BOARD OF DIRECTORS

BOARD RESOLUTION NO. 068/2024

SUBJECT: ECONOMIC POLICY ADVISORY AND FINANCIAL ENTITIES MANAGEMENT – MODIFY THE REGULATION ON LIQUIDITY CREDITS TO THE BANCO DE DESARROLLO PRODUCTIVO SOCIEDAD ANÓNIMA MIXTA.

VISTOS:

• The Political Constitution of the State (CPE) of February 7, 2009.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
• Law No. 393 of August 21, 2013, on Financial Services and its modifications.
• Supreme Decree No. 4442 of January 6, 2021.
• Board Resolution No. 095/2022 of October 6, 2022, which approves the Statute of the Central Bank of Bolivia.
• Board Resolution No. 007/2021 of January 11, 2021, which approves the Regulation on Liquidity Credits to the Banco de Desarrollo Productivo Sociedad Anónima Mixta and its modifications.
• Report BCB-GEF-SASF-DAN-INF-2024-19 of May 29, 2024, issued by the Economic Policy Advisory (APEC) and the Financial Entities Management (GEF).
• Report BCB-GAL-SANO-DLBCI-INF-2024-192 of June 3, 2024, issued by the Legal Affairs Management (GAL).

CONSIDERING:

That Article 327 of the Political Constitution of the State establishes that the BCB is a public law institution, with legal personality and its own assets.

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That Article 328 of the aforementioned constitutional text provides, among the attributions of the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by Law: to determine and execute monetary policy, execute exchange rate policy, regulate the payment system, authorize the issuance of currency, and administer international reserves.

That Article 1 of Law No. 1670, modified by Article 64, section A3, numeral 1) of Law No. 1864 of June 15, 1998, on Property and Popular Credit, establishes that the BCB is a State institution, of public law, of an autarkic nature, of indefinite duration, with legal personality and its own assets and with legal domicile in the city of La Paz. It is the sole monetary and exchange rate authority of the country, with administrative, technical, and financial competence and specialized regulatory powers of general application.

That Article 36 of Law No. 1670 provides that, to meet liquidity needs in duly justified and qualified cases by its Board of Directors, by an absolute majority of votes, the BCB may grant banks and financial intermediation entities credits for terms of ninety days, renewable. The credit limits and their guarantees shall be established by the BCB Board of Directors, by absolute majority. To consider applications for these credits, the BCB will conduct non-binding consultations with the Superintendency of Banks and Financial Entities (currently the Financial System Supervision Authority).

That Articles 44 and subsections a), o), and q) of Article 54 of Law No. 1670 establish that the BCB Board of Directors is its highest authority responsible for defining its policies, specialized regulations of general application, and internal rules, with attributions, among others, to issue rules and adopt general decisions that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law, to approve, modify, and interpret the Statute and its Regulations by two-thirds of the votes of all its members, without the need for any additional administrative act, and those that are necessary for the fulfillment of its functions.

That subsection a) of Article 179 of Law No. 393 determines, among the functions of the Banco de Desarrollo Productivo Sociedad Anónima Mixta (BDP-S.A.M.), framed within its

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first and second-tier activities, to provide financial and non-financial services to the different actors of the plural economy by itself or through third parties.

That Law No. 393 on Financial Services, in its Article 430, states that the BCB may grant liquidity credits to financial intermediation entities with the guarantee of the legal reserve constituted, as well as others determined by the Issuing Entity, according to a regulation approved by its Board of Directors.

That Supreme Decree No. 4442 aims to allow access to liquidity resources, through the Banco de Desarrollo Productivo – Sociedad Anónima Mixta (BDP – S.A.M.), to Development Financial Institutions - IFD and Savings and Credit Cooperatives - CAC with a license granted by the Financial System Supervision Authority – ASFI.

That numerales 1), 9), and 30) of Article 10 of the BCB Statute establish that the Board of Directors of the Issuing Entity has the attributions to approve general decisions and issue rules that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law, as well as to approve, by absolute majority of votes, liquidity credits for terms of up to 90 days, renewable, to financial intermediation entities, and to approve modifications to its Regulations.

That Article 26 of the BCB Statute establishes that the Board of Directors rules on matters within its competence through Resolutions or decisions that shall be expressly recorded in the Minutes. Every draft Board Resolution must be motivated and justified by a technical report from the Management or Managements to whom the matter subject to the Resolution corresponds, and by a report from the Legal Affairs Management. These reports must be sent to the Board of Directors by the General Management with its recommendation.

That Article 5 of the Regulation on Liquidity Credits to the Banco de Desarrollo Productivo Sociedad Anónima Mixta establishes that the term for liquidity credits shall be up to 90 (ninety) calendar days, which may be renewed for similar terms up to a maximum of thirteen times each, with the cancellation of interest required for each renewal.

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That the operations included in the Regulation on Liquidity Credits to the Banco de Desarrollo Productivo Sociedad Anónima Mixta comply with what is established in Supreme Decree No. 4442, whose main objective is to allow access to liquidity resources to be granted by the Banco de Desarrollo Productivo – Sociedad Anónima Mixta to IFDs and CACs, with a license, which corresponds to the modification of the aforementioned regulation in the cited Article.

That Report BCB-GEF-SASF-DAN-INF-2024-19, the GEF and APEC recommend to the Board of Directors to approve the modification of Article 5 (Term) of the Regulation on Liquidity Credits to the Banco de Desarrollo Productivo S.A.M., increasing from 13 to 17 times the number of periods allowed for the renewal of operations with this entity and authorizing the President of the BCB to sign the Modifying Contract to the Contract signed with BDP S.A.M.

That Report BCB-GAL-SANO-DLBCI-INF-2024-192 from the GAL concludes that from the review of Report BCB-GEF-SASF-DAN-INF-2024-19 and considering the aforementioned regulations, the proposal to modify Article 5 (Term) of the Regulation on Liquidity Credits to the Banco de Desarrollo Productivo Sociedad Anónima Mixta aims to apply actions to help dynamize the credits of IFDs and CACs, which will also imply the signing of a Modifying Contract to Contract SANO-DLBCI No. 1/2021 of January 12, 2021, and is legally viable, as it does not contravene the legal order; therefore, it recommends to the BCB Board of Directors its approval, as well as the authorization to the BCB President to sign the Modifying Contract to Contract SANO-DLBCI No. 1/2021 of January 12, 2021 regarding the renewal of the term of the liquidity credit and its validity.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Modify Article 5 (Term) of the Regulation on Liquidity Credits to the Banco de Desarrollo Productivo Sociedad Anónima Mixta, approved by

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Board Resolution No. 007/2021 of January 11, 2021, and its modifications, with the following text:

“Article 5. (Term).

The term for liquidity credits shall be up to 90 (ninety) calendar days, which may be renewed for similar terms up to a maximum of 17 (seventeen) times each, with the cancellation of interest required for each renewal.”**

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

Article 3.- The Acting President of the BCB is authorized to sign the Modifying Contract with the Banco de Desarrollo Productivo Sociedad Anónima Mixta.

Article 4.- The Presidency and the General Management are charged with the compliance of this Resolution.

La Paz, June 4, 2024

SIGNED. ROGER EDWIN ROJAS ULO, Oscar Ferrufino Morro, Gabriel Herbas Camacho, Gumercindo Héctor Pino Guzmán, Diego Alejandro Pérez Cueto Eulert.