Board Resolution No. 026/2014

BOARD RESOLUTION NO. 026/2014

SUBJECT: MONETARY OPERATIONS MANAGEMENT — APPROVES APPLICATION FOR CONCESSIONAL EXTRAORDINARY CREDIT OF Bs1,740,000,000 IN FAVOR OF THE MINISTRY OF ECONOMY AND PUBLIC FINANCE (MEFP) FOR THE FINANCING OF THE RAILWAY TRANSPORT SYSTEM ON THE MONTERO — BULO BULO SECTION.

HAVING SEEN:

The Political Constitution of the State promulgated on February 7, 2009.

Law No. 1670 of the Central Bank of Bolivia (BCB) of October 31, 1995.

Law No. 317 on the General State Budget (PGE) — 2013 of December 11, 2012.

Law No. 396 modifying the General State Budget (PGE) — 2013 of August 26, 2013.

Ministerial Resolution No. 040 of January 16, 2014.

The Specific Regulation for the Granting of Credit to the MEFP for the project: Construction of the Railway Transport System on the Montero — Bulo Bulo Section, approved via Board Resolution No. 041/2013 of April 23, 2013, modified via Board Resolutions No. 130/2013, No. 151/2013, and No. 165/2013 of September 17, October 29, and November 26, 2013, respectively.

The notes MEFP/NTCP/DGCP/UEPS-437, 1221, 1294, and 1899 received on April 11, September 11, October 23, and December 27, 2013, respectively; and 117/2014 of January 29, 2014 from the MEFP.

The Report from the Monetary Operations Management BCB-GOM-SOSP-DCE-INF-2014-9 of January 30, 2014.

The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2014-31 of February 6, 2014.

Act No. 009/2014 of the Board session of February 11, 2014, which in point 5 authorizes the conditions for the credit to be granted to the MEFP.

The note MEFP/NTCP/DGCP/UEPS-231/2014-1103 of March 21, 2014, through which the MEFP accepts the financial conditions approved by the BCB Board for the granting of the credit for the construction of the Railway Transport System on the Montero — Bulo Bulo section.

CONSIDERING:

That the Political Constitution of the State in numeral 10 of paragraph I of article 158 and of article 322 establishes that the Plurinational Legislative Assembly has the attribute to approve and guarantee the contracting of public debt.

That Law No. 317 in its Article 26 authorizes the Ministry of Economy and Public Finance (MEFP), through the General Treasury of the Nation (TGN), to contract a credit with the Central Bank of Bolivia (BCB), for an amount of up to Bs1,044,000,000 (One Thousand Forty Million 00/100 Bolivianos) to finance the construction of the Railway Transport System on the Montero — Bulo Bulo section; for this effect, the BCB is exempted from the application of Articles 22 and 23 of Law No. 1670 of October 31, 1995.

That Law No. 396 in its article 8 modifies article 26 of Law No. 317, authorizing the MEFP, through the TGN, to issue and grant Non-Negotiable Treasury Bonds in favor of the BCB to guarantee the credit. It also authorizes the BCB to increase the extraordinary credit by an amount of up to Bs696,000,000 (Six Hundred Ninety-Six Million 00/100 Bolivianos), making a total amount of Bs1,740,000,000 (One Thousand Seven Hundred Forty Million 00/100 Bolivianos), to finance the construction of the Railway Transport System on the Montero — Bulo Bulo section.

That Ministerial Resolution No. 040 establishes the degree of concessionality of at least twenty-five percent (25%) for the credit authorized by Article 26 of Law No. 317, expanded by Article 8 of Law No. 396, in force by virtue of subsections j) and k), Final Provision Second of Law No. 455, intended to finance the construction of the Railway Transport System on the Montero — Bulo Bulo section.

That the Specific Regulation for the Granting of Credit provided in Law No. 317, in its articles 1 and 2, regulates the granting of the credit and establishes the documentation that must be issued for the consideration of the respective credit application.

That, via note MEFP/NTCP/DGCP/UEPS-437/2013, the Undersecretariat of Treasury and Public Credit requests initiating the corresponding actions for the subscription of the credit contract to finance the construction of the Railway Transport System on the Montero — Bulo Bulo section. Via note MEFP/NTCP/DGCP/UEPS-1221/2013, it informs that Law No. 396 adds Bs696,000,000 to the original amount, making a total of Bs1,740,000,000, and reiterates the content of note MEFP/NTCP/DGCP/UEPS-437/2013. Via note MEFP/NTCP/DGCP/UEPS-1294/2013, the MEFP presents its observations on the Specific Regulation and proposes financial conditions for the credit. Via note MEFP/NTCP/DGCP/UEPS-1899/2013, it attaches the disbursement schedule and the proposed payment plan. Likewise, via note MEFP/NTCP/DGCP/UEPS-117/2014, it attaches a legalized copy of the Ministerial Resolution (R.M.) No. 040/14 of January 16, 2014, which ratifies the degree of concessionality for the credit for the construction of the Railway Transport System on the Montero — Bulo Bulo section, established via R.M. No. 302/13 of May 24, 2013.

That the Monetary Operations Management indicates in its report CITE: BCB-GOM-SOSP-DCE-INF-2014-9 the financial conditions for the credit to be granted to the MEFP.

That the Legal Affairs Management in its report CITE: BCB-GAL-SANO-INF-2014-31 concludes that the request made by the MEFP falls within what is provided for by current regulations and has complied with the presentation of the documents required in the Specific Regulation for the granting of Credit provided in Law No. 317.

That, via point 5 of Act No. 009/2014, the BCB Board approves the financial conditions for the granting of the credit for the construction of the Railway Transport System on the Montero — Bulo Bulo section.

That, via note CITE: MEFP/VTCP/DGCP/UEPS-231/2014-1103, the MEFP communicates that the financial conditions approved by the BCB Board are in concordance with Ministerial Resolution No. 040 and requests proceeding with the corresponding procedures for the subscription of the corresponding credit contract.

That, by virtue of what is provided in article 44 of Law No. 1670, the BCB Board is the competent instance to authorize the granting of the extraordinary credit in favor of the MEFP, in order to comply with what is expressly provided in Laws No. 317 and No. 396.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve, within the framework of what is provided in Article 26 of Law No. 317 of December 11, 2012 (PGE — 2013) and Article 8 of Law No. 396 of August 26, 2013, the application for an extraordinary concessional credit in favor of the MEFP through the General Treasury of the Nation, to finance the construction of the Railway Transport System on the Montero — Bulo Bulo section, under the following conditions:

Currency: Bolivianos.
Total Credit Amount: Bs1,740,000,000 (One thousand seven hundred forty million 00/100 Bolivianos).
Term: 30 years.
Grace Period: No grace period.
Annual Interest Rate: 0.30% (zero point thirty percent) (Base 30/360*) Deadline for disbursements: Until June 30, 2016.

Payment Plan: Fixed annual installments.
Guarantees: Non-Negotiable Treasury Bonds.

• Base 30/360: represents the total number of days elapsed between one date and another for the computation of interest, assuming 12 months of 30 days each, totaling 360 days.

Article 2.- Authorize the President of the BCB to subscribe to the credit contract, in accordance with the approved conditions and terms.

Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

Rolando Marin Afiez
Alvan Rodriguez Rojas
Perez Alandia
Reynaldo Yujra Segales

La Paz, March 25, 2014