Resolution 166/97

BOARD RESOLUTION NO. 166/97
SUBJECT: BOARD - DENIAL OF THE APPEAL FILED BY THE VICE MINISTER OF THE TREASURY REGARDING THE REGULATION ON CREDITS TO THE PUBLIC SECTOR.

SEEN:

The Law of the Central Bank of Bolivia No. 1670 of October 31, 1995.

The Report from the Legal Advisory Office ALEG No. 248/97 of November 19, 1997.

The revocation appeal filed by the Vice Minister of Treasury and Public Credit, through official letter D.G.C.P. 05-016 OF. No. 990/97, against Board Resolution No. 160/97 of October 21, 1997, which approves the Regulation on Credits to the Public Sector, in the following terms:

"It seems excessive that the General Treasury of the Nation (TGN) present monthly projections of its cash flow, incorporating repayments to the BCB, given that this type of credit is documented with a Treasury Bill..."

"The established interest rate, equal to or greater than the market interest rate for securities with similar conditions, is very burdensome for the TGN."

"In credits for public calamities, the financial conditions are detrimental to the meager resources of the TGN... and that the BCB cannot obtain benefits from this situation."

"In this type of credit for public calamities, the Economic Advisory of the BCB not only has to issue a report considering the impact of said credit on the monetary program, but above all, it must issue a report on what effects the public calamity would have on our economy, in case the BCB does not grant the credit to the TGN."

//2. R.D. No. 166/97

CONSIDERING:

That according to Article 55 of Law 1670 of October 31, 1995, the Board must pronounce itself within twenty (20) days following the filing of a revocation appeal.

That since revocation is a legal action intended to modify, alter, suppress, or annul the effects of an administrative act, it is essential that it include the basic formal and substantive legal elements of presentation, such as: a) Request addressed to the authority from which the challenged act emanates (in this case, the Board), b) The sum or summary of what is requested, c) Proof of representation of the one filing the revocation, d) Identification and specific justification of all or part of the challenged Resolution, e) Express indication of the alleged transgressions or violations of the law, regulations, and current provisions and the manner in which the appellant's rights have been affected, f) The legal norms on which the justification of the appeal is based, g) The request (what is asked for) in clear and precise terms.

That the revocation request being analyzed does not include the aforementioned legal elements and rather limits itself to expressing, in a generic manner, observations and comments, without incorporating the substantive grounds that are part of any appeal of this nature.

That for the aforementioned reasons, it is not possible to grant the requested revocation.

Therefore,

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

Article 1.- Deny the revocation appeal filed for not conforming to the law.

//3. R.D. No. 166/97

Article 2.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

25.XI.97

---

Juan Antonio Morales A.

---

Armando Pinell S. Jaime Ponce G.

---

Juan Medinacelli V. Fernando Campero P.

---

Juan Pablo Zegarra A.