BOARD OF DIRECTORS

BOARD RESOLUTION NO. 009/2025

SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVAL OF THE REGULATION FOR THE EXTRAORDINARY CREDIT IN FAVOR OF THE MINISTRY OF ECONOMY AND PUBLIC FINANCE, UNDER LAW NO. 1613 OF JANUARY 1, 2025.

VISTOS (VIEWED):

• The Political Constitution of the State of February 7, 2009.
• Law No. 1178, of July 20, 1990, on Government Administration and Control and its modifications.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
• Law No. 1613 of January 1, 2025, which approves the General State Budget for the 2025 Management Period.
• Supreme Decree No. 4857 of January 6, 2023.
• The Basic Norms of the Public Credit System approved by Supreme Resolution No. 218041 of July 29, 1997 (NB-SCP).
• Board Resolution No. 095/2022 of October 6, 2022, which approves the Statute of the BCB.
• The report BCB-GOM-SOSP-DCE-INF-2025-3 of January 9, 2025, from the Monetary Operations Management (GOM).
• The report BCB-GAL-SANO-DLBCI-INF-2025-13 of January 13, 2025, from the Legal Affairs Management (GAL).

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CONSIDERING:

• That Article 158 of the Political Constitution of the State establishes that the Plurinational Legislative Assembly has among its attributions the approval of the contracting of loans that commit the general revenues of the State and to authorize universities to contract loans.
• That Article 322 of the Political Constitution of the State establishes 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 rates, terms, amounts, and other circumstances are technically justified.
• That Article 327 of the Political Constitution of the State states that the BCB is a public law institution, with legal personality and its own assets.
• That Article 11 of Law No. 1178 establishes that any internal or external public debt with a term equal to or greater than one year shall be contracted by the highest authority of the State Treasury System, on behalf of the General Treasury of the Nation (TGN).
• That Article 1 of Law No. 1670 on the BCB, modified by Article 67, section A3, numeral 1 of Law No. 1864 of June 15, 1998, on Popular Property and Credit, determines that the BCB is an institution of the State, of public law, of an autarkic nature, of indefinite duration, with legal personality and its own assets and with legal domicile in the city of La Paz. It is the sole monetary and exchange authority of the country, with administrative, technical, and financial competence and specialized regulatory powers of general application.
• That Article 44 of Law No. 1670 provides that the highest authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized regulations of general application, and internal norms; as well as establishing administrative, operational, and financial strategies of the Issuing Entity, approving their respective short and medium-term programs.

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• That subsections a) and j) of Article 54 of Law No. 1670 indicate as attributions 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 by the Law and to set and modify interest rates on credits granted by the BCB, taking into account market rates for similar operations and to establish their other terms and conditions.
• That the First and Second Final Provisions of Law No. 1613 authorize the BCB to grant an extraordinary credit under concessional conditions in favor of the MEFP, through the TGN, destined to finance the payment of its short-term obligations generated by December 31, 2024, within the framework of public debt administration and liability management operations. For this effect, the Issuing Entity is exempted from the obligation of Articles 22 and 23 of Law No. 1670, and authorizes the MEFP, through the TGN, to contract said indebtedness with the BCB and to issue and grant Non-Negotiable Treasury Bonds to guarantee the credit. Likewise, it includes Article 47 in Law No. 2042 where the authorization to the MEFP within the administration of public debt is found, to carry out liability management operations of the TGN.
• That subsection o) of Article 44 of Supreme Decree No. 4857 establishes as one of the attributions of the MEFP to administer external and internal public debt.
• That Article 6 of the NB-SCP establishes as a competence of the MEFP to formulate the national public indebtedness strategy, including the conditions for renegotiation and future administration of internal and external public debt.
• That Articles 5 and 6 of the BCB Statute establish the regulatory and technical competence of the Issuing Entity and that the norms issued by it will be approved by Resolution of its Board of Directors.
• That numerals 1) and 30) of Article 10 of the BCB Statute determine that the Board of Directors of the Issuing Entity has the attributions to approve general decisions and issue the norms that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law; and to approve, modify, and interpret the Regulations of the BCB, by two-thirds of the votes of all its members.

