BOARD OF DIRECTORS

BOARD RESOLUTION NO. 023/2022

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – APPROVAL OF THE REGULATION FOR THE REGISTRATION AND OPERATIONS OF THE EXTERNAL PUBLIC DEBT OF THE PLURINATIONAL STATE OF BOLIVIA.

VIEWED:

• The Political Constitution of the State, promulgated on February 7, 2009.
• Law No. 1178 of July 20, 1990, on Government Administration and Control.
• Law No. 1670, of the Central Bank of Bolivia (BCB) of October 31, 1995, and its modifications.
• Basic Norms of the Public Credit System, approved by Supreme Resolution No. 218041 of July 29, 1997.
• The Statute of the Central Bank of Bolivia approved by Board Resolution No. 128/2005 of October 21, 2005, and its modifications.
• The Regulation for the Registration of Bolivia's External Public Debt, approved by Board Resolution No. 123/2010 of November 9, 2010.
• Report BCB-GOI-INF-2022-6 of March 28, 2022, issued by the International Operations Management (GOI).
• Report BCB-GAL-SANO-DLBCI-INF-2022-53 of March 28, 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 Central Bank of Bolivia to maintain the stability of the internal purchasing power of the currency, to contribute to economic and social development.
• That numeral 10 of Article 158 and paragraph I of Article 322 of the Political Constitution of the State establish within the attributions of the Plurinational Legislative Assembly the approval of loans that commit general state revenues and the authorization of public debt contracting.

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• That Article 3 of Law No. 1178 determines that Administration and Control Systems will be applied to all entities of the Public Sector.
• That Article 20 of Law No. 1670 of the BCB establishes that the BCB will keep the registry of external public debt; and Article 29 states that the BCB will exercise functions as Financial Agent of the Government.
• That Article 44 and subsections a), o) and q) of Article 54 of Law No. 1670 of the BCB define that the Highest Authority of the Central Bank of Bolivia is its Board of Directors and that its attributions include issuing norms and adopting general decisions that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law; and that the Board is empowered to approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for any additional administrative act, and those others that are necessary for the fulfillment of its functions.
• That the second paragraph of Article 11 of the aforementioned Basic Norms states that the Central Bank of Bolivia will carry out the official registration of external public debt, without this excusing the Specialized and Technical Operational Units of the Public Credit System from maintaining an updated registry of internal and external credit operations carried out within their competence, for purposes of monitoring, evaluation, and reconciliation; and the second paragraph of Article 46 establishes that the Central Bank of Bolivia, in its capacity as Financial Agent of the Government, will be in charge of executing payment orders for the service of external public debt and for the redemption of government securities, prior to the provision of necessary funds on behalf of the General Treasury of the Nation or the beneficiary entity that assumes responsibility for the service of the respective debt.
• That numerals 1, 25, and 29 of Article 11 of the Statute of the Central Bank of Bolivia establish that the Board has the attributions to approve regulations related to the registration of public debt; and to approve, modify, and interpret the Statute and Regulations of the BCB by two-thirds of the votes of all its members, without the need for any administrative act.
• That Report BCB-GOI-INF-2022-6 from the GOI concludes that a new "Regulation for the Registration and Operations of the External Public Debt of the Plurinational State of Bolivia" is necessary; and recommends submitting it to the Board of Directors of the BCB for approval.
• That Report BCB-GAL-SANO-DLBCI-INF-2022-53 from the GAL concludes that the "Regulation for the Registration and Operations of the External Public Debt of the Plurinational State of Bolivia," proposed by the GOI, does not contravene the current legal framework, therefore it is legally procedent, recommending the Board of Directors of the BCB its approval.

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THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the Regulation for the Registration and Operations of the External Public Debt of the Plurinational State of Bolivia in its five Chapters and eighteen Articles, which forms part as an Annex to this Board Resolution.

Article 2.- Repeal Board Resolution No. 123/2010 of November 9, 2010.

Article 3.- This resolution will enter into force from its approval.

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

La Paz, March 29, 2022

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

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ANNEX

REGULATION FOR THE REGISTRATION AND OPERATIONS OF THE EXTERNAL PUBLIC DEBT OF THE PLURINATIONAL STATE OF BOLIVIA

CHAPTER I

GENERAL PROVISIONS

Article 1. Objective

This Regulation aims to establish the norms and procedures by which the Central Bank of Bolivia (BCB) will carry out the registration, payment of service, and publication of statistics of the external public debt of the Plurinational State of Bolivia.

Article 2. Responsible Management

The International Operations Management of the BCB is charged with the application of this Regulation, and must report to the Board of Directors on the status and registration of external public debt, on a semi-annual basis.

CHAPTER II

REGISTRATION OF EXTERNAL PUBLIC DEBT

Article 3. External Public Borrowing

The BCB will require the Ministry of Development Planning and/or the Ministry of Economy and Public Finance to officially send copies of Loan Contracts signed with External Creditors, approved by Law by the Plurinational Legislative Assembly of Bolivia, as well as the sending of Subsidiary Agreements signed with recipient entities, as applicable, within the framework of Supreme Decree No. 3364.

Article 4.- Registration of External Public Debt

I. The BCB, within the framework of current legal attributions, and having previously received the documentation established in Article 3 of this Regulation, will assign a control number and register it in the Debt Management and Analysis System (SIGADE).

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II. At the request of Public Debtor and/or Executive Entities, the BCB will issue a certificate of credit registration.

