Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 142/2021

SUBJECT: FINANCIAL ENTITIES MANAGEMENT AND ECONOMIC POLICY ADVISORY – REPEAL THE REGULATION OF INDICATORS FOR PASSIVE INTEREST RATES AND LIQUIDITY WINDOWS

VIEWED:

• The Political Constitution of the State, dated 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. 128/2005 of October 21, 2005, and its subsequent modifications.
• Report BCB-GEF-SASF-DAN-INF-2021-29 of December 9, 2021, from the Financial Entities Management (GEF) and Economic Policy Advisory (APEC).
• Report BCB-GAL-SANO-DLBCI-INF-2021-242 of December 9, 2021, from the Legal Affairs Management (GAL).

CONSIDERING:

That Article 327 of the Political Constitution of the State determines 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 328 of the Political Constitution of the State establishes that the attributions of the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by law, are: 1. Determine and execute monetary policy, 2. Execute exchange rate policy, 3. Regulate the payment system, 4. Authorize the issuance of currency, and 5. Administer International Reserves.

That Law No. 1670 in its Article 1 provides that the BCB is the sole monetary and exchange authority of the country, with administrative, technical, and financial competence and specialized normative faculties of general application, in the manner and, with the scope established in this Law.

That Article 44 of Law No. 1670 establishes that the highest authority of the BCB is its Board of Directors, responsible for defining its policies, specialized norms of general application, and internal rules; as well as establishing administrative, operational, and financial strategies of the BCB.

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That subsections a) and o) of Article 54 of the aforementioned Law provides that the Board of Directors of the BCB has the attributions to issue norms and adopt decisions that are necessary for the Issuing Entity to fulfill the functions, competencies, and faculties assigned to it by 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), 2), and 29) of Article 11 of the BCB Statute establish as attributions of the Board of Directors, to approve general decisions and issue the norms that are necessary for the BCB to fulfill the functions, competencies, and faculties assigned to it by Law; define the policies of the BCB, specialized norms of general application, and internal rules; in addition to approving, modifying, and interpreting 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 Article 26 of the BCB Statute determines that every project of Board 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 Legal Affairs Management. These reports must be sent to the Board of Directors by the General Management with its recommendation.

That Report BCB-GEF-SASF-DAN-INF-2021-29 recommends repealing the Regulation of Indicators for Passive Interest Rates and Liquidity Windows, approved by Board Resolution No. 140/2021.

That, Report BCB-GAL-SANO-DLBCI-INF-2021-242, concludes that the request of the GEF and APEC is viable to repeal the Regulation of Indicators for Passive Interest Rates and Liquidity Windows approved by Board Resolution No. 140/2021, being the competence of the Board of Directors of the BCB its approval by two-thirds of the votes, in accordance with what is established in subsection o) of Article 54 of Law No. 1670 and item 29) of Article 11 of the BCB Statute, since it is framed within the current legal order.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Repeal Board Resolution No. 140/2021 of November 30, 2021, by which the Regulation of Indicators for Passive Interest Rates and Liquidity Windows was approved.

Article 2.- This Board Resolution shall enter into effect from the date of its approval.

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

La Paz, December 9, 2021

Roger Edwin Rojas Ulo PRESIDENT a.i.

Oscar Ferrufino Morro VICE-PRESIDENT a.i.

Gabriel Herbas Camacho DIRECTOR a.i.

Gumerindo Héctor Pino Guzmán DIRECTOR a.i.

Diego Alejandro Pérez Cueto Eulert DIRECTOR a.i.