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• That Article 24 refers that resolutions and decisions of the Board of Directors are adopted by a simple majority of votes of the members present in a meeting, except in cases where Law No. 1670 or this Statute require qualified majorities.
• That Article 26 of the BCB Statute stipulates that the Board of Directors pronounces itself on matters of 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 by the General Management with its recommendation.
• That the GOM through report BCB-GOM-SOSP-DCE-INF-2025-3 concludes that it is necessary to have a Regulation to address the Extraordinary Credit to the MEFP, which is why it submits to the Board of Directors the draft Regulation containing operational, technical, and legal aspects for the granting of the credit mentioned in Law No. 1613.
• That the GAL, through report BCB-GAL-SANO-DLBCI-INF-2025-13 concludes that the GOM's proposal on "Regulation for the Extraordinary Credit to the Ministry of Economy and Public Finance (MEFP), within the framework of the First Final Provision of Law No. 1613 of January 1, 2025" will allow for having regulations for the TGN to obtain financing within the framework of its public debt administration and liability management operations, given that its content is framed within the guidelines of Law No. 1178 and NB-SCP. For all the above, it recommends to the Board of Directors of the BCB to consider its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Approve the Regulation for the Extraordinary Credit to the Ministry of Economy and Public Finance (MEFP), within the framework of the First Final Provision of Law No. 1613 of January 1, 2025, in its four (IV) Chapters and nineteen (19) Articles which form an integral part of this Resolution as an Annex.

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Article 2.- This Resolution shall enter into force from its approval.

Article 3.- The Presidency and the General Management are charged with the compliance of this Resolution.

La Paz, January 14, 2025

SIGNED. ROGER EDWIN ROJAS ULO, Gumercindo Héctor Pino Guzmán, Miguel Angel Marañon Urquidi, Victor Gonzalo Calisaya Gomez.

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ANNEX

SPECIFIC REGULATION FOR THE EXTRAORDINARY CREDIT TO THE MINISTRY OF ECONOMY AND PUBLIC FINANCE (MEFP), WITHIN THE FRAMEWORK OF THE FIRST FINAL PROVISION OF LAW NO. 1613 OF JANUARY 1, 2025.

CHAPTER I

GENERAL PROVISIONS

Article 1.- (Object)

This Regulation aims to regulate the application, granting, contracting, and service of the debt of the extraordinary credit in favor of the Ministry of Economy and Public Finance (MEFP) through the General Treasury of the Nation (TGN), established in the First Final Provision of Law No. 1613 of January 1, 2025.

Article 2.- (Purpose)

The extraordinary credit aims to finance the MEFP through the TGN, so that it carries out the payment of its short-term obligations contracted with the Central Bank of Bolivia (BCB) and generated by December 31, 2024, within the framework of public debt administration and liability management operations.

Article 3.- (Definitions)

For the purposes of this Regulation, the following are understood:

a) Disbursement Schedule: Essential tool that shows the calendar of disbursements emerging from a credit relationship.

b) Installment: Amount of principal and current interest, or only current interest, that is paid regularly according to what is contractually established in the payment plan.

c) Disbursement Deadline: Financial condition that establishes the deadline to carry out the disbursements of the credit.

d) Degree of Concessionality: Donation component of a credit recognized as financial aid to the credit subject.

e) Current Interest: Amount corresponding to the charge for the use of the lent capital.

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f) Penal Interest: Amount to be canceled for penalty in case of non-compliance with the payment of the owed installment, according to the dates established in the payment plan.

g) Default: Delay in fulfilling an obligation, according to the dates agreed in the payment plan. Non-compliance will be calculated from the first business day following the due date of the installment.

h) Payment Frequency: Temporal frequency, established in the payment plan, in which the payments of the installments are made.

i) Grace Period: Period of time granted by the creditor, in which the debtor does not make any amortization to principal.

j) Payment Plan: Instrument that details the installments of a credit, specifying the term, amount, and other payment conditions of the credit.

k) Type of Installment: Result of the application of a credit installment calculation method, which can be fixed (French method) or variable (German method).

l) Public Values: Negotiable and non-negotiable securities of public debt.

