BOARD OF DIRECTORS

BOARD RESOLUTION NO. 174/2024

SUBJECT: MONETARY OPERATIONS MANAGEMENT – AMEND BOARD RESOLUTION NO. 152/2021.

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, and its modifications.
• Law No. 614 of the General State Budget Management 2015 of December 13, 2014.
• Law No. 1356 of December 28, 2020, of the General State Budget, Management – 2021.
• Law No. 1393 of September 13, 2021.
• Supreme Decree No. 4586 of September 15, 2021.
• The BCB Statute approved by Board Resolution No. 095/2022 of October 6, 2022.
• Board Resolution No. 148/2021 of December 28, 2021, which approves the Specific Regulation for granting Extraordinary Credit of operating capital for Public Enterprises at the central level of the State and SEDEM.
• Board Resolution No. 152/2021 of December 30, 2021.
• Board Resolution No. 095/2022 of October 6, 2022, which approves the Statute of the Central Bank of Bolivia (BCB).
• Board Resolution No. 140/2023 of October 10, 2023.

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• Note MEFP/VTCP/DGCP/UEPS/No. 605/2024 of November 27, 2024, issued by the Ministry of Economy and Public Finance (MEFP).
• Report BCB-GOM-SOSP-DCE-INF-2024-75 of December 10, 2024, issued by the Monetary Operations Management (GOM).
• Report BCB-GAL-SANO-DLBCI-INF-2024-523 of December 13, 2024, issued by the Legal Affairs Management (GAL).

CONSIDERING:

• That Articles 158 and 322 of the Political Constitution of the State establish that it is the competence of the Plurinational Legislative Assembly to approve the contracting of loans that commit the general revenues of the State and to authorize, for this purpose, the contracting of public debt when the capacity to generate income to cover the principal and interest is demonstrated and the most advantageous conditions in terms of rates, terms, amounts, and other circumstances are technically justified.
• That Article 1 of Law 1670 provides that the BCB is a State institution, of public law, of an autonomous 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 authority of the country and therefore the governing body of the national financial intermediation system, with administrative, technical, and financial competence and specialized regulatory powers of general application, in the manner and with the scope established in this Law.
• That Article 44 of Law No. 1670 of the BCB establishes that the Highest Authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized regulations of general application, and internal rules; as well as establishing administrative, operational, and financial strategies by approving their respective short and medium-term programs.

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• That subsections a) and j) of Article 54 of Law No. 1670 of the BCB establish that it is an attribute of the BCB Board of Directors to issue regulations and adopt general decisions that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law; as well as to set and modify the interest rates on the credits granted by the BCB, taking into account market rates for similar operations, and to establish their other terms and conditions.
• That Article 12 of Law No. 614 establishes that any authorization established by Law of the General State Budget for the BCB to grant extraordinary credits, as well as the authorizations to the MEFP to issue and grant Non-Negotiable Treasury Bonds through the General Treasury of the Nation (TGN) as backing for the referred extraordinary credits, will not require any other legal authorization for their fulfillment, understanding that they remain in force until the complete execution of the credit.
• That Article 16 of Law No. 1356 authorized the BCB to grant a credit in favor of the MEFP through the TGN for an amount of up to Bs500,000,000.- (Five Hundred Million 00/100 Bolivianos) under concessional conditions for the establishment of a trust fund intended for the granting of operating capital credits to public enterprises at the central level of the State and to the Service for the Development of Productive Public Enterprises (SEDEM), excepting for the effect of the application of Articles 22 and 23 of Law No. 1670 and authorizing the MEFP to incur indebtedness with the BCB.
• That the Second Additional Provision of Law No. 1393 of September 13, 2021, provides for the modification of Article 16 of Law No. 1356 of December 28, 2020, of the General State Budget - Management 2021.
• That Article 1 of Supreme Decree No. 4586 aims to define the conditions for the establishment, administration, and granting of credits of the Trust Fund authorized by Article 16 of Law No. 1356, modified by the Second Additional Provision of Law No. 1393.
• That item 1) of Article 10 and item 13) of Article 34 of the BCB Statute establish that the Board of Directors of the Issuing Entity has the attributes to approve general decisions and issue the regulations that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law. Likewise, that the President of the BCB has the faculty to sign contracts, being able to delegate said faculty.

