Regulatory Alerts2012-09-07 | Resolución 166/2012Added · Updated
Resolution 166/2012
The Board of Directors of the Central Bank of Bolivia approves a concessional extraordinary credit of Bs1,160,421,148.00 to Yacimientos Petrolíferos Fiscales Bolivianos (YPFB) for the "Gran Chaco-Tarija Liquid Separation Plant" project. The loan carries a 20-year term, a five-year grace period on principal, an annual interest rate of 0.96%, and a disbursement deadline of December 30, 2014. The resolution mandates the establishment of specific accounts for disbursement and debt service, authorizes the BCB President to sign the credit contract, and requires the Presidency and General Management to execute the resolution.
BOARD RESOLUTION NO. 166/2012 SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES APPLICATION FOR CONCESSIONAL EXTRAORDINARY CREDIT TO YACIMIENTOS PETROLÍFEROS FISCALES BOLIVIANOS, FOR AN AMOUNT OF Bs1,160,421,148.00 FOR THE PROJECT NAMED “GRAN CHACO-TARIJA LIQUID SEPARATION PLANT”
HAVING REVIEWED: The Political Constitution of the State promulgated on February 7, 2009. Budgetary Administration Law No. 2042 of December 21, 1999. Law No. 1670 of the Central Bank of Bolivia (BCB) of October 31, 1995. Law No. 211 of December 23, 2011, which approves the General State Budget for the 2012 management period (GBE-2012). Resolution of the Ministry of Hydrocarbons and Energy No. 244-12 of September 6, 2012. Note YPFB/PRS/GNAF 1683 GNPIE-969 DNIF 418/2012 of September 6, 2012, from Yacimientos Petrolíferos Fiscales Bolivianos. Report from the Economic Policy Advisory BCB-APEC-SSMF-INF-2012-22 of September 7, 2012. Report from the Monetary Operations Management BCB-GOM–SOSP–DCE-INF-2012-16 of September 7, 2012. Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-290, of September 7, 2012.
CONSIDERING: That Law No. 211 of December 23, 2011, which approves the General State Budget for the 2012 Management Period (GBE-2012), in its Article 17 authorizes the BCB to grant an extraordinary credit up to Bs9,100,000,000.00 (Nine Billion One Hundred Million 00/100 Bolivianos), in favor of YPFB under concessional conditions, with the objective of financing industrialization projects in the hydrocarbon sector; for which effect, the BCB is exempted from the application of Articles 22 and 23 of Law No. 1670, of October 31, 1995.
//2. R.D. No. 166/2012 That through Ministerial Resolution No. 244-12 of September 6, 2012, the Ministry of Hydrocarbons and Energy determines the following: • According to the GBE Law No. 211, the Project “Gran Chaco - Tarija Liquid Separation Plant” to be executed by YPFB, will be financed with a credit of Bs1,160,421,148.00 (One Billion One Hundred Sixty Million One Hundred Forty-Eight Thousand 00/100 Bolivianos), to be requested from the BCB, whose amount will be destined to the referred project and the future cash flows of the project will be used for the payment of the credit. • Confirms the technical feasibility of the execution of the Project “Gran Chaco - Tarija Liquid Separation Plant”, as stated in the DGIR Report – 055/2012, issued by the Vice Ministry of Industrialization, Commercialization, Transport and Storage of Hydrocarbons of the Ministry of Hydrocarbons and Energy. • Determines that according to the economic-financial evaluation of the Project “Gran Chaco - Tarija Liquid Separation Plant”, contained in Report DGAA No. 0429/2012, issued by the General Directorate of Administrative Affairs of the MINISTRY, the justification and assurance of the payment capacity of the credit to be contracted with the BCB are ensured. • Disposes that the MINISTRY will authorize the disbursement requests that YPFB makes to the BCB based on an evaluation and monitoring report issued for each disbursement, committing the MINISTRY through the Vice Ministry of Industrialization, Commercialization, Transport and Storage of Hydrocarbons, to carry out the evaluation and monitoring of the execution of the credit resources.
That through note YPFB/PRS/GNAF 1683 GNPIE-969 DNIF 418/2012 of September 6, 2012, YPFB within the framework of what is established in Law No. 211, requests from the BCB the concession of an extraordinary credit for an amount of Bs7,173,248,660.00 (Seven Billion One Hundred Seventy-Three Million Two Hundred Forty-Eight Thousand Six Hundred Sixty 00/100 Bolivianos) under concessional conditions, for which, in compliance with what is established in Article 2 of the Regulations for the Approval of Credit to National Strategic Public Companies within the framework of the GBE management 2010, 2011 and 2012 of the BCB, approved by Board Resolution No. 23/2011, of February 22, 2011 and its subsequent modifications, it forwards supporting documentation.
That the Economic Policy Advisory (APEC) in its Report BCB-APEC-SSMF-INF-2012-22 concludes that, except for extraordinary operations that may imply pronounced increases in the BCB's net internal credit, the disbursement requested by YPFB will not affect the fulfillment of the variables subject to measurement in the Monetary Program of the 2012 management.
That the Monetary Operations Management points out in its report BCB-GOM–SOSP–DCE-INF-2012-16, that the financial conditions to be established must respect the concessional nature of the credit within the framework of current regulations, in addition to ensuring the recovery of the credit in the shortest possible time.
That in the aforementioned report from GOM, it is concluded that it is necessary to enable a specific account in the name of YPFB to disburse the credit resources, prior to YPFB's request through the Ministry of Economy and Public Finance and the fulfillment of all requirements established by the BCB Board for this effect. Likewise, a specific account must be enabled to provision the resources for the payment of the credit service (Principal and interest). In the corresponding credit contract, the guarantees and possible mechanisms that ensure the amortization of the principal and the payment of the corresponding interest must be established.
That the Legal Affairs Management in its Report BCB-GAL-SANO-INF-2012-290 concludes that the request presented by YPFB is legally appropriate, as it does not contravene the current legal framework.
That by virtue of what is provided in Article 44 of Law No. 1670, the BCB Board is the competent instance to authorize the granting of the extraordinary credit in favor of YPFB in order to comply with what is expressly disposed in the GBE-2012 and applicable legal provisions to the case.
THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:
Article 1.- Approve within the framework of Article 17 of Law No. 211 which approves the GBE-2012, the application for a concessional extraordinary credit in favor of YPFB for the execution of the project “Gran Chaco – Tarija Liquid Separation Plant”, under the following conditions: Currency: Bolivianos. Total Credit Amount: Bs1,160,421,148.00 (One Billion One Hundred Sixty Million Four Hundred Twenty-One Thousand One Hundred Forty-Eight 00/100 Bolivianos) Term: 20 years. Grace Period: Five years on principal with interest payable starting from the first disbursement. Annual Interest Rate: 0.96% (zero point ninety-six percent). Disbursement Deadline: Until December 30, 2014.
//4. R.D. No. 166/2012 Payment Plan: Semi-annual.
Article 2.- Authorize the President of the BCB to sign the respective credit contract, according to the approved conditions and terms.
Article 3.- The Presidency and the General Management are in charge of the execution and compliance of this Resolution.
La Paz, September 7, 2012
Marcelo Zabalaga Estrada
Rafael Boyán Téllez Hugo Dorado Araníbar
Gustavo Blacutt Alcalá
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