BOARD OF DIRECTORS

BOARD RESOLUTION NO. 092/2023

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, 2012, 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-2023-28 of June 22, 2023, issued by the Economic Policy Advisory (APEC) and the Financial Entities Management (GEF).
• Report BCB-GAL-SANO-DLBCI-INF-2023-218 of June 23, 2023, issued by the Legal Affairs Management (GAL).

CONSIDERING:

That Article 327 of the CPE establishes 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.

---

//2. B.R. No. 092/2023

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 establishes that the BCB is a State institution, of public law, of an autonomous 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 will 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 Superintendence of Banks and Financial Entities (currently the Financial System Supervision Authority).

That Article 44 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 subsections a) and q) of Article 54 establish among the attributions of the Board of Directors, to issue norms and adopt general decisions that would be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by law and those that are necessary for the fulfillment of its functions.

That Law No. 393 on Financial Services in subsection a) of its Article 179 determines among the functions of the Banco de Desarrollo Productivo Sociedad Anónima Mixta (BDP - S.A.M.), framed within its first and second floor activities, to provide financial and non-financial services to the different actors of the plural economy by itself or through third parties.

---

//3. B.R. No. 092/2023

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 subsections 1) and 9) of Article 10 of the BCB Statute establish that the Issuing Entity's Board of Directors has the attributions to approve general decisions and issue the norms 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.

That Article 26 of the BCB Statute establishes that the Board of Directors pronounces on matters within its competence through resolutions or decisions that will 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 which 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, the Regulation on Liquidity Credits to the Banco de Desarrollo Productivo Sociedad Anónima Mixta, in its Article 5, establishes that the term for liquidity credits will be up to 90 (ninety) calendar days, which may be renewed for similar terms up to a maximum of 7 times each, with the cancellation of interest required for each renewal.

That the operations included in the Regulation on Liquidity Credits to the Banco de Desarrollo Productivo Sociedad Anónima Mixta, obey only what is established in Supreme Decree No. 4442, whose main object is to allow access to liquidity resources, to be granted by the Banco de Desarrollo Productivo – Sociedad Anónima Mixta to Development Financial Institutions - IFD and Savings and Credit Cooperatives –

---

//4. B.R. No. 092/2023

CAC, with a license, therefore the modification of the aforementioned regulation in the aforementioned Article corresponds.

That through Report BCB-GEF-SASF-DAN-INF-2023-28, the Financial Entities Management and the Economic Policy Advisory 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 9 to 13 times the number of periods permitted for the renewal of operations with this entity and authorizing the drafting of an addendum to the contract signed with BDP-S.A.M.

That the Legal Affairs Management, through Report BCB-GAL-SANO-DLBCI-INF-2023-218 concludes that the proposal to modify Article 5 (Term) of the Regulation on Liquidity Credits to the Banco de Desarrollo Productivo S.A.M., is legally viable, since 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 President of the BCB for the signing of the Modifying Contract to Contract SANO-DLBCI No. 1/2021 regarding the extension of the term.

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

“The term for liquidity credits will be up to 90 (ninety) calendar days, which may be renewed for similar terms up to a maximum of 13 (thirteen) times each, with the cancellation of interest required for each renewal.”

Article 2.- The modification of the Regulation on Liquidity Credits to the Banco de Desarrollo Productivo Sociedad Anónima Mixta will enter into force from its approval.

---

//5. B.R. No. 092/2023

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 execution and compliance of this resolution.

La Paz, June 27, 2023

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