Resolution 193/2004 — BCB — BO

BOARD RESOLUTION NO. 193/2004
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
RENEWS CREDIT TO THE GENERAL TREASURY OF THE
NATION TO ADDRESS TRANSITORY LIQUIDITY NEEDS OF Bs160,000,000.-

HAVING SEEN:
Law No. 1670 of October 31, 1995.
Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations for Credits to the Public Sector.
Board Resolution No. 121/2001 of November 29, 2001, which modifies Article 10 of Board Resolution No. 160/97 regarding the financial conditions of Credits to the Public Sector. Board Resolutions No. 043/2004 of April 1, 2004, 060/2004 of May 11, 2004, 076/2004 of June 8, 2004, 099/2004 of July 13, 2004, 124/2004 of July 24, 2004, 150/2004 of October 5, 2004, and 169/2004 of November 16, 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. 056/2004 of April 5, 2004.
The SANO Addenda No. 83/2004 of May 14, 2004, SANO No. 94/2004 of June 14, 2004, SANO No. 112/2004 of July 23, 2004, SANO No. 125/2004 of September 1, 2004, SANO No. 168/2004 of October 11, 2004, and SANO No. 198/2004 of November 19, 2004. The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 3106/04 of November 30, 2004. The Report from the Monetary Operations Management SOSP 071/2004 of December 17, 2004. The Report from the Economic Policy Advisory APEC-SMyF-062/2004 of December 20, 2004.

The Report from the Legal Affairs Management SANO No. 341/2004 of December 15, 2004.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 3106/04, has requested the renewal of a credit of Bs210,000,000.- to address transitory liquidity needs. That the Monetary Operations Management, in accordance with Article 5 of the Regulations for a Credit to the Public Sector, has issued Report SOSP 071/2004, which recommends the conditions under which the credit renewal should be subject. That the Economic Policy Advisory in its Report APEC-SMyF-062/2004, recommends that the Board consider granting a credit of Bs160,000,000.- for a term of 40 days, observing a real negative accumulation in the transitory deposit accumulation as of December 17, 2004. That the Legal Affairs Management, in its Report SANO No. 341/2004, establishes that there is no legal impediment for the Board to consider the renewal of the credit requested by the Ministry of Finance through note D.G.C.P. 05-016 D.D.I. OF. No. 3106/04, provided that the renewal is within the limits of the Monetary Program and complies with what is established in the Memorandum of Understanding of December 4, 2003, and its corresponding Addendum of April 1, 2004.

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

Article 1.- Approve the seventh renewal of a credit to the Ministry of Finance for the attention of transitory liquidity needs, under the category of liquidity credits for transitory deposit accumulation, under the following conditions:
Amount: Bs160,000,000.-
Interest Rate: 9.30%
Term: 37 days.
Renewal Date: December 29, 2004
Maturity Date: February 4, 2005
Guarantee Instrument: Treasury Bills “C”.

Payment Method: At maturity, 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 the General Management are charged with the execution and compliance of this Resolution.

La Paz, December 21, 2004

Juan Antonio Morales A.

Juan Medinaceli V. Enrique Ackermann A.

José Luis Evia V. Fernando Paz B.