BOARD OF DIRECTORS

BOARD RESOLUTION NO. 175/2024

SUBJECT: MONETARY OPERATIONS MANAGEMENT - APPROVAL OF THE GRANTING OF A NATIONAL EMERGENCY CREDIT TO THE GENERAL TREASURY OF THE NATION UNDER LAW NO. 1670 - MANAGEMENT 2024.

VISTOS:

• The Political Constitution of the State, of February 7, 2009.
• Law No. 1670, of October 31, 1995, of the Central Bank of Bolivia (BCB) and its modifications.
• Law No. 602 of November 14, 2014, on Risk Management.
• Supreme Decree No. 5219 of September 8, 2024.
• Supreme Decree No. 5235 of September 30, 2024.
• The Regulation for the Approval of Credits to the Public Sector within the framework of Law No. 1670, approved by Board Resolution No. 110/2019 of August 27, 2019.
• The BCB Statute approved by Board Resolution No. 095/2022, of October 6, 2022.
• Note MEFP/VTCP/DGCP/UEPS/No. 639/2024 of December 13, 2024, from the Ministry of Economy and Public Finance (MEFP).
• Report BCB-GOM-SOSP-DCE-INF-2024-77 of December 16, 2024, from the Monetary Operations Management (GOM).
• Report BCB-GAL-SANO-DLBCI-INF-2024-528 of December 16, 2024, from the Legal Affairs Management (GAL).

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CONSIDERING:

That numeral 11 of Article 108 of the Political Constitution of the State establishes as a duty of Bolivian women and men to provide all necessary support in cases of natural disasters and other contingencies.

That Article 327 of the Political Constitution of the State establishes that the BCB is a public law institution, with legal personality and its own assets. Within the framework of the State's economic policy, it is the function of the BCB to maintain the stability of the internal purchasing power of the currency to contribute to economic and social development.

That Article 1 of Law No. 1670 establishes that the BCB is a State institution, of public law, of an autarkic nature, of indefinite duration, with legal personality and its own assets, and with legal domicile in the city of La Paz. It is the sole monetary and exchange authority of the country, with administrative, technical, and financial competence and specialized regulatory powers of general application, in the manner and with the scope established in the Law.

That Article 22 of the aforementioned Law provides that the BCB may not grant credit to the Public Sector nor incur contingent liabilities in its favor. Exceptionally, it may do so in favor of the National Treasury with the favorable vote of two-thirds of the members present at a meeting of its Board of Directors, in which subsection a) states that to address urgent needs derived from public calamities, internal or international commotion, declared by Supreme Decree; Subsection b) states that to address temporary liquidity needs within the limits of the Monetary Program.

That Article 23 of Law No. 1670 determines that the operations provided for in Article 22 shall be documented in all cases through negotiable public debt securities issued by the National Treasury, which, in the case provided for in subsection b), shall have a maximum term of one year.

That Article 44 of the aforementioned legal body states that the Board of Directors is responsible for defining its policies, specialized regulations of general application, and internal rules; as well as

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establishing administrative, operational, and financial strategies, approving their respective short- and medium-term programs.

That subsections a) and j) of Article 54 of Law No. 1670 state that the attributions of the BCB Board of Directors include issuing regulations and adopting general decisions that are necessary for the issuing entity to fulfill the functions, competencies, and powers assigned to it by the Law, as well as setting the interest rate of the credits granted by the BCB.

That Article 57 of Law No. 1670 states that the President is the first executive authority of the Institution. Therefore, he is responsible for directing and supervising the work leading to the formulation of policies and specialized regulations of general application and the definition of administrative, operational, and financial strategies of the BCB.

That Article 39 of Law No. 602 establishes that National Emergency and National Disaster shall be established by Supreme Decree prior to recommendation by the National Council for the Reduction of Risks and Attention to Disasters and/or Emergencies (CONARADE).

That Article 1 of Supreme Decree No. 5219 declares a National Emergency Situation due to the presence of forest fires affecting the environment, human health, biodiversity, and the activities of the population.

That Articles 1 and 5 of Supreme Decree No. 5235 declare a National Disaster situation, within the framework of Law No. 602, of November 14, 2014, on Risk Management, and establish that the central level of the State and autonomous territorial entities shall exert all efforts in the use of resources, in order to achieve an efficient response and recovery of the sectors and population affected by the fires.

That the Regulation for the Approval of Credits to the Public Sector within the framework of Law No. 1670, approved by Board Resolution No. 110/2019, aims to regulate Articles 22 and 23 of Law No. 1670, and establishes the requirements and procedures for the approval of credits to the Public Sector.

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That said Regulation, in its Article 4, establishes the requirements for the consideration of credit for the attention of National Emergency.