Article 4.- (Abbreviations)

For the purposes of this Regulation, the following acronyms are established:

• ASFI: Financial System Supervision Authority.
• APEC: Economic Policy Advisory.
• BCB: Central Bank of Bolivia.
• CUT: Single Treasury Account.
• EDV: Securities Depository Entity.
• GAL: Legal Affairs Management.
• GOM: Monetary Operations Management.
• MAE: Highest Executive Authority.
• MEFP: Ministry of Economy and Public Finance.
• SIGEP: Public Management System.
• TGN: General Treasury of the Nation.

CHAPTER II

APPLICATION, FINANCIAL CONDITIONS, AND APPROVAL OF THE CREDIT

Article 5.- (Application for Credit)

I. For the application for credit, the MEFP must submit the following requirements:

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1. Credit application signed by the Minister of Economy and Public Finance, addressed to the President of the BCB, specifying the following: a) Legal framework supporting the credit application. b) Justified amount. c) Proposal and justification of the term and payment frequency of principal and interest. d) Proposal and justification of the disbursement schedule incorporating month and year. e) Proposal and justification of the disbursement deadline.

2. Legalized Presidential Decree of the appointment of the Minister of Economy and Public Finance and copy of valid identity card.

3. Ministerial Resolution of the MEFP that determines the degree of concessionality, accompanied by the corresponding technical and legal reports.

II. In case of omission in the presentation of the requirements described in Paragraph I of this Article, the BCB will reject the application.

Article 6.- (Reports for Credit Consideration)

I. Upon receipt of the application and documentation established in Article 5 of this Regulation, the President of the BCB will request, through the General Management, the following reports: a) Technical report issued by the GOM, which includes a proposal for interest rate and points out the financial conditions requested by the MEFP, with its corresponding recommendation. b) Technical report issued by the APEC, which evaluates the implications of the requested credit on the BCB's Monetary Program and the macroeconomic impact. c) Legal report issued by the GAL, regarding the legal viability for the granting of the credit and its corresponding recommendation.

II. The reports described in Paragraph I of this Article will be sent to the General Management to be submitted for consideration to the Board of Directors of the BCB.

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Article 7.- (Financial Conditions of the Credit)

I. The financial conditions of the credit will be defined by the Board of Directors of the BCB through an express Resolution, which consist of: a) amount, b) currency, c) term, d) interest rate, e) grace period, f) type of installment, g) payment plan, h) disbursement deadline, i) guarantees, and j) disbursement schedule.

II. The Board will set the interest rate considering as reference the award rates of public values for terms similar to the requested credit, the degree of concessionality, amount, term of the credit, and other variables. The concessional degree will not constitute the only variable that determines the interest rate.

Article 8.- (Disbursement Schedule)

I. The disbursement schedule, approved by the Board of Directors of the BCB, will form an integral part of the credit contract, considering the proposal of the MEFP and its consistency with the Monetary Program of the current management.

II. Any modification of the disbursement schedule must be approved by the Board of Directors of the BCB, implying carrying out a modification of the credit contract through the signing of the corresponding modifying contract.

Article 9.- (Disbursement Deadline)

I. The disbursement deadline is a financial condition of the credit; for its determination, the Board of Directors of the BCB will take into account the date proposed by the MEFP and the date of the last disbursement proposed in the disbursement schedule.

II. The resources of the credit not disbursed by the disbursement deadline are automatically uncommitted.

Article 10.- (Credit Guarantee)

I. The payment of principal and interest of the credit granted to the MEFP will be guaranteed by physical or dematerialized Non-Negotiable Treasury Bonds, issued in favor of the BCB.

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II. The Non-Negotiable Treasury Bonds must have the corresponding registration in the securities market, which must be managed by the TGN at the time of their issuance.

III. The issuance, registration, and inscription of the dematerialized TGN bonds will be carried out in accordance with current regulations through the EDV.

Article 11.- (Approval of the Credit)

The Board of Directors of the BCB will consider the reports indicated in Article 6 of this Regulation, and in its case: a) Approve the credit, the financial conditions, and the disbursement schedule. b) Authorize the President of the BCB to sign the respective credit contract.

