Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 060/2016

SUBJECT: FINANCIAL ENTITIES MANAGEMENT – MODIFICATION TO THE REGULATION ON THE DISPOSAL OF MOVABLE AND IMMOVABLE ASSETS TRANSFERRED AS PAYMENT IN KIND BY THE LIQUIDATED BANKS SUR S.A., COCHABAMBA S.A. AND BANCO INTERNACIONAL DE DESARROLLO S.A. AND OTHER ASSETS ADJUDICATED JUDICIALLY.

VIEWED:

• Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia.
• The Statute of the Central Bank of Bolivia of October 21, 2005.
• Supreme Decree No. 2068 of July 30, 2014.
• Board Resolution No. 146/2014 of October 21, 2014, which approves the Regulation on the Disposal of Movable and Immovable Assets Transferred as Payment in Kind by the Liquidated Banks Sur S.A., Cochabamba S.A. and Banco Internacional de Desarrollo S.A. and Other Assets Adjudicated Judicially.
• Supreme Decree No. 0181 of June 28, 2009 on the Basic Norms of the Goods and Services Administration System.
• Technical Report from the Financial Entities Management BCB-GEF-SRRA-DRLA-INF-2016-64 of March 31, 2016.
• Report from the Legal Affairs Management BCB-GAL-SAJU-DLCC1-INF-2016-46 of April 1, 2016.

CONSIDERING:

That Article 54, subsection o) of Law No. 1670, and Article 11, numeral 29) of the BCB Statute, provide that the Board of Directors has the authority to approve, modify, and interpret the Statute and its Regulations by a two-thirds majority of its total members, without the need for any additional administrative act.

That Supreme Decree No. 2068 of July 30, 2014, in its Article 2, establishes that the Liquidated Banks Sur S.A., Cochabamba S.A. and Internacional de Desarrollo S.A. will transfer to the Central Bank of Bolivia the assets registered in their respective General Balance Sheets, including the balances of the Write-off Portfolio and those assets that were not effectively delivered to the General Treasury of the Nation.

That the Regulation on the Disposal of Movable and Immovable Assets Transferred as Payment in Kind by the Liquidated Banks Sur S.A., Cochabamba S.A. and Banco Internacional de Desarrollo S.A. and Other Assets Adjudicated Judicially

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approved via B.R. No. 146/2014 of October 21, 2014, requires partial modification to clarify deadlines, guarantees, and the declaration of void disposal processes.

That Supreme Decree No. 0181 of June 28, 2009 on the Basic Norms of the Goods and Services Administration System establishes in its Article 61 a minimum deadline of 15 business days for the submission of proposals.

That the Report BCB-GEF-SRRA-DRLA-INF-2016-64 from the Financial Entities Management recommends the modification of Articles 15, 26, 36, 19, 21, and 22 of the Regulation on the Disposal of Movable and Immovable Assets Transferred as Payment in Kind by the Liquidated Banks Sur S.A., Cochabamba S.A. and Banco Internacional de Desarrollo S.A. and Other Assets Adjudicated Judicially.

That in the report BCB-GAL-SAJU-DLCC1-INF-2016-46, the Legal Affairs Management considers the modification proposal presented by the Financial Entities Management in Report BCB-GEF-SRRA-DRLA-INF-2016-64 to be legally appropriate, and states that it is the competence of the BCB Board of Directors to consider its approval by two-thirds of the votes of all its present members, in accordance with subsection o) of Article 54 of Law No. 1670 and numeral 29 of Article 11 of the Issuer's Statute, and recommends the approval of the modifications to the Regulation on the Disposal of Movable and Immovable Assets Transferred as Payment in Kind by the Liquidated Banks Sur S.A., Cochabamba S.A. and Banco Internacional de Desarrollo S.A. and Other Assets Adjudicated Judicially.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the modification of the Regulation on the Disposal of Movable and Immovable Assets Transferred as Payment in Kind by the Liquidated Banks Sur S.A., Cochabamba S.A. and Banco Internacional de Desarrollo S.A. and Other Assets Adjudicated Judicially, as follows:

IT STATES:

Article 15.- On Publication for Direct Sale.

The calls for proposals shall be published only once in the Official Gazette of Calls for Proposals and in a newspaper of national circulation, with an advance of (10) business days before the date set for the submission of proposals and technical-legal reports.

Article 19.- On the Criteria for the Adjudication of the Asset.

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The Committee will evaluate the proposals, considering the form of payment, guarantees, and the technical and legal reports. The reports must expose and justify:

a) The contribution to the purposes of the Plurinational State. b) The contribution to improving the quality of life and vivir bien (living well) of Bolivian women and men. c) The growth of the public entity. d) The use of the asset to be acquired. e) And others that the entity deems convenient to expose and justify.

