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2024-01-30 | RESOLUCIÓN DE DIRECTORIO N° 017/2024

Added 2026-07-27 · Updated 2026-08-13

Board Resolution No. 017/2024

The Board of Directors of the Central Bank of Bolivia authorizes the granting of aBs 3,000,000,000 liquidity credit to the General Treasury of the Nation for the 2024 fiscal year. The loan carries a 3.75% annual interest rate, a one-year term, and is secured by negotiable amortizable Treasury bonds. The President of the Central Bank is authorized to sign the corresponding credit contract with the Ministry of Economy and Public Finance.

Bolivia

Banco Central de Bolivia

BOARD OF DIRECTORS

BOARD RESOLUTION NO. 017/2024

SUBJECT: MONETARY OPERATIONS MANAGEMENT - APPROVAL OF THE GRANTING OF AN EXCEPTIONAL LIQUIDITY CREDIT TO THE GENERAL TREASURY OF THE NATION UNDER LAW NO. 1670 - FISCAL YEAR 2024.

VISTOS:

The Political Constitution of the State, dated February 7, 2009.
Law No. 1670, dated October 31, 1995, of the Central Bank of Bolivia (BCB) and its amendments.
The BCB Statute approved by Board Resolution No. 095/2022, dated October 6, 2022.
The Regulation for the Contracting of Liquidity Credits approved by Ministerial Resolution No. 021 of January 25, 2023.
The Regulation for the Approval of Credits to the Public Sector within the framework of Law No. 1670, approved via BCB Board Resolution No. 110/2019 of August 27, 2019.
The Execution Decision of the 2024 Fiscal-Financial Program signed on January 30, 2024, between the Ministry of Economy and Public Finance (MEFP) and the Central Bank of Bolivia (BCB).
Note MEFP/VTCP/DGCP/UEPS/N° 017/2024 of January 31, 2024, from the MEFP.
Report BCB-GOM-SOSP-DCE-INF-2024-6 of January 31, 2024, from the Monetary Operations Management (GOM).
Report BCB-APEC-SMF-INF-2024-5 of January 31, 2024, from the Economic Policy Advisory (APEC).

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Report BCB-GAL-SANO-DLBCI-INF-2024-35 of January 31, 2024, from the Legal Affairs Management (GAL).

CONSIDERING:

That Article 306 of the Political Constitution of the State establishes that the Bolivian economic model is plural and oriented toward improving the quality of life and vivir bien (living well) of all Bolivians.
That paragraph I of Article 326 of the Political Constitution of the State determines that the State, through the Executive Branch, will determine the objectives of the country's monetary and exchange rate policy in coordination with the BCB.
That Article 327 establishes 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 establishes that the BCB is a State institution, of public law, autarkic in nature, of indefinite duration, with its own legal personality and assets, and with its legal domicile in the city of La Paz. It is the sole monetary and exchange rate authority of the country, with administrative, technical, and financial competence and specialized normative faculties of general application, in the manner and with the scope established in the Law.
That Article 22 of the aforementioned Law provides that the BCB may not grant credit to the Public Sector nor incur contingent liabilities in its favor. Exceptionally, it may do so in favor of the National Treasury with the favorable vote of two-thirds of the members present at a meeting of its Board of Directors, in which subsection b) states that this is to address temporary liquidity needs within the limits of the monetary program.
That Article 23 of Law No. 1670 determines that the operations provided for in Article 22 will be documented in all cases through negotiable public debt securities issued by the National Treasury, which in the case provided for in subsection b) will have a maximum term of one year.

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That Article 44 of the aforementioned legal body states that the Board of Directors is responsible for defining its policies, specialized norms of general application, and internal rules; as well as establishing administrative, operational, and financial strategies, approving their respective short and medium-term programs.
That subsections a) and j) of Article 54 state that the attributions of the BCB Board of Directors include issuing norms and adopting general decisions that are necessary for the issuing entity to fulfill the functions, competencies, and faculties assigned to it by the Law, as well as setting the interest rate on credits granted by the BCB.
That the BCB Statute in numerals 1) and 10) of Article 10 establishes that the Board of Directors of the Issuing Entity has the attribution to approve general decisions and issue norms that are necessary for the BCB to fulfill the functions, competencies, and faculties assigned to it by the Law, as well as to approve by two-thirds of the votes of the members present, credits to the General Treasury of the Nation to address temporary liquidity needs, within the limits of the Monetary Program.
That paragraph II of Article 26 of the Statute determines 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 issued to the Board of Directors through the General Management with its recommendation.
That Article 7 of the Regulation for the Contracting of Liquidity Credits approved by Ministerial Resolution No. 021/2023 regulates the Negotiation and Contracting of credits requested by the MEFP.
That the Regulation for the Approval of Credits to the Public Sector within the framework of Law No. 1670, approved by Board Resolution No. 110/2019, aims to regulate Articles 22 and 23 of Law No. 1670, which establish the requirements and procedures for the approval of credits to the Public Sector.

