Resolution 179/2004 — BCB — BO

RESOLUTION OF THE BOARD OF DIRECTORS NO. 179/2004 SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES CREDIT TO THE GENERAL TREASURY OF THE NATION TO MEET TEMPORARY LIQUIDITY NEEDS OF Bs200,000,000.

VIEWED:
The Law No. 1670 of October 31, 1995.
The Board of Directors Resolution No. 160/97 of October 21, 1997, which approves the Regulations on Credits to the Public Sector.
The Board of Directors Resolution No. 121/2001 of November 29, 2001, which modifies Article 10 of Board of Directors Resolution 160/97 regarding the Financial Conditions of Credits to the Public Sector. 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 note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 2973/04 of November 15, 2004. The Report from the Monetary Operations Management SOSP 065/2004 of November 29, 2004. The Report from the Economic Policy Advisory APEC-SMyF 058/2004 of November 29, 2004. The Report from the Legal Affairs Management SANO No. 313/2004 of November 18, 2004.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 2973/04, has requested the granting of a credit of Bs200,000,000 to meet temporary liquidity needs.

That the Monetary Operations Management, in accordance with Article 5 of the Regulations on Credits to the Public Sector, has issued report SOSP 065/2004, which recommends the conditions under which the granting of the credit should be subject.

That the Economic Policy Advisory in its Report APEC SMyF No. 058/2004, states that it is appropriate for the Board of Directors to consider the granting of the Liquidity Credit of Bs200 million within the framework of the Memorandum of Understanding.

That the Legal Affairs Management, in Report SANO No. 313/2004, establishes that there is no legal impediment for the Board of Directors of the Issuing Entity to consider the granting of a credit to the TGN for an amount of Bs200,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 2973/04, prior to compliance with what is established in the Regulations on Credits to the Public Sector and the Memorandum of Understanding of December 4, 2003, and its Addendum.

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

Article 1.- Approve the granting of the credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:
Amount: Bs200,000,000.
Interest Rate: 6%.
Term: 90 days.
Disbursement Date: From December 1, 2004.
Maturity Date: March 1, 2005.
Guarantee Instrument: Treasury Bills “C”.
Method of Disbursement: Into accounts of the General Treasury of the Nation according to written request.
Method of Payment: Interest and principal, through automatic debit in the current fiscal accounts held by the General Treasury of the Nation at the Central Bank of Bolivia.

Article 2.- Authorize the President of the Central Bank of Bolivia to sign the respective contract 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 interest accrued on the total credit up to the date of early cancellation.

Article 4.- Any rescheduling of the credit will be subject to the financing limits of the BCB to the General Treasury of the Nation, in accordance with what is established in the Memorandum of Understanding signed between the BCB and the Ministry of Finance on December 4, 2003, and the Addendum to the Memorandum of Understanding, dated April 1, 2004.

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

La Paz, November 30, 2004.

Juan Antonio Morales A.

Enrique Ackermann A. José Luis Evia V.

Fernando Paz B.