Resolution 169/2004 — BCB — BO

BOARD RESOLUTION NO. 169/2004
SUBJECT: MONETARY OPERATIONS MANAGEMENT – RENEWS CREDIT TO THE GENERAL TREASURY OF THE NATION TO MEET TRANSITORY LIQUIDITY NEEDS OF Bs210,000,000.

VIEWING:
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 Resolutions No. 043/2004 of April 1, 2004, 060/2004 of May 11, 2004, 076/2004 of June 8, 2004, 099/2004 of July 13, 2004, 124/2004 of July 24, 2004, and 150/2004 of October 5, 2004.

The Memorandum of Understanding signed between the Central Bank of Bolivia (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. 056/2004 of April 5, 2004.
The SANO Addenda No. 83/2004 of May 14, 2004, SANO No. 94/2004 of June 14, 2004, SANO No. 112/2004 of July 23, 2004, SANO No. 125/2004 of September 1, 2004, and SANO No. 168/2004 of October 11, 2004. The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 2861/04 of November 3, 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. 299/2004 of November 8, 2004.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 2861/04, has requested the renewal of the credit of Bs210,000,000 to meet transitory 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, states that it is appropriate for the Board to consider the sixth renewal of the liquidity credit for Bs210.0 million maturing on November 19, 2004, for a term of 40 days, considering that as of November 11, 2004, there is a transitory accumulation of deposits from the rest of the Public Sector Entities, as provided in subsection A) 5 of the Addendum of April 1, 2004. That the Legal Affairs Management, in its Report SANO No. 299/2004, establishes that the request presented by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 2861/04, for the renewal of a liquidity credit of Bs210,000,000, 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 established 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.- Exceptionally accept the consideration of the request from the Ministry of Finance regarding the renewal of a credit to the General Treasury of the Nation (TGN).

Article 2.- Approve the sixth renewal of a credit to the Ministry of Finance for the attention of transitory liquidity needs, under the category of liquidity credits for transitory accumulation of deposits, under the following conditions:
Amount: Bs210,000,000.
Interest Rate: 8.50%.
Term: 40 days.
Renewal Date: November 19, 2004.
Maturity Date: December 29, 2004.
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 3.- Authorize the President of the Central Bank of Bolivia to sign the respective contracts with the Ministry of Finance.

Article 4.- The General Treasury of the Nation may effect 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.- 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 6.- 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.