Resolution 141/2004

BOARD RESOLUTION NO. 141/2004

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – APPROVES CAPITALIZATION OF PROFITS IN THE ANDEAN DEVELOPMENT CORPORATION.

HAVING SEEN:

Law No. 1670 of October 31, 1995.

Decision No. 158/2004 of the 35th Ordinary Shareholders' Meeting of the Andean Development Corporation, dated March 16, 2004.

The Statute of the Central Bank of Bolivia of December 13, 2001.

The Report from the International Operations Management (GOI) No. 009/2004 of September 14, 2004.

The Report from the Legal Affairs Management (SANO) No. 234/2004 of September 17, 2004.

CONSIDERING:

That through Decision No. 158/2004, the 35th Ordinary Shareholders' Meeting of the Andean Development Corporation (CAF) approved the capitalization of US$ 166,175,350, coming from the Capital Surplus account and its distribution via share dividend, among the shareholders of the CAF, in proportion to their paid shares as of December 31, 2003, corresponding to the Central Bank of Bolivia, 523 shares with a nominal value of US$ 5,000 each.

That the International Operations Management in Report GOI No. 009/2004, recommends approving the capitalization of profits by US$ 2,615,000 and those of subsequent financial years until 2008, the year in which Bolivia will conclude payment of the Sixth Capital Subscription with the CAF.

That the Legal Affairs Management, according to Report SANO No. 234/2004, establishes that there is no legal impediment for the Board to authorize such profit capitalizations.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the capitalization of US$ 2,615,000 (Two million six hundred fifteen thousand 00/100 United States dollars) via share dividend, corresponding to the Central Bank of Bolivia, coming from the Capital Surplus account of the CAF.

Article 2.- Authorize the capitalization of profits corresponding to the Central Bank of Bolivia in the annual financial exercises of the CAF for the period 2004-2008. The Administration must inform the Board annually, once the capitalization has been carried out.

Article 3.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, September 21, 2004

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Juan Antonio Morales A.

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Enrique Ackermann A. José Luis Evia V.

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Fernando Paz B. Jaime Apt B.