Resolution 175/97 — BCB — BO

BOARD RESOLUTION NO. 175/97

SUBJECT: CURRENCY AND CREDIT - CREDIT TO THE GENERAL TREASURY OF THE NATION FOR TEMPORARY LIQUIDITY NEEDS OF US$1,800,000.

SEEING:

The Law of the Central Bank of Bolivia (BCB) 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 for Credits to the Public Sector.

The Note from the Ministry of Finance MH.AL. No. 4116 of December 22, 1997.

The Note from the Vice Minister of Treasury and Public Credit D.G.C.P. 05-016 No. 1173/97 of December 23, 1997.

The Report from the Currency and Credit Management No. 20/97 of December 23, 1997.

The Legal Advisory Report ALEG No. 366/97 of December 23, 1997.

The Economic Policy Advisory Report ARMyF No. 75/97 of December 23, 1997.

CONSIDERING:

That the Ministry of Finance, through notes MH.AL. No. 4116 and D.G.C.P. 05-016 No. 1173/97 of December 22 and 23, 1997, respectively, requests the granting of a credit for temporary liquidity needs of US$1,800,000, to attend to interrupted transfers in process due to the liquidation of BIDESA, in application of what is provided in Article 22 of Law 1670 and the Regulations for Credits to the Public Sector.

That the Report from the Currency and Credit Management No. 20/97 of December 23, 1997, discloses the outstanding debt balance of the General Treasury of the Nation (TGN) with the 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.

//2. B.R. No. 175/97

That in the opinion of the Legal Advisory in its Report ALEG No. 366/97 of December 23, 1997, the requested loan complies with the conditions established in Article 22, paragraph b) of Law 1670 and the requirements contemplated in the Regulations for Credits to the Public Sector.

That the Economic Policy Advisory in its Report ARMyF No. 75/97 of December 23, 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, to attend to interrupted transfers in process due to the liquidation of BIDESA, under the following conditions:

Amount: US$1,800,000 (ONE MILLION EIGHT HUNDRED THOUSAND 00/100 AMERICAN DOLLARS).

Currency: Dollars of the United States of North America.

Interest Rate: 7.12%, nominal yield rate of Treasury Bills (LTs) for 91 days in the money market, equivalent to 90 days.

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

Instrument: Discounted Treasury Bill backing the operation.

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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 General Treasury of the Nation (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.

23.XII.97

Juan Antonio Morales A.

Armando Pinell S. Jaime Ponce G.

Juan Pablo Zegarra A.