Board Resolution No. 151/2013

BOARD RESOLUTION No. 151/2013

SUBJECT: MONETARY OPERATIONS MANAGEMENT — APPROVES MODIFICATIONS TO THE SPECIFIC REGULATION FOR THE GRANTING OF THE CREDIT PROVIDED FOR IN LAW No. 317, APPROVED BY BOARD RESOLUTION No. 041/2013 MODIFIED BY BOARD RESOLUTION No. 130/2013.

HAVING SEEN:

The Political Constitution of the State promulgated on February 7, 2009.

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

Law No. 317 of December 11, 2013, which approves the General State Budget for the 2013 management period (PGE-2013).

Law No. 396 of August 28, 2013, which modifies the General State Budget PGE-2013.

Board Resolution No. 041/2013, of April 23, 2013, which approves the Specific Regulation for the Granting of the Credit provided for in Law No. 317.

Board Resolution No. 130/2013, of September 17, 2013, which approves modifications to the Specific Regulation for the Granting of the Credit provided for in Law No. 317.

The note from the Undersecretariat of Treasury and Public Credit dependent on the Ministry of Economy and Public Finance (MEFPNTCP/DGCP/UEPS-1294/2013) received on October 23, 2013.

The Report from the Monetary Operations Management (BCB-GOM-SOSP-INF-2013-9) of October 25, 2013.

The Report from the Legal Affairs Management (BCB-GAL-SANO-INF-2013-365) of October 28, 2013.

CONSIDERING:

That the Political Constitution of the State (CPE) establishes in Article 158, paragraph I, numeral 10, that the Plurinational Legislative Assembly has the attribute to approve the contracting of loans that commit the general revenues of the State.

That Articles 22 and 23 of Law No. 1670 determine that the BCB cannot grant credits to the Public Sector or incur contingent liabilities in its favor, except in favor of the General Treasury of the Nation (TGN) to attend to urgent needs derived from internal or international calamities declared by Supreme Decree, and to attend to temporary liquidity needs, within the limits of the monetary program; these operations shall be documented in all cases through negotiable public debt securities issued by the National Treasury.

That paragraph I of Article 26 of Law No. 317, within the framework of Articles 158 and 322 of the Political Constitution of the State, authorizes the Ministry of Economy and Public Finance, through the General Treasury of the Nation, to contract a credit with the BCB in national currency for an amount of up to Bs 1,044,000,000.- (One thousand forty-four million 00/100 Bolivianos) to finance the construction of the Railway Transport System in the Montero — Bulo Bulo section.

That paragraph II of Article 26 of Law No. 317, authorizes the Central Bank of Bolivia to grant to the Ministry of Economy and Public Finance, through the General Treasury of the Nation, an extraordinary credit under concessional conditions, for which the BCB is exempted from the application of Articles 22 and 23 of Law No. 1670 of October 31, 1995.

That Law No. 396 modifies paragraphs III and IV, and incorporates Paragraphs V and VI to Article 26 of Law No. 317 of December 11, 2012, as follows:

III. The Ministry of Economy and Public Finance is authorized, through the General Treasury of the Nation, to issue and grant Non-Negotiable Treasury Bonds in favor of the Central Bank of Bolivia to guarantee the credit.

IV. The Ministry of Public Works, Services and Housing is responsible for the use and destination of the resources effectively transferred by the General Treasury of the Nation, as well as the execution, monitoring and evaluation of the construction of the Railway Transport System in the Montero - Bulo Bulo section.

V. Within the framework of what is provided in Paragraph I of this Article, the Central Bank of Bolivia is authorized to expand the extraordinary credit referred to in Paragraph II of this Article, and the Ministry of Economy and Public Finance, through the General Treasury of the Nation, to contract with the Central Bank of Bolivia an additional credit in national currency, for an amount of up to Bs 696,000,000.- (Six hundred ninety-six million 00/100 Bolivianos), making a total amount of Bs 1,740,000,000.- (One thousand seven hundred forty million 00/100 Bolivianos), to finance the construction of the Railway Transport System in the Montero - Bulo Bulo section.

VI. The extraordinary credit contract signed within the framework of Paragraphs I, II and V of this Article, shall be exempt from notarization expenses and other expenses required for its formalization.

That by Board Resolution No. 041/2013, the Specific Regulation for the Granting of the Credit provided for in Law No. 317 was approved.

That by Board Resolution No. 130/2013, modifications in Articles 1, 3, 7 and 8 of the Specific Regulation for the Granting of the Credit provided for in Law No. 317 were approved.

That the note MEFPNTCP/DGCP/UEPS-1294/2013 from the Undersecretariat of Treasury and Public Credit dependent on the Ministry of Economy and Public Finance, requests to modify Article 8 (On Use, Evaluation and Monitoring) of the aforementioned Regulation, within the framework of Law 396.

That the Monetary Operations Management through Report BCB-GOM-SOSP-INF-2013-9, concludes that the modification requested by the MEFP does not affect the financial conditions of the credit or other technical aspects.

That the Legal Affairs Management through report BCB-GAL-SANO-INF-2013-365, concludes that the proposal to modify Article 8 of the Specific Regulation for the Granting of Credit to the MEFP Project: Construction of the Railway Transport System in the Montero — Bulo Bulo section, is legally appropriate, since it does not contravene the current legal framework, being the competence of the BCB Board of Directors to consider its approval by two-thirds of the votes of all its members, in accordance with what is established in letters a) and o) of Article 54 of Law No. 1670 and Article 24 of the Institution's Statute, and recommends that it be submitted to the consideration of the Board of Directors.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify Article 8 of the Specific Regulation for the Granting of Credit to the MEFP Project: Construction of the Railway Transport System in the Montero — Bulo Bulo section, as follows:

SAYS:

Article 8.- (On Use, Evaluation and Monitoring) The Ministry of Public Works, Services and Housing is responsible for the use and destination of the resources effectively transferred by the General Treasury of the Nation, as well as for the execution, monitoring and evaluation of the construction of the Railway Transport System in the Montero — Bulo Bulo section. The MOPSV shall send a copy of the note of transmission of the evaluation and monitoring reports to the BCB on a semi-annual basis.

SHOULD SAY:

"Article 8.- (On Use, Evaluation and Monitoring) The Ministry of Public Works, Services and Housing is responsible for the use and destination of the resources effectively transferred by the General Treasury of the Nation, as well as for the execution, monitoring and evaluation of the construction of the Railway Transport System in the Montero — Bulo Bulo section."

Article 2.- The adjustments to the Specific Regulation for the Granting of the Credit Provided for in Law No. 317, shall enter into force from the date of approval of this Resolution.

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

La Paz, October 29, 2013