BOARD OF DIRECTORS

BOARD RESOLUTION NO. 139/2024

SUBJECT: MONETARY OPERATIONS MANAGEMENT - APPROVING THE GRANTING OF AN EXCEPTIONAL LIQUIDITY CREDIT TO THE GENERAL TREASURY OF THE NATION UNDER LAW NO. 1670 - 2024 MANAGEMENT.

VIEWED:

• The Political Constitution of the State, of February 7, 2009.
• Law No. 1670, of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
• The Regulation for the Contracting of Liquidity Credits approved by Ministerial Resolution No. 021 of January 25, 2023, issued by the Ministry of Economy and Public Finance (MEFP).
• The Regulation for the Approval of Credits to the Public Sector within the framework of Law No. 1670, approved via Board Resolution No. 110/2019 of August 27, 2019.
• The BCB Statute approved by Board Resolution No. 095/2022, of October 6, 2022.
• The Monetary Program and 2024 Financial Fiscal Program approved on January 29, 2024, by the BCB and its modifications.
• The Execution Decision of the 2024 Financial Fiscal Program signed on January 30, 2024, between the MEFP and the BCB and its modifications.
• Note MEFP/VTCP/DGCP/UEPS/No. 548/2024 of October 17, 2024, from the Ministry of Economy and Public Finance (MEFP).
• Report BCB-GOM-SOSP-DCE-INF-2024-67 of October 23, 2024, from the Monetary Operations Management (GOM).

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• Report BCB-APEC-SMF-INF-2024-59 of October 23, 2024, from the Economic Policy Advisory (APEC).
• Report BCB-GAL-SANO-DLBCI-INF-2024-454 of October 25, 2024, from the Legal Affairs Management (GAL).

CONSIDERING:

• That paragraph I of Article 326 of the Political Constitution of the State determines that the State through the Executive Branch will determine the objectives of the country's monetary and exchange rate policy in coordination with the BCB.
• That Article 327 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 Article 1 of Law No. 1670 establishes that the BCB is a State institution, of public law, autonomous in nature, of indefinite duration, with its own legal personality and assets, and with its legal domicile in the city of La Paz. It is the sole monetary and exchange rate authority of the country, with administrative, technical, and financial competence and specialized normative powers of general application, in the manner and with the scope established in the Law.
• That Article 22 of the aforementioned Law provides that the BCB may not grant credit to the Public Sector nor incur contingent liabilities in its favor. Exceptionally, it may do so in favor of the National Treasury with the favorable vote of two-thirds of the members present at a meeting of its Board of Directors, in which subsection a) states that to attend to urgent needs derived from public calamities, declared by Supreme Decree; subsection b) states that to attend to temporary liquidity needs within the limits of the Monetary Program.
• That Article 23 of Law No. 1670 determines that the operations provided for in Article 22 will be documented in all cases through negotiable public debt securities

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issued by the National Treasury, which in the case provided for in subsection b) will have a maximum term of one year.

• That Article 44 of the aforementioned legal body states that the Board of Directors is responsible for defining its policies, specialized norms of general application, and internal rules; as well as establishing administrative, operational, and financial strategies, approving their respective short and medium-term programs.
• That subsections a) and j) of Article 54 of Law No. 1670 indicate as attributions of the BCB Board of Directors to issue norms and adopt general decisions that are necessary for the Issuing Entity to fulfill the functions, competencies, and powers assigned to it by the Law, as well as to set the interest rate of the credits granted by the BCB.
• That subsection e) of Article 59 of Law No. 1670 states that the President has among his attributions to exercise the legal representation of the BCB, without prejudice to his powers of delegation according to this Law.
• That Article 7 of the Regulation for the Contracting of Liquidity Credits approved by Ministerial Resolution No. 021/2023 of the MEFP regulates the Negotiation and Contracting of credits requested by said State portfolio.
• That the Regulation for the Approval of Credits to the Public Sector within the framework of Law No. 1670, approved by Board Resolution No. 110/2019, has the object of regulating Articles 22 and 23 of Law No. 1670, and establishes the requirements and procedures for the approval of credits to the Public Sector.
• That said Regulation, in its Article 10, establishes the requirements for the consideration of credit for temporary liquidity needs.
• That in its Article 11 it states that upon receipt of the credit request and the documentation established in Article 10, prior to the consideration of the Board of Directors, the President of the BCB will request the following: i) Technical report to the GOM specifying the outstanding debt balance as of the date of the request, future payment maturities of the TGN to the BCB, and suitability of the public value offered to back the operation; ii) report to the GAL regarding compliance with regulations and submission of the required documentation; iii)

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report to the APEC considering the impact of said credit on the monetary program that is part of the Execution Decision of the Fiscal-Financial Program that the highest authorities of the BCB and the MEFP sign annually.

