BOARD OF DIRECTORS

BOARD RESOLUTION NO. 007/2025

SUBJECT: LEGAL AFFAIRS DEPARTMENT AND FINANCIAL ENTITIES DEPARTMENT - APPROVAL OF THE REGULATION ON INCENTIVES FOR THE RECOVERY OF CLAIMS OF THE CENTRAL BANK OF BOLIVIA.

VIEWED:

The Political Constitution of the State of February 7, 2009.

Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB) and its modifications.

Law No. 2042 of December 21, 1999 modified by Law No. 1613 of January 1, 2025 and its modifications.

Board Resolution No. 095/2022 of October 6, 2022, which approves the Statute of the BCB.

Board Resolution No. 098/2022 of October 25, 2022, which approves the Regulation on Reception and Administration of Credit Portfolios.

Board Resolution No. 007/2024 of January 2, 2024, which approves the Regulation on Incentives for the Recovery of Claims of the Central Bank of Bolivia.

The report BCB-GEF-SRRA-DRCA-INF-2025-2 of January 2, 2025, issued by the Financial Entities Management (GEF) and the Legal Affairs Management (GAL).

The report BCB-GAL-SANO-DLBCI-INF-2025-4 of January 2, 2025, issued by the GAL.

CONSIDERING:

That Article 327 of the Political Constitution of the State establishes that the Central Bank of Bolivia (BCB) 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 Article 1 of Law 1670 provides that the BCB is an institution of the State, of public law, of an autarkic nature, of indefinite duration, with its own legal personality and assets and with legal domicile in the city of La Paz. It is the sole monetary and exchange authority of the country and therefore the governing body of the national financial intermediation system, with administrative, technical and financial competence and specialized normative faculties of general application, in the manner and with the scope established in this Law.

That Article 44 of Law No. 1670 of the BCB establishes that the highest authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized norms of general application and internal norms; as well as establishing administrative, operational and financial strategies of the BCB, approving their respective short and medium-term programs.

That subsections a) and o) of Article 54 of Law No. 1670 of the BCB establish that it is the attributions of the Board of Directors of the BCB to issue norms and adopt general decisions that may be necessary for the BCB to fulfill the functions, competencies and faculties assigned to it by the Law; as well as to approve, modify and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for any additional administrative act.

That the Second Final Provision of Law No. 1613 of January 1, 2025, General State Budget Law 2025 Management, provides for the incorporation of Article 47 into Law No. 2042 of 1999, indicating in subsection w), of Paragraph I that the normative provisions, for the case Article 13 of Law No. 1356 of December 28, 2020, forms part of the aforementioned Law No. 1613, being incorporated as an annex thereof.

That subsection w), paragraph I, of Article 47 of Law No. 2042 incorporated by the Second Final Provision of Law No. 1613, establishes the granting of incentives for

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recovery of claims from unlinked credit portfolios owned by the BCB and received in administration by financial intermediation entities, by virtue of Laws, specific Supreme Decrees and through liquidation processes through the forgiveness of interest and other expenses with a balance to capital equal to or less than USD 80,000.- (Eighty Thousand 00/100 United States Dollars) or its equivalent in national currency.

That items 1) and 30) of Article 10 of the Statute of the BCB determine as attributions of the Board of Directors, to approve general decisions and issue the norms that may be necessary for the BCB to fulfill the functions, competencies and faculties assigned to it by the Law; to define the policies of the BCB, specialized norms of general application and internal norms, as well as to monitor their execution; in addition to approving, modifying and interpreting the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for an additional administrative act.

That Paragraph I of Article 24 of the Statute of the BCB provides that the Resolutions and decisions of the Board of Directors are adopted by a simple majority of votes of its members present in a meeting, except in cases where Law No. 1670 or this Statute require qualified majorities.

That Article 26 of the Statute of the BCB establishes that the Board of Directors pronounces itself on matters within its competence through Resolutions. It may also do so through decisions that will be expressly recorded in the Minutes. Likewise, 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 GAL. These reports must be sent to the Board of Directors through the General Management with its recommendation.

That item 36) of Article 10 of the same legal body authorizes the alienation and administration of portfolios and assets received in pledge from banks in liquidation.

That Board Resolution No. 098/2022 of October 25, 2022, approves the Regulation on Reception and Administration of Credit Portfolios.

That the report BCB-GEF-SRRA-DRCA-INF-2025-2 from the GEF concludes that the Draft Regulation on Incentives will allow the recovery of claims of the BCB and will promote

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that debtors have greater motivation to pay their obligations to the State, avoiding a growing deterioration of the portfolio and will give continuity to extrajudicial collection actions, likewise, it is coherent with the policies implemented by the BCB since the 2009 Management, which allowed the Issuing Entity to recover a considerable number of old credits and in cash, so it establishes its technical viability with no obstacle to its consideration, approval and subsequent application.

That the report BCB-GAL-SANO-DLBCI-INF-2025-4, from the GAL concludes that the modification made by the Second Final Provision of Law No. 1613 to Law No. 2042 that incorporated Article 47, Paragraph I, subsection w), establishes incentives for the recovery of claims, through the forgiveness of current and penal interest, fines, commissions and other accessory expenses that the BCB applies to unlinked credit portfolios of its property and received in administration by financial intermediation entities, by virtue of Laws, specific Supreme Decrees and through liquidation processes, can only be carried out on credit obligations whose outstanding capital balance is equal to or less than USD 80,000.- (Eighty Thousand 00/100 United States Dollars) or its equivalent in national currency; in this sense, the GEF and GAL (through the SAJU) issued the Draft Regulation on Incentives for the Recovery of Claims of the BCB, which aims to regulate the application of incentives established by the aforementioned regulation, its provisions being concordant with it and what is established in Articles 12, 13, 14 and 17 of the Regulation on Reception and Administration of Credit Portfolios, a proposal that is also technically motivated and justified and has the conformity of the CRRA, through Minute No. 1/2025 of January 2, 2025, who determined its submission to the Board of Directors for its consideration and approval; consequently, it is legally viable, and recommends to the Board of Directors its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the Regulation on Incentives for the Recovery of Claims of the Central Bank of Bolivia, in its eight (8) Articles, which as an Annex forms part of this Resolution.

