Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 127/2019

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – APPROVES THE PURCHASE OF GOLD IN THE 2019 FISCAL YEAR AND THE PROCEDURES FOR THE MINISTRY OF ECONOMY AND PUBLIC FINANCE (MEFP) TO ISSUE FISCAL CREDIT NOTES.

VIEWING:

• The Political Constitution of the State.
• Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB).
• Law No. 2042 of December 21, 1999 on Budgetary Administration.
• Law No. 175 of October 11, 2011, which provides for the purchase of gold by the BCB intended for international reserves.
• Supreme Decree No. 1167 of March 14, 2012, which regulates Law No. 175 of October 11, 2011.
• Supreme Decree No. 3607 of June 27, 2018, which regulates budgetary modifications.
• The Regulation for the Administration of International Reserves approved by Board Resolution No. 097/2018 of July 31, 2018.
• Board Resolution No. 046/2012 of April 17, 2012, which approves the Regulation for the Purchase of Gold from State Mining Enterprises (EMIES).
• The Report from the International Operations Management BCB-GOI-SRES-DOI-INF-2019-8 of September 9, 2019.
• The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2019-267 of September 13, 2019.

CONSIDERING:

• That Article 328 of the Political Constitution of the State establishes, as one of the attributions of the BCB, in coordination with the economic policy determined by the Executive Branch, the administration of international reserves constituted by various internationally accepted assets, including gold.
• That Law 1670 provides that the BCB will administer and manage its international reserves in the manner it considers most appropriate for the fulfillment of its object and functions and for their adequate safeguarding and security.

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//2. B.R. No. 127/2019

• That Law No. 2042 establishes that any budgetary modification must be carried out as indicated in the Regulation on Budgetary Modifications.
• That Law No. 175 authorizes the BCB to purchase gold bars from State Mining Enterprises, which will be destined to increase the international gold reserves.
• That Supreme Decree No. 1167 authorizes the Ministry of Economy and Public Finance (MEFP) to issue Fiscal Credit Notes (NOCRES) charged to the General Budget of the State of each fiscal year in favor of the BCB, to effectuate the purchase of gold bars from State Mining Enterprises, destined for international reserves.
• That Supreme Decree No. 3607 establishes the procedures for drafting, presenting, approving, and registering modifications to the Budgets of entities in the Public Sector.
• That Article 9 of the Regulation for the Purchase of Gold from State Mining Enterprises (EMIES) destined for international reserves provides that the Board of Directors of the BCB will establish the maximum volumes for the purchase of gold from EMIES.
• That the Report from the International Operations Management BCB-GOI-SRES-DOI-INF-2019-8 recommends approving the purchase of up to 100 kilos of gold from COMIBOL-EBO and Vinto Metalurgical Company in the 2019 fiscal year and authorizing the President and General Manager to process the inter-institutional transfer by the MEFP of Bs 5,095,054.26 and the respective issuance of NOCRES.
• That according to the Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2019-267, the purchase of up to 100 kilos of gold bars from COMIBOL is legally permissible as it does not contravene the current legal framework, being within the competence of the Board of Directors of the BCB to consider its approval by a simple majority of the members present, in accordance with what is established in Article 24 of the Statute of the BCB, and the respective NOCRES must be managed with the MEFP.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the purchase of up to 100 kilos of gold bars in the 2019 fiscal year from COMIBOL-EBO and Vinto Metalurgical Company.

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Article 2.- Authorize the Presidency and General Management to carry out the corresponding procedures so that the MEFP carries out an inter-institutional transfer to the BCB, in the amount of Bs 5,095,054.26 (Five Million Ninety-Five Thousand Fifty-Four and 26/100 Bolivianos) to request the issuance of NOCRES charged to the General Budget of the State – 2019 Fiscal Year, within the framework established in Supreme Decree No. 1167, corresponding to the purchase of 100 kilos of gold in the current fiscal year.

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

La Paz, September 17, 2019

Pablo Ramos Sánchez
Abraham Pérez Alandia
Ronald Polo Rivero
Luis Baudoin Olea