BOARD OF DIRECTORS

BOARD RESOLUTION NO. 128/2022

SUBJECT: TREASURY MANAGEMENT – MODIFICATION OF THE REGULATIONS ON CUSTODY OF SECURITIES.

VIEWING:

• The Political Constitution of the State of February 7, 2009.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB).
• The Statute of the Central Bank of Bolivia approved by Board Resolution No. 095/2022, of October 6, 2022.
• Board Resolution No. 122/2021 of October 19, 2021, which approves the Regulations on Custody of Securities.
• Technical Report BCB-GTES-SOMM-DOMM-INF-2022-191 of December 28, 2022, issued by the Treasury Management (GTES).
• Legal Report BCB-GAL-SANO-DLBCI-INF-2022-292 of December 28, 2022, issued by the Legal Affairs Management (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 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.

That subsection c) of Article 29 of Law No. 1670 establishes that the BCB, as the Government's Financial Agent, has among its functions receiving securities in custody from the State, in the cases and under the conditions specified by the BCB, and may delegate this function to other banks and entities of the financial system.

That Article 44 of Law No. 1670 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 o) of Article 54 of Law No. 1670 provide that the BCB Board of Directors has the authority to issue norms and adopt general decisions that are necessary for the BCB to fulfill the functions, competencies and powers assigned to it by the Law; as well as 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 items 1) and 30) of Article 10 of the BCB Statute determine that the Board of Directors of the Issuing Entity has the authority 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 the Law; as well as 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 an additional administrative act.

That Board Resolution No. 122/2021, of October 19, 2021, approved the Regulations on Custody of Securities.

That through Report BCB-GTES-SOMM-DOMM-INF-2022-191, of December 28, 2022, GTES concludes that in compliance with what is established in Task 03.05.03 of the GTES Work Plan and Budget 2022, the content of the current Regulations on Custody of Securities has been analyzed, identifying the need to modify some articles of the mentioned Regulations, recommending to the BCB Board of Directors to approve the modification to the Regulations on Custody of Securities.

That through Report BCB-GAL-SANO-DLBCI-INF-2022-292 of December 28, 2022, GAL concludes that the modifications proposed to the Regulations on Custody of Securities do not contravene any regulatory provision, so it is legally appropriate, recommending to the BCB Board of Directors its approval.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify Article 4. (Definitions) of the Regulations on Custody of Securities, approved by Board Resolution No. 122/2021 dated October 19, 2021, with the following text:

“Article 4. (Definitions).

The definitions applicable to these Regulations are as follows:

1. Deposit, Verification or Withdrawal Act. Document signed by the applicant as proof of the deposit, verification or withdrawal of securities in custody.

2. Competent Authority. For the purposes of these Regulations, this refers to the holder of criminal prosecution (Prosecutor) or the jurisdictional authority (Judges).

3. Vault Environments. Closed and protected spaces of the BCB that have security measures for the safeguarding of currency or securities.

4. Assets and Securities in Custody. Securities subject to deposit in custody in the BCB environments corresponding to:

   a) Financial securities of the BCB, the Public Sector and other Entities of the Financial System.

   b) Numismatic securities of the BCB.

   c) Metallic securities of the BCB.

   d) Presidential Medal.

   e) Vice-Presidential Medal.

   f) Medal of the President of the Senate.

   g) Other jewels of historical value.

   h) One original copy of the New Political Constitution of the State.

   i) Archaeological Pieces.

   j) General Ledger of the Sessions of the Assembly of Representatives of Upper Peru.

   k) Seizures of money, jewels and securities deposited at the request and in the name of DIRCABI, in accordance with current regulations.

   l) Machinery or equipment of the Public Sector.

   m) Metallic securities resulting from judicial processes.

5. Fortuitous Case. Internal obstacle attributable to man, unforeseen or inevitable, relative to the conditions themselves in which the obligation had to be fulfilled (civil commotions, strikes, blockades, revolutions, etc.).

