BOARD OF DIRECTORS

BOARD RESOLUTION NO. 017/2025

SUBJECT: MONETARY OPERATIONS MANAGEMENT - MODIFY THE FINANCIAL CONDITIONS OF THE EXTRAORDINARY CREDIT CONTRACT SANO NO. 400/2013 AND ITS AMENDMENTS.

VIEWING:

The Political Constitution of the State of February 7, 2009.
Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB) and its modifications.
Law No. 396 of August 26, 2013 on modifications to the General State Budget – Management 2013.
Law No. 614 of December 13, 2014 on the General State Budget – Management 2014.
Law No. 1206 of August 5, 2019 on modifications to the General State Budget – Management 2019.
Law 1613 of January 1, 2025, which approves the General State Budget – Management 2025.
Board Resolution No. 180/2013 of December 17, 2013, which approves the granting of an Extraordinary Credit in favor of the San Buenaventura Sugar Company (EASBA) and its modifications.
The Regulation of Credits to National Strategic Public Enterprises within the framework of the General State Budget Laws approved by Board Resolution No. 019/2016 of February 2, 2016.

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The Statute of the BCB approved by Board Resolution No. 095/2022 of October 6, 2022.
Ministerial Resolution MDPyEP/DESPACHO/No. 020.2025 dated February 5, 2025 from the Ministry of Productive Development and Plural Economy.
The note with Citation: CAR/MDPyEP/DGAJ/UAJ No. 0024/2025 dated February 7, 2025 from the Ministry of Productive Development and Plural Economy.
The report BCB-GOM-SOSP-DCE-INF-2025-15 of February 10, 2025 from the Monetary Operations Management (GOM).
The report BCB-APEC-SMF-INF-2025-8 issued on February 10, 2025 by the Economic Policy Advisory (APEC).
The report BCB-GAL-SANO-DLBCI-INF-2025-40 of February 10, 2025 from the Legal Affairs Management (GAL).

CONSIDERING:

That Articles 158 and 322 of the Political Constitution of the State establish that it is the competence of the Plurinational Legislative Assembly to approve the contracting of loans that commit the general revenues of the State, authorizing for this effect 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 44 of Law No. 1670 establishes 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 for establishing administrative, operational, and financial strategies of the BCB, approving their respective short and medium-term programs.

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That subsections a) and j) of its Article 54 indicate as attributions of the BCB Board of Directors to issue norms and adopt general decisions that are necessary for the Issuer Entity to fulfill the functions, competencies, and powers assigned to it by Law, as well as to set the interest rate of the credits granted by the BCB.
That Article 57 and subsection e) of Article 59 of Law No. 1670 establishes that the President is the first executive authority of the BCB and exercises the legal representation of the BCB, without prejudice to the powers of delegation according to the Law.
That Law No. 396 of August 26, 2013 on modifications to the General State Budget – Management 2013 authorizes the Central Bank of Bolivia (BCB) to grant an extraordinary credit of up to Bs. 332,747,250.- (Three Hundred Thirty-Two Million Seven Hundred Forty-Seven Thousand Two Hundred Fifty 00/100 Bolivianos), in favor of the San Buenaventura Sugar Company (EASBA).
That Article 12 of Law No. 614 of December 13, 2014 on the General State Budget – Management 2015, establishes that any authorization established by Law of the General State Budget, for the BCB to grant Extraordinary Credits, as well as the authorizations to the Ministry of Economy and Public Finances, to issue and grant Non-Negotiable Treasury Bonds through the General Treasury of the Nation as backing for the aforementioned Extraordinary Credits, will not require any other legal authorization for their compliance, understanding that they remain in effect until the complete execution of the credit.
That the Second Final Provision of Law No. 1206 on modifications to the General State Budget – Management 2019 authorizes the BCB to modify the financial conditions established, among others, in the SANO Credit Contract No. 400/2013, signed with the San Buenaventura Sugar Company (EASBA).
That the Second Final Provision of Law No. 1613 incorporates Article 47 into Law No. 2042 of December 21, 1999, providing that the regulatory provisions applicable for the economic and financial administration of the State form part of the cited Law,

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incorporating as its Annex the mandates contained in particular in Articles 12 of Law No. 614 and the Second Final Provision of Law No. 1206.

