Resolution 188/2004 — BCB — BO

RESOLUTION OF THE BOARD OF DIRECTORS NO. 188/2004

SUBJECT: MONETARY OPERATIONS MANAGEMENT – RENEWAL OF CREDIT TO THE GENERAL TREASURY OF THE NATION TO MEET TRANSITORY LIQUIDITY NEEDS OF Bs100,000,000.

SEEING:

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 042/2004 of April 1, 2004, 088/2004 of June 22, 2004, and 138/2004 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. 55/2004 of April 5, 2004.

The SANO Addenda No. 105/2004 of July 2, 2004, and SANO No. 150/2004 of September 23, 2004.

The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 3104/04 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. 333/2004 of December 13, 2004.

CONSIDERING:

That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 3104/04, has requested the renewal of a credit of Bs100,000,000 to meet transitory 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 070/2004, 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-060/2004, establishes that it is appropriate for the Board to consider the third renewal of the credit for Bs100,000,000 with maturity on December 22, 2004, for a term of 90 days, given that as of December 9 of the current year, a sustained accumulation of deposits from the rest of the entities in the public sector is observed, as provided for 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. 333/2004, establishes that there is no legal impediment for the Board of the Issuing Entity to consider the 90-day renewal of the credit to the TGN for an amount of Bs100,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 3104/04, prior to compliance with what is established in the Regulations on 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 third and final renewal of the credit to the Ministry of Finance for the attention of transitory liquidity needs under the category of liquidity credits for sustained accumulation of deposits, under the following conditions:

Amount: Bs100,000,000.
Interest Rate: 10.30%
Term: 90 days
Renewal Date: December 22, 2004
Maturity Date: March 22, 2005
Guarantee Instrument: Treasury Certificates “C”

Payment Method: Interest and principal, via automatic debit in the current accounts that the General Treasury of the Nation holds 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 effectuate 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.