The Committee, once the proposals have been evaluated, will suggest to the Board of Directors the adjudication of the real estate to the proponent who best responds to the objectives of the invitation or, failing that, the declaration of the call for proposals as void.

Article 21.- Form of Payment.

The winning entity must pay the amount corresponding to the adjudicated asset according to its submitted proposal.

In the event that the cancellation is made in a single payment, this must be made within 60 calendar days following the adjudication. Similarly, in the event that the cancellation involves partial payments, the first payment must be made within 60 calendar days from the adjudication.

Once the asset has been adjudicated by the Board of Directors, the Financial Entities Management will carry out the respective charge and the delivery of the asset in accordance with what is established in the Adjudication Resolution.

All transfer expenses are borne by the Institution that was awarded the asset.

In the event of non-payment or withdrawal by the winning public entity, the BCB Board of Directors may adjudicate the real estate to the public entity that obtained second place in the evaluation, or, failing that, declare the call for proposals void.

Article 22.- On the Declaration of Void Direct Sale.

In the absence of bidders, the commission will declare the call for direct sale void, and the Recovery and Asset Realization Committee of the Liquidated Banks will proceed with the disposal modality determined by the Board of Directors.

Article 26.- On Publication by Public Invitation.

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The calls for proposals shall be published at least once in the Official Gazette of Calls for Proposals and once in a newspaper of national circulation, with an advance of the last publication of at least ten (10) business days before the date set for the submission of proposals.

Article 36.- On Publications for Auction by Open Bid.

The calls for proposals shall be published at least once in the Official Gazette of Calls for Proposals and twice, with an interval of six days, in a newspaper of national circulation, with an advance of the last publication of at least ten (10) business days before the day and time of the auction act.

IT MUST STATE:

“Article 15.- On Publication for Direct Sale. The calls for proposals shall be published only once in the Official Gazette of Calls for Proposals and in a newspaper of national circulation, with an advance of fifteen (15) business days before the date set for the submission of proposals and technical-legal reports.”

“Article 19.- On the Criteria for Adjudication of the Asset. The Committee will evaluate the proposals, considering the form of payment, guarantees, and the technical and legal reports. The reports must expose and justify: a) The contribution to the purposes of the Plurinational State. b) The contribution to improving the quality of life and vivir bien (living well) of Bolivian women and men. c) The growth of the public entity. d) The use of the asset to be acquired. e) And others that the entity considers pertinent to expose and justify.

For the evaluation of proposals, the Committee will use a scoring system, whose criteria and weighting factors will be made known to the interested proponents.

The Committee, once the proposals have been evaluated, will suggest to the Board of Directors the adjudication of the real estate to the proponent who best responds to the objectives of the invitation or, failing that, the declaration of the call for proposals as void.”

Article 21.- Form of Payment and Signing of the Transfer Contract

The winning entity must pay the amount corresponding to the adjudicated asset according to its submitted proposal.

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In the event that the cancellation is made in a single payment, this must be made within 60 calendar days following the adjudication. Similarly, in the event that the cancellation involves partial payments, the first payment must be made within 60 calendar days from the adjudication.

Once the asset has been adjudicated by the Board of Directors, the Financial Entities Management will carry out the respective charge and the delivery of the asset in accordance with what is established in the Adjudication Resolution.

All transfer expenses are borne by the Institution that was awarded the asset.

Once the total price or the first installment for the adjudicated asset has been paid, the signing of the Transfer Contract will proceed, which must contain, in addition to the essential requirements of the contract, the guarantees to be granted by the adjudicatee.

In the event of non-payment or withdrawal by the winning public entity, the BCB Board of Directors may adjudicate the real estate to the public entity that obtained second place in the evaluation, or, failing that, declare the call for proposals void.”

“Article 22.- On the Declaration of Void Direct Sale. In the absence of proponents, non-payment of the first partial payment or the single payment, or withdrawal by the winning Entity, the Board of Directors may declare the call for direct sale void, and the Recovery and Asset Realization Committee of the Liquidated Banks will proceed with the disposal modality determined by the Board of Directors.”

“Article 26.- On Publication by Public Invitation. The calls for proposals shall be published at least once in the Official Gazette of Calls for Proposals and in a newspaper of national circulation, with an advance of the last publication of at least fifteen (15) business days before the date set for the submission of proposals.”

“Article 36.- On Publications for Auction by Open Bid. The calls for proposals shall be published at least once in the Official Gazette of Calls for Proposals and twice, with an interval of six days, in a newspaper of national circulation, with an advance of the last publication of at least fifteen (15) business days of the day and time of the auction act.”

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Article 2.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, April 5, 2016

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