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• That Paragraph I of Article 24 of the BCB Statute provides that the Resolutions and decisions of the Board of Directors are adopted by a simple majority of votes of its members present in a meeting, except in cases where Law No. 1670 or the Statute require qualified majorities.
• That Article 26 of the BCB Statute establishes that the Board of Directors pronounces itself on matters within its competence through Resolutions. It may also do so through decisions that will be expressly recorded in the Minutes. Likewise, every draft Board Resolution must be motivated and justified by a technical report from the Management or Managements to whom the matter subject to 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.
• That Articles 6 to 8 of the Specific Regulation for granting Extraordinary Credit of operating capital for Public Enterprises at the central level of the State and SEDEM establish that the BCB Board of Directors, taking into account the request of the MEFP considering the technical, legal, and other reports, will determine and approve the financial conditions of the credit and consequently authorize the signing of the contract. Likewise, in the event that the MEFP makes modifications to the disbursement schedule, this must be communicated promptly to the BCB, for its analysis and considerations by the BCB Board of Directors.
• That Article 1 of Board Resolution No. 152/2021 approves the granting of an extraordinary credit under concessional conditions in favor of the MEFP through the TGN for operating capital to the Public Enterprises at the central level of the State and the Service for the Development of Productive Public Enterprises and establishes among other financial conditions that the disbursement deadline is December 31, 2023.

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• That Article 1 of Board Resolution No. 140/2023 partially modified Article 1 of Board Resolution No. 152/2021 regarding the disbursement deadline until December 31, 2024.
• That through note MEFP/VTCP/DGCP/UEPS/No. 605/2024, the MEFP requested the extension of the disbursement deadline until December 30, 2026.
• That GOM through report BCB-GOM-SOSP-DCE-INF-2024-75 concludes that the modification request made by the MEFP is due to the update of the placement programming of resources of the FICREP by BDP S.A.M. and the regulatory adjustments to the requirements for beneficiaries of the trust fund to access it, given that the disbursement deadline constitutes a financial condition of the credit, whose modification does not imply alterations in the financial structure of the credit; being technically viable, it recommends to the Board of Directors the approval of the extension of the disbursement date until December 30, 2026.
• That GAL through report BCB-GAL-SANO-DLBCI-INF-2024-523 concludes that the request of the MEFP sent through note MEFP/VTCP/DGCP/UEPS/No. 605/2024 to extend the deadline for the disbursement date of Contract SANO-DLBCI No. 3/2022 and its Modification has no technical impediment and is legally viable, therefore it recommends to the BCB Board of Directors to approve the modification of the financial conditions regarding the disbursement deadline until December 30, 2026. Likewise, it recommends to the Board of Directors to authorize the Acting President of the BCB to sign the corresponding Modifying Contract.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Partially modify Article 1 of Board Resolution No. 152/2021 of December 30, 2021, modified by Board Resolution No. 140/2023 of October 10, 2023, regarding the Disbursement Deadline of the Extraordinary Credit for operating capital for the Public Enterprises

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at the central level of the State and the Service for the Development of Productive Public Enterprises, until December 31, 2025.

Article 2.- Ratify the other terms and conditions established in Board Resolution No. 152/2021 of December 30, 2021, that are not contrary to what is stated in this Resolution.

Article 3.- Authorize the Acting President of the BCB to sign the corresponding Modifying Contract under the terms of this Resolution.

Article 4.- The Presidency and the General Management are charged with the compliance of this Resolution.

La Paz, December 17, 2024.

SIGNED. ROGER EDWIN ROJAS ULO, Gumerindo Héctor Pino Guzmán, Miguel Angel Marañon Urquidi, Victor Gonzalo Calisaya Gomez.