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Article 2.- The Regulation on Incentives for the Recovery of Claims of the Central Bank of Bolivia will enter into force from its publication.

Article 3.- Repeal Board Resolutions No. 125/2022 of December 27, 2022 and No. 007/2024 of January 2, 2024.

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

La Paz, January 2, 2025

SIGNED. ROGER EDWIN ROJAS ULO, Gumerindo Héctor Pino Guzmán, Miguel Angel Marañón Urquidi, Víctor Gonzalo Calisaya Gomez.

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REGULATION ON INCENTIVES FOR THE RECOVERY OF CLAIMS OF THE CENTRAL BANK OF BOLIVIA

Article 1. (Object).

This Regulation aims to regulate the application of incentives for the recovery of claims from unlinked credit portfolios owned and administered by the Central Bank of Bolivia (BCB), in accordance with what is established in Article 13 - Incentives for Recovery of Claims of the BCB - of Law No. 1356 of December 28, 2020 incorporated in subsection w) of Article 47 of Law 2042 on Budgetary Administration of December 21, 1999 by the Second Final Provision of Law No. 1613 of January 1, 2025, of the General State Budget 2025 Management.

Article 2. (Scope of application).

This Regulation applies to:

I. Unlinked credit obligations whose outstanding capital balance is equal to or less than USD 80,000.- (Eighty Thousand 00/100 United States Dollars) or its equivalent in national currency from the credit portfolios corresponding to the following financial intermediation entities: Banco de Crédito Oruro S.A., Banco Potosí S.A., Banco del Progreso Nacional S.A.M., Cooperativa San José Obrero Ltda., Banco Boliviano Americano S.A. including the portfolio ceded by FONDESIF, BIDES A (in administration of the BCB), Banco Sur S.A., Mutual La Frontera, Mutual Manutata, Mutual Tarija, Mutual Del Pueblo, Cooperativa Trapetrol, and the credit portfolio of the Former INALPRE administered by the BCB.

II. The obligations of unlinked credit portfolios that the BCB receives within the framework of Supreme Decree No. 2068, during the validity of this Regulation.

III. Incentives may be applied to unlinked credits in execution, with judicial collection actions at any procedural stage, up until the judicial approval of the auction of the guarantee, as well as to written-off credits.

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For credits that have the auction of goods approved by a judicial authority, they may benefit from the incentives through the forgiveness, of the balance of the credit resulting from the amortization of the amount resulting from the auction of goods.

Article 3. (Incentives for Recovery of Claims).

The incentives for the recovery of claims, through the forgiveness of current and penal interest, fines, commissions and other accessory expenses, that the BCB applies to the credit portfolios mentioned in Article 2 of this Regulation, will be applied as follows:

Balance to Capital expressed in USD	Forgiveness of Current Interest	Forgiveness of Penal, Late Interest, Fines, Commissions, Publications and Forms
Up to 80,000	100%	100%

Article 4. (Payment Conditions).

I. The debtors or guarantors of the credit portfolios indicated in article 2 of this Regulation must carry out the cancellation of the credit, which may be made in cash, deposit or transfer. In the event that differences or excesses are evidenced between the amount owed and the deposited amount, complementary payments or restitutions may be made as appropriate.

II. In the event that debtors or guarantors have more than one obligation with the BCB, the forgiveness will apply individually per credit.

Article 5. (Payment procedure with incentives).

Payment with incentives will be subject to the following:

a) Those interested in benefiting from the incentives must request the settlement of the debt as of the payment date.

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b) Obligations in foreign currency may be cancelled in national currency at the official selling exchange rate in effect on the payment date.

c) Interested parties must make the payment in BCB cashiers or through the operational system enabled by the BCB in the Financial System.

d) Subsequently, interested parties will send a copy of the cancellation slip to the Financial Entities Management of the BCB by physical or electronic means; from that moment on, they may request the Certificate of No Debt.

e) Once the payment of the debt has been verified, the BCB will proceed with the procedures to release the debtor and the guarantors from the obligation.

Article 6. (Subrogation).

The following may make payment with subrogation benefiting from the incentives:

1. Guarantors.

2. Heirs of debtors and guarantors.

3. Co-owners when, as a result of some precautionary measure or judicial mortgage in the judicial execution of a credit, a property in the co-ownership regime has been encumbered.

In other cases of payment with subrogation carried out by third parties, the incentives determined in this Regulation will not apply.

Article 7. (Exclusions from incentives).

The incentives established in article 3 of this Regulation will not include the following concepts:

a) In the event of judicial processes, the payment of professional fees of external lawyers, nor judicial expenses during the processing of the credit collection process, which must be paid in full, and will be included in the settlement.

b) The credit insurance (desgravamen).

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c) To the current interest of the credit portfolio of the Former BBA received in pledge for the financial support granted by the BCB.

d) To credits classified as linked.

Article 8. (Judicial Retentions).

Pending judicial retentions and/or deposits to be remitted, collected and applied, cannot be considered in the settlement to be made for the forgiveness provided for in Article 3 of this Regulation. They will be released judicially if the debtor pays the obligation.