States dollars ($US 5,000) or its equivalent in national currency.

That Supreme Decree No. 26339 of September 29, 2001, in its Third Article, authorizes the Rural Development Fund (Residual) to receive from the Central Bank of Bolivia and banks in liquidation the transfer of credit portfolios generated with public resources that meet the characteristics indicated in its Second Article, in the state they are found, along with all documentation. It also states that the transfer must be effected within a period not exceeding sixty (60) calendar days from the publication of the Regulatory Supreme Decree; otherwise, the Central Bank of Bolivia and banks in liquidation, in compliance with Article 4 of Law No. 2201, will directly execute and under their responsibility the forgiveness provided by the Law.

That as consideration for the transfer, the General Treasury of the Nation is authorized to issue bonds in favor of the Central Bank of Bolivia and the Banks in liquidation, under the characteristics established in Article 4 of Supreme Decree No. 23881 of October 11, 1994.

That the Central Bank of Bolivia holds a portfolio of credits granted with public funds, returned and assigned in payment in kind by the liquidated Banks Crédito Oruro S.A., Del Progreso Nacional S.A.M., and former Banco Potosí S.A.

That by Act dated November 21, 2001, the Credit Recovery Committee recommends that the transfer authorized by Law 2201 be submitted to the Board of Directors for consideration.

That by report GAL/GEF No. 132/412/2001 dated December 12, 2001, they recommend to the Honorable Board of Directors the approval of the lists of portfolios to be transferred to the Rural Development Fund (Residual), for a value of Bs 499,113.07, $US 591,351.27, and Mvdol 2,503,543.55, attaching the draft contract to be signed with said entity, with the permissibility contained in Article 54 subsection q) of Law 1670 and Article 14 subsection p) of the Statute of the Issuing Entity, as it is an inter-institutional contract.

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

Article 1.- Approve the transfer to the Rural Development Fund (Residual) of the credit portfolio generated with public resources under Law 2201, for a total value of $US 3,167,971.40 (Three million one hundred sixty-seven thousand nine hundred seventy-one and 40/100 United States dollars), which comprises:

• Bs 499,113.07 (Four hundred ninety-nine thousand one hundred thirteen and 07/100 bolivianos) equivalent to $US 73,076.58 at the exchange rate of Bs 6.83 per $US 1.- valid on the date
• $US 3,094,894.82 (Three million ninety-four thousand eight hundred ninety-four and 82/100 United States dollars) corresponding to credit portfolio of $US 591,351.27 and Mvdol 2,503,543.55

Article 2.- Authorize the President of the Central Bank of Bolivia to sign the documents necessary for the viability of the transfer of the portfolio to the Rural Development Fund (Residual).

Article 3.- Authorize the Administration to manage before the Ministry of Finance, as consideration for the transfer of the portfolio, the issuance in favor of the Central Bank of Bolivia of redeemable bonds from the General Treasury of the Nation in United States dollars or, failing that, in Unit of Housing Development (UFV).

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

La Paz, December 13, 2001

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Juan Antonio Morales A.

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Armando Pinell S. Juan Medinaceli V.

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_________________ Armando Méndez M.
Roberto Camacho S.

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Javier Comboni S.