BOARD OF DIRECTORS

BOARD RESOLUTION NO. 070/2024

SUBJECT: MONETARY OPERATIONS MANAGEMENT - MODIFY THE FINANCIAL CONDITIONS OF THE EXTRAORDINARY CREDITS GRANTED VIA: CONTRACTS SANO 178/2011, 179/2011, 33/2014, 169/2015 AND 6/2022 TO THE NATIONAL PUBLIC STRATEGIC COMPANY FOR BOLIVIAN LITHIUM DEPOSITS.

VIEWED:

The Political Constitution of the State, of February 7, 2009.
Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
The General State Budget Law for the 2010 Management Period.
Law No. 211 of December 23, 2011, of the General State Budget (PGE - 2012).
Law No. 396, of August 26, 2013, of modifications to the General State Budget (PGE - 2013).
Law No. 928 of April 27, 2017, of the National Public Strategic Company for Bolivian Lithium Deposits – YLB.
Law No. 1356 of December 28, 2020, of the General State Budget for the 2021 Management Period.
The Regulation for the approval of Credits to National Public Strategic Companies within the framework of the General State Budget - Management Periods 2010, 2011, 2012, 2013, 2014 and 2015, approved by Board Resolution No. 023/2011 of February 22, 2011 and its modifications.

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The Regulation of the Central Bank of Bolivia for the approval of Credits to National Public Strategic Companies within the framework of the General State Budget Laws, approved by Board Resolution No. 019/2016 of February 2, 2016.
Board Resolution No. 052/2011 of May 13, 2011.
Board Resolution No. 053/2011 of May 13, 2011.
Board Resolution No. 007/2014 of January 14, 2014.
Board Resolution No. 069/2015 of May 5, 2015.
Board Resolution No. 011/2022 of January 18, 2022.
Contracts SANO No. 178/2011 of May 13, 2011, SANO No. 179/2011 of May 13, 2011, SANO No. 33/2014 of February 26, 2014, SANO No. 169/2015 of May 18, 2015 and SANO - DLBCI No. 6/2022 of February 9, 2022 and their modifications.
The Statute of the BCB, approved by Board Resolution No. 095/2022 of October 6, 2022.
Ministerial Resolution No. 063-2024 of May 31, 2024, of the Ministry of Hydrocarbons and Energies.
Ministerial Resolution No. 064-2024 of May 31, 2024, of the Ministry of Hydrocarbons and Energies.
Ministerial Resolution No. 065-2024 of May 31, 2024, of the Ministry of Hydrocarbons and Energies.
Ministerial Resolution No. 066-2024 of May 31, 2024, of the Ministry of Hydrocarbons and Energies.
Ministerial Resolution No. 067-2024 of May 31, 2024, of the Ministry of Hydrocarbons and Energies.

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The note with Reference MHE – DGAA/2024-0236 dated May 31, 2024, issued by the Minister of Hydrocarbons and Energies.
The note with Reference MHE – DGAA/2024-0237 dated May 31, 2024, issued by the Minister of Hydrocarbons and Energies.
The note with Reference MHE – DGAA/2024-0238 dated May 31, 2024, issued by the Minister of Hydrocarbons and Energies.
The note with Reference MHE – DGAA/2024-0239 dated May 31, 2024, issued by the Minister of Hydrocarbons and Energies.
The note with Reference MHE – DGAA/2024-0240 dated May 31, 2024, issued by the Minister of Hydrocarbons and Energies.
The Report BCB-GOM-SOSP-DCE-INF-2024-34 of June 5, 2024, from the Monetary Operations Management (GOM).
The Reports BCB-APEC-SMF-INF-2024-18 and BCB-APEC-SMF-INF-2024-21 dated June 5 and 6, 2024, respectively, issued by the Economic Policy Advisory (APEC).
The Report BCB-GAL-SANO-DLBCI-INF-2024-202 of June 7, 2024, from the Legal Affairs Management (GAL).

CONSIDERING:

That paragraph 6 of Article 316 of the Political Constitution of the State establishes that the function of the State in the economy is to prioritize the industrialization of renewable and non-renewable natural resources, within the framework of respect and protection of the environment, to guarantee the generation of employment and economic and social inputs for the population. Likewise, paragraph 10 of paragraph I of Article 158 and Article 322 state that the Plurinational Legislative Assembly has the attribute to approve the contracting of public debt.

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That Article 44 of Law No. 1670 establishes that the highest authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized regulations of general application and internal rules; as well as establishing administrative, operational and financial strategies of the BCB, approving their respective short and medium-term programs.

That sub-paragraphs a), j) and q) of Article 54 indicate as attributes of the BCB Board of Directors to issue regulations and adopt general decisions that may be necessary for the issuing entity to fulfill the functions, competencies and powers assigned to it by the Law, as well as to set and modify interest rates on credits granted by the BCB, taking into account market rates for similar operations and to establish their other terms and conditions and those necessary for the fulfillment of its functions.

