BOARD OF DIRECTORS

BOARD RESOLUTION NO. 020/2024

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

VIEWED:

• 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, modifying the General State Budget – Management 2013.
• Law No. 1206 of August 5, 2019, modifying the General State Budget – Management 2019.
• Law 1546 of December 31, 2023, approving the General State Budget – Management 2024.
• The Regulation for the approval of Credit(s) to State-Owned Enterprises (EPNEs), within the framework of the General State Budget for management years 2010, 2011, 2012, and 2013, approved by Board Resolution No. 023/2011 of February 22, 2011, and its modifications.
• The Statute of the BCB approved by Board Resolution No. 095/2022, of October 6, 2022.
• Board Resolution No. 014/2020 of February 4, 2020.
• Ministerial Resolution MDPyEP/DESPACHO/No. 024.2024 dated February 8, 2024, from the Ministry of Productive Development and Plural Economy.
• The note with Citation: CAR/MDPyEP/DGAJ/UAJ No. 0038/2024 dated February 9, 2024.

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• The Report BCB-GOM-SOSP-DCE-INF-2024-9 of February 9, 2024, from the Monetary Operations Management (GOM).
• The Report BCB-GAL-SANO-DLBCI-INF-2024-44 of February 9, 2024, 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 purpose 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.

• 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 rules; as well as establishing the administrative, operational, and financial strategies of the BCB, approving their respective short and medium-term programs.

• That subsections a), j), and q) of its Article 54 indicate as attributions of the BCB Board of Directors to issue regulations and adopt general decisions that are necessary for the issuing 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 and those others indicated in the cited Law and those necessary for the fulfillment of its functions.

• 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, modifying 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).

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• That the Second Final Provision of Law No. 1206 of August 5, 2019, modifying the General State Budget – Management 2019, valid by virtue of subsection V of the Second Final Provision of Law No. 1546 of December 31, 2023, on the General State Budget – Management 2024, authorizes the Central Bank of Bolivia 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 Board Resolution No. 023/2011 of February 22, 2011, and its modifications, approve the Regulation for the approval of Credit(s) to State-Owned Enterprises (EPNEs), within the framework of the General State Budget for management years 2010, 2011, 2012, and 2013, whose object is to regulate the granting of credits by the BCB in favor of EPNEs.

• That Board Resolution No. 014/2020 of February 4, 2020, exceptionally approves the modification of the financial conditions of Contract SANO No. 400/2013 of December 30, 2013; as well as determines that Contract SANO No. 400/2013 granted in favor of EASBA and its modifications shall not be subject to subsequent modifications regarding the financial conditions of the credit.

• That the Statute of the BCB in numeral 1) of its Article 10 establishes that the Board of Directors of the Issuing Entity has the attributions to approve general decisions and issue regulations 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 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 issued 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 concluded by the BCB. On the other hand, it is an attribution of the President of the Board of Directors of the BCB to sign the contracts and agreements concluded by the Issuing Entity.

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• That Ministerial Resolution MDPyEP/DESPACHO/No. 024.2024 approves the signing of a new modifying contract for Contract SANO No. 400/2013 of December 30, 2013.

• That through note CAR/MDPyEP/DGAJ/UAJ No. 0038/2024, the Minister of Productive Development and Plural Economy requests the signing of a new modifying contract for contract SANO No. 40/2013.

• That GOM, through Report BCB-GOM-SOSP-DCE-INF-2024-9, concludes that after analysis based on cash flows and documentation received from EASBA, technical viability is observed to modify the financial conditions of the credit with an extension of the term from 25 to 30 years and the grace period for principal and interest from 9 to 10 years, maintaining the interest rate of 0.64% and the rest of the financial conditions; 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, to approve the modification.

• That GAL through Report BCB-GAL-SANO-DLBCI-INF-2024-44, concludes that in compliance with the authorization made by the Second Final Provision of Law 1206, the request is technically and legally viable, therefore it recommends to the Board of Directors to render Article 2 of Board Resolution No. 014/2020 ineffective, approve the modification to the financial conditions regarding the term and grace period of the Extraordinary Credit Contract SANO No. 400/2013 in favor of the San Buenaventura Sugar Company (EASBA), and authorize the Acting President to sign the corresponding modifying contract.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Render ineffective Article 2 of Board Resolution No. 014/2020 of February 4, 2020.

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Article 2.- Modify the financial conditions of the extraordinary credit granted by the Central Bank of Bolivia to the San Buenaventura Sugar Company regarding the term to 30 years and the grace period to 10 years.

Article 3.- Maintain the rest of the financial conditions of the extraordinary credit granted, which were not affected by this determination.

Article 4.- Authorize the Acting President of the BCB to sign the modifying contract with EASBA under the terms of this Resolution.

Article 5.- The Presidency and the General Management are charged with the compliance of this Resolution.

La Paz, February 9, 2024

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