BOARD OF DIRECTORS

BOARD RESOLUTION NO. 007/2022

SUBJECT: FINANCIAL ENTITY MANAGEMENT – APPROVAL OF THE MODIFICATION OF THE LIQUIDITY CREDIT REGULATIONS FOR THE PRODUCTIVE DEVELOPMENT BANK, MIXED SOCIETY LIMITED

VIEWED:

• The Political Constitution of the State, promulgated on February 7, 2009.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia and its modifications.
• Law No. 393 of August 21, 2013, on Financial Services.
• Supreme Decree No. 4442 of January 6, 2021.
• Board Resolution No. 128/2005 of October 21, 2005, which approves the Statute of the Central Bank of Bolivia (BCB) and its modifications.
• Note CITE: BDP/GGF/FIN No. 6276/2021 of December 12, 2021, from the Productive Development Bank – Mixed Society Limited.
• Note ASFI/DSRI/R-244374/2021 of December 21, 2021, from the Financial System Supervision Authority.
• Note CITE: BDP/GGF/FIN No. 6507/2021 of December 28, 2021, from the Productive Development Bank – Mixed Society Limited.
• Technical Report BDP GGF No. 107/2021 of December 28, 2021, on Liquidity Credit Evaluation issued by the Productive Development Bank – Mixed Society Limited.
• Report CITE: BCB-GEF-SASF-DAN-INF-2022-2 of January 11, 2022, from the Monetary Operations Management.
• Report BCB-GAL-SANO-INF-2022-10 of January 11, 2022, from the Legal Affairs Management.

---

//2. B.D. No. 007/2022

CONSIDERING:

• That the Political Constitution of the State in Article 327 states that the Central Bank of Bolivia is a public law institution, with legal personality and its own assets. Within the framework of the State's economic policy, it is the function of the BCB to maintain the stability of the internal purchasing power of the currency, to contribute to economic and social development.
• That numeral 3 of paragraph I of Article 328 of the Political Constitution of the State establishes that among the attributions of the Central Bank of Bolivia, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by law, is to regulate the payment system.
• That Law No. 1670 of the BCB, in Article 2, establishes that the object of the BCB is to procure the stability of the internal purchasing power of the national currency.
• That Article 3 of Law No. 1670 of the BCB, (modified by Law No. 1864 of June 15, 1998), states that the BCB will formulate policies of general application in monetary, exchange, and payment system matters for the fulfillment of its object.
• That Article 36 of Law No. 1670 of the BCB determines that to meet liquidity needs, in duly justified and qualified cases by its Board of Directors, by an absolute majority of votes, the BCB may grant banks and financial intermediation entities credits for terms of ninety days, renewable. The limits of these credits and their guarantees will be established by the BCB Board of Directors, by absolute majority. To consider requests for these credits, the BCB will conduct non-binding consultations with the Superintendence of Banks and Financial Entities, currently the Financial System Supervision Authority.
• That Article 44 of Law No. 1670 of the BCB states that the highest authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized general application regulations, and internal norms; as well as establishing administrative, operational, and financial strategies of the BCB, approving their respective short and medium-term programs. For the monitoring and oversight of their execution, it will have independent information, analysis, and audit services.
• That subsections a) and g) of Article 54 of Law No. 1670 of the BCB, indicate as an attribution of the BCB Board of Directors to issue norms and adopt general decisions that are necessary for the Issuing Entity to fulfill the functions, competencies, and powers assigned to it by Law and those that are necessary for the fulfillment of its functions.

---

//3. B.D. No. 007/2022

• That Law No. 393 on Financial Services in subsection a) of its Article 179, determines among the functions of the Productive Development Bank Mixed Society Limited (BDP - S.A.M.), framed within its first and second floor activities, to provide financial and non-financial services to the different actors of the plural economy by itself or through third parties.
• That Law No. 393 on Financial Services, in its Article 430 states that the BCB may grant liquidity credits to financial intermediation entities with the guarantee of the legal reserve constituted, as well as with other guarantees determined by the Issuing Entity, according to regulations approved by its Board of Directors.
• That Supreme Decree No. 4442, has the object of allowing access to liquidity resources, through the Productive Development Bank – Mixed Society Limited (BDP - S.A.M.), to Development Financial Institutions – IFD and Savings and Credit Cooperatives – CAC with a license of operation granted by the Financial System Supervision Authority – ASFI.
• That the Statute of the BCB, establishes in numerales 1) and 9) of Article 11 that the Board of Directors of the Issuing Entity has the attributions to approve general decisions and issue the norms that were necessary for the BCB to fulfill the functions, competencies, and powers that the Law assigns to it, as well as to approve by absolute majority of votes, liquidity credits for terms of up to 90 days, renewable, to financial intermediation entities.
• That Article 26 of the Statute of the BCB, establishes that the Board of Directors pronounces on matters within its competence through resolutions or decisions that will expressly appear in the minutes. Every draft Board resolution must be motivated and justified by a technical report from the Management or Managements to which the matter subject to the resolution corresponds and by a report from the Legal Affairs Management. These reports must be sent to the Board of Directors by the General Management with its recommendation.
• That the Liquidity Credit Regulations for the Productive Development Bank – Mixed Society Limited, in Article 5 establishes that the term for liquidity credits will be up to 90 (ninety) calendar days, which may be renewed for similar terms up to a maximum of 3 (three) times each, with the cancellation of interest being necessary for each renewal.
• That the operations included in the Liquidity Credit Regulations for the Productive Development Bank – Mixed Society Limited obey only what is established in Supreme Decree No. 4442, whose object is to allow access to liquidity resources, to be granted by the Productive Development Bank – Mixed Society Limited – BDP-S.A.M., to Development Financial Institutions – IFD and Savings and Credit

---

//4. B.D. No. 007/2022

Cooperatives – CAC, with a license of operation granted by the Financial System Supervision Authority – ASFI, therefore to grant greater precision and specificity, the modification of the title of the aforementioned regulation is required.

• That through Report BCB-GEF-SASF-DAN-INF-2022-2, the GEF and APEC recommend to the BCB Board of Directors to approve the modification of the title and Article 5 of the Liquidity Credit Regulations for the Productive Development Bank – Mixed Society Limited and authorize the signing of the addendum to contract SANO-DLBCI No. 1/2021.
• That in Report BCB-GAL-SANO-DLBCI-INF-2022-10, the GAL concludes that the modification of Article 5 and the title of the Liquidity Credit Regulations for the Productive Development Bank – Mixed Society Limited does not contravene the current legal framework, therefore it is legally procedent, recommending to the Board of Directors its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the modification of Article 5 (term) of the Liquidity Credit Regulations for the Productive Development Bank – Mixed Society Limited.

IT SAYS:

The term for liquidity credits will be up to 90 (ninety) calendar days, which may be renewed for similar terms up to a maximum of 3 (three) times each, with the cancellation of interest being necessary for each renewal.

IT MUST SAY:

The term for liquidity credits will be up to 90 (ninety) calendar days, which may be renewed for similar terms up to a maximum of 7 (seven) times each, with the cancellation of interest being necessary for each renewal.

Article 2.- The modification of the Regulations will enter into force from the approval thereof.

Article 3.- The acting President of the BCB is authorized to sign Addenda for the extension of terms of the contract with the Productive Development Bank Mixed Society Limited.

---

//5. B.D. No. 007/2022

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

La Paz, January 11, 2022

SIGNED. ROGER EDWIN ROJAS ULO, Oscar Ferruño Morro, Gabriel Herbas Camacho, Gumercindo Héctor Pino Guzmán, Diego Alejandro Pérez Cueto Eulet.