That in its Article 5 it states that upon receipt of the credit request and the documentation established in Article 4, prior to consideration by the Board of Directors, the President of the BCB will request: i) Technical Report to the GOM specifying the outstanding debt balance as of the date of the request, future payment maturities of the TGN to the BCB, and suitability of the offered public value to back the operation, and the report to the GAL regarding compliance with regulations and submission of the required documentation.

That in its Article 6 it establishes that the financial conditions of the credit shall be proposed by the MEFP, except for the interest rate, which shall be equal to the last and highest average yield rate of bills issued by the BCB in national currency, for monetary regulation purposes. In the absence of this type of reference, the financial conditions shall be established by the BCB Board of Directors.

That in its Article 7 it provides that the BCB Board of Directors will consider the reports presented by the areas, and if appropriate, approve the credit by favorable vote of two-thirds of its members present at a Board of Directors session, for which effect it will issue an express Resolution.

That Article 8 of the aforementioned Regulation establishes that the conditions of the credit approved by the BCB Board of Directors shall be recorded in the contract to be signed between the BCB and the MEFP.

That the BCB Statute in numerals 1) and 10) of its Article 10 establish that the Board of Directors of the Issuing Entity has the attributions 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, as well as to approve by two-thirds of the votes, of the members present, credits to the General Treasury of the Nation (TGN) to address urgent needs derived from public calamities, internal or international commotion declared by Supreme Decree.

That Article 26 of the BCB Statute determines that every project of Board Resolution must be motivated and justified by a technical report from the Management or Managements to which the subject matter of the Resolution corresponds, and by a report from the GAL. These

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reports must be sent to the Board of Directors through the General Management with its recommendation.

That the MEFP through Note MEFP/VTCP/DGCP/UEPS/No. 639/2024, within the framework of subsection a) of Article 22 of Law No. 1670, requests the granting of a credit to address National Emergency whose characteristics are: i) amount Bs4,000,000,000.00 (Four Billion 00/100 Bolivianos); ii) currency: Bolivianos; iii) term: 30 years; iv) Grace period for principal: 5 years; v) Grace period for interest: 2 years; vi) backing value: Negotiable Treasury Bonds; vii) Payment method: Annual. To this effect, in compliance with what is established in the "Regulation for the Approval of Credits to the Public Sector within the Framework of Law No. 1670", it sends the payment plan and disbursement schedule.

That the GOM through report BCB-GOM-SOSP-DCE-INF-2024-77 concludes that the request made by the MEFP for an Emergency Credit to the General Treasury of the Nation for the 2024 management for an amount of Bs4,000,000,000.00 (Four Billion 00/100 Bolivianos), falls within what is established in the Regulation for the Approval of Credits to the Public Sector approved by Board Resolution No. 110/2019. The credit operation will be documented by a value represented in a Negotiable Treasury Bond – Amortizable, which will be registered by the MEFP in the Registry of the Securities Market of the Supervisory Authority of the Financial System, therefore it recommends to the Board of Directors its approval with an interest rate of 4.25% and consider the other financial conditions.

That the GAL through report BCB-GAL-SANO-DLBCI-INF-2024-528, concludes that the MEFP's request for an Emergency Credit to the TGN for the 2024 management made through Note MEFP/VTCP/DGCP/UEPS/No. 639/2024, is legally appropriate and falls within what is provided for in subsection a) of Article 22 of Law No. 1670, considering what is stated in the Report BCB-GOM-SOSP-DCE-INF-2024-77 of the GOM. Likewise, it is established that the MEFP has complied with the submission of the documentation provided for in the Regulation for the Approval of Credits to the Public Sector within the framework of Law No. 1670 approved by Board Resolution No. 110/2019 of August 27, 2019. In this sense, it corresponds that the MEFP's request be submitted to the consideration of the BCB Board of Directors, for the approval of the National Emergency Credit and once approved, authorize the Acting President of the BCB to sign the respective contract.

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THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.-

Within the framework of what is established in subsection a) of Article 22 and Article 23 of Law No. 1670 of October 31, 1995, approve the granting of an Emergency Credit in favor of the TGN – Management 2024, represented by the MEFP, under the following terms and conditions:

Concept	Detail
Amount:	Bs4,000,000,000.00 (Four Billion 00/100 Bolivianos).
Currency:	Bolivianos.
Term (*):	30 years.
Grace period for principal:	5 years
Interest rate:	4.25% annual.
Payment Frequency:	Annual for principal and interest.
Disbursement Deadline	December 31, 2024
Guarantee:	Negotiable Treasury Bonds – Amortizable.

(*) The term is calculated from the first disbursement

Article 2.-

Authorize the Acting President of the BCB to sign the contract with the MEFP under the terms of this Resolution.

Article 3.-

The Presidency and the General Management are in charge of the execution and 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.