Resolution 157/2005

RESOLUTION OF THE BOARD OF DIRECTORS NO. 157/2005

SUBJECT: MONETARY OPERATIONS MANAGEMENT – RENEWS CREDIT TO THE GENERAL TREASURY OF THE NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS FOR Bs160,000,000.

HAVING VIEWED:

Law 1670 of October 31, 1995.

Board Resolution No. 021/2005 of February 1, 2005, which approves the Regulations on Credits to the Public Sector.

Board Resolution No. 042/2005 of March 29, 2005.

The Memorandum of Understanding signed between the BCB and the Ministry of Finance on January 18, 2005.

The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 3658/05 of December 20, 2005.

The Reports from the Monetary Operations Management GOM-SOSP-TGN-020/2005 and GOM-SOSP-TGN-021/2005 of December 20, 2005.

The Report from the Economic Policy Advisory APEC-SMyF 041/2005 of December 20, 2005.

The Report from the Legal Affairs Management SANO No. 320/2005 of December 20, 2005.

CONSIDERING:

That the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 3658/05, has requested the renewal of a credit of Bs160,000,000 to address temporary liquidity needs.

That the Monetary Operations Management, in accordance with Article 5 of the Regulations on Credits to the Public Sector, has issued Report GOM-SOSP-TGN 020/2005 and GOM-SOSP-TGN-021/2005, which recommends the conditions under which the credit renewal should be subject.

That the Economic Policy Advisory in its Report APEC-SMyF 041/2005, states that it is appropriate for the Board to consider the renewal of a liquidity credit of Bs160,000,000 for a term of 94 days, considering that it falls within the limit of liquidity credits provided for in the Memorandum of Understanding.

That the Legal Affairs Management, in its Report SANO No. 320/2005, establishes that the request presented by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 3658/05, falls within the current regulations, so there is no legal impediment for the Board of the Issuing Entity to consider, on an exceptional basis, the renewal of the Liquidity Credit for Bs160,000,000, provided that it is technically determined that it is within the financing limit of the BCB to the TGN established in the Memorandum of Understanding.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Exceptionally accept the consideration of the request from the Ministry of Finance regarding the granting of a credit to the TGN to address temporary liquidity needs.

Article 2.- Approve the renewal of a credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:

Amount: Bs160,000,000.00 Interest Rate: 7.70% Term: 94 days Renewal Date: December 27, 2005 Maturity Date: March 31, 2006 Guarantee Instrument: Treasury Letters “C” Payment Method: At maturity, Interest and principal, via automatic debit in the current accounts that the General Treasury of the Nation maintains at the Central Bank of Bolivia.

Article 3.- Authorize the President of the Central Bank of Bolivia to sign the respective contract with the Ministry of Finance.

Article 4.- The General Treasury of the Nation may effectuate the total or partial early cancellation of the credit considering the accrued interest on the total Credit up to the date of early cancellation.

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

La Paz, December 20, 2005

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Juan Antonio Morales A.

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Enrique Ackermann A. Fernando Paz B.

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Jaime Apt B.