That Board Resolution No. 180/2013 of December 17, 2013 and its modifications approves, within the framework of what is provided in Article 7 of Law No. 396 of August 28, 2013, the granting of an Extraordinary Credit in favor of EASBA for an amount of Bs 332,747,250.00 (Three Hundred Thirty-Two Million Seven Hundred Forty-Seven Thousand Two Hundred Fifty 00/100 Bolivianos), establishing the financial conditions for this effect.
That Board Resolution No. 019/2016 of February 2, 2016 approves the Regulation of Credits to National Strategic Public Enterprises within the Framework of the General State Budget Laws.
That the Statute of the BCB in numeral 1) of its Article 10 establishes that the Board of Directors of the Issuer Entity has the attribution 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 Law.
That Articles 24, 26, and 34 of the Statute of the BCB determine that every project of Board Resolution must be motivated and justified by a technical report from the Management or Managements to which the subject matter of the Resolution corresponds, and by a report from the Legal Affairs Management. These reports must be sent to the Board of Directors through the General Management with its recommendation. Likewise, that among the attributions of the President of the BCB is that of signing the contracts entered into by the BCB.
That Ministerial Resolution MDPyEP/DESPACHO/No. 020.2025 approves the signing of a new Modifying Contract of Contract SANO No. 400/2013 of December 30, 2013.

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That through note CAR/MDPyEP/DGAJ/UAJ No. 0024/2024 the Minister of Productive Development and Plural Economy requests the signing of a new Modifying Contract of Contract SANO No. 400/2013.
That GOM through report BCB-GOM-SOSP-DCE-INF-2025-15, concludes that the request for modification of the financial conditions of the credit sent by EASBA and the MDPyEP complies with the required documentation. Likewise, the documentation sent by EASBA endorsed by the MDPyEP exposes technical viability to extend the grace period for principal and interest from 10 to 12 years, maintaining the term of 30 years and the interest rate of 0.64% as well as the rest of the financial conditions; in this sense, within the framework of the Laws that authorized the BCB to grant the credit signed through Contract SANO No. 400/2013 and its Modifying Contracts, the MDPyEP is responsible for the evaluation and monitoring of the execution of the credit resources and EASBA is responsible for the use and destination of the resources disbursed by the BCB; in this sense, since there is technical viability to modify the financial conditions of the credit, it recommends to the Board of Directors, prior to the criterion of the Legal Affairs Management and the Economic Policy Advisory, approve the modification to the financial conditions.
That APEC through report BCB-APEC-SMF-INF-2025-8, concludes that the modification to Contract SANO No. 400/2013 requested by the MDPyEP and EASBA will have a null effect on the BCB's Net Internal Credit to the Public Sector insofar as the changes in the BCB's Net Internal Credit to the Non-Financial Public Sector and the quasi-fiscal result compensate each other, which implies that monetary variables are not affected, recommending to the Board of Directors to proceed with the request made by the MDPyEP and EASBA.
That GAL through report BCB-GAL-SANO-DLBCI-INF-2025-40, concludes that the proposed modifications are technically and legally viable in accordance with what is described in the technical reports and this legal report; likewise, it is also viable to authorize the Acting President of the BCB to sign the Modifying Contract to the SANO Credit Contract No. 400/2013 modified by the contracts SANO-DLBCI No. 86/2016; SANO-DLBCI No. 61/2017; SANO-DLBCI No. 4/2020; and SANO-DLBCI No. 3/2024 of September 22, 2016, October 16, 2017, February 6, 2020, and February 9, 2024

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respectively, including the modifications to the financial conditions described in report BCB-GOM-SOSP-DCE-INF-2025-15; in this sense, GAL recommends to the Board of Directors approve the modification to the financial conditions by extending the grace period for principal and interest to 12 years, consequently authorizing the Acting President of the BCB to sign the corresponding Modifying Contract.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify the financial conditions of the Extraordinary Credit granted by the Central Bank of Bolivia to the San Buenaventura Sugar Company regarding the grace period to 12 years.

Article 2.- Maintain the rest of the financial conditions of the Extraordinary Credit granted, which were not affected by this Resolution.

Article 3.- Authorize the Acting President of the BCB to sign the Modifying Contract to Contract SANO No. 400/2013, under the terms of this Resolution.

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

La Paz, February 10, 2025

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

Board Resolution No. 017/2025