Resolution 187/2004 — BCB — BO

BOARD RESOLUTION NO. 187/2004
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
RENEWS CREDIT TO THE GENERAL TREASURY OF THE
NATION TO MEET TEMPORARY LIQUIDITY NEEDS OF Bs80,000,000.-

SEEN:
The Law No. 1670 of October 31, 1995.
The Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations for Credits to the Public Sector.
The 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. The Board Resolutions 016/2004 of February 10, 2004, 037/2004 of March 18, 2004, 087/2004 of June 22, 2004, and 137/2004 of September 21, 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. 36/2004 of February 13, 2004. The SANO Addenda No. 49/2004 of March 29, 2004, SANO No. 98/2004 of June 25, 2004, and SANO No. 149/2004 of September 23, 2004. The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 3100/04 of November 30, 2004. The Report from the Monetary Operations Management SOSP 070/2004 of December 10, 2004. The Report from the Economic Policy Advisory APEC-SMyF-060/2004 of December 13, 2004.

The Report from the Legal Affairs Management SANO No. 334/2004 of December 13, 2004.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 3100/04, has requested the renewal of a credit of Bs80,000,000.- to meet temporary liquidity needs.

That the Monetary Operations Management, in accordance with Article 5 of the Regulations for Credits to the Public Sector, has issued Report SOSP 070/2004, which recommends the conditions under which the credit renewal requested by the Ministry of Finance should be subject.

That the Economic Policy Advisory in Report APEC-SMyF-060/2004, establishes that it is appropriate for the Board to consider the fourth renewal of the credit for Bs80,000,000.- maturing on December 22, 2004, for a term of 45 days, given that as of December 9 of this year, a sustained accumulation of deposits from the rest of the entities in the public sector is observed, as provided in Article A numeral 4) of the Addendum of April 1, 2004 to the Memorandum of Understanding.

That the Legal Affairs Management, in its Report SANO No. 334/2004, establishes that there is no legal impediment for the Board of the Issuing Entity to consider the renewal of the credit to the TGN for an amount of Bs80,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 3100/04, prior to compliance with what is established in the Regulations for Credits to the Public Sector and subsection A) of Article I of the Memorandum of Understanding and its corresponding Addendum of April 1, 2004.

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

Article 1.- Approve the fourth and final renewal of the credit to the Ministry of Finance for the attention of temporary liquidity needs under the category of liquidity credits for sustained accumulation of deposits, under the following conditions:

Amount: Bs80,000,000.-
Interest Rate: 10.30%
Term: 44 days.
Renewal Date: December 22, 2004
Maturity Date: February 4, 2005

Guarantee Instrument: Treasury Bills “C”.

Payment Method: Interest and principal, via automatic debit in the fiscal current 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 interest on the total credit up to the date of early cancellation.

Article 4.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, December 14, 2004.

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.