Board Resolution No. 036/2026: Approval of Contingent Credit Line with the Latin American Reserve Fund

BOARD OF DIRECTORS BOARD RESOLUTION NO. 36/2026 SUBJECT: ECONOMIC POLICY ADVISORY AND INTERNATIONAL OPERATIONS MANAGEMENT - APPROVAL OF CONTINGENT CREDIT LINE WITH THE LATIN AMERICAN RESERVE FUND.

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. 1313 of July 10, 2020, for the Control and Oversight of Public Debt and Donations. Law No. 1503 of May 5, 2023, on the Purchase of Gold Intended for the Strengthening of International Reserves. The Basic Standards of the Public Credit System approved by Supreme Resolution No. 218041 of July 29, 1997. The Regulation for the Administration of International Reserves approved by Board Resolution 71/2023 of May 9, 2023, and its subsequent modifications. The Statute of the BCB approved by Board Resolution No. 95/2022 of October 6, 2022. Note BCB-APEC-SEXT-CE-2026-40 of March 24, 2026, from the BCB. Note PE-016, 2026 of March 27, 2026, from the Latin American Reserve Fund (FLAR). Act No. 04/26 of March 27, 2026, from the BCB's International Reserves Committee. Report BCB-GOI-SRES-DNI-INF-2026-16 of March 30, 2026, from the International Operations Management (GOI) and the Economic Policy Advisory (APEC).

BOARD 112. B.R. No. 36/2026

Report BCB-GAL-SANO-DLBCI-INF-2026-78 of March 30, 2026, from the Legal Affairs Management (GAL).

CONSIDERING:

That the Political Constitution of the State determines in its article 322 that the Plurinational Legislative Assembly will authorize the contracting of public debt when the capacity to generate income to cover capital and interest is demonstrated, and the most advantageous conditions in terms of rates, terms, amounts, and other circumstances are technically justified. Public debt will not include obligations that have not been expressly authorized and guaranteed by the Plurinational Legislative Assembly.

That the Constitutional Text in its articles 327 and 328 numeral 5 provides 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, being one of its attributions, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by law, to administer international reserves.

That Law No. 1670 establishes in its article 1 that the BCB is the sole monetary and exchange 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 this Law. In its articles 14, 16, and 18, it states that the BCB will ensure the strengthening of International Reserves so as to allow the normal functioning of Bolivia's international payments. It will administer and manage its International Reserves, being able to invest and deposit them in custody, as well as dispose of and pledge them, in the manner it considers most appropriate for the fulfillment of its object and functions and for their adequate safeguarding and security. It may also purchase exchange hedging instruments with the aim of reducing risks. In the case of gold reserves, these will also be governed by the specific Law. For the purpose of strengthening International Reserves and supporting the balance of payments, within the framework of its constitutional functions, the BCB is authorized to contract credits and resort to any other type of financing source with financial or non-financial entities, whether public or private, or with international organizations, without committing the resources of the General Treasury of the Nation, being able to constitute financial collateral with International Reserves.

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That said Law, in its article 44 and in paragraphs a) and q) of its article 54, determines that its highest authority is its Board of Directors, which has the attributions to issue norms and adopt general decisions that are necessary for the BCB to fulfill the functions, competencies, and faculties assigned to it by the Law and the others indicated by this Law and those that are necessary for the fulfillment of its functions. In paragraph e) of its article 59, it provides that the President has the attribution to exercise the legal representation of the BCB, without prejudice to its faculties of delegation according to the Law.

That Law No. 1313 in its article 2 determines that all external public debt, especially that emerging from the Coronavirus (COVID-19) pandemic, must have favorable financial conditions for the country, in terms of interest rates and terms, which must be authorized prior to analysis by the Plurinational Legislative Assembly, through Law, within the framework of article 322 of the Political Constitution of the State.

That Law No. 1503 in paragraphs I and II of its article 9 provides that the BCB will carry out operations in international markets with gold reserves, being able to buy, invest, deposit in custody, employ in hedging instruments, transform, and convert them into foreign currency, in order to optimize the liquidity and/or yield of International Reserves; being required to maintain a minimum of twenty-two (22) tons of gold reserves of the International Reserves, computable semi-annually from the approval of this Law.

That the Basic Standards of the Public Credit System in its article 40 establish that the credit operations of the BCB, with international financial institutions to guarantee monetary and exchange stability, will be carried out in accordance with article 18 of Law No. 1670.

That the Regulation for the Administration of International Reserves in its article 27 establishes that, for the purpose of strengthening International Reserves and Supporting the Balance of Payments, the BCB may contract credits and/or carry out financing operations with financial or non-financial entities, whether public or private, or with international organizations, being able to constitute deposits in custody, hedging instruments, as well as dispose of and pledge International Reserves. In its article 28, it determines that the approval of credits and/or financing operations linked to International Reserves must be submitted to the consideration of the International Reserves Committee, who will make its recommendations to the BCB Board of Directors for approval.