• That in its Article 12 it establishes the financial conditions, where the Board of Directors will set the interest rates and term considering, as a reference, the prevailing public security yields in the market in either of the two currencies, in relation to the credit request of the MEFP.
• That in its Article 13 it provides that the BCB Board of Directors will consider the reports presented by the areas, and if appropriate, approve the credit by the favorable vote of two-thirds of its members present at a Board of Directors session and that for this effect it will issue an express Resolution.
• That Article 14 of the aforementioned Regulation establishes that the Board of Directors Resolution will approve the granting of the Credit and the Public Credit Contract between the MEFP and the BCB.
• That the BCB Statute in numerals 1) and 10) of its Article 10 establish that the Board of Directors of the Issuing Entity has the attributions 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 by two-thirds of the votes, of the members present, credits to the General Treasury of the Nation (TGN) to attend to temporary liquidity needs, within the limits of the Monetary Program.
• That Articles 26 and 34 of the BCB Statute determine that every draft Board of Directors Resolution must be motivated and justified by a technical report from the Management or Managements to which the subject matter of the Resolution corresponds and by a report from the GAL. These reports must be sent to the Board of Directors through the General Management with its recommendation. Likewise, that among the attributions of the President of the BCB is that of signing the contracts that the BCB concludes.
• That the Execution Decision of the 2024 Financial Fiscal Program and its revisions establish the amount for Liquidity Credit in favor of the TGN for the 2024 management.

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• That the MEFP through Note MEFP/VTCP/DGCP/UEPS/No. 548/2024, within the framework of subsection b) of Article 22 of Law No. 1670, requests the granting of a liquidity credit with the following characteristics: i) amount and currency Bs11,500,000,000.00 (Eleven Thousand Five Hundred Million 00/100 Bolivianos), ii) term: 1 year, iii) capital payment: at maturity, iv) interest payment: at maturity, v) backing value: Negotiable Treasury Bonds. To this effect, in compliance with what is established in the "Regulation for the Approval of Credits to the Public Sector within the Framework of Law No. 1670", it sends the payment plan, disbursement schedule, and monthly cash flow of the TGN projected including repayments to the BCB.
• That the GOM, through report BCB-GOM-SOSP-DCE-INF-2024-67 concludes that the request made by the MEFP for a Liquidity Credit to the TGN for the 2024 management for an amount of Bs11,500,000,000.00 (Eleven Thousand Five Hundred Million 00/100 Bolivianos), made by the MEFP, falls within what is established in Law No. 1670 and the Regulation for the Approval of Credits to the Public Sector, approved via Board Resolution No. 110/2019 and recommends that the BCB Board of Directors approve the financial conditions of the credit detailed in the cited technical report.
• That the APEC, in its report BCB-APEC-SMF-INF-2024-59, concludes that the request of the MEFP made through note MEFP/VTCP/DGCP/UEPS/No. 548/2024 dated 17.10.24 is within the modification of the Monetary Program, the II Revision of the Financial Fiscal Program, and the Modification of the Schedule of the BCB Liquidity Credit to the TGN; therefore, it recommends to the BCB Board of Directors to approve the Liquidity Credit requested by the MEFP.
• That the GAL through report BCB-GAL-SANO-DLBCI-INF-2024-454, concludes that the credit request to the public sector to attend to temporary liquidity needs, made by the MEFP through Note MEFP/VTCP/DGCP/UEPS/No. 548/2024, is legally appropriate, recommending its consideration by the BCB Board of Directors, for its approval with the favorable vote of at least two-thirds of the members present, through express Resolution and authorization to the President of the BCB for the signing of the respective contract.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

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Article 1.- Within the framework of what is established in subsection b) of Article 22 and Article 23 of Law No. 1670 of October 31, 1995, and in accordance with the Monetary Program and the II Revision of the 2024 Financial Fiscal Program, approve the granting of a Liquidity Credit in favor of the TGN – 2024 Management, represented by the MEFP, under the following terms and conditions:

Concept	Detail
Amount:	Bs11,500,000,000.00 (Eleven Thousand Five Hundred Million 00/100 Bolivianos).
Currency:	Bolivianos.
Term (*):	1 year.
Interest Rate:	4.0% annual.
Payment Frequency:	Annual for principal and interest.
Guarantee:	Negotiable Treasury Bonds – Amortizable.

() The term is calculated from the first disbursement*

Article 2.- Authorize the Acting President of the BCB to sign the contract with the MEFP under the terms of this Resolution.

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

La Paz, October 29, 2024.

SIGNED. ROGER EDWIN ROJAS ULO, Oscar Ferrufino Morro, Gumerindo Héctor Pino Guzmán, Diego Alejandro Pérez Cueto Eulert, Miguel Angel Marañon Urquidi.