Resolution 171/97 — BCB — BO

BOARD RESOLUTION NO. 171/97

SUBJECT: CURRENCY AND CREDIT - CREDIT TO THE GENERAL TREASURY OF THE NATION FOR TEMPORARY LIQUIDITY NEEDS OF US$ 2,208,000.

HAVING VIEWED:

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

Supreme Decree No. 24491 of February 8, 1997.

Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations on Credits to the Public Sector.

The Note from the Ministry of Finance D.G.C.P. 05-016 OF No. 1110/97 of December 11, 1997.

The Report from the Currency and Credit Management No. 16/97 of December 12, 1997.

The Legal Advisory Report ALEG No. 324 of December 12, 1997.

The Economic Policy Advisory Report ARMyF No. 71/97 of December 12, 1997.

CONSIDERING:

That the Ministry of Finance, through note D.G.C.P. 05-016 OF No. 1110/97 of December 11, 1997, requests the granting of a credit for temporary liquidity needs of US$ 2,208,000, to finance unprogrammed and unavoidable public sector expenses, in application of what is established in Article 22 of Law 1670 and the Regulations on Credits to the Public Sector.

That the Report from the Currency and Credit Management No. 16/97 of December 12, 1997, discloses the outstanding debt balance of the General Treasury of the Nation (TGN) with the Central Bank (BCB), including future maturities, at the same time as stating that the Treasury Bill offered as collateral for the required credit is an appropriate instrument for the stated purpose.

That in the opinion of the Legal Advisory in its Report ALEG No. 324/97 of December 12, 1997, the requested loan complies with the conditions established in Article 22, paragraph b) of Law 1670 and the requirements contemplated in the Regulations on Credits to the Public Sector.

//2. B.D. No. 171/97

That the Economic Policy Advisory in its Report ARMyF No. 71/97 of December 12, 1997, expresses that there is margin in the Monetary Program to attend to the request of the Ministry of Finance.

Therefore,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Grant a credit for temporary liquidity needs to the General Treasury of the Nation, for the financing of unprogrammed and unavoidable public sector expenses, under the following conditions:

Amount: US$ 2,208,000 (TWO MILLION TWO HUNDRED EIGHT THOUSAND 00/100 AMERICAN DOLLARS)

Currency: United States Dollars.

Interest Rate: 7.13%, nominal yield rate of Treasury Bills (LTs) for 90 days at the counter.

Term: 90 days, renewable upon prior approval of the BCB Board of Directors.

Instrument: Discounted Treasury Bill backing the operation.

//3. B.D. No. 171/97

Payment Method and Guarantee: Upon maturity of the credit, the public title guaranteeing the obligation will be redeemed automatically through debit in any account that the TGN maintains at the BCB.

Article 2.- Authorize the President of the BCB to sign the respective contract with the General Treasury of the Nation.

Article 3.- The Presidency and the General Management are charged with executing this Resolution.

13.XII.97

Juan Antonio Morales A.

Armando Pinell S. Jaime Ponce G.

Juan Medinacelli V. Fernando Campero P.

______________________ Juan Pablo Zegarra A.