That Article 57 and sub-paragraph e) of Article 59 of Law No. 1670 establishes that the President is the first executive authority of the BCB and exercises the legal representation of the BCB, without prejudice to the powers of delegation according to the Law.

That pursuant to Article 41 of the General State Budget Law for the 2010 Management Period, the BCB is authorized to grant an extraordinary credit up to the equivalent of $us1,000,000,000.- (One Billion 00/100 United States Dollars), in favor of National Public Strategic Companies under concessional conditions, exempting the BCB from the application of Articles 22 and 23 of Law No. 1670 of October 31, 1995.

That paragraph I of Article 33 of Law No. 211 of the General State Budget (PGE - 2012) authorizes the BCB to grant an extraordinary credit of up to Bs5,332,050,000.- (Five Million Three Hundred Thirty-Two Million Fifty Thousand 00/100 Bolivianos), in favor of the Mining Corporation of Bolivia (COMIBOL), under concessional conditions, exempting the BCB from the application of Articles 22 and 23 of Law No. 1670 of October 31, 1995.

That through Article 9 of Law No. 396, of modifications to the General State Budget (PGE - 2013), Article 33 of Law No. 211 is modified authorizing the BCB to grant an extraordinary credit of up to Bs.5,332,050,000.- (Five Million Three Hundred Thirty-Two Million Fifty Thousand 00/100 Bolivianos), in favor of the Mining Corporation of

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Bolivia (COMIBOL), under concessional conditions, exempting the BCB from the application of Articles 22 and 23 of Law No. 1670 of October 31, 1995.

That Article Unique of Law No. 928 creates the National Public Strategic Company for Bolivian Lithium Deposits - YLB, under the tutelage of the Ministry of Energies, in substitution of the National Management of Evaporitic Resources, establishing in its paragraph V, that all financing obtained from the BCB by COMIBOL, for the National Management of Evaporitic Resources, will be subrogated by Lithium Deposits of Bolivia - YLB.

That the Third Final Provision establishes: I. The credits authorized by the General State Budget Laws, to the Central Bank of Bolivia – BCB, in favor of COMIBOL, destined for evaporitic resources, will be assumed by Lithium Deposits of Bolivia – YLB; II. In accordance with what is established in the preceding Paragraph, Lithium Deposits of Bolivia – YLB, is responsible for the use and destination of the resources disbursed and to be disbursed by the BCB; III. In accordance with what is established in Paragraph I of this provision, the Ministry of Energies is responsible for the evaluation and monitoring of the execution of credit resources granted by the BCB; IV. The Ministry of Energies, through Ministerial Resolution, must justify to the BCB that the use and destination of the credits to be contracted by Lithium Deposits of Bolivia – YLB, are of national priority in accordance with the Economic and Social Development Plan within the Framework of Integral Development for Living Well, and that future flows will be used for the payment of said credits and V. The Ministry of Economy and Public Finance is authorized, through the General Treasury of the Nation - TGN, to substitute, issue and grant Non-Negotiable Treasury Bonds in favor of the BCB, to guarantee the credits indicated in Paragraph I, upon written request of the lead sector Ministry and jointly with the BCB.

That the Eighth Final Provision of Law No. 1356 determines in its paragraphs I and II: The Central Bank of Bolivia – BCB is authorized to reprogram the extraordinary credits granted under concessional conditions to National Public Strategic Companies, through Laws of the Plurinational State of Bolivia, based on the needs of each company and with the approval of the Lead Ministry, as appropriate, maintaining the initial interest rate of the corresponding contracts. The Central Bank of Bolivia – BCB and the companies are instructed to sign the respective addendums

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to instrument the modification of the conditions established in this Provision.

That Article 7 of the Regulation for the approval of Credit to National Public Strategic Companies within the framework of the General State Budget - Management Periods 2010, 2011, 2012, 2013, 2014 and 2015, establishes that the financial conditions of the credit will be established and determined by the BCB Board of Directors, taking into account the requests of the NPSC.

That Article 7 of the Regulation of the Central Bank of Bolivia for the approval of Credits to National Public Strategic Companies within the framework of the General State Budget Laws, provides that the financial conditions will be determined and approved by the BCB Board of Directors, considering the request of the NPSC.

That through Board Resolution No. 052/2011, the financial conditions of the extraordinary credit for an amount of Bs801,050,000 (Eight Hundred One Million Fifty Thousand 00/100 Bolivianos) are approved.

That through Board Resolution No. 053/2011, the financial conditions of the extraordinary credit for an amount of Bs35,350,000.- (Thirty-Five Million Three Hundred Fifty Thousand 00/100 Bolivianos) are approved.

