Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 138/2019

SUBJECT: FINANCIAL ENTITIES MANAGEMENT - APPROVAL OF THE PARTICIPATION OF THE PUBLIC MANAGER OF LONG-TERM SOCIAL SECURITY IN THE INTEGRATED PAYMENT CLEARING SYSTEM.

VIEWED:

• The Political Constitution of the State promulgated on February 7, 2009.
• Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB).
• Law No. 065 of December 10, 2010, on Pensions.
• Supreme Decree No. 3333 of September 20, 2017.
• Supreme Decree No. 3837 of March 20, 2019.
• The BCB Statute approved by Board Resolution No. 128/2005 of October 21, 2005, and its subsequent modifications.
• The BCB Board Resolution No. 171/2017 of November 28, 2017, which approves the Regulations of the Integrated Payment Clearing System (LIP).
• The note cite CP/GG/EX/42/2019 of January 15, 2019, from the Public Manager of Long-Term Social Security.
• The Report of the Financial Entities Management BCB-GEF-SSPSF-DSF-INF-2019-209 of September 16, 2019.
• The Report of the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2019-276 of September 20, 2019.

CONSIDERING

That the Political Constitution of the State establishes in its article 328 that it is an attribution of the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by Law, to regulate the payment system.

That Law No. 1670, in article 3, establishes that the BCB will formulate policies of general application in matters of the payment system.

That in its article 44 it 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

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internal rules; as well as establishing administrative, operational, and financial strategies of the BCB, approving their respective short and medium-term programs.

That in paragraphs a) and b) of its article 54, it provides that the BCB Board of Directors has the authority to issue norms and adopt general decisions that may be necessary for the BCB to fulfill its functions, competencies, and powers assigned by Law; and to regulate the administration of payment systems between authorized financial entities.

That Law No. 065 in its article 147 establishes that the administration of the Integral Pension System will be in charge of a Public Manager of Long-Term Social Security, which shall constitute a National Strategic Public Enterprise, of public law; of indefinite duration; with legal personality and own assets, with autonomy in administrative, financial, legal, and technical management, with jurisdiction, competence, and structure of national scope.

That in its article 148 it establishes that the object of the Public Manager of Long-Term Social Security is the administration and representation of the Funds of the Integral Pension System, management of benefits, pensions, and other payments of the Integral Pension System, established in the Law and its regulations.

That in article 149 it details its powers and attributes, which among others are: Manage and pay benefits, pensions, benefits, and payments according to law; provide services to insured persons or those who have the right to be insured; administer investment portfolios composed of the resources of the managed funds; generate financial returns with the resources of the managed funds through the formation and administration of investment portfolios; provide other collection services to Public Entities.

That Supreme Decree No. 3333 in paragraph II of its final single provision provides that from its publication, a period of up to eighteen (18) months is established for the start of activities of the Manager regarding the Contributory and Semi-contributory Regimes of the Integral Pension System.

That Supreme Decree No. 3837 in its article 2 extends the deadline established in paragraph II of the final single provision of Supreme Decree No. 3333, for the start of public activities of the Public Manager of Long-Term Social Security regarding the Contributory and Semi-contributory Regimes, for a period not greater than thirty (30) months, computable from its publication.

That the Regulations of the Integrated Payment Clearing System – LIP in its article 17 provides that in addition to the BCB, participants in the LIP are entities with a License to Operate granted by the Authority for the Supervision of the Financial System or the Authority for Supervision and Control of Pensions and Insurance, the General Treasury of the Nation, and others expressly authorized by the BCB Board of Directors.

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That in its articles 20 and 21 it establishes the requirements that entities must meet to be enabled as participants in the Integrated Payment Clearing System, to subsequently sign a Participation Contract.

That the Public Manager of Long-Term Social Security through note cite CP/GG/EX/42/2019 requests the opening of an Account in the Integrated Payment Clearing System and the signing of the corresponding Contract.

That the Report of the Financial Entities Management BCB-GEF-SSPSF-DSF-INF-2019-209 concludes that the participation of the Public Manager of Long-Term Social Security in the Integrated Payment Clearing System is feasible.

That the Report of the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2019-276 concludes that under the protection of article 328 of the Political Constitution of the State, articles 44 and 54 of Law No. 1670, the BCB Board of Directors is authorized to authorize the participation of the Public Manager of Long-Term Social Security in the Integrated Payment Clearing System – LIP, by two-thirds of the votes of all its members, in accordance with what is provided in paragraphs a) and b) of article 54 of Law No. 1670 concordant with numbers 1), 2), 13) of article 11 of the BCB Statute and article 17 of the LIP Regulations, since it is legally procedent as it does not contravene the current legal framework.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the participation of the Public Manager of Long-Term Social Security in the Integrated Payment Clearing System.

Article 2.- This Resolution enters into force from the date of its signature and enables the Public Manager of Long-Term Social Security to initiate procedures at the BCB for the signing of the Participation Contract in the Integrated Payment Clearing System solely for the electronic transfer of resources from the Funds of the Integral Pension System it administers.

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

La Paz, October 8, 2019

Pablo Ramos Sánchez

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Gabriel Nejbas Camacho Sergio Velarde Vera Abraham Pérez Alandia Ronald Polo Rivero Luis Baudoin Olea