Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 175/2017

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – APPROVES AMENDMENT TO THE REGULATION FOR THE ADMINISTRATION OF INTERNATIONAL RESERVES.

VIEWING:

• 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).
• The Statute of the BCB approved by Board Resolution No. 128/2005 of October 21, 2005, and its subsequent modifications.
• The Regulation for the Administration of International Reserves approved by Board Resolution No. 122/2016 of July 5, 2016.
• Board Resolution No. 084/2017 of June 27, 2017, which approves modifications to the Regulation for the Administration of International Reserves.
• The Report from the International Operations Management BCB-GOI-SRES-DNI-INF-2017-31 of December 6, 2017.
• The Report from the Legal Affairs Management BCB-GAL-SANO-DLBCI-INF-2017-393 of December 8, 2017.

CONSIDERING:

• That the Political Constitution of the State establishes in its Article 328 that it is the responsibility of the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by Law, to administer international reserves.
• That in accordance with what is provided in Article 16 of Law No. 1670, the Central Bank of Bolivia has the function of administering and managing International Reserves, being able to invest them and deposit them in custody, as well as dispose of and pledge them, in the manner it considers most appropriate for the fulfillment of its object and functions and for their adequate safeguard and security.
• That within the framework of the above, the Central Bank of Bolivia has approved through Board Resolution No. 122/2016 the Regulation for the Administration of International Reserves, establishing the policies and norms for its correct administration.

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//2. B.R. No. 175/2017

• That the Report from the International Operations Management BCB-GOI-SRES-DNI-INF-2017-31, recommends approving the modifications to the Regulation for the Administration of International Reserves.
• That the Report from the Legal Affairs Management BCB-GAL-SANO-INF-2017-393, concludes that the modification to the Regulation for the Administration of International Reserves proposed by the GOI is legally appropriate, since it does not contravene the current legal framework, being the competence of the Board of Directors of the BCB to consider its approval by two-thirds of the votes of all its members in accordance with what is established in paragraph o) of Article 54 of Law No. 1670 and numeral 29 of Article 11 of the Statute of the BCB.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1. Add paragraph VI to Article 15 of the Regulation for the administration of international reserves as follows:

INCLUDE:

"Article 15.- (Credit Risk)

VI. Investments may be made in the regional supranational organizations Fondo Financiero para el Desarrollo de la Cuenca del Plata (FONPLATA) and Banco Latinoamericano de Comercio Exterior (BLADEX). The maximum term and amount limits will be determined by the International Reserves Committee."

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

La Paz, December 12, 2017.

Pablo Ramos Sánchez

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Luis Baudoin Olea
Ronald Polo Rivero
Abraham Pérez Alandia
Sergio Velarde Vera
Gabriel Herbas Camacho