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That said Regulation, in its Article 10, establishes the requirements for the consideration of credit for temporary liquidity needs.

That in its Article 11, it states that upon receipt of the credit request and the documentation established in Article 10, prior to consideration by the Board of Directors, the President of the BCB will request: i) a Technical Report from the GOM specifying the outstanding debt balance as of the date of the request, future payment maturities of the TGN to the BCB, and the suitability of the public value offered to back the operation; ii) a report from the GAL regarding compliance with regulations and submission of the required documentation; iii) a Report from the APEC considering the impact of said credit on the monetary program that is part of the Execution Decision of the Fiscal-Financial Program annually signed by the highest authorities of the BCB and the MEFP.
That Article 12 establishes the financial conditions, where the Board of Directors will set the interest rates and term considering, as a reference, the prevailing public security yields in the market in either of the two currencies, in relation to the credit request of the MEFP.
That Article 13 provides that the BCB Board of Directors will consider the Reports presented by the areas, and if appropriate, approve the credit through the favorable vote of two-thirds of its members present at a Board of Directors session, and for this effect, will issue an express Resolution.
That Article 14 of the aforementioned Regulation establishes that the Board Resolution will approve the granting of the Credit and the Public Credit Contract between the MEFP and the BCB.
That the Execution Decision of the 2024 Fiscal-Financial Program establishes that up to Bs 6,000,000,000.00 (Six Thousand Million 00/100 Bolivianos) in net liquidity credits (gross credit minus amortizations) are available for 2024.
That the MEFP, through Note MEFP/VTCP/DGCP/UEPS/N° 017/2024, within the framework of subsection b) of Article 22 of Law No. 1670, requests the granting of a liquidity credit with the following characteristics: i) amount and currency Bs 4,000,000,000.00 (Four Thousand

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Million 00/100 Bolivianos), ii) term: 1 year, iii) principal payment: at maturity, iv) interest payment: at maturity, v) backing value: Negotiable Treasury Bonds - amortizable. To this effect, in compliance with what is established in the "Regulation for the Approval of Credits to the Public Sector within the Framework of Law No. 1670," it submits the payment plan, disbursement schedule, and projected monthly cash flow of the TGN including repayments to the BCB.

That the GOM, through Report BCB-GOM-SOSP-DCE-INF-2024-6, concludes that the request for a Liquidity Credit to the General Treasury of the Nation for the 2024 fiscal year in the amount of Bs 3,000,000,000.00 (Three Thousand Million 00/100 Bolivianos), made by the MEFP, falls within what is established in Law No. 1670 and the Regulation for the Approval of Credits to the Public Sector, approved via Board Resolution No. 110/2019. Finally, it recommends that the BCB Board of Directors approve the financial conditions of the credit with an interest rate of 3.75% (three point seven five percent) annual for a term of one year, prior to the opinion of the GAL and APEC according to their competencies.
That the APEC, in its Report BCB-APEC-SMF-INF-2024-5, concludes that the 2024 Monetary Program and Fiscal-Financial Program approved on January 29, 2024, the "Execution Decision of the 2024 Fiscal-Financial Program" and the "Schedule of the BCB liquidity credit to the TGN" contemplate a liquidity credit of up to Bs 3,000,000,000.00 (Three Thousand Million 00/100 Bolivianos) in the month of February; therefore, it is within the established limit.
That the GAL, through Report BCB-GAL-SANO-DLBCI-INF-2024-35, concludes that the MEFP's request is legally appropriate, recommending its consideration by the BCB Board of Directors, for its approval with the favorable vote of at least two-thirds of the members present, through an express resolution and authorization to the President of the BCB for the signing of the respective contract.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Within the framework of what is established in subsection b) of Article 22 and Article 23 of Law No. 1670 and in accordance with the 2024 Monetary Program and Fiscal

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Financial Program, approve the granting of a Liquidity Credit in favor of the TGN – Fiscal Year 2024, represented by the MEFP, under the following terms and conditions:

(*) The term is calculated from the first disbursement.

Article 2.- Approve the Exceptional Liquidity Credit Contract in favor of the TGN – Fiscal Year 2024, in accordance with Article 14 of the Regulation for the Approval of Credits to the Public Sector within the framework of Law No. 1670.

Article 3.- Authorize the Acting President of the BCB to sign the contract with the MEFP under the terms of this Resolution.

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

La Paz, January 31, 2024

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