Resolution 159/2007

RESOLUTION OF THE BOARD OF DIRECTORS NO. 159/2007 SUBJECT: MANAGEMENT OF FINANCIAL ENTITIES – APPROVES FINANCIAL SUPPORT DISBURSEMENT FOR THE RESOLUTION PROCESS OF THE GUAPAY MUTUAL ASSOCIATION FOR SAVINGS AND LOANS FOR HOUSING.

SEEN: The Law No. 1670 of the Central Bank of Bolivia of October 31, 1995. The Law No. 1488 on Banks and Financial Entities of April 14, 1993, Consolidated Text by Supreme Decree No. 26851 of April 3, 2002. The Law No. 2297 on Strengthening Financial Regulation and Supervision of December 20, 2001. The Law No. 2196 on the Special Fund for Economic Reactivation and Strengthening of Financial Entities of May 4, 2001. The Law No. 2682 of May 5, 2004. Supreme Decree No. 27025 of May 6, 2003. The Notes from the Superintendence of Banks and Financial Entities, SB/ISR IID-50804/2007 of December 13, 2007 and SB/ISR IID-51267/2007 of December 17, 2007, requesting support for the resolution process of a financial intermediation entity. The Report from the Management of Financial Entities GEF - SANA No. 833/2007 of December 19, 2007. The Report from the Legal Affairs Management SANO No. 334/2007 of December 19, 2007.

CONSIDERING: That the Superintendence of Banks and Financial Entities (SBEF) through note SB/ISR IID-50804/2007 addressed to the Acting President of the Institution, states that the Financial Restructuring Fund (FRF) in its meetings on December 7 and 12 of this year, analyzed the execution of a resolution process for a financial intermediation entity and that for this purpose, it has been determined the need to have additional support for the resources of the FRF coming from the Central Bank of Bolivia.

That Article 125, paragraph b) of Law No. 1488, establishes that to successfully carry out the resolution procedure, the Financial Restructuring Fund (FRF), at the discretion of the Superintendence of Banks and Financial Entities, may support with cash contributions or bonds to the trust indicated in paragraph d) of Article 124 of the aforementioned Law, in exchange for a second-order participation in it.

That Article 38, paragraph d) of Law No. 1670, establishes that the BCB may purchase, discount, or guarantee assets; capitalize claims, dispose of resulting shares, and carry out credit assignments for cash or on credit, for the purpose of preserving a stable and competitive intermediation system.

That the Management of Financial Entities in its Report GEF No. 833/2007, recommends to the Board of Directors support the resolution procedure of the Asociación Mutual de Ahorro y Préstamo para la Vivienda Guapay, under the option of direct purchase of assets.

That the Legal Affairs Management, through report SANO No. 334/2007, states that the BCB has the authority to purchase assets from a financial intermediation entity with the objective of preserving a stable and competitive financial intermediation system, within the framework of what is requested by the SBEF.

That article 44 of Law No. 1670 establishes that the highest authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized regulations of general application, and internal norms; as well as establishing administrative, operational, and financial strategies of the BCB by approving their respective short and medium-term programs.

That in this context, the Board of Directors is expressly empowered to adopt the general decisions that may be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law.

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

Article 1.- Authorize the Administration of the BCB to purchase assets up to a maximum of USD 10,000,000.00 (ten million United States dollars), in order to support the resolution process of the Asociación Mutual de Ahorro y Préstamo para la Vivienda Guapay.

Article 2.- Authorize the Administration to sign a mandate contract for the administration of the assets indicated in the previous article with the acquiring entity of the resolution process, for its total execution within a period not exceeding one year, and authorize the establishment of a provision for one hundred percent of these assets.

Article 3.- Authorize the Acting President of the BCB to designate the representative of the Issuing Entity before the Committee for Receipt and Award of Proposals for the Selection of Financial Intermediation Entities participating in the resolution process of the Asociación Mutual de Ahorro y Préstamo para la Vivienda Guapay.

Article 4.- Authorize the Management of Financial Entities to proceed with the transfer of resources from the RAL Fund of the intervened entity to its legal reserve cash accounts.

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

La Paz, December 19, 2007

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Raúl Garrón Claure

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Gustavo Blacutt Alcalá Hugo Dorado Araníbar

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Rolando Marín Ibáñez Ernesto Yáñez Aguilar Osvaldo Nina Baltazar