Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 129/2017

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – APPROVES THE PURCHASE OF GOLD IN THE 2017 FISCAL YEAR AND THE PROCEDURES FOR THE MINISTRY OF ECONOMY AND PUBLIC FINANCE TO ISSUE FISCAL CREDIT NOTES.

VIEWING:

The Political Constitution of the State approved by referendum on January 25, 2009, and published on February 7, 2009.

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

Law No. 175 of October 11, 2011, which provides for the purchase of gold by the BCB destined for international reserves.

Supreme Decree No. 1167 of March 14, 2012, which regulates Law No. 175 of October 11, 2011.

Supreme Decree No. 29881 of January 7, 2009, on the regulation of budget modifications.

The Regulation for the Administration of International Reserves approved by Board Resolution No. 122/2016 of July 5, 2016.

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-2017-09 of September 18, 2017.

The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2017-239 of September 19, 2017.

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 of October 31, 1995, 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.

---

//2. B.R. No. 129/2017

That Law No. 2042 establishes that any budget modification must be carried out as indicated in the Regulation of Budget Modifications.

That Law No. 175 of October 11, 2011, 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 State Budget of each fiscal year in favor of the BCB, so that the Issuing Entity assumes the effective rate of the Value Added Tax (VAT) on the purchase of gold bars from State Mining Enterprises, destined for international reserves.

That Supreme Decree No. 29881 establishes the procedures for drafting, presenting, approving, and registering modifications to the Budget 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 semestral maximum volumes for the purchase of gold from EMIES.

That the Report from the International Operations Management BCB-GOI-SRES-DOI-INF-2017-09 recommends approving the purchase of up to 200 kilograms of gold from COMIBOL in the current 2017 fiscal year and authorizing the President and General Manager to process the inter-institutional transfer by the MEFP of Bs 15,492,607.83 and the respective issuance of NOCRES.

That according to the Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2017-239, the purchase of up to 200 kilograms of gold bars from COMIBOL is legally appropriate 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 2 of the Statute of the BCB, and the respective NOCRES must be managed before the MEFP.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the purchase of up to 200 kilograms of gold bars in the 2017 fiscal year from State Mining Enterprises.

Article 2.- Authorize the Presidency and General Management of the BCB to carry out the corresponding procedures so that the Ministry of Economy and Public Finance makes an inter-institutional transfer to the Central Bank of Bolivia for the amount of Bs 15,492,607.83 (Fifteen million four hundred ninety-two thousand six hundred seven and 83/100 bolivianos) to request the issuance of Fiscal Credit Notes charged to the General State Budget, within the framework established in Supreme Decree No. 1176, corresponding to the sale of 159.9 kilograms of gold carried out by COMIBOL to the BCB on June 13, 2016, and 200 kilograms for the remainder of the current fiscal year.

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

La Paz, September 19, 2017

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