Resolution 174/2004

BOARD RESOLUTION NO. 174/2004 SUBJECT: MONETARY OPERATIONS MANAGEMENT – RENEWS CREDIT TO THE GENERAL TREASURY OF THE NATION TO ADDRESS TRANSITORY 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. 0712004 of June 1, 2004. Board Resolution No. 123/2004 of August 24, 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. 90/2004 of June 3, 2004. The SANO Addendum No. 124/2004 of August 31, 2004. The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 2914/04 of November 8, 2004. The Report from the Monetary Operations Management SOSP 064/2004 of November 19, 2004. The Report from the Economic Policy Advisory APEC-SMyF-057/2004 of November 22, 2004. The Report from the Legal Affairs Management SANO No. 306/2004 of November 15, 2004.

CONSIDERING: That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 2914/04, has requested the renewal of the credit of Bs150,000,000.-, to address 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 064/2004, which recommends the conditions under which the credit renewal should be subject. That the Economic Policy Advisory in its Report APEC-SMyF-057/2004, establishes that according to the margins observed in the monetary program targets as of November 19, 2004, it is appropriate for the Board to consider the request for renewal of the liquidity credit of Bs150,000,000.-, granted in the modality of sustained accumulation, for a term of 90 days. That the Legal Affairs Management, in its Report SANO No. 306/2004, establishes that the request presented by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 2914/04, 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 provided 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 second renewal of a credit to the Ministry of Finance for the attention of transitory liquidity needs, under the category of Liquidity Credit by Sustained Accumulation of Deposits, under the following conditions: Amount: Bs150,000,000.- Interest Rate: 8.5% Term: 88 days. Renewal Date: November 29, 2004 Maturity Date: February 25, 2005 Guarantee Instrument: Treasury Letters “C”. Payment Method: At maturity, interest and principal, via automatic debit in the checking 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 effect the total or partial early cancellation of the credit considering the accrued interests on the total of the credit up to the date of early cancellation. Article 4.- Any reprogramming 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 23, 2004

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Juan Antonio Morales A.

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Juan Medinaceli V. Enrique Ackermann A.

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José Luis Evia V. Fernando Paz B. Jaime Apt B.