Board Resolution No. 144/2013

BOARD RESOLUTION NO. 144/2013

SUBJECT: MONETARY OPERATIONS MANAGEMENT — APPROVES MODIFICATIONS TO THE REGULATION FOR THE GRANTING OF CREDIT TO STRATEGIC NATIONAL PUBLIC ENTERPRISES WITHIN THE FRAMEWORK OF THE GENERAL STATE BUDGET — FISCAL YEARS 2010, 2011, 2012 AND 2013

VIEWING:

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

The Statute of the BCB, approved by Board Resolution No. 128/2005, of October 21, 2005, and its subsequent modifications.

Board Resolution No. 023/2011, of February 22, 2011, which approves the Regulation for the Granting of Credit to Strategic National Public Enterprises within the framework of the General State Budget — Fiscal Years 2010 and 2011, modified by Board Resolutions No. 026/2011 of March 2, 2011, No. 027/2011 of March 18, 2011, No. 030/2011 of March 22, 2011, No. 097/2011 of August 9, 2011, No. 039/2012 of March 23, 2012, No. 064/12 of March 12, 2012, and No. 024/13 of March 12, 2013.

The Report from the Monetary Operations Management BCB-GOM-SOSP-DCE-INF-2012-8 of October 10, 2013.

The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2013-345 of October 11, 2013.

CONSIDERING:

That by Board Resolution No. 023/2011, the BCB Board approved the Regulation for the Granting of Credit to Strategic National Public Enterprises within the framework of the General State Budget — Fiscal Years 2010 and 2011, which was modified by Board Resolutions No. 026/2011, No. 027/2011, No. 030/2011, No. 097/2011, No. 039/2012, No. 064/12, and No. 024/13 with the objective of regulating the granting of credits in favor of Strategic National Public Enterprises (EPNE).

That the Monetary Operations Management (GOM) through Report BCB-GOM-SOSP-INF-2013-8 states that within the framework of Ministerial Resolution No. 195 of April 9, 2013, through which the VTCP determines for the 2013 fiscal year a value of at least 20% as the degree of concessionality for EPNEs that access internal credits from the BCB in an extraordinary manner.

That in the aforementioned Report, the GOM concludes that it is pertinent to modify the "Regulation for the Approval of Credit to Strategic National Public Enterprises within the framework of the General State Budget — fiscal years 2010, 2011, 2012 and 2013" and recommends to the BCB Board the approval of the modification of Article 7 of the aforementioned Regulation.

That the Legal Affairs Management through Report BCB-GAL-SANO-INF-2013-345 establishes that it has no observations regarding the modification of Article 7 of the Regulation for the Granting of Credit to Strategic National Public Enterprises within the framework of the General State Budget - Fiscal Years 2010, 2011, 2012 and 2013, since it does not contravene the current legal framework.

That Article 11, numeral 29 of the BCB Statute, concordant with Article 54, subsection o) of Law No. 1670, establishes that the Board has the authority to approve, modify, and interpret the Statute and regulations by two-thirds of the votes of its members, without the need for any additional administrative act.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify Article 7 of the Regulation for the Granting of Credit to Strategic National Public Enterprises within the framework of the General State Budget - Fiscal Years 2010, 2011, 2012 and 2013 as follows:

It says:

Article 7.- (Financial Conditions)

The financial conditions of the credit will be established and determined by the BCB Board, taking into account the requests of the EPNE and the degree of concessionality established by the MEFP through Ministerial Resolution.

It must say:

"Article 7.- (Financial Conditions)

The financial conditions of the credit will be established and determined by the BCB Board, taking into account the requests of the EPNE and the degree of concessionality established by the MEFP through Ministerial Resolution, following the procedure established in the Appendix of this Regulation."

Article 2.- The modification of the Regulation for the Approval of Credit to Strategic National Public Enterprises within the framework of the General State Budget - Fiscal Years 2010, 2011, 2012 and 2013, will enter into force from the date of approval of this Resolution.

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

La Paz, October 15, 2013

Appendix

PROCEDURE TO DEFINE THE DISCOUNT RATE AND THE DEGREE OF CONCESSIONALITY IN CREDITS TO BE GRANTED TO STRATEGIC NATIONAL PUBLIC ENTERPRISES (EPNE)

Section 1.- (Discount Rate)

The Discount Rate will be calculated as the average of at least the last twelve award rates in the Auction of the General Treasury Bonds of the Nation, corresponding to the term of the credit request. In case the obtained discount rate is not congruent, i.e., is not higher for longer terms (and vice versa) with the discount rates of credits approved in the last twelve months, an additional observation must be systematically added, until the result is coherent.

Section 2.- (Degree of Concessionality)

The degree of concessionality will be defined based on the Ministerial Resolution issued by the MEFP for this effect. In case the Resolution explicitly establishes the degree of concessionality, this data will be taken.

If the Resolution establishes a minimum value for this variable, the BCB will follow the following procedure:

1. Calculate imax consistent with a minimum degree of concessionality established by Resolution of the Ministry of Economy and Public Finance.
2. Take as the reference rate iref the yield of the International Reserves (iRINN) of the last twelve (12) months.
3. The interest rate i* of the credit to be granted will be:
   imax if iref > imax iref if iref < imax and the smaller, if the project to be financed corresponds to a company that at the time of the credit request is not in the operation stage.

If the Resolution establishes a minimum and maximum value for the degree of concessionality, the interest rate will be established according to the aforementioned procedure.