Board Resolution No. 015/2015

BOARD RESOLUTION NO. 015/2015

SUBJECT: MONETARY OPERATIONS MANAGEMENT — APPROVES MODIFICATIONS TO THE SPECIFIC REGULATION FOR THE CONCESSION OF CREDIT PROVIDED FOR IN LAW NO. 261 AND LAW NO. 614.

HAVING SEEN:

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 (Teleferico) 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 Minutes of the Board of Directors of the Central Bank of Bolivia No. 004/2015 corresponding to the ordinary session of January 20, 2015.

The Report from the Monetary Operations Management CITE: BCB-GOM-SOSP-DCE-INF-2015-3 of January 26, 2015.

The Report from the Legal Affairs Management CITE: BCB-GAL-SANO-INF-2015-42 of January 27, 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 attribute to approve the contracting of 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 authorized and expressly 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 Bs 1,633,372,800.00 (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 (Teleferico) 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 Bs 3,087,000,000.00 (Three Billion Eighty-Seven Million 00/100 Bolivianos) destined for the construction and implementation of the Cable Transport System (Teleferico) in the cities of La Paz and El Alto, in its second phase. It also authorizes the MEFP, through the General Treasury of the State — 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 Concession 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 Concession 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 the credit resources, respectively.

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

That Board Resolution No. 006/2015 modifies Articles 1 (Object) and 3 (Acceptable Guarantees) of the Specific Regulation for the Concession of Credit provided for in Law No. 261 and Law No. 614.

That the Board of Directors, through Minutes No. 004/2015, instructed the presentation of a proposal for modification of the BCB's Specific Regulation for the Concession of Credit provided for in Law No. 261 and Law No. 614 that incorporates processes for the expansion or reform of the credit conditions originally approved.

That the Monetary Operations Management, through report CITE: BCB-GOM-SOSP-DCE-INF-2015-3, recommends the modification of the Specific Regulation for the Concession of Credit provided for in Law No. 261 and Law No. 614 by adding an article that contemplates the possibility of modifying the contract, prior to legal opinion and criteria.

That the Legal Affairs Management, through reports CITE: BCB-GAL-SANO-INF-2015-42, establishes that the modification of the Specific Regulation for the Concession of Credit provided for in Law No. 261 and Law No. 614 as proposed by the Monetary Operations Management is legally appropriate, being the competence of the Board of Directors of the BCB 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 the Specific Regulation for the Concession of Credit provided for in Law No. 261 and Law No. 614 by adding an article with the following wording:

"Article 11.- (Modification of the Contract) For the consideration and approval of the modification of the Credit Contract, the MEFP must submit the following documentation:

1. Written request addressed to the President of the BCB signed by the Minister of Economy.
2. New Payment Plan and Disbursement Schedule.
3. Legalized Presidential Decree of the appointment of the Minister of Economy and Public Finance if necessary."

Article 2.- The modification of the Specific Regulation for the Concession of Credit provided for in Law No. 261 and Law No. 614 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 27, 2015

Reynaldo Yujra Velarde Vera Andrea Perez Alandia