Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 155/2012

SUBJECT: INTERNATIONAL OPERATIONS DEPARTMENT – MODIFIES THE REGULATION FOR THE PURCHASE OF GOLD DESTINED FOR INTERNATIONAL RESERVES.

VISTOS:

The Political Constitution of the State approved by referendum on January 25, 2009, and published on February 7, 2009.

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

Law No. 175 of October 11, 2011, which provides for the purchase of gold by the BCB destined for international reserves.

Supreme Decree No. 1167 of March 14, 2012, which regulates Law No. 175 of October 11, 2011.

The Regulation for the purchase of gold destined for international reserves approved by Board Resolution No. 046/2012 of April 17, 2012.

The Report from the International Operations Department BCB-GOI-SRES-DOI-INF-2012-15 of August 22, 2012.

The Report from the Legal Affairs Department BCB-GAL-SANO-INF-2012-273 of August 24, 2012.

CONSIDERING:

That Article 328 of the Political Constitution of the State establishes, as one of the attributions of the Central Bank of Bolivia (BCB), in coordination with the economic policy determined by the Executive Branch, the administration of international reserves, constituted by various internationally accepted assets, including gold.

That Law 1670 of October 31, 1995, provides that the BCB will administer and manage its international reserves in the manner it considers most appropriate for the fulfillment of its object and functions and for their adequate safeguarding and security.

That Article 3 of Law No. 175 provides that the contracting of sampling, laboratory testing, transport, and refining services will be determined by the Board of Directors of the Central Bank of Bolivia, being exempt from the application of the Basic Norms of the System for the Administration of Goods and Services.

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//2. B.R. No. 155/2012

That Board Resolution No. 046/2012 establishes the characteristics, conditions, and procedures for the purchase of gold bars destined for international reserves and the contracting of an internationally certified company to carry out the process of sampling and determining the purity level of each gold bar.

That Report from the International Operations Department BCB-GOI-SRES-DOI-INF-2012-14 recommends approving the modification to the Regulation for the Purchase of Gold for International Reserves.

That according to the Report from the Legal Affairs Department BCB-GAL-SANO-INF-2012-273, this Board Resolution does not contravene the current legal framework.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Modify Article 5 of the Regulation for the Purchase of Gold for International Reserves as follows:

IT SAYS

Article 5.- (Determination of the purity percentage)

The BCB will contract an internationally certified company to carry out the process of sampling and determining the purity percentage of each gold bar; said process will begin on the same day as the receipt of the gold, according to what is established in the Circular of the General Management of the BCB.

IT MUST SAY

"Article 5.- (Contracting of services)

The contracting of an internationally certified company to carry out the process of sampling and determining the purity percentage of each gold bar is authorized; said process will begin on the same day as the receipt of the gold, according to what is established in the Circular of the General Management of the BCB.

The contracting of an authorized valuables transport company and a gold refining company that is associated with the London Bullion Market Association is authorized to transport the locally purchased gold and refine it abroad, so that it has the quality of 'London Good Delivery Bar' (gold of good delivery in London).

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//3. B.R. No. 155/2012

The characteristics of the services, the contracting procedure, the awarding, and the subscription modality of the contracts will be authorized by the Presidency of the BCB."**

Article 2.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, August 28, 2012

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Marcelo Zabalaga Estrada
Rafael Boyán Téllez
Hugo Dorado Araníbar
Gustavo Blacutt Alcalá