BOARD OF DIRECTORS

BOARD RESOLUTION NO. 008/2022

SUBJECT: FINANCIAL ENTITIES MANAGEMENT – EXTEND THE VALIDITY OF THE REGULATIONS ON INCENTIVES FOR THE RECOVERY OF CLAIMS OF THE CENTRAL BANK OF BOLIVIA

VIEWED:

• The Political Constitution of the State (CPE), promulgated on February 7, 2009.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
• The Statute of the BCB approved by Board Resolution No. 128/2005 of October 21, 2005, and its modifications.
• Law No. 1356 of December 28, 2020, on the General State Budget for the 2021 Management Period.
• Law No. 1413 of December 17, 2021, on the General State Budget for the 2022 Management Period.
• Board Resolution No. 012/2021 of January 12, 2021, which approves the Regulations on Incentives for the Recovery of Claims of the Central Bank of Bolivia within the framework of Article 13 of Law No. 1356 of December 28, 2020, with validity until December 31, 2021.
• The determination of the Recovery and Asset Realization Committee (CRRA) dated January 6, 2022.
• The Report from the Financial Entities Management of the BCB, BCB-GEF-SRRA-DRCA-INF-2022-3, dated January 11, 2022.
• The Report from the Legal Affairs Management of the BCB, BCB-GAL-SANO-DLBCI-INF-2022-9, dated January 11, 2022.

CONSIDERING:

• That Article 327 of the Political Constitution of the State establishes that the BCB is a public law institution, with legal personality and its own assets.
• That Article 1 of Law No. 1670 on the BCB (modified by Law No. 1864 of June 15, 1998), provides that the BCB is the sole monetary and exchange authority of the country, with administrative, technical, and financial competence and specialized normative powers of general application, in the manner and with the scope established by Law.

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• That Article 44 of Law No. 1670 on 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. For the monitoring and oversight of their execution, it will have access to independent information, analysis, and audit services.
• That subsections a) and o) of Article 54 of Law No. 1670 on the BCB provide that the Board of Directors of the BCB has the authority to issue norms and adopt general decisions necessary for the BCB to fulfill its functions, competencies, and powers assigned by Law; and 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 Law No. 1356 of December 28, 2020, General State Budget Law for the 2021 Management Period, in its Article 13, provides that incentives for the recovery of claims, through the forgiveness of current and penalty interest, fines, commissions, and other accessory expenses that the Central Bank of Bolivia applies to non-affiliated credit portfolios owned by it and received in administration from financial intermediation entities, pursuant to Laws, specific Supreme Decrees, and liquidation processes, may only be carried out for credit obligations whose outstanding capital balance is equal to or less than USD 80,000.00 (Eighty Thousand 00/100 United States Dollars) or its equivalent in national currency.
• That subsection y) of the Second Final Provision of Law No. 1413 of December 17, 2021, provides for the extension of the validity of Article 13 of Law No. 1356 of December 28, 2020. Consequently, it is necessary to extend the validity of the Regulations on Incentives for the Recovery of Claims of the Central Bank of Bolivia, considering that according to subsection y) of the Second Final Provision of Law No. 1413, Article 13 of Law No. 1356 of December 28, 2020, remains in force for the 2022 management period.
• That the Statute of the BCB in items 1), 2), 29), and 36) of its Article 11 establishes that the Board of Directors of the Issuing Entity has the authority to approve general decisions and issue norms necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law; define the policies of the BCB, specialized norms of general application, and internal norms, as well as approve and modify Regulations of the BCB, by two-thirds of all its members, without the need for any additional administrative act. It also authorizes the Board of Directors to alienate and administer portfolios and assets received in lieu of payment from banks in liquidation.
• That Article 26 of the Statute of the BCB establishes that the Board of Directors rules on matters within its competence through resolutions and that every draft Board Resolution must be motivated and justified by a Technical Report from the Management or Managements to whom the subject matter of the Resolution corresponds, and by a Report from the Legal Affairs Management. These reports must be submitted to the Board of Directors by the General Management with its recommendation.

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• That the Recovery and Asset Realization Committee of the BCB, in its meeting on January 6, 2022, determined that the extension of the validity of the Draft Regulations on Incentives for the Recovery of Claims of the Central Bank of Bolivia, approved by Board Resolution No. 012/2021 of January 12, 2021, should be managed.
• That Report BCB-GEF-SRRA-DRCA-INF-2022-3 concludes that to comply with Article 13 of Law No. 1356, in force by subsection y) of the Second Final Provision of Law No. 1413 on the General State Budget for the 2022 Management Period dated December 17, 2021, it recommends to the Board of Directors that it is necessary to extend the validity of the Regulations on Incentives for the Recovery of Claims approved by Board Resolution No. 012/2021 until December 31, 2022.
• That Report BCB-GAL-SANO-DLBCI-INF-2022-9 states that there is no legal impediment to extending the validity of the Regulations on Incentives for the Recovery of Claims of the Central Bank of Bolivia approved by Board Resolution No. 012/2021 until December 31, 2022, recommending its approval to the Board of Directors.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Extend the validity until December 31, 2022, of the Regulations on Incentives for the Recovery of Claims of the Central Bank of Bolivia approved by Board Resolution No. 012/2021 of January 12, 2021, within the framework of subsection y) of the Second Final Provision of Law No. 1413 of December 17, 2021, on the General State Budget for the 2022 Management Period.

Article 2.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, January 11, 2022.

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