BOARD OF DIRECTORS

BOARD RESOLUTION NO. 016/2022

SUBJECT: TREASURY MANAGEMENT – MODIFICATION OF THE REGULATION ON SECURITIES IN CUSTODY

VIEWED:

• The Political Constitution of the State, promulgated on February 7, 2009.
• Law No. 1670 of the Central Bank of Bolivia (BCB), dated October 31, 1995, and its amendments.
• The Statute of the Central Bank of Bolivia approved by Board Resolution No. 128/2005, dated October 21, 2005, and its amendments.
• The Regulation on Securities in Custody approved by Board Resolution No. 122/2021 of October 19, 2021.
• Report BCB-GTES-SOMM-DOMM-INF-2022-19 dated February 10, 2022, issued by the Treasury Management.
• Report BCB-GAL-SANO-DLBCI-INF-2022-19 dated February 10, 2022, issued by the Legal Affairs Management (GAL).

CONSIDERING:

• 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. 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 No. 1670 of October 31, 1995, of the Central Bank of Bolivia, 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 a State institution, of public law, of an autarkic nature, of indefinite duration, with its own legal personality and assets; it is the sole monetary and exchange authority of the country, with administrative, technical, and financial competence and specialized normative faculties of general application, in the manner and scope established by law.
• That Article 29, subsection c) of Law No. 1670, empowers the BCB, in its capacity as Financial Agent of the Government, to receive securities in custody from the State, in the cases and under the conditions set by the BCB, and may delegate this function to other banks and entities of the financial system; and in relation to the Financial System, Article 38, subsection c) of the aforementioned Law, empowers the BCB to accept the custody of securities.
• That the Board of Directors, by virtue of Articles 44 and 54, subsections a) and o) of Law No. 1670, consistent with what is provided by the BCB Statute, is empowered to issue norms and adopt general decisions that are necessary for it to fulfill the functions, competencies, and faculties assigned by the Law, as well as to approve, modify, and interpret the Statute and Regulations of the Issuing Entity.
• That Report BCB-GTES-SOMM-DOMM-INF-2022-19 from the Treasury Management recommends to the BCB Board of Directors that it is necessary to modify the Regulation on Securities in Custody as explained.
• That Report BCB-GAL-SANO-DLBCI-INF-2022-19 from the Legal Affairs Management concludes that the modification to the "Regulation on Securities in Custody," proposed by the Treasury Management, does not contravene the current legal framework; therefore, it is legally appropriate, recommending to the BCB Board of Directors its approval.

THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Modify paragraph II of Article 23 and the Second Transitional Provision of Board Resolution No. 122/2021 dated October 19, 2021, as detailed below:

Says:

"Article 23. (Analysis and Acceptance of the Deposit Request). II. Once viability is verified, the Legal Affairs Management (GAL) will draft the Inter-institutional Agreement, which, together with the Technical and Legal Reports, and once agreed upon with the requesting Public Entity and with the Approval of the Ministry of Public Finance (MEFP), will be submitted to the Board of Directors so that this instance, by majority vote of the members present, may authorize the President of the BCB to sign said Agreement".

Must Say:

"Article 23. (Analysis and Acceptance of the Deposit Request). II. Once viability is verified, the Legal Affairs Management (GAL) will draft the Inter-institutional Agreement, which, together with the Technical and Legal Reports, will be submitted to the Board of Directors so that this instance, by majority vote of the members present, may authorize the President of the BCB to sign said Agreement. The signed Agreement will be brought to the knowledge of the Ministry of Public Finance (MEFP)".

Says:

"TRANSITIONAL PROVISION Second. Numeral 4 of Article 1, subsection l) of numeral 3 of Article 4, numeral 8 of Article 4, subsection c) of numeral 1 of Article 5, and Chapter V of this Regulation, shall become void once the validity of the Agreement Signed between the BCB and the Telecommunications and Transport Regulatory and Supervisory Authority concludes".

Must Say:

"TRANSITIONAL PROVISION Second. Numeral 4 of Article 1, subsection l) of numeral 3 of Article 4, numeral 8 of Article 4, subsection c) of numeral 1 of Article 5, and Chapter V of this Regulation, shall become void once the validity of the last Agreement Signed between the BCB and the Telecommunications and Transport Regulatory and Supervisory Authority concludes".

Article 3.- The modification shall enter into force from the approval of this Board Resolution.

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

La Paz, February 10, 2022

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