CHAPTER III

SERVICE OF EXTERNAL PUBLIC DEBT

Article 5. Information on External Creditors

I. The BCB will obtain debt balance statements and debt service billing letters through digital means enabled by External Creditors, for the verification of amounts to be paid for the following month.

II. For those External Creditors that do not have digital means enabled, the BCB will request via notes and/or institutional emails the sending of debt balance statements and debt service billing letters, for the verification of amounts to be paid for the following month.

Article 6. Notification to Debtors

I. On a monthly basis and with a minimum advance of 5 calendar days prior to the due date of obligations, the BCB will notify the payment of the external public debt service to debtor entities, through the Integrated External Debt Operations System (SIODEX), for the corresponding verification of amounts and respective authorization.

II. The BCB must notify monthly, with a minimum advance of 10 calendar days before their due date, to debtor entities that do not have access to SIODEX, the obligations for the payment of external public debt service, for the authorization of the allocation of their accounts.

Article 7. Payment of Debt Service

I. Once debtor entities are notified, they will authorize the allocation of their accounts and/or passbooks through SIODEX or with a written note to the BCB, so that, in its capacity as Financial Agent of the Government, it carries out the payment of the external public debt service.

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II. If debtor entities do not authorize the allocation of their accounts and/or passbooks through SIODEX or with a written note, and when stipulated in the corresponding Contracts and/or Agreements, the BCB will automatically debit from the debtor entity's accounts the funds necessary to fulfill the payment of the external public debt service.

III. When not contemplated in the provisions of the preceding paragraphs I and II, the BCB will communicate to the Ministry of Economy and Public Finance the lack of authorization by debtor entities and request the treatment to be followed.

Article 8. Report on Disbursement Information

The BCB will monthly request from the Ministry of Development Planning and International Financial Organizations information on direct disbursements received from External Creditors.

Article 9. Conformity Minutes and Reconciliation of Outstanding Balances and Disbursements

I. The BCB will semi-annually send to Debtor and/or Executive Entities a Conformity Minute with the detail of outstanding balances, disbursements, and balances to be disbursed; this sending will be carried out according to the schedule established by the GOI.

II. Debtor and/or Executive Entities, once they validate the information indicated in the preceding paragraph, must remit the conformity within the following 15 business days computable from its receipt.

III. In case of inconsistencies in the information of the Conformity Minute, by the debtor and/or executive entities, the BCB will proceed to reconcile the information sent regarding external credits with said entities, and reconciliation minutes must be signed.

Article 10. Commissions and Exchange Rate Variations

I. The BCB will charge the debtor the commissions established in the "Table of Commissions for Services of the Central Bank of Bolivia," approved annually.

II. Public debtor entities will assume the differential and variations in the exchange rate emerging from the operation of the external public debt service.

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CHAPTER IV

ACCOUNTING LIABILITIES WITH INTERNATIONAL ORGANIZATIONS

Article 11. Accounting Liabilities

The liabilities of Allocations and Deposits of International Organizations for accounting purposes for exposure in External Public Debt statistics will be the following:

a) Deposits made by International Organizations such as IBRD, IDB, IDA, FONPLATA, IMF, MIGA, or others that have accounts open at the BCB for financial, technical cooperation, small projects, and administrative requirements purposes, denominated as "Currencies and Deposits."

b) SDR Allocations made by the SDR Department of the IMF to the Plurinational State of Bolivia.

c) Allocations of the Regional Unitary Compensation System for Payments (SUCRE).

d) Allocations of Andean Pesos (FLAR).

Article 12. Other Accounting Liabilities

Other Allocations and Deposits that may be generated with International Organizations, which are not contemplated in subsections a), b), c), and d) of Article 11 of this Regulation, will be considered.

CHAPTER V

OFFICIAL STATISTICS OF EXTERNAL PUBLIC DEBT

Article 13. External Public Debt Statistics

I. The BCB will administer the SIGADE, generating in a timely manner the official statistical information of the external public debt of the Plurinational State of Bolivia.

II. Only information that has all the current legal backing of Article 3 of this Regulation will be part of the official external public debt statistics.

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Article 14. Statistical Registration of Accounting Liabilities with International Organizations

The statistics of the accounting liabilities indicated in Article 11 of this Regulation will be registered separately from the official external public debt statistics.

Article 15. Statistical Registration of Accounting Liabilities with International Organizations

I. Financial operations that imply the use of Allocations indicated in subsections b) and d) of Article 11 of this Regulation, which commit State revenues, to be considered as External Public Debt, must have the approval of the Plurinational Legislative Assembly in accordance with the Political Constitution of the State.

II. The Central Bank of Bolivia through the GOI will carry out the monitoring and control of liabilities generated with the International Organizations described in Article 11 of this Regulation.

Article 16. Status of External Public Debt

The BCB will send to the Ministry of Economy and Public Finance the status of external public debt and country borrowing ratios, based on information registered in the SIGADE, by the first 10 calendar days of the following month.

Article 17. Information Request

I. The BCB, at the request of a debtor or executive entity, as well as the sector-leading Ministry, will provide statistical information on the external public debt of said entity.

II. The BCB, at the request of the Regulatory Body in charge of the management of external agreements and financing, will remit statistical information on external public debt.

Article 18. Information on External Public Debt

The BCB will publish the official statistical information of External Public Debt on the official platform and in its Annual Report.