Resolution 185/2004 — BCB — BO

BOARD RESOLUTION NO. 185/2004
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
RENEWS CREDIT TO THE GENERAL TREASURY OF THE
NATION TO ADDRESS TEMPORARY LIQUIDITY NEEDS OF Bs120,000,000.-

HAVING SEEN:
Law No. 1670 of October 31, 1995.
Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations on Credits to the Public Sector.
Board Resolution No. 121/2001 of November 29, 2001, which modifies Article 10 of Board Resolution 160/97 regarding the Financial Conditions of Credits to the Public Sector. Board Resolutions 118/2004 of August 13, 2004, 139/2004 of September 21, 2004, and 162/2004 of October 26, 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. 120/2004 of August 16, 2004. The Addendas SANO No. 151/2004 of September 24, 2004, and SANO No. 184/2004 of November 3, 2004. The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 3031/04 of November 24, 2004. The Report from the Monetary Operations Management SOSP 069/2004 of December 8, 2004. The Report from the Economic Policy Advisory APEC-SMyF 059/2004 of December 9, 2004. The Report from the Legal Affairs Management SANO No. 320/2004 of November 29, 2004.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 3031/04, has requested the renewal of a credit of Bs120,000,000.- to address 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 069/2004, which recommends the conditions under which the credit requested by the Ministry of Finance should be subject. That the Economic Policy Advisory, in Report APEC-SMyF-059/2004, states that it is appropriate for the Board to consider the renewal of the liquidity credit for Bs120,000,000.- for a term of 40 days, considering that as of December 7 of the current year, a temporary accumulation of deposits from the Rest of the Entities of the Public Sector is observed, as provided for in the Addendum of April 1, 2004, to the Memorandum of Understanding. That the Legal Affairs Management, in its Report SANO No. 320/2004, establishes that there is no legal impediment for the Board of the Issuing Entity to consider the renewal of a credit to the TGN for an amount of Bs120,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 3031/04, prior to compliance with what is established in the Regulations on Credits to the Public Sector and paragraph A) of Article I of the Memorandum of Understanding.

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

Article 1.- Approve the third renewal of a credit to the Ministry of Finance for the attention of temporary liquidity needs, under the category of liquidity credits for temporary accumulation of deposits, under the following conditions:
Amount: Bs120,000,000.-
Interest Rate: 7.25%
Term: 39 days.
Renewal Date: December 13, 2004
Maturity Date: January 21, 2005
Guarantee Instrument: Treasury Letters “C”.
Payment Method: Interest and principal, via automatic debit in the fiscal current accounts that the General Treasury of the Nation holds 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 effectuate the total or partial early cancellation of the credit considering the accrued interest on the total of the credits up to the date of early cancellation.

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

La Paz, December 10, 2004

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.