Resolution 194/2004 — BCB — BO

BOARD RESOLUTION NO. 194/2004
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
APPROVES CREDIT TO THE GENERAL TREASURY OF THE NATION TO MEET TRANSITORY LIQUIDITY NEEDS OF Bs70,000,000.-

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 160/97 regarding the financial conditions of Credits to the Public Sector. Board Resolutions 094/2004 of July 6, 2004 and 146/2004 of September 28, 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. 106/2004 of July 7, 2004. The SANO Addendum No. 158/2004 of September 29, 2004.

The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 3107/04 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. 239/2004 of December 15, 2004.

CONSIDERING:
That the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 3107/04, has requested the renewal of a credit of Bs70,000,000.- to meet transitory 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 071/2004, which recommends the conditions under which the granting of the credit should be subject, if granted. That the Economic Policy Advisory in its Report APEC-SMyF-062/2004, states that it is appropriate for the Board to consider the second renewal of the liquidity credit for Bs70.0 million with maturity on 03/01/05 for a term of 90 days, considering that as of December 16, a sustained accumulation of deposits from the rest of the entities in the public sector is observed, as established in subsection A) 4 of the Addendum. That the Legal Affairs Management, in its Report SANO No. 239/2004, establishes that there is no legal impediment for the Board of the Issuing Entity to consider the granting of the credit to the TGN, requested by the Ministry of Finance through notes D.G.C.P. 05-016 D.D.I. OF. No. 3107/2004, prior to compliance with what is established in the Regulations for Credits to the Public Sector, 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 second renewal of a 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: Bs70,000,000.-
Interest Rate: 8.80%
Term: 88 days
Renewal Date: January 3, 2005
Maturity Date: April 1, 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 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.