Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 006/2015

SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES MODIFICATIONS TO THE SPECIFIC REGULATION FOR THE GRANTING OF CREDIT PROVIDED FOR IN LAW NO. 261.

VISTOS:

• The Political Constitution of the State promulgated on February 7, 2009.
• Law No. 1670 of the Central Bank of Bolivia (BCB) of October 31, 1995.
• Law No. 261 on the “Construction, Implementation and Administration of the Cable Transport System (Teleférico) in the cities of La Paz and El Alto” of July 15, 2012.
• Law No. 614 on the General State Budget for the 2015 Management Period of December 13, 2014.
• Board Resolution No. 159/2012 of August 28, 2012 and its subsequent modifications.
• The Note from the Legal Affairs Management Department CITE: BCB-GAL-SANO-CI-2014-837 of December 29, 2014.
• The Report from the Monetary Operations Management Department CITE: BCB-GOM-SOSP-DCE-INF-2014-239 of December 31, 2014.
• The Reports from the Legal Affairs Management Department CITE: BCB-GAL-SANO-INF-2015-3 and 12 of January 2 and 5, 2015, respectively.

CONSIDERING:

That the Political Constitution of the State (CPE), approved by Referendum on January 25, 2009 and promulgated on February 7, 2009, in item 6 of its Article 9, establishes that it is the goal and function of the State to promote and guarantee the responsible and planned use of natural resources, and to boost their industrialization, through the development and strengthening of the productive base in its different dimensions and levels. Likewise, in item 10 of paragraph I of Article 158 and Article 322, it establishes that the Plurinational Legislative Assembly has the attribution to approve the contracting of public debt.

That Article 322 of the Political Constitution of the State provides that the Plurinational Legislative Assembly will authorize the contracting of public debt when the capacity to generate income to cover the principal and interest is demonstrated, and the most advantageous conditions in terms of rates, terms, amounts, and other circumstances are technically justified. Public debt will not include obligations that have not been expressly authorized and guaranteed by the Plurinational Legislative Assembly.

That Law No. 261 authorizes the Ministry of Economy and Public Finance (MEFP) to contract a credit with the Central Bank of Bolivia in national currency for an amount of up to Bs1,633,372,800.00 (One Billion Six Hundred Thirty-Three Million Three Hundred Seventy-Two Thousand Eight Hundred 00/100 Bolivianos) destined for the construction of the Cable Transport System (Teleférico) in the cities of La Paz and El Alto, for which the BCB is exempted from the application of Articles 22 and 23 of Law No. 1670 of October 31, 1995.

That the Third Additional Provision of Law No. 614 expands the financing provided for by Law No. 261 of July 15, 2012, by an additional amount of up to Bs3,087,000,000.- (Three Billion Eighty-Seven Million 00/100 Bolivianos) destined for the construction and implementation of the Cable Transport System (Teleférico) in the cities of La Paz and El Alto, in its second phase. Likewise, it authorizes the MEFP, through the General Treasury of the Nation – TGN, to issue and grant Non-Negotiable Treasury Bonds in favor of the BCB, to guarantee the entirety of the credit.

That Board Resolution No. 159/2012 approves the Specific Regulation for the Granting of Credit provided for in Law No. 261.

That Board Resolution No. 194/2012 modifies Articles 2 item 2), 3, 9, and 10 of the Specific Regulation for the Granting of Credit provided for in Law No. 261, referring to the credit application, acceptable guarantees, conditions for disbursements, and the registration and accreditation of the use and destination of credit resources, respectively.

That Board Resolution No. 050/2014 modifies Article 6 (Financial Conditions) of the Specific Regulation for the Granting of Credit provided for in Law No. 261 and incorporates the Procedure to Define the Discount Rate and the Degree of Concessionality of Credits under concessional conditions within the framework of Financial Laws or other specific laws.

That the Legal Affairs Management Department, via note CITE: BCB-GAL-SANO-CI-2014-837, states that to effectuate the Addendum to Contract SANO No. 156/2014, Article 3 of the Specific Regulation for the Granting of Credit provided for in Law No. 261 must be modified beforehand.

That the Monetary Operations Management Department, via report CITE: BCB-GOM-SOSP-DCE-INF-2014-239, recommends the modification of Article 3 of the Specific Regulation for the Granting of Credit provided for in Law No. 261.

That the Legal Affairs Management Department, via reports CITE: BCB-GAL-SANO-INF-2015-3 and 12, concludes that the modification of Articles 1 and 3 of the Specific Regulation for the Granting of Credit provided for in Law No. 261 is legally appropriate, and it is the competence of the BCB Board of Directors to consider its approval by two-thirds of the total number of its members, in accordance with what is established in Article 54 item o) of Law No. 1670 and Article 24 of the Statute.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify Article 1 of the Specific Regulation for the Granting of Credit provided for in Law No. 261, as follows:

It says:

“Article 1.- (Object)

This Regulation aims to regulate the granting of the credit provided for in Law No. 261 “Construction, implementation and administration of the Cable Transport System (Teleférico) in the cities of La Paz and El Alto”, by the Central Bank of Bolivia (BCB) in favor of the Ministry of Economy and Public Finance (MEFP).”

It must say:

“Article 1.- (Object)

This Regulation aims to regulate the granting of the credit provided for in Laws No. 261 and No. 614 for the “Construction, implementation and administration of the Cable Transport System (Teleférico) in the cities of La Paz and El Alto”, by the Central Bank of Bolivia (BCB) in favor of the Ministry of Economy and Public Finance (MEFP).”

Article 2.- Modify Article 3 of the Specific Regulation for the Granting of Credit provided for in Law No. 261, as follows:

It says:

“Article 3.- (Acceptable Guarantees)

The credit guarantee will be constituted by the authorization of automatic debit from the accounts of the General Treasury of the Nation (TGN) in the Single Treasury Account (TGN).”

It must say:

“Article 3.- (Acceptable Guarantees)

The guarantee that serves to cover the payments of the principal and interest of the credit will be constituted by the Non-Negotiable Treasury Bonds in favor of the BCB that the MEFP will issue and grant through the General Treasury of the Nation (TGN).”

Article 3.- The modification of the Specific Regulation for the Granting of Credit provided for in Law No. 261 will enter into force from the date of approval of this Resolution.

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

La Paz, January 6, 2015

Marcelo Zabalaga Estrada
Abraham Pérez Alandia
Álvaro Rodríguez Rojas
Reynaldo Yujra Segales
Ronald Polo Rivero
Sergio Velarde Vera