CHAPTER III

SIGNING OF THE CREDIT CONTRACT AND DISBURSEMENT

Article 12.- (Contract)

I. The approved financial conditions will be recorded in the credit contract to be signed between the BCB and the MEFP.

II. The credit contract, being an adhesion contract, will be communicated by the BCB to the MEFP at the moment of informing this about the financial conditions approved by the Board of Directors of the Issuing Entity.

III. In accordance with the incorporation of Article 47 to Law No. 2042 of December 21, 1999, the credit contract constitutes itself as a public document with full probative force and does not require notarization for its validity and efficacy.

Article 13.- (Conditions and Requirements for Disbursements)

I. Once the credit contract is signed, the MEFP can make the disbursement request, for which it must submit the following documentation:

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a) Disbursement request note signed by the Minister, which must contain the following information:

1. Contract number.
2. Disbursement number.
3. Requested amount, according to the disbursement schedule.
4. Currency of the credit, according to the Board Resolution approving the credit.
5. Disbursement date.
6. Number of fiscal collector account at the BCB or ledger in the CUT, to which the disbursements will be made.

b) The guarantees indicated in Article 10 of this Regulation.

II. Once the disbursement is made: a) The BCB will send the payment plan to the MEFP, for compliance. b) The MEFP will send to the BCB a copy of the note of request for inscription of the Physical Bonds in the Register of the Securities Market of the ASFI.

III. The BCB may request additional information it considers necessary prior to the disbursement of the credit.

CHAPTER IV

DEBT SERVICE

Article 14.- (Payment of Installments)

I. The MEFP will pay the installments to the BCB according to the established payment plan.

II. For the compliance of Paragraph I of this Article, the BCB will send to the MEFP the account number with beneficiary registration in the SIGEP with private category.

III. Once payments are received on the due dates, the BCB will return the bond that guarantees the installment for cancellation by the issuer.

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Article 15.- (Advance Payments)

I. The MEFP may make advance payments, before the due date, prior to communication to the BCB, for which the payment will be imputed in the following order:

1. To current interest accrued to the date of the advance, and
2. To principal balance.

II. After the advance payment, in case of existing debt balance, the BCB will carry out the swap of physical bond guarantees in coordination with the MEFP.

III. The swaps of dematerialized bonds must be carried out automatically, in accordance with current regulations.

Article 16.- (Debit and Execution of Guarantee)

I. In case of non-payment of the agreed installment, the BCB will apply the debit of TGN accounts within the framework of what is established in Article 25 of Law No. 1670 of October 31, 1995. The contract must expressly contain the provision indicated in this Paragraph.

II. If the date for the debit falls on a Saturday, Sunday, or holiday, it must be carried out on the first following business day.

III. In case of non-payment and impossibility of debiting TGN accounts, the BCB will proceed to the execution of the Non-Negotiable TGN Bonds.

Article 17.- (Current Interest)

The calculation of current interest will be carried out taking into account: The number of calendar days elapsed, according to the following: a) For the first installment; it will be calculated from the disbursement until the first due date of the installment, considering the payment frequency. b) For successive installments; it will be calculated from the fulfillment of one installment to the next, according to the payment frequency.

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Article 18.- (Penal Interest)

I. In the impossibility of executing the guarantee, through debits of TGN fiscal accounts, due to insufficient balances, the TGN will incur in default originating penal interest; as established in Article 2 of Supreme Decree No. 28166 of May 17, 2005, and its modification carried out through Supreme Decree No. 530 of June 2, 2010.

II. For the collection of penal interest, the BCB will debit from the available balances in TGN fiscal accounts, in any currency, to temporary accounts of the BCB. This procedure will be carried out daily until the TGN completes the amount owed to the date. This payment will be imputed in the following order of precedence: penal interest, current interest, and pending principal amortization.

Article 19.- (Return of Guarantee)

I. Return of the guarantee issued in physical medium: a) The BCB will effect the return of the guarantee to the TGN, through an official note, after the due date, within a maximum period of 15 calendar days in case it has not been executed. b) In case of non-compliance with the payment of installments, the BCB will effect the return of the executed guarantee to the TGN with the stamp of Executed, through an official note, once the payments indicated in Paragraph II of Article 18 are regularized.

II. The return of dematerialized guarantees will be carried out in accordance with current regulations through the EDV.