6. Force Majeure. External obstacle, unforeseen or inevitable that originates a force foreign to man that prevents the fulfillment of an obligation (fires, floods and other natural disasters).

7. Authorized Personnel. Personnel designated by the MAE or the EA of the Applicant, or by a representative authorized by the MAE or the EA, to carry out the deposit, verification and/or withdrawal of securities in custody; sealing (if applicable); and the signing of the respective documents.

8. Own Sealing. Use by the Authorized Personnel of wax that will be placed in a melted form, on which a seal identifying the Applicant can be applied, sealing the containers of securities and/or the drawers of the BCB.

9. Machinery or Equipment. Machines or equipment for computer use for digital signature.

10. Applicant. Entity of the Public Sector, the Financial System or area of the BCB that requests the deposit, verification or withdrawal of securities in custody.

11. Financial Securities. Promissory notes, bonds, shares, bills, guarantee certificates and any other value regulated by the national legal order, valid, issued or endorsed in favor of an Entity of the Public Sector or the Financial System.

12. Numismatic Securities. Specimens and collections of banknotes and coins, of legal tender and commemorative, whether national or foreign, Bolivian and foreign medals with numismatic value, matrices, plates, dies or other objects and documents used in the design, origination, printing and minting of currency.

13. Metallic Securities. Gold, silver and commemorative coins (of different metals) of the BCB intended for sale.”

Article 2.- Include subsection e) in item 1 of Article 5. (Securities Subject to Deposit in Custody) of the Regulations on Custody of Securities, approved by Board Resolution No. 122/2021 dated October 19, 2021, with the following text:

“e) Metallic gold securities resulting from judicial processes.”

Article 3.- Include paragraph III to Article 6. (Request for deposit or withdrawal of securities) of the Regulations on Custody of Securities, approved by Board Resolution No. 122/2021 dated October 19, 2021, with the following text:

“III. In the case of request for deposit or withdrawal of metallic gold securities resulting from judicial processes, these must be directed to the BCB, signed by a competent authority.”

Article 4.- Modify Article 7. (Review of the request) of the Regulations on Custody of Securities, approved by Board Resolution No. 122/2021 dated October 19, 2021, with the following text:

“Article 7. (Review of the request).

I. The SOMM will review that the request complies with what is described in Article 6.

II. In the case of withdrawal, the SOMM will verify that the applicant is the same one that made the deposit of the Security in Custody.

III. Based on the above, the President of the BCB will communicate in writing to the Applicant the acceptance or rejection of the deposit or withdrawal of securities in custody. If the request is accepted, the time and date will also be communicated

IV. In the cases of request for deposit or withdrawal of the Presidential Medal, Vice-Presidential Medal or Medal of the President of the Senate, the SOMM will communicate in writing the acceptance or rejection directly to the Applicant; in these cases the applicant may propose the date and time of deposit or withdrawal.

V. In the cases of request for deposit or withdrawal of metallic gold securities resulting from judicial processes, the BCB may set extraordinary dates and times.”

Article 5.- Modify Article 35. (Sealing of containers of securities) of the Regulations on Custody of Securities, approved by Board Resolution No. 122/2021 dated October 19, 2021, with the following text:

“Article 35. (Sealing of containers of securities).

I. At the time of deposit, the applicant who wishes to seal the containers that safeguard their securities must perform the sealing in the presence of GTES personnel. For security reasons, GTES personnel cannot perform the sealing of the containers on behalf of the Applicant.

II. In the case of metallic gold securities resulting from judicial processes, they must enter in pre-sealed containers. GTES personnel cannot perform the sealing of the containers on behalf of the Applicant.”

Article 6.- The modifications to the Regulations on Custody of Securities will enter into force from their approval.

Article 7.- The Presidency and the General Management are in charge of the execution and compliance of this Resolution.

La Paz, December 28, 2022

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