Board Resolution No. 041/2013 Approving the Specific Regulation for the Credit Granted Under Law No. 317

BOARD RESOLUTION NO. 041/2013
SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES THE SPECIFIC REGULATION FOR THE GRANTING OF THE CREDIT PROVIDED FOR IN LAW NO. 317.

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 of December 11, 2013, which approves the General State Budget for the 2013 management period (PGE-2013).
The note from the Undersecretariat of Treasury and Public Credit, dependent on the Ministry of Economy and Public Finance (MEFP/VTCP/DGAFT/UEPS/N°437/2013), received on April 11, 2013. The Report from the Monetary Operations Management BCB-GOM-SOSP-INF-2013-1 of April 19, 2013. The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2013-125 of April 22, 2013.

CONSIDERING:
That the Political Constitution of the State (CPE), in Article 158, paragraph I, numeral 10, establishes that the Plurinational Legislative Assembly has the attribute to approve the contracting of loans that commit the general revenues of the State.

That Article 322 of the Political Constitution of the State provides that the Plurinational Legislative Assembly will authorize the contracting of public debt when it is demonstrated that there is the capacity to generate income to cover the principal and interest, 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 Articles 22 and 23 of Law No. 1670 determine that the BCB cannot grant credits to the Public Sector or incur contingent liabilities in its favor, except in favor of the General Treasury (TGN) to attend to urgent needs derived from declared public calamities, internal or international commotion by Supreme Decree, and to attend to temporary liquidity needs, within the limits of the monetary program; these operations will be documented in all cases through negotiable public debt securities issued by the National Treasury.

That paragraph I of Article 26 of Law No. 317, within the framework of Articles 158 and 322 of the Political Constitution of the State, authorizes the Ministry of Economy and Public Finance, through the General Treasury of the Nation, to contract a credit with the BCB in national currency for an amount of up to Bs 1,044,000,000.- (One billion forty-four million 00/100 Bolivianos) to finance the construction of the Railway Transport System in the Montero – Bulo Bulo section.

That paragraph II of Article 26 of Law No. 317 authorizes the Central Bank of Bolivia to grant to the Ministry of Economy and Public Finance, through the General Treasury of the Nation, an extraordinary credit under concessional conditions, for which the application of Articles 22 and 23 of Law No. 1670 of October 31, 1995, is exempted from the BCB.

That the note MEFP/VTCP/DGCP/UEPS-437/2013 from the Undersecretariat of Treasury and Public Credit, dependent on the Ministry of Economy and Public Finance, refers to the credit request authorized by Law 317 (PGE-2013).

That the Report from the Monetary Operations Management BCB-GOM-SOSP-INF-203-1 recommends that for the granting of the credit to the Ministry of Economy and Public Finance mentioned in Law 317, a specific regulation be available for this purpose.

That the Report from the Legal Affairs Management BCB-GAL-SANO-INF-2013-125 states that the Specific Regulation for the Concession of Credit to the MEFP for the construction of the Railway Transport System in the Montero – Bulo Bulo section provided for in Article 26 of Law No. 317 is legally appropriate since it does not contravene the current legal framework, being the competence of the BCB Board to consider its approval by two-thirds of the votes of all its members, in accordance with what is established in subsections a) and o) of Article 54 of Law No. 1670 and Article 24 of the Institution's Statute.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Approve the Specific Regulation for the Concession of the Credit provided for in Law No. 317, which forms an integral part of this Resolution as an annex.

Article 2.- This Regulation shall enter into force from its approval.

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

La Paz, April 23, 2013

---

Marcelo Zabalaga Estrada

_________________________ _________________________ Abraham Pérez Alandia Hugo Dorado Araníbar

_________________________ _________________________ Rafael Boyán Téllez Rolando Marín Ibáñez

//4. R.D. No. 041/2013

ANNEX
SPECIFIC REGULATION FOR THE
CONCESSION OF CREDIT TO THE MEFP PROJECT: CONSTRUCTION OF THE RAILWAY TRANSPORT SYSTEM IN THE MONTERO-BULO BULO SECTION

CHAPTER I
PRELIMINARY PROVISIONS

Article 1.- (Object)
The purpose of this Regulation is to govern the granting of the credit provided for in Law No. 317, Article 26, for the "Construction of the Railway Transport System in the Montero – Bulo Bulo Section," by the Central Bank of Bolivia (BCB) in favor of the Ministry of Economy and Public Finance (MEFP).

CHAPTER II
CREDIT APPLICATION

Article 2.- (Credit Application)
To grant the credit, the MEFP must submit the following documentation:
1) A written request addressed to the President of the BCB and signed by the Minister of Economy and Public Finance, which must contain:
a) The requested amount, b) Proposal for term and method of payment of principal and interest, c) Proposal for disbursement schedule and payment plan, d) Guarantees offered.
2) Legalized Presidential Decree appointing the Minister of Economy and Public Finance.
3) Specific Ministerial Resolution determining the Concessional nature of this credit.

Article 3.- (Acceptable Guarantees)
Guarantees may be constituted by Non-negotiable Treasury Bonds in favor of the BCB or by the authorization of unconditional and irrevocable automatic debit from MEFP accounts at the BCB.

Article 4.- (Reports for Approval)
Upon receipt of the application and documentation established in Article 2, prior to Board consideration, the President of the BCB will request the following reports:
a) Technical report on financial conditions to the Monetary Operations Management (GOM). b) Legal report from the Legal Affairs Management (GAL), regarding compliance with regulations and presentation of documentation required for the granting of the credit. c) Other reports as required.

Article 5.- (Approval of Credit Application)
The BCB Board will consider the technical, legal, and other reports and, if applicable, approve the credit by a favorable vote of two-thirds of its members present at the Board meeting, issuing the corresponding Resolution. Likewise, it will instruct the preparation and subsequent signing of the contract by the President of the BCB, prior to review and approval by the Board.

CHAPTER III
CREDIT CONTRACT

Article 6.- (Financial Conditions)
The financial conditions of the credit will be established and determined by the BCB Board, taking into account the MEFP's request and the degree of concessional nature established by the MEFP through Ministerial Resolution.

Article 7.- (Contract)
The credit conditions approved by the BCB Board will be recorded in the contract to be signed in a public document before the Notary of the Governorship.
The protocolization procedures for the Contract will be carried out by the BCB, and the expenses incurred by these procedures will be covered by the MEFP.

Article 8.- (Use, Evaluation, and Monitoring)
The use, evaluation, and monitoring of the credit resources granted are the exclusive responsibility of the Ministry of Public Works, Services, and Housing (MOPSV), as stated in Law No. 317, Article 26, paragraph IV.

The MOPSV must send a copy of the submission note of the evaluation and monitoring reports to the BCB on a semi-annual basis.

Article 9.- (Conditions for Disbursements)
Disbursements of the public credit resources granted will be made only when there is:
a) The BCB Board Resolution approving the granting of the Credit and the Public Credit Contract. b) A specific account enabled at the BCB in Bolivianos or a Specific Ledger in the Single Treasury Account (CUT) in Bolivianos. c) In case the MEFP makes modifications to the disbursement schedule, it must communicate the same to the BCB.

Article 10.- (Registration and Accreditation of Credit Resources)
The Ministry of Public Works, Services, and Housing is responsible for the registration and accreditation of the credit resources to be granted by the BCB in favor of the MEFP. -0-