Resolution 168/2004 — BCB — BO

BOARD RESOLUTION NO. 168/2004
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
RENEWS CREDIT TO THE GENERAL TREASURY OF THE
NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs150,000,000.

HAVING SEEN:
Law No. 1670 of October 31, 1995.
Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations for Credits to the Public Sector.
Board Resolution No. 121/2001 of November 29, 2001, which modifies Article 10 of Board Resolution No. 160/97 regarding the financial conditions of Credits to the Public Sector. Board Resolution No. 121/2004 of August 19, 2004.

The Memorandum of Understanding signed between the BCB and the Ministry of Finance on December 4, 2003.
The Addendum to the Memorandum of Understanding, dated April 1, 2004.
The Private Contract SANO No. 122/2004 of August 20, 2004.
The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 2807/04 of October 28, 2004.
The Report from the Monetary Operations Management SOSP 062/2004 of November 12, 2004.
The Report from the Economic Policy Advisory APEC-SMyF-056/2004 of November 15, 2004.
The Report from the Legal Affairs Management SANO No. 293/2004 of November 1, 2004.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 2807/04, has requested the renewal of the credit of Bs150,000,000 to address temporary liquidity needs.

That the Monetary Operations Management, in accordance with Article 5 of the Regulations for a Credit to the Public Sector, has issued Report SOSP 062/2004, which recommends the conditions under which the credit renewal should be subject.

That the Economic Policy Advisory, in its Report APEC-SMyF-056/2004, recommends to the Board that it consider the request for Renewal of a Liquidity Credit of Bs150,000,000, in view of the fact that this does not affect the balance of the liquidity credit portfolio granted within the scope of the Memorandum of Understanding.

That the Legal Affairs Management, in its Report SANO No. 293/2004, establishes that the request presented by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 2807/04, for the renewal of a liquidity credit of Bs150,000,000, must be considered by the Board of the Issuing Entity provided that the credit is within the limits of the Monetary Program and compliance is met with what is stipulated in the Memorandum of Understanding of December 4, 2003, and its corresponding Addendum of April 1, 2004.

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

Article 1.- Approve the first renewal of a credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:
Amount: Bs150,000,000.
Interest Rate: 7.25%.
Term: 90 days.
Renewal Date: November 18, 2004.
Maturity Date: February 16, 2005.
Guarantee Instrument: Treasury Letters “C”.
Payment Method: At maturity, interest and principal, via automatic debit in the fiscal current accounts that the General Treasury of the Nation maintains at the Central Bank of Bolivia.

Article 2.- Authorize the President of the Central Bank of Bolivia to sign the respective contracts with the Ministry of Finance.

Article 3.- 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 4.- Any rescheduling of the credit must be compatible with the financing limits of the BCB to the General Treasury of the Nation established in the Memorandum of Understanding signed between the BCB and the Ministry of Finance on December 4, 2003, and the Addendum of April 1, 2004, to said Memorandum.

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

La Paz, November 16, 2004

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.