Resolution 195/2004

BOARD RESOLUTION NO. 195/2004
SUBJECT: MONETARY OPERATIONS MANAGEMENT –
GRANTS CREDIT TO THE GENERAL TREASURY OF
THE NATION TO MEET TEMPORARY
LIQUIDITY NEEDS OF Bs157,000,000.-

SEEING:
The Law No. 1670 of October 31, 1995.
The Board Resolution No. 160/97 of October 21, 1997, which approves the Regulations on 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 Resolution No. 151/2004 of October 5, 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. 166/2004 of October 6, 2004. The note from the Ministry of Finance D.G.C.P. 05-016 D.D.I. OF. No. 3108/04 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. 342/2004 of December 15, 2004.

CONSIDERING:
That the Ministry of Finance, through note DGCP 05-016 D.D.I. OF. No. 3108/04, has requested the renewal of a credit of Bs157,000,000.- to meet 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 071/2004, 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-062/2004, states that it is appropriate for the Board to consider the first renewal of the Liquidity Credit for Bs157.0 million maturing on January 4, 2005, for a term of 90 days, considering that said credit is granted within the framework of the Memorandum of Understanding and its renewal does not modify the balance of the portfolio of said credits.

That the Legal Affairs Management, in its Report SANO No. 342/2004, 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 Bs157,000,000, requested by the Ministry of Finance, through note D.G.C.P. 05-016 D.D.I. OF. No. 3108/04, 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.

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

Article 1.- Approve the first renewal of a credit to the Ministry of Finance for the attention of temporary liquidity needs, under the following conditions:
Amount: Bs157,000,000.-
Interest Rate: 7.20%
Term: 90 days
Renewal Date: January 4, 2005
Maturity Date: April 4, 2005
Guarantee Instrument: Treasury Letters “C”.
Payment Method: Interest and principal, via automatic debit in the 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 effectuate the total or partial early cancellation of the credit considering the accrued interests 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

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Juan Antonio Morales A.

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Juan Medinaceli V. Enrique Ackermann A.

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José Luis Evia V. Fernando Paz B.