Board Resolution No. 121/2013 — BCB — BO

RESOLUTION OF THE BOARD OF DIRECTORS NO. 121/2013

SUBJECT: MONETARY OPERATIONS MANAGEMENT — APPROVES THE GRANTING OF AN EXTRAORDINARY CREDIT TO THE FUND FOR THE INDUSTRIAL AND PRODUCTIVE REVOLUTION — FINPRO, REPRESENTED BY THE TRUSTEE BANCO DE DESARROLLO PRODUCTIVO S.A.M. FOR USD 600,000,000.00

HAVING SEEN:

The Political Constitution of the State promulgated on February 7, 2009.

Law No. 1670 of the Central Bank of Bolivia (BCB) of October 31, 1995.

Law No. 232 of April 9, 2012, which creates the Fund for the Industrial and Productive Revolution — FINPRO.

Law No. 317 of December 11, 2012, which approves the 2013 General State Budget (PGE).

Law No. 393 on Financial Services of August 21, 2013.

Supreme Decree No. 1367 of October 3, 2012, which regulates Law No. 232.

Board Resolution of the BCB No. 185/2012, of October 17, 2012, which approves the Specific Regulation for the Granting of Credit provided for in Law No. 232.

The Trust Constitution Contract of the Fund for the Industrial and Productive Revolution — FINPRO TRUST NO. 23 of August 22, 2013.

The letters from the Productive Development Bank (BDP) BDP/G.F. 3358/2013 of August 26, 2013 and BDP/G.F. 3381/2013 of August 28, 2013.

The Report from the Monetary Operations Management BCB-GOM-SOSP-INF-2013-9 of August 29, 2013.

The Report from the Legal Affairs Management BCB-GAL-SANO-2013-299 of September 3, 2013.

CONSIDERING:

That the Political Constitution of the State (CPE), approved by referendum on January 25, 2009, and promulgated on February 7, 2009, establishes in Article 158, paragraph I, numeral 10, that the Plurinational Legislative Assembly has the attribute to approve the contracting of loans that commit the general revenues of the State.

That Articles 44, 54, and 59 of Law No. 1670 determine that the Board of Directors is the highest authority of the Issuing Entity and, to this effect, is empowered to issue norms and adopt general decisions that may be necessary, so that the BCB fulfills its functions, competencies, and powers provided for in the Law. Likewise, that the President of the BCB is the first executive authority of the Institution, with the attribute to direct and supervise actions conducive to the fulfillment of Law No. 1670, the Statute, and any other legal provision whose execution corresponds to the BCB, and to exercise the legal representation of the BCB.

That Law No. 232 of April 9, 2012 on the Fund for the Industrial and Productive Revolution (FINPRO), in its pertinent parts, establishes the following:

This Law aims to create the "Fund for the Industrial and Productive Revolution" FINPRO and establish the mechanisms for financing and allocation of its resources.
The FINPRO is created in the form of a trust, with a duration of 30 years renewable, and with an amount of six hundred million 00/100 United States Dollars (USD 600,000,000.-), coming from International Reserves.
The FINPRO will have a credit of six hundred million 00/100 United States Dollars (USD 600,000,000.-), granted by the BCB at the time of creation of FINPRO, with resources from International Reserves.
The FINPRO trust will be constituted with:
- The non-refundable transfer of USD 600,000,000.- coming from international reserves effected by the BCB.
- The loan from the BCB to the trust for USD 600,000,000.- coming from international reserves.
- Other loans, transfers, and/or donations;
- Portfolio repayments and yields;
- Yields from the investment of liquid resources in foreign currency pending application.

For the purposes of the non-refundable transfer and the granting of the loan, no restriction contained in Law No. 1670 applies, including what is provided in Articles 22 and 23 of said norm or any contrary legal provision.

That Supreme Decree No. 1367 of October 3, 2012, which aims to regulate Law No. 232, establishes the following:

The loan contract indicated in subsection a) of Paragraph II of Article 6 of Law No. 232, shall be signed between the BCB as lender and the FINPRO trust as borrower, represented by the BDP S.A.M. as trustee, with the prior approval of the loan contract by the Ministry of Economy and Public Finance (MEFP) as settlor.
The loan contract to be signed between the borrowing entity and the BDP S.A.M., in its capacity as fiduciary entity of the FINPRO trust, must establish the express authorization of the borrowing entity for the fiduciary entity, through competent instances, to manage and process the automatic debit of the fiscal accounts designated for this purpose, in order to carry out the collection of the debt service (Article 11).

That the Trust Constitution Contract of the Fund for the Industrial and Productive Revolution — FINPRO TRUST NO. 23 aims to constitute, instrument, and determine the form of administration of the Trust of the Fund for the Industrial and Productive Revolution — FINPRO and the assignment of Trust rights from the BCB in favor of the MEFP.

That through letters BDP/G.F. 3358/2013 and BDP/G.F. 3381/2013, the Productive Development Bank (BDP) in its capacity as trustee, requests the BCB on behalf and representation of the FINPRO Trust, to grant the Fund an extraordinary credit for the amount of USD 600,000,000.00 and submits the required documentation for the granting of said credit.

That the Monetary Operations Management in Report BCB-GOM-SOSP-INF-2013-9, in response to the request made by the BDP, states that the financial conditions of the credit are defined in Article 6 of Law No. 232, which defines that the credit will not accrue any financial cost. The GOM considers that, given the existence of the Law of the Fund for the Industrial and Productive Revolution (FINPRO) No. 232, Supreme Decree No. 1367, and Board Resolution of the BCB No. 185/2012, it is pertinent to draft the Contract for the Granting of Extraordinary Credit to FINPRO and the consequent opening of the disbursement account prior to request by the Ministry of Economy and Public Finance (MEFP).

That the Report from the Legal Affairs Management BCB-GAL-SANO-INF-2013-299 establishes that the request made through notes BDP/G.F. 3358/2013 and BDP/G.F. 3381/2013 by the BDP for the granting of the credit of USD 600,000,000.00, is within the framework of the referred norms and has complied with the presentation of the documents required in Article 2 of the Specific Regulation of the BCB for the Granting of Credit Provided for in Law No. 232.

That by virtue of what is provided in Article 44 of Law No. 1670, the Board of Directors of the BCB is the competent instance to authorize the granting of the extraordinary credit in favor of FINPRO in order to comply with what is expressly provided in Law No. 232 and applicable legal provisions in the case.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve, within the framework of paragraph III of Article 2 of Law No. 232 of April 9, 2012, the granting of an extraordinary credit to the Fund for the Industrial and Productive Revolution — FINPRO, represented by the fiduciary Banco de Desarrollo Productivo S.A.M., under the following terms and conditions:

Term: Thirty (30) years.
Payment Method: At maturity.
Interest Rate: Zero.
Disbursement Method: Total amount in a single disbursement, credited to the Account Opened at JP Morgan Chase Bank New York, USA.
Currency: United States Dollars.
Total Credit Amount: USD 600,000,000.00 (Six Hundred Million 00/100 United States Dollars).
Guarantee: The equity of the Trust.

Article 2.- Authorize the President of the BCB to sign the contract with the Fund for the Industrial and Productive Revolution — FINPRO, represented by the fiduciary Banco de Desarrollo Productivo S.A.M., under the terms of this Resolution.

Article 3.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, September 3, 2013

[Signatures]

Roland Arandia
Rojas
Reynaldo Yujra Segale