BOARD OF DIRECTORS

BOARD RESOLUTION NO. 071/2024

SUBJECT:

MONETARY OPERATIONS MANAGEMENT - MODIFY THE FINANCIAL CONDITIONS OF THE EXTRAORDINARY HEALTHY CREDIT CONTRACT NO. 379/2012 WITH THE SAN BUENAVENTURA SUGAR COMPANY (EASBA).

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.
Law No. 211 of December 23, 2011, modifying the General State Budget – Management 2012.
Law No. 1206 of August 5, 2019, modifying the General State Budget – Management 2019.
Law No. 1546 of December 31, 2023, approving the General State Budget – Management 2024.
The Regulation for the Granting of Credit to National Strategic Public Enterprises, within the framework of the General State Budget for the years 2010, 2011, 2012, and 2013, approved by Board Resolution No. 023/2011 of February 22, 2011, and its modifications.
Board Resolution No. 059/2020 of June 12, 2020.
Ministerial Resolution MDPyEP/DESPACHO/No. 075.2024 dated May 28, 2024, from the Ministry of Productive Development and Plural Economy.
The note with Reference: CAR/MDPyEP/DGAJ/UAJ No. 0169/2024 dated May 31, 2024.
The BCB Statute, approved by Board Resolution No. 095/2022 of October 6, 2022.

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The Report BCB-GOM-SOSP-DCE-INF-2024-33 of June 5, 2024, from the Monetary Operations Management (GOM).
The Technical Report BCB-APEC-SMF-INF-2024-19 of June 5, 2024, from the Economic Policy Advisory (APEC).
The Report BCB-GAL-SANO-DLBCI-INF-2024-206 of June 7, 2024, from the Legal Affairs Management (GAL).

CONSIDERING:

That Articles 158 and 322 of the Political Constitution of the State establish that it is the competence of the Plurinational Legislative Assembly to approve the contracting of loans that commit the general revenues of the State, authorizing for this effect 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 rates, terms, amounts, and other circumstances are technically justified.
That subsections a), j), and q) of its Article 54 indicate as attributions of the BCB Board of Directors to issue norms and adopt general decisions that are necessary for the issuing entity to fulfill the functions, competencies, and powers assigned to it by the Law, as well as to set the interest rate of the credits granted by the BCB and those others indicated by the cited Law and those that are necessary for the fulfillment of its functions.
That Article 57 and subsection 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 paragraph I of Article 19 of Law No. 211 of December 23, 2011, modifying the General State Budget – Management 2012, authorizes the Central Bank of Bolivia (BCB) to grant an extraordinary credit of up to Bs245,000,000.- (Two Hundred Forty-Five Million 00/100 Bolivianos), in favor of the San Buenaventura Sugar Company (EASBA), under concessional conditions, with the objective of financing productive investment projects.

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That the Second Final Provision of Law No. 1206 of August 5, 2019, modifying the General State Budget – Management 2019, valid by subsection V of the Second Final Provision of Law No. 1546 of December 31, 2023, of the General State Budget – Management 2024, authorizes the Central Bank of Bolivia to modify the financial conditions established, among others, in the Healthy Credit Contract No. 379/2012, signed with the San Buenaventura Sugar Company (EASBA).
That Board Resolution No. 023/2011 of February 22, 2011, and its modifications, approves the Regulation for the Approval of Credit to NPEs, within the framework of the General State Budget for the years 2010, 2011, 2012, and 2013, whose object is to regulate the granting of credits by the BCB in favor of NPEs.
That Board Resolution No. 059/2020 exceptionally approves the modification of the financial conditions of Contract No. 379/2012 of December 27, 2012; as well as determines that Contract No. 379/2012 granted in favor of EASBA and its modifications, cannot be subject to subsequent modifications regarding the financial conditions of the credit.
That the BCB Statute in numeral 1) of its Article 10 establishes that the Board of Directors of the Issuing Entity has the attributions to approve general decisions and issue norms that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law.
That Articles 24, 26, and 34 of the Statute determine that every project of Board Resolution must be motivated and justified by a Technical Report from the Management or Managements to which the subject matter of the Resolution corresponds, and by a Report from the Legal Affairs Management. These reports must be issued to the Board of Directors through the General Management with its recommendation. Likewise, that among the attributions of the President of the BCB is that of signing the contracts celebrated by the BCB. On the other hand, that it is an attribution of the President of the Board of Directors of the BCB to sign the contracts and agreements celebrated by the Issuing Entity.

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That Ministerial Resolution MDPyEP/DESPACHO/No. 024.2024 approves the signing of a new modifying contract of Contract No. 379/2012 of December 27, 2012.
That through note CAR/MDPyEP/DGAJ/UAJ No. 0169/2024 the Minister of Productive Development and Plural Economy requests the signing of a new modifying contract of contract No. 379/2012.
That GOM, through Report BCB-GOM-SOSP-DCE-INF-2024-33, concludes among others, that after conducting the technical analysis based on the projected revenues of EASBA and the review of the documentation sent by EASBA, technical viability is observed to modify the financial conditions of the credit by increasing the term by 3 additional years, 2 years to the grace period for interest, keeping the grace period for capital invariant, as well as the interest rate of 1.15%. Therefore, it recommends to the BCB Board of Directors to approve the modification of the financial conditions of the credit, extending the term from 28 to 31 years and 2 years to the interest grace period, maintaining the capital grace period, as well as the interest rate at 1.15%.
That APEC through Technical Report BCB-APEC-SMF-INF-2024-19, concludes that the modification to Contract No. 379/2012 requested by the MDPyEP through note CAR/MDPyEP/DGAJ/UAJ No. 0169/2024, has no impact on the 2024 Monetary Program.
That GAL through Report BCB-GAL-SANO-DLBCI-INF-2024-206, concludes that in compliance with the authorization carried out by the Second Final Provision of Law No. 1206, the request is technically and legally viable, therefore it recommends to the Board of Directors to declare Article 2 of Board Resolution No. 059/2020 null and void, approve the proposal of GOM in Report BCB-GOM-SOSP-DCE-INF-2024-33, of modification of the financial conditions regarding the term and interest grace period of Contract No. 379/2012 and Report BCB-APEC-SMF-INF-2024-19, and authorize the Acting President to sign the corresponding modifying contract.

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THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Declare null and void Article 2 of Board Resolution No. 059/2020 of June 12, 2020.

Article 2.- Modify the financial conditions of the extraordinary credit granted by the Central Bank of Bolivia to the San Buenaventura Sugar Company regarding the term, to 31 years and the interest grace period of 12 years.

Article 3.- Maintain the rest of the financial conditions of the extraordinary credit granted, which were not affected by this determination.

Article 4.- Authorize the Acting President of the BCB to sign the modifying contract with EASBA under the terms of this Resolution.

Article 5.- The Presidency and the General Management are charged with the compliance of this Resolution.

La Paz, June 11, 2024

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

Board Resolution No. 071/2024