BOARD

BOARD RESOLUTION NO. 093/2024

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – MODIFY THE REGULATION OF FINANCIAL OPERATIONS WITH FOREIGN COUNTRIES OF PUBLIC COMPANIES OF THE CENTRAL LEVEL OF THE STATE AND COMPANIES IN WHICH THE STATE HAS MAJORITY SHAREHOLDING.

SEEN:

• The Political Constitution of the State of February 7, 2009 (CPE).
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
• Law No. 1493 of December 17, 2022, of the General Budget of the State - Management 2023.
• Supreme Decree No. 4848 of December 28, 2022, Regulation for the application of Law No. 1493.
• The BCB Statute approved via Board Resolution No. 095/2022 of October 6, 2022.
• The Regulation of Financial Operations with Foreign Countries of Public Companies of the Central Level of the State and Companies in which the State has Majority Shareholding, approved by Board Resolution No. 006/2023 of January 4, 2023 and its modification.
• Technical Report BCB-GOI-SOEXT-DOCC-INF-2024-39 of July 11, 2024 from the International Operations Management (GOI).
• Legal Report BCB-GAL-SANO-DLBCI-INF-2024-278 of July 11, 2024 from the Legal Affairs Management (GAL).

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//2. B.R. No. 093/2024

CONSIDERING:

• That Article 326 of the Political Constitution of the State establishes that the State, through the Executive Branch, will determine the objectives of the country's monetary and exchange policy, in coordination with the Central Bank of Bolivia and public transactions in the country will be carried out in National Currency.

• That Article 327 of the Political Constitution of the State, determines that the BCB is a public law institution, with legal personality and own assets, which, within the framework of the State's economic policy, has the function of maintaining the stability of the internal purchasing power of the currency, to contribute to economic and social development.

• That items 1) and 2) of paragraph I of Article 328 of the Political Constitution of the State, establish that the BCB has the attributes of determining and executing monetary policy and executing exchange policy.

• That Article 1 of Law No. 1670, establishes that the BCB is a State institution, of public law, of autarchic character, of indefinite duration, with legal personality and own 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 20 of Law No. 1670, establishes that the BCB is empowered to regulate financial operations with foreign countries, carried out by persons or entities.

• That Article 44 of Law No. 1670, establishes that the highest authority of the BCB is its Board, which is responsible for defining its policies, specialized regulations of general application and internal norms.

• That subsections a) and o) of Article 54 of Law No. 1670, indicate as attributes of the Board the following: a) Dictate the norms and adopt the general decisions that were necessary for the BCB to comply with the functions, competencies and powers assigned to it by the Law, and o) Approve, modify and interpret the Statute and Regulations of the BCB, by two thirds of the votes of the totality of its members, without the need for any additional administrative act.

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//3. B.R. No. 093/2024

• That the Sixth Final Provision of Law No. 1493 of the General Budget of the State - Management 2023 establishes that the amount of exports effected by the Public Companies of the Central Level of the State and Companies in which the State has majority shareholding, must be settled through the Central Bank of Bolivia.

• That the Ninth Final Provision of Supreme Decree No. 4848 of the Regulation for the application of Law No. 1493 prescribes that for the purposes of the application of the Sixth Final Provision of Law No. 1493, the Public Companies of the Central Level of the State and those in which the State has majority shareholding, must be governed by the regulation of settlement of the amount of exports issued by the BCB within the framework of its competence.

• That items 1) and 3) of Article 5 of the BCB Statute provide that it has regulatory competence to dictate specialized norms in the fields assigned to it by the Law and technical competence for the formulation of policies and application of instruments that allow it to comply with its objective.

• That items 1) and 30) of Article 10 of the BCB Statute, provide that the Board has the attributes of approving general decisions and dictating the norms that were necessary for the BCB to comply with the functions, competencies and powers assigned to it by the Law and approving, modifying and interpreting the Statute and Regulations of the BCB, by two thirds of the votes of the totality of its members, without the need for additional administrative act.

• That paragraph I of Article 24 of the BCB Statute, provides that the resolutions and decisions of the Board are adopted by simple majority of votes of its members present in meeting, except in cases where Law No. 1670 or this Statute require qualified majorities.

• That Article 26, stipulates that the Board 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 Board Resolution Project must be motivated and justified by a technical report from the Management or Managements to which the matter subject of the Resolution corresponds and by a report from the Legal Affairs Management. These reports must be sent to the Board by the General Management with its recommendation.

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//4. B.R. No. 093/2024

• That Articles 1 and 2 of the Regulation of Financial Operations with Foreign Countries of Public Companies of the central level of the State and Companies in which the State has majority shareholding establish that its purpose is to regulate operations with foreign countries of public companies of the central level of the State and companies in which the State has majority shareholding, their subsidiaries and their branches, within the framework of Article 20 of Law No. 1670 of October 31, 1995 and the Sixth Final Provision of Law No. 1493 of December 17, 2022, being its scope of application financial operations with resources coming from exports, of public companies of the central level of the State and companies in which the State has majority shareholding, their subsidiaries and their branches and investments in Financial Instruments abroad, directly or through trusts and excess capital balances from operations, of public companies in which the State has majority shareholding, as well as their branches and subsidiaries constituted in national territory.

• That paragraph I of Article 4 of the same legal body provides that public companies of the Central level of the State and those in which the State has majority shareholding, their subsidiaries and their branches, may not maintain investments in Foreign Currency directly or through trusts, abroad.

• That Technical Report BCB-GOI-SOEXT-DOCC-INF-2024-39 of the GOI, concludes that there is a need to modify the Regulation of Financial Operations with Foreign Countries of Public Companies of the Central Level of the State and Companies in which the State has majority shareholding, to enable the financial operations and others of the Ministry of Economy and Public Finances, with the purpose of improving the liquidity position of the International Reserves, recommending putting to the consideration of the Board of the BCB the approval of the modification of the cited Regulation.

• That Legal Report BCB-GAL-SANO-DLBCI-INF-2024-278, concludes that according to Report BCB-GOI-SOEXT-DOCC-INF-2024-39, the proposal of modification to the Regulation of Financial Operations with Foreign Countries of Public Companies of the Central level of the State and Companies in which the State has majority shareholding, does not contravene any regulatory provision, so it is legally viable, recommending to the Board of the BCB its approval.

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//5. B.R. No. 093/2024

THEREFORE,

THE BOARD OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Modify Article 5 of the Regulation of Financial Operations with Foreign Countries of Public Companies of the Central Level of the State and Companies in which the State has Majority Shareholding, approved via Board Resolution No. 006/2023 of January 4, 2023, with the following text:

"Article 5.- (Settlement of Export Operations)

I. The total amount coming from exports effected by the Public Companies of the Central Level of the State and Companies in which the State has majority shareholding, their subsidiaries and their branches, will be settled through the BCB, via the transfer of said resources to accounts of the BCB abroad; in turn, the BCB will transfer those resources in National Currency at the official buy exchange rate, to the account indicated by the companies in the BCB, General Treasury of the Nation (TGN) or another account in the National Financial System, as corresponds.

II. Likewise, settlement of exports will be considered, the amount that the General Treasury of the Nation (TGN) deposits in accounts of the BCB in the name of the Public Companies of the Central Level of the State and Companies in which the State has majority shareholding."**

Article 2.- This Resolution will enter into force from its publication.

Article 3.- The Presidency and the General Management are responsible for compliance with this Resolution.

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La Paz, July 11, 2024

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