That through Board Resolution No. 007/2014, the financial conditions of the extraordinary credit for an amount of Bs237,274,016.- (Two Hundred Thirty-Seven Million Two Hundred Seventy-Four Thousand Sixteen 00/100 Bolivianos) are approved.

That through Board Resolution No. 069/2015, the financial conditions of the extraordinary credit for an amount of Bs4,301,190,050.- (Four Thousand Three Hundred One Million One Hundred Ninety Thousand Fifty 00/100 Bolivianos) are approved.

That through Board Resolution No. 011/2022, the financial conditions of the extraordinary credit for an amount of Bs793,585,934.00 (Seven Hundred Ninety-Three Million Five Hundred Eighty-Five Thousand Nine Hundred Thirty-Four 00/100 Bolivianos) are approved.

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That the Statute of the BCB in paragraph 1) of Article 10 establishes that the Board of Directors of the Issuing Entity has the attribute to approve general decisions and issue regulations that may be necessary for the BCB to fulfill the functions, competencies and powers assigned to it by the Law.

That Article 24, paragraph I of Article 26 of the Statute of the BCB establish that resolutions and decisions of the Board of Directors are adopted by a simple majority of votes of the members present in a meeting, except in cases where Law No. 1670 or the Statute require qualified majorities, with the Board of Directors pronouncing itself on matters within its competence through resolutions.

That paragraphs 4) and 13) of Article 34 of the Statute of the BCB provide that the President has as an attribute to exercise the legal representation of the BCB without prejudice to its powers of delegation, as well as to sign the contracts and agreements celebrated by the Bank, being able to expressly delegate this power.

That through Ministerial Resolution No. 063-2024 of the Ministry of Hydrocarbons and Energies, the modification to the financial payment conditions of the Public Debt of Credit Contract SANO No. 178/2011 of May 13, 2011 is validated.

That through Ministerial Resolution No. 064-2024 of the Ministry of Hydrocarbons and Energies, the modification to the financial payment conditions of the Public Debt of Credit Contract SANO No. 179/2011 of May 13, 2011 is validated.

That through Ministerial Resolution No. 065-2024 of the Ministry of Hydrocarbons and Energies, the modification to the financial payment conditions of the Public Debt of Credit Contract SANO No. 33/2014 of February 26, 2014 is validated.

That through Ministerial Resolution No. 066-2024 of the Ministry of Hydrocarbons and Energies, the modification to the financial payment conditions of the Public Debt of Credit Contract SANO No. 169/2015 of May 18, 2015 is validated.

That through Ministerial Resolution No. 067-2024 of the Ministry of Hydrocarbons and Energies, the modification to the financial payment conditions of the Public Debt of Credit Contract SANO No. 6/2022 of February 9, 2022 is validated.

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That through note Reference MHE – DGAA/2024-0236 the Minister of Hydrocarbons and Energies requests the modification of the financial conditions of the debt service of credit contract SANO No. 178/2011, destined for the Project “Integral Development of the Brine of the Uyuni Salt Flat – Industrial Plant Phase II (Production)”.

That through note Reference MHE – DGAA/2024-0237 the Minister of Hydrocarbons and Energies requests the modification of the financial conditions of the debt service of credit contract SANO No. 179/2011, destined for the Project “Implementation of Lithium Battery Pilot Plant in Bolivia - Phase II (Industrialization)”.

That through note Reference MHE – DGAA/2024-0238 the Minister of Hydrocarbons and Energies requests the modification of the financial conditions of the debt service of credit contract SANO No. 33/2014, destined for the identification study Project “Implementation of the Research, Development and Pilot Center (CIDYP) La Palca – Potosí”.

That through note Reference MHE – DGAA/2024-0239 the Minister of Hydrocarbons and Energies requests the modification of the financial conditions of the debt service of credit contract SANO No. 169/2015, destined for the Project “Integral Development of the Brine of the Uyuni Salt Flat – Industrial Plant Phase II (Production)”.

That through note Reference MHE – DGAA/2024-0240 the Minister of Hydrocarbons and Energies requests the modification of the financial conditions of the debt service of credit contract SANO No. 6/2022, destined for the Project “Integral Development of the Brine of the Uyuni Salt Flat – Industrial Plant Phase III”.

That GOM, through Report BCB-GOM-SOSP-DCE-INF-2024-34 concludes that after conducting the technical analysis based on the cash flows presented by YLB, an increase in its income is observed starting from the 2026 management period, therefore there is technical viability to modify financial conditions of the credits by extending the term by three years, including a new grace period of two years for principal and interest and in Contract SANO No.178/2011 an increase in the interest rate from 0.84% to 2.33% annually, Contract SANO No.179/2011 an increase in the interest rate from 0.84% to 2.36% annually, Contract SANO No.169/2015 an increase in the interest rate from 1.00% to 2.09% annually, Contract SANO No.33/2014 an increase in the interest rate from 0.64% to 1.49% annually and the Contract

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SANO-DLBCI No.6/2022 an increase in the interest rate from 1.90% to 1.91% annually; recommending to the BCB Board of Directors its approval.

