Regulatory Alerts1997-07-22 | Resolución 130/97Added · Updated
Resolution 130/97
The Central Bank of Bolivia approves the onerous transfer of the IDA-2013/BO credit portfolio to NAFIBO SAM for $US 213,171.42 in principal, plus accrued interest. This transaction requires the consent of the debtor, Banco Unión S.A., and results in the Central Bank of Bolivia settling its debt to the Republic of Bolivia and the African Development Bank, thereby releasing the Central Bank from all present and future liabilities related to this line. The President of the Central Bank is authorized to sign the respective transfer contract.
RESOLUTION OF THE BOARD OF DIRECTORS NO. 130/97 SUBJECT: FINANCIAL SYSTEM - APPROVES TRANSFER OF THE IDA-2013/BO LINE IN FAVOR OF NAFIBO SAM, THROUGH ASSIGNMENT OF PORTFOLIO FOR VALUE.
HAVING SEEN: Law 1670 of October 31, 1995. The IDA-2013/BO Credit Contract for 26,500,000 SDRs, signed between the Republic of Bolivia and the AIF on August 3, 1989, and its amendments dated June 14, 1990, April 5, 1991, July 30, 1991, April 7, 1993, and May 20, 1996. The Subsidiary Agreement for 5,500,000 SDRs, signed between the Republic of Bolivia and the BCB on December 12, 1989. The Note SIPFE/SFE/NEG/2531/97 from the National Secretariat of Public Investment and External Financing of the Ministry of Finance, dated July 18, 1997. The Note SGC No. 396/97 from Banco Unión S.A. dated July 18, 1997. The Report from the Management of the Financial System SEL No. 122/97 dated July 21, 1997. The Report from the Legal Advisory ALEG No. 99/97 dated July 21, 1997.
CONSIDERING: That Article 85 of Law 1670 establishes that the Board of Directors of the BCB will determine the dates and amounts in which the transfers of assets generated by the resources administered by the former Development Management of the Issuing Institute in favor of NAFIBO SAM will be carried out, agreeing with the latter on the value and form of payment.
That the IDA-2013/BO Credit Line, arising from the credit contract signed between the Republic of Bolivia and the AIF on August 3, 1989, transferred for administration to the BCB through a Subsidiary Contract dated December 12, 1989, has a pending credit portfolio for recovery of $US 213,171.42 in principal, whose debtor is Banco Unión S.A.
That with the prior consent of the Bolivian National Financial Corporation SAM, the BCB, and the National Secretariat of Finance, with notification to the AIF, they have agreed to close the IDA-2013/BO Credit Line, transferring its portfolio in favor of NAFIBO SAM under the modality of credit assignment for value, with the debtor's consent.
That to this effect, Banco Unión S.A., through note SGC No. 396/97, has certified the outstanding balance, as well as its consent for the assignment.
That the Report from the Management of the Financial System SEL No. 122/97 establishes that the transfer amount amounts to $US 213,171.42, for the concept of principal balance, and NAFIBO SAM must additionally cancel to the BCB the interest accrued up to the payment date. The BCB must, in turn, transfer to the Republic of Bolivia the amount owed for the balance of this Line, thereby freeing itself from all present and future obligations for this concept, both with the Republic of Bolivia and with the AIF.
That the Report from the Legal Advisory ALEG No. 99/97 states that there is no legal impediment to make the transfer of the portfolio through credit assignment, with the acceptance of the debtor, since Banco Unión S.A. has given its consent for the assignment, as has the AIF, which has been communicated by the Ministry of Finance, and that the Republic of Bolivia, represented by the National Secretary of Finance, NAFIBO SAM, and the BCB, intervene in the Contract.
Therefore, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Approve the transfer of the IDA-2013/BO Line in favor of NAFIBO SAM, under the following terms and conditions: Modality: Portfolio Assignment, with acceptance of the debtor, for value. Amount: $US 213,171.42 Interest: Those accrued up to the date of the operation, which will be paid by NAFIBO SAM on the date of signing the contract. Effects: With the amount paid by NAFIBO SAM and the recovered balance, the Central Bank of Bolivia will in turn pay the debt to the Republic of Bolivia for the IDA-2013/BO Line, leaving the BCB released from all responsibility, present and future, for this concept, both with the Republic of Bolivia and with the AIF.
Article 2.- Authorize the President of the BCB to sign the respective contract for the assignment of the portfolio, for value, of the IDA-2013/BO Line, with the Republic of Bolivia, represented by the National Secretariat of Finance, and with NAFIBO SAM.
Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
22.VII.97
____________________ Juan Antonio Morales A.
Armando Pinell S. Jaime Ponce G. Juan Medinacelli V.
Fernando Campero P. Edgar Millares A.
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