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That the Statute of the BCB in numerals 1) and 49) of its article 10 provide that the Board of Directors has the attributions 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 and other attributions that are necessary for the fulfillment of its functions. In numerals 4) and 13) of its article 34, it establishes that the President has the attributions to exercise the legal representation of the BCB without prejudice to its faculties of delegation and to sign the contracts and agreements that the Bank concludes, being able to expressly delegate this faculty.

That through note BCB-APEC-SEXT-CE-2026-40, the BCB presents to the FLAR a request for a Contingent Financing Line.

That through note PE-016, 2026, the Executive Presidency of the FLAR communicates the approval of the request for a contingent credit line, not committed for the BCB.

That through Act No. 04/26, it is accredited that the International Reserves Committee took note of the request for the FLAR's contingent financing line and indicated that it contemplates more advantageous conditions in rate, term, amount, and others, and recommended its presentation to the Board of Directors.

CONSIDERING:

That through report BCB-GOI-SRES-DNI-INF-2026-16, the GOI and APEC indicate that the FLAR's offer is favorable taking into account that this is a supranational organization that supports member central banks to address temporary imbalances, which will contribute to the anchoring of exchange rate expectations of agents in the macroeconomic stabilization process, and that the request for the non-committed Contingent Financing Line is considered the best option to address temporary liquidity needs, as it combines flexibility, rapid access, and more favorable conditions compared to alternative liquidity credit and balance of payments support options.

That also in the cited report, it is indicated that, comparing the financing options offered by the FLAR, the contingent financing line contemplates a greater volume of resources with lower financial costs and an agile approval structure, positioning itself as the most technically adequate tool to strengthen the BCB's liquid reserves without incurring the rigidities of a structural credit. Additionally, after the signing of the contract, it is not registered as external debt until the resources are requested, concluding that the non-committed contingent financing line with the FLAR presents more advantageous conditions, therefore recommending to the Board of Directors the signing of the "Financing Agreement celebrated between the Latin American Reserve Fund and the Central Bank of Bolivia" by the President of the BCB.

That through report BCB-GAL-SANO-DLBCI-INF-2023-78, the GAL indicates that the BCB, by constitutional mandate and Law No. 1670, administers international reserves and is authorized to contract credit with international organizations for the purpose of strengthening International Reserves and supporting the balance of payments; concluding that the contracting of a contingent credit line with the FLAR is legally viable as it does not violate the current legal framework, therefore, it corresponds to the BCB Board of Directors to consider its approval in accordance with what is established in article 54 paragraphs a) and q) of Law No. 1670 and article 10 numerals 1) and 49) of the BCB Statute, and consequently, authorize the Bank's President to sign the "Financing Agreement celebrated between the Latin American Reserve Fund and the Central Bank of Bolivia" within the framework of article 59 paragraph e) of Law No. 1670 and numerals 4) and 13) of article 34 of the BCB Statute; establishing that the validity, execution, and legal and financial effects thereof will be conditioned to the express approval of the Plurinational Legislative Assembly in accordance with the applicable regulation in matters of external public debt and collateralization of gold reserves.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the contracting of the non-committed contingent financing line of the Latin American Reserve Fund (FLAR) subject to the following conditions:

Characteristics Description Amount USD 657.0 million, which corresponds to approximately 2.1 times Bolivia's paid-in capital (USD 313.3 million) Currency US Dollars Collateral Gold deposit, with a minimum purity of 0.995 certified, to an account of the FLAR called "Viable Gold Account". The amount of collateral is calculated using a ratio of 1.45 (No margin calls). Maturity 6 months

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BOARD Renewal Renewable once for up to six (6) additional months. Rate SOFR Overnight Compounded Rate and a fixed margin established by the FLAR between 100 bp and 200 bp. Capital Repayment On the maturity date of the disbursement. Interest Payment Quarterly Availability Period Six (6) months, extendable for two additional periods of up to six (6) months each. Disbursement Conditions Evaluated by the FLAR considering fund availability, credit risk, and legal conditions established in the credit agreement. Availability Commission There is no availability commission. Prepayment In case of prepayment, the BCB assumes prepayment costs for the settlement of related operations

Article 2.- Authorize the President of the Central Bank of Bolivia to sign the Financing Agreement celebrated between the Latin American Reserve Fund and the Central Bank of Bolivia.

Article 3.- Instruct the Administration of the Central Bank of Bolivia that once the Financing Agreement with the FLAR is signed, to manage its submission for consideration and approval by the Plurinational Legislative Assembly in compliance with what is established in numeral 3 of paragraph I of article 158 and article 322 of the Political Constitution of the State, within the framework of current regulations and through the competent instances.

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

La Paz, March 31, 2026

David Iván Espinoza Torrico PRESIDENT a.i.

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Claudia Haydee Pacheco Ayala DIRECTOR a.i. Dennise Sussan Martín Alarcón DIRECTOR a.i. Walter Fernando Oreilana Rocha DIRECTOR a.i. Alvaro Alfonso Romero Villavicencio DIRECTOR a.i.