BOARD OF DIRECTORS

BOARD RESOLUTION NO. 093/2022

SUBJECT: LEGAL AFFAIRS MANAGEMENT AND FINANCIAL ENTITIES MANAGEMENT – MODIFY THE REGULATION ON INCENTIVES FOR THE RECOVERY OF RECEIVABLES OF THE CENTRAL BANK OF BOLIVIA.

VISTOS:

• 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. 393 of August 21, 2013, on Financial Services.
• Law No. 1356 of December 28, 2020, General State Budget Law for the 2021 Management.
• Law No. 1413 of December 17, 2021, General State Budget Law for the 2022 Management.
• Board Resolution No. 128/2005 of October 21, 2005, which approves the Statute of the BCB and its modifications.
• Board Resolution No. 037/2022 of May 3, 2022, which approves the Regulation on Incentives for the Recovery of Receivables of the Central Bank of Bolivia.
• Technical Report BCB-GAL-SAJU-DLCC1-INF-2022-196 of September 30, 2022, issued jointly by the Legal Affairs Management (GAL) and the Financial Entities Management (GEF).
• Report BCB-GAL-SANO-INF-2022-205 of September 30, 2022, issued by the 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, within the framework

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of the State's economic policy, it has the function of maintaining the stability of the internal purchasing power of the currency, to contribute to economic and social development.

That, paragraph III of Article 5 of Law No. 393 of August 21, 2013, on Financial Services, empowers the BCB to be governed by its own regulations.

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, states that the BCB is an institution of the State, of public law, of an autarkic nature, of indefinite duration, with its own legal personality and assets and with 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 of the BCB, provides that the Board of Directors is the highest authority of the BCB and 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 o) of Article 54 of Law No. 1670 of the BCB, establishes as attributions of the Board of Directors to issue regulations and adopt general decisions that may be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law, and to approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for any additional administrative act.

That, subsection y) of the Second Final Provision of Law No. 1413 of December 17, 2021, General State Budget Law for the 2022 Management, enters into force Article 13 of Law No. 1356 of December 28, 2020.

That, Article 13 of Law No. 1356 of December 28, 2020, General State Budget Law for the 2021 Management, grants incentives for the recovery of receivables from non-affiliated credit portfolios owned by the BCB and received in administration by financial intermediation entities, by virtue of Laws, Specific Supreme Decrees, and through liquidation processes through the forgiveness of interest and other expenses with a balance to capital equal to or less than USD 80,000.00 (Eighty Thousand 00/100 United States Dollars) or its equivalent in national currency.

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That, the Statute of the BCB, establishes in numerals 1) and 29) of Article 11 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 Board Resolution No. 037/2022 of May 3, 2022, approves the Regulation on Incentives for the Recovery of Receivables of the Central Bank of Bolivia.

That, report BCB-GAL-SAJU-DLCC1-INF-2022-196 of September 30, 2022, from the GEF and GAL, states that the proposal to modify the Regulation on Incentives for the Recovery of Receivables of the Central Bank of Bolivia is in accordance with the legal framework established in the Civil Code, therefore it recommends to the Board of Directors to approve the modifications to Articles 6 and 8 of the Regulation on Incentives for the Recovery of Receivables of the Central Bank of Bolivia, since they do not contradict the regulations established in the Issuing Entity, nor the current legal regulations.

That, Report BCB-GAL-SANO-DLBCI-INF-2022-205 of September 30, 2022 from the GAL concludes that the technical and legal aspects of the proposal to modify Articles 6 and 8 of the Regulation on Incentives for the Recovery of Receivables of the Central Bank of Bolivia approved by Board Resolution No. 037/2022 of May 3, 2022, are duly justified, being consistent with the provisions established in the current regulations, considering also the recommendation of the CRRA, in the meeting of September 29, 2022, therefore it is legally appropriate, recommending to the Board of Directors of the BCB its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify Article 6 (Subrogation) of the Regulation on Incentives for the Recovery of Receivables of the Central Bank of Bolivia approved by Board Resolution No. 037/2022 of May 3, 2022 with the following text:

"Article 6. (Subrogation). Those who may make payment with subrogation benefiting from the incentives:

1. Guarantors.
2. Heirs of debtors and guarantors."

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3. Co-owners when, as a result of some precautionary measure or judicial mortgage in the judicial execution of a credit, a property in the co-ownership regime has been encumbered. In other cases of payment with subrogation carried out by third parties, the incentives determined in this Regulation will not apply."

Article 2.- Modify Article 8 (Judicial Withholdings) of the Regulation on Incentives for the Recovery of Receivables of the Central Bank of Bolivia approved by Board Resolution No. 037/2022 of May 3, 2022 with the following text:

"Article 8. (Judicial Withholdings). Pending judicial withholdings and/or deposits for remittance, collection, and application, cannot be considered in the liquidation to be carried out for the forgiveness provided for in Article 3 of this Regulation. They will be released judicially if the debtor pays the obligation."

Article 3.- The modification of the Regulation on Incentives for the Recovery of Receivables of the Central Bank of Bolivia, will enter into force from the publication of this determination.

Article 4.- The Presidency and the General Management are in charge of the execution and compliance of this Resolution.

La Paz, October 4, 2022

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