That APEC, through Reports BCB-APEC-SMF-INF-2024-18 and BCB-APEC-SMF-INF-2024-21 recommends proceeding with the request of the National Public Strategic Company for Bolivian Lithium Deposits and the Ministry of Hydrocarbons and Energies, prior consideration of the reports of the Monetary Operations Management and the Legal Affairs Management.

That GAL, through Report BCB-GAL-SANO-DLBCI-INF-2024-202 concludes that the proposal of the Monetary Operations Management in Report BCB-GOM-SOSP-DCE-INF-2024-34, of modification of the financial conditions regarding term, interest and grace period to Contracts SANO No. 178/2011 of May 13, 2011, SANO No. 179/2011 of May 13, 2011, SANO No. 33/2014 of February 26, 2014, SANO No. 169/2015 of May 18, 2015 and SANO-DLBCI No. 6/2022 of February 9, 2022 and in Report BCB-APEC-SMF-INF-2024-21, is legally viable, corresponding to the BCB Board of Directors its approval within the framework of sub-paragraph j) of Article 54 of Law No. 1670, since the Issuing Entity has the attribute to modify the interest rates on the credits it grants and establish its other terms and conditions; consequently, it corresponds to authorize the Acting President of the BCB to sign the Modifying Contracts, as provided in sub-paragraphs a), j) and q) of Article 54 of Law No. 1670, paragraph 1) of Article 10 and paragraphs 4) and 13) of Article 34 of the Statute of the BCB; recommending to the BCB Board of Directors its approval and once the Board of Directors approves the new financial conditions, authorize the Acting President of the BCB to sign the corresponding Modifying Contracts.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify the financial conditions of the extraordinary credit granted by the Central Bank of Bolivia (BCB) through contract SANO No.178/2011 to Lithium Deposits of Bolivia – YLB, according to the following terms:

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Parameter	Value
Term:	23 (twenty-three) years from the first disbursement.
Grace Period:	2 (two) years for principal and interest for the 2024 – 2025 management periods.
Interest Rate:	3.83% (three point eighty-three percent) annually from 11/6/2024 to 10/6/2034.

Article 2.- Modify the financial conditions of the extraordinary credit granted by the Central Bank of Bolivia (BCB) through contract SANO No.179/2011 to Lithium Deposits of Bolivia – YLB, according to the following terms:

Parameter	Value
Term:	23 (twenty-three) years from the first disbursement.
Grace Period:	2 (two) years for principal and interest for the 2024 – 2025 management periods.
Interest Rate:	3.83% (three point eighty-three percent) annually from 11/6/2024 to 10/6/2034.

Article 3.- Modify the financial conditions of the extraordinary credit granted by the Central Bank of Bolivia (BCB) through contract SANO No.33/2014 to Lithium Deposits of Bolivia – YLB, according to the following terms:

Parameter	Value
Term:	21 (twenty-one) years from the first disbursement.
Grace Period:	1 (one) year for principal and interest for the 2025 management period.
Interest Rate:	3.83% (three point eighty-three percent) annually from 11/6/2024 to 21/5/2035.

Article 4.- Modify the financial conditions of the extraordinary credit granted by the Central Bank of Bolivia (BCB) through contract SANO No.169/2015 to Lithium Deposits of Bolivia – YLB, according to the following terms:

Parameter	Value
Term:	33 (thirty-three) years from the first disbursement.
Grace Period:	2 (two) years for principal and interest for the 2024 – 2025 management periods.
Annual Interest Rate:	4.26% (four point twenty-six percent) from 11/6/2024 to 23/6/2048.

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Article 5.- Modify the financial conditions and Include a financial condition, to the extraordinary credit granted by the Central Bank of Bolivia (BCB) through contract SANO No.6/2022 and Modifying Contracts to Lithium Deposits of Bolivia – YLB, according to the following terms:

Parameter	Value
Term:	23 (twenty-three) years from the first disbursement.
Interest Grace Period:	2 (two) years for the 2024 – 2025 management periods.
Annual Interest Rate:	4.26% (four point twenty-six percent) from 11/6/2024 to 6/9/2045.

Article 6.- Maintain the rest of the financial conditions of the extraordinary credits granted, which were not affected by this determination.

Article 7.- Authorize the Acting President of the BCB to sign the corresponding Modifying Contracts with the National Public Strategic Company for Bolivian Lithium Deposits, under the terms of this Resolution.

Article 8.- The Presidency and the General Management are charged with the compliance of this Resolution.

La Paz, June 7, 2024

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

Board Resolution No. 070/2024