Board Resolution No. 040/2014

BOARD RESOLUTION NO. 040/2014

SUBJECT: MONETARY OPERATIONS MANAGEMENT — APPROVES MODIFICATIONS TO THE APPENDIX OF THE REGULATION FOR THE APPROVAL OF CREDIT TO STRATEGIC NATIONAL PUBLIC ENTERPRISES (EPNE) WITHIN THE FRAMEWORK OF THE GENERAL STATE BUDGET — MANAGEMENT PERIODS 2010, 2011, 2012, 2013 AND 2014.

HAVING SEEN:

Law No. 1670 of the Central Bank of Bolivia (BCB) of October 31, 1995.
The Statute of the BCB, approved by Board Resolution No. 128/2005, of October 21, 2005, and its subsequent modifications.
Ministerial Resolution of the Ministry of Economy and Public Finance (MEFP) No. 023 of January 7, 2014.
Board Resolution (B.R.) of the BCB No. 023/11, modified by B.R. No. 026/11, No. 027/11, No. 030/11, No. 097/11, No. 039/12, No. 064/12, No. 024/13 and No. 008/14.
Board Resolution of the BCB No. 144/2013 of October 15, 2013.
Reports from the Monetary Operations Management CITE: BCB-GOM-SOSP-DCE-INF-2014-23 and 24 of April 28 and 29, 2014.
Reports from the Legal Affairs Management CITE: BCB-GAL-SANO-INF-2014-134 and 138 of April 28 and 29, 2014.

CONSIDERING:

That Ministerial Resolution of the MEFP No. 023 determines for the 2014 management period, a value of at least 20% as the degree of concessionality for EPNE that access extraordinary internal credits from the BCB.

That by Board Resolution of the BCB No. 023/2011, the Regulation for the Granting of Credit to EPNE within the framework of the General State Budget Management Periods 2010 and 2011 is approved.

That by Board Resolutions of the BCB No. 026/11, No. 027/11, No. 030/11, No. 097/11, No. 039/12, No. 064/12, No. 024/13 and No. 008/14, the Regulation for the Granting of Credit to EPNE is modified.

Dated February 22, March 02, March 18, March 22 and August 09, 2011, March 23, May 29, 2012, March 12, 2013 and January 28, 2014.

That by Board Resolution No. 144/2013, the Board of the BCB resolves to modify Article 7 (Financial Conditions) of the Regulation for the Granting of Credit to Strategic National Public Enterprises within the framework of the General State Budget — Management 2010, 2011, 2012 and 2013 and incorporates the Procedure to define the Discount Rate and the Degree of Concessionality in Credits to be granted to Strategic National Public Enterprises (EPNE).

That the Monetary Operations Management (GOM) through Report CITE: BCB-GOM-SOSP-DCE-INF-2014-23, states that it is necessary that in exceptional cases, the Board of the BCB can determine financial conditions different from those determined through the procedure established in the Appendix of B.R. No. 144/13. On the other hand, the current procedure does not allow establishing alternate scenarios where an interest rate is differentiated for credits with a grace period for principal or a grace period for principal and interest.

That in the aforementioned report, the GOM concludes that it is necessary to include in the Appendix of the Regulation for the Approval of Credit to EPNE within the framework of the General State Budget — Management Periods 2010, 2011, 2012, 2013 and 2014 a fourth point in Section 2 and a Section 3.

That the GOM through report CITE: BCB-GOM-SOSP-DCE-INF-2014-24, suggests including in the Appendix of the Regulation for the Approval of Credit to EPNE within the framework of the GBE — Management Periods 2010, 2011, 2012, 2013 and 2014, a fifth point in Section 2.

That the Legal Affairs Management (GAL) through report CITE: BCB-GAL-SANO-INF-2014-134 concludes that the proposed modification to the Appendix of the Regulation for the Granting of Credits to the EPNE does not contravene the legal framework regulating the granting of extraordinary credits to the EPNE.

That the GAL through report CITE: BCB-GAL-SANO-INF-2014-138 concludes that the inclusion of the fifth point in Section 2 of the Appendix of the Regulation for the Granting of Credits to the EPNE is legally appropriate as it does not contravene the legal framework regulating the granting of extraordinary credits to the EPNE.

That Article 11 numeral 29 of the Statute of the BCB, concordant with Article 54 clause o) of Law No. 1670, establishes that the Board has the authority to approve, modify and interpret the Statute and regulations by two-thirds of the votes of its members, without the need for any additional administrative act.

THEREFORE,

THE BOARD OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Add a fourth and fifth point in Section 2 of the Appendix of the Regulation for Approval of Credit to Strategic National Public Enterprises (EPNE) within the framework of the General State Budget — Management Periods 2010, 2011, 2012, 2013 and 2014 in the following terms:

"Section 2.- (Degree of Concessionality)

4. In the event that the EPNE requests a grace period for principal and interest when the company at the time of requesting the credit is not in the operational stage, the calculation of the interest rate will be carried out as follows:
   a. Calculate ire[ = i R N considering grace period only for principal. b. Keep constant the Degree of Concessionality resulting from the previous operation GC
   c. Take that GC to perform the calculation of the new interest rate i* considering grace period for principal and interest."

5. In the event that the interest rate presents a deviation of up to 25bp with respect to the highest historical interest rate observed in the same term of the requested credit, within the framework of the Degree of Concessionality established in the current Ministerial Resolution issued by the Ministry of Economy and Public Finance, the Board of the BCB may determine interest rates between the maximum and minimum indicated in the previous numerals."

Article 2.- The modification of the Appendix of the Regulation for the Approval of Credit to Strategic National Public Enterprises within the framework of the General State Budget — Management Periods 2010, 2011, 2012, 2013 and 2014, will enter into force from the date of approval of this Resolution.

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

La Paz, April 29, 2014

Rafael Boan Tellez
Alvar
Rodriguez Rojas Reynaldo Yujra Segales
Perez Alandia
Id Polo Rivero