BOARD OF DIRECTORS

BOARD RESOLUTION NO. 078/2024

SUBJECT:

MONETARY OPERATIONS MANAGEMENT – MODIFY THE FINAL DISBURSEMENT DATE FOR COMPONENT 1 OF THE TRUST TO PROMOTE ECONOMIC AND PRODUCTIVE RECONSTRUCTION – FIREPRO.

VIEWED:

• The Political Constitution of the State of February 7, 2009.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia and its modifications.
• Law No. 1462 of September 9, 2022, which approves modifications to the General State Budget – Management 2022.
• Law No. 1546 of December 31, 2023, which approves the General State Budget – Management 2024.
• Supreme Decree No. 4862 of January 18, 2023.
• Board Resolution No. 095/2022 of October 6, 2022, which approves the Statute of the Central Bank of Bolivia (BCB).
• Board Resolution No. 074/2023 of May 11, 2023.
• Board Resolution No. 118/2023 of August 22, 2023.
• Notes MEF/VTCP/DGCP/UEPS/No. 252/2024 of May 23, 2024 and MEF/VTCP/DGCP/UEPS/No. 302/2024 of June 11, 2024 from the Ministry of Economy and Public Finance (MEFP).
• Contract SANO-DLBCI No. 11/2023 of May 25, 2023.
• Amending Contract SANO-DLBCI No. 17/2023 of September 7, 2023.

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• Report BCB-GOM-SOSP-DCE-INF-2024-36 of June 20, 2024 from the Monetary Operations Management (GOM).
• Report BCB-GAL-SANO-DLBCI-INF-2024-242 of June 24, 2024 from the Legal Affairs Management (GAL).

CONSIDERING:

That Article 327 of the Political Constitution of the State states that the BCB is a public law institution, with legal personality and its own assets. Within the framework of the State's economic policy, it is the function of the BCB to maintain the stability of the internal purchasing power of the currency, to contribute to economic and social development.

That Article 1 of Law No. 1670 on the BCB, modified by Article 67, section A3, numeral 1 of Law No. 1864 of June 15, 1998, on Popular Property and Credit, determines that the BCB is a State institution, of public law, of an autonomous nature, of indefinite duration, with its own legal personality and assets and with its legal domicile in the city of La Paz. It is the sole monetary and exchange authority of the country, with administrative, technical, and financial competence and specialized regulatory powers of general application.

That Article 44 of Law No. 1670 provides 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 for establishing administrative, operational, and financial strategies of the Issuing Entity, approving their respective short and medium-term programs.

That subsections a) and j) of Article 54 of Law No. 1670 state that the attributions of the BCB Board of Directors include issuing regulations and adopting general decisions that may be necessary for the Issuing Entity to fulfill the functions, competencies, and powers assigned by the Law. Likewise, setting and modifying interest rates, and other terms and conditions on the credits granted by the BCB.

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That Article 4 of Law No. 1462, in force by Law No. 1546, authorizes the BCB to grant an extraordinary credit, in favor of the MEFP, through the General Treasury of the Nation (TGN), for an amount up to Bs 3,000,000,000.00 (Three Billion 00/100 Bolivianos), under concessional conditions, destined for the reconstruction of the national economy, for which the BCB is exempted from the application of what is provided in Articles 22 and 23 of Law No. 1670.

That Articles 1 and 3 of Supreme Decree No. 4862 authorize the MEFP to constitute a trust to Promote Economic and Productive Reconstruction – FIREPRO and create the Program for Support to the Reconstruction of the National Economy – PREN. For this effect, the resources will be those derived from the extraordinary credit authorized by Article 4 of Law No. 1462.

That numeral 1) of Article 10 of the BCB Statute determines that the Board of Directors of the Issuing Entity has the attributions 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 refers 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 this Statute require qualified majorities.

That Article 26 of the Statute of the Issuing Entity stipulates that the Board of Directors rules on matters within its competence through Resolutions. It may also do so through decisions that will be expressly recorded in the Minutes. Likewise, every draft Board Resolution must be motivated and justified by a technical report from the Management or Managements to whom the subject matter of the resolution corresponds and by a report from the Legal Affairs Management. These reports must be submitted to the Board of Directors by the General Management with its recommendation.

That Board Resolution No. 074/2023 approves the “Specific Regulation for the Extraordinary Credit in favor of the General Treasury of the Nation (TGN), within the framework of Article 4 of Law No. 1462 of September 9, 2022 and Supreme Decree No. 4862 of January 18, 2023”.

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That Article 5 of the “Specific Regulation for the Extraordinary Credit in favor of the General Treasury of the Nation (TGN) within the framework of Article 4 of Law No. 1462 of September 9, 2022 and Supreme Decree No. 4862 of January 18, 2023” establishes the requirements that the MEFP must fulfill to request the Extraordinary Credit.

That Article 10 of the aforementioned Regulation provides that the BCB Board of Directors will consider the technical and legal reports and, if applicable, with the favorable vote of at least two-thirds of the members present: a) Approve the credit and its financial conditions for each component; and, b) Authorize the President of the BCB to sign the respective Credit Contract.

That through Board Resolution No. 118/2023, the Final Disbursement Date for Component 1 of the Trust to Promote Economic and Productive Reconstruction (FIREPRO) was modified until July 31, 2024.

That through Notes MEF/VTCP/DGCP/UEPS/No. 252/2024 and MEF/VTCP/DGCP/UEPS/No. 302/2024, the MEFP requested the BCB to modify the Credit Contract SANO – DLBCI No. 11/2023 and its modification through contract SANO – DLBCI No. 17/2023.

That the GOM through Report BCB-GOM-SOSP-DCE-INF-2024-36 concludes that the credit to FIREPRO was approved and contracted for an amount of Bs 2,000 million and that to date only Bs 800 million have been disbursed, leaving a balance to be disbursed of Bs 1,200 million, so the modification request made by the MEFP is due to the update of the resource placement programming of FIREPRO by BDP S.A.M. according to Contract SANO-DLBCI No. 11/2023 of the extraordinary credit destined for the Trust to Promote Economic and Productive Reconstruction, and that the final disbursement date is a financial condition of the credit, likewise, prior technical evaluation of the request indicates that it does not imply changes in the financial structure of the credit; therefore, the modification of said financial condition is technically viable for the aforementioned credit, so it recommends to the Board of Directors its approval.

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That the GAL, through Report BCB-GAL-SANO-DLBCI-INF-2024-242 concludes that the request for the extension of the final disbursement date by the MEFP, in compliance with what is established in Law No. 1462, Supreme Decree No. 4862 and the “Specific Regulation for the Extraordinary Credit in favor of the TGN within the framework of the aforementioned norms”, is legally appropriate. Likewise, it corresponds that the MEFP's request be submitted to the consideration of the BCB Board of Directors, for its approval and authorization to the BCB President to sign the respective Amending Contract.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Modify the Final Disbursement Date for Component 1: Trust to Promote Economic and Productive Reconstruction (FIREPRO) until July 31, 2025.

Article 2.- Ratify the other terms and conditions established in Board Resolutions No. 76/2023 and No. 118/2023 of May 12 and August 22, 2023, respectively, which have not been affected by this Resolution.

Article 3.- Authorize the Acting President of the BCB to sign the corresponding Amending Contract under the terms of this Resolution.

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

La Paz, June 25, 2024

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