Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 059/2016

SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES MODIFICATIONS TO THE SPECIFIC REGULATION FOR THE GRANTING OF CREDIT PROVIDED FOR IN LAW NO. 317

VISTOS:

• 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 – Management 2013 (PGE-2013) of December 11, 2012.
• Law No. 396 on Modifications to the General State Budget – Management 2013 (PGE-2013) of August 26, 2013.
• Ministerial Resolution (R.M.) of the Ministry of Economy and Public Finance (MEFP) No. 040 of January 16, 2014.
• Board Resolution (R.D.) of the BCB No. 041/2013 of April 23, 2013, which approves the Specific Regulation for the granting of credit provided for in Law No. 317, modified by Board Resolutions No. 130/2013, No. 151/2013, and No. 165/2013 of September 17, October 29, and November 26, 2013, respectively.
• The note from the Ministry of Economy and Public Finance (MEFP) CITE: MEFP/VTCP/DGCP/UEPS-606/2016 of March 24, 2016.
• The Report from the Monetary Operations Management (GOM) CITE: BCB-GOM-SOSP-DCE-INF-2016-15 of March 31, 2016.
• The report from the Legal Affairs Management (GAL) CITE: BCB-GAL-SANO-DLBCI-INF-2016-73 of April 1, 2016.

CONSIDERING:

That the Political Constitution of the State (CPE), promulgated on February 7, 2009, in item 6 of its Article 9, establishes that it is the goal and function of the State to promote and guarantee the responsible and planned use of natural resources, and to boost their industrialization, through development and strengthening of the productive base in its different dimensions and levels. Likewise, in paragraph I item 10 of Article 158 and in Article 322, it is established that the Plurinational Legislative Assembly has the attribute to approve the contracting of public debt.

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That Article 322 of the CPE provides that the Plurinational Legislative Assembly will authorize the contracting of public debt when the capacity to generate income to cover the principal 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 Law No. 317, in its Article 26, authorizes the BCB to grant to the MEFP, through the General Treasury of the Nation (TGN), an extraordinary credit in national currency on concessional terms, to finance the construction of the Railway Transport System in the Montero – Bulo Bulo section. Likewise, it exempts the BCB 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 Paragraphs III and IV of Article 26 of Law No. 317, regarding the granting of Non-Negotiable Treasury Bonds in favor of the BCB to guarantee the credit and that the Ministry of Public Works, Services, and Housing is responsible for the use and destination of the resources. Likewise, it incorporates Paragraphs V and VI regarding the expansion of the credit amount by Bs696 million, making a total amount of Bs1.740 million, and that the credit contract will be exempt from notarization fees and other expenses required for its formalization.

That R.M. No. 040 of the MEFP determines a degree of concessionality of at least twenty-five percent (25%), for the Project Construction of the Railway Transport System in the Montero – Bulo Bulo section.

That BCB R.D. No. 041/2013 approves the Specific Regulation for the Granting of Credit provided for in Law No. 317.

That BCB R.D.s No. 130/2013, No. 151/2013, and No. 165/2013 modify the Specific Regulation for the Granting of Credit provided for in Law No. 317.

That the MEFP, through note CITE: MEFP/VTCP/DGCP/UEPS-606/2016, requests the BCB to carry out the corresponding procedures to modify the disbursement deadline of Contract SANO No. 147/2014, until December 31, 2018, and sends for this effect, the corresponding Addendum project.

That the Monetary Operations Management recommends in its report CITE: BCB-GOM-SOSP-DCE-INF-2016-15, incorporating into the Specific Regulation for the Granting of Credit provided for in Law No. 317, an Article that allows the modification of the Contract for the Construction of the Railway Transport System in the Montero – Bulo Bulo section.

That the Legal Affairs Management concludes in its report CITE: BCB-GAL-SANO-DLBCI-INF-2016-73, that the modification of the Specific Regulation for the Granting of Credit provided for in Law No. 317, as proposed by the GOM is legally

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procedent, being the competence of the Board of Directors of the BCB to consider its approval by two-thirds of the votes of all its members, in accordance with what is established in Article 54 item o) of Law No. 1670 and Article 24 of the Statute.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify the Specific Regulation for the granting of credit provided for in Law No. 317, adding an Article with the following wording:

“Article 11.- (Modification of the Contract)

For the consideration and approval of the modification of the Credit Contract, the MEFP must submit the following documentation:

1. Written request addressed to the President of the BCB, signed by the Minister of Economy and Public Finance of the MEFP.
2. New Payment Plan and Disbursement Schedule.
3. Legalized Presidential Decree appointing the Minister of Economy and Public Finance.”

Article 2.- The modification of the Specific Regulation for the granting of credit provided for in Law No. 317, will enter into force from the date of approval of this Resolution.

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

La Paz, April 5, 2016

Marcelo Zabalaga Estrada

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Sergio Velarde Vera
Ronald Polo Rivero
Abraham Pérez Alandia
Reynaldo Yujra Segales