Board Resolution No. 180/2013

Wietict, RESOLUCION DE DIRECTORIO N° 180/2013 SUBJECT: MONETARY OPERATIONS MANAGEMENT — APPROVES CONCESSIONAL EXTRAORDINARY CREDIT TO THE SAN BUENAVENTURA SUGAR COMPANY (EASBA) FOR AN AMOUNT OF Bs 332,747,250.-

SEEING: 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. 396 modifying the General State Budget PGE-2013 of August 26, 2013. Supreme Decree No. 637 of September 15, 2010. Ministerial Resolution No. 195 of April 9, 2013. Board Resolution of the Central Bank of Bolivia No. 023/11 of February 22, 2011, which approves the Regulations for the granting of credits to National Strategic Public Enterprises within the framework of the General State Budget — Management Years 2010 and 2011; modified through B.D. No. 026/11, No. 027/11, No. 030/11, No. 097/11, No. 039/12, No. 064/12 and No. 024/13, of February 22, March 2, March 22 and August 9, 2011, March 23, May 29, 2012 and March 12, 2013, respectively. Board Resolution of the Central Bank of Bolivia No. 144/13 of October 15, 2013. • The Note from the San Buenaventura Sugar Company CITE: EASBA — GG — No. 0363/2013 of December 9, 2013. Administrative Resolution No. 116/2013 of November 6, 2013, issued by the General Manager of EASBA. • Ministerial Resolution of the Ministry of Productive Development and Plural Economy MDPyEP/DESPACHO/N°271.2013 of November 21, 2013. Supreme Resolution 05137 of February 10, 2011. The notes from the San Buenaventura Sugar Company (EASBA) CITE: EASBA-GG-N° 0339, 0340 and 0338/2013 dated November 21, 2013. The Report from the Economic Policy Advisory CITE: BCB-APEC-SSMF-INF-2013-043 of December 10, 2013.

C&eietir-ce/ ci(tf.!, 6i4iftee; -2.4-2i6eelo (7 • • 1/2. R.D. N° 180/2013 The Report from the Monetary Operations Management CITE: BCB-GOM-SOSP-DCE-INF-2013-18 of December 10, 2013. The Report from the Legal Affairs Management CITE: BCB-GAL-SANO-INF-2013-437 of December 10, 2013. The notes from the Presidency of the Central Bank of Bolivia BCB-PRES-CE-2013-888 and BCB-PRES-CE-2013-889 of December 16, 2013. The letter from the San Buenaventura Sugar Company (EASBA) CITE: EASBA-GG-N° 371/2013 of December 16, 2013.

CONSIDERING: That the Political Constitution of the State (CPE), approved by Referendum on January 25, 2009 and promulgated on February 7, 2009, in item 6 of its Article 9, establishes that it is the goal and function of the State to promote and guarantee the responsible and planned use of natural resources, and to boost their industrialization, through the development and strengthening of the productive base in its different dimensions and levels. Likewise, in item 10 of paragraph I of Article 158 and Article 322, it establishes that the Plurinational Legislative Assembly has the attribute to approve the contracting of public debt.

That Article 322 of the Political Constitution of the State provides that the Plurinational Legislative Assembly authorizes the contracting of public debt when the capacity to generate income to cover the capital and interest is demonstrated, and the most advantageous conditions in terms of rates, terms, amounts and other circumstances are technically justified. Public debt will not include obligations that have not been expressly authorized and guaranteed by the Plurinational Legislative Assembly.

That Law No. 396, in its Article 7, authorizes the Central Bank of Bolivia (BCB) to grant an extraordinary credit of up to Bs. 332,747,250.- (Three Hundred Thirty-Two Million Seven Hundred Forty-Seven Thousand Two Hundred 00/100 Bolivianos), in favor of the San Buenaventura Sugar Company (EASBA), under concessional conditions, with the objective of financing productive investment and operational expenses in the investment stage, commissioning and operation of the company, as well as soil preparation for producers and agricultural work, and other commitments assumed by the Company related to the object of this credit. For this effect, the BCB is exempted from the application of Articles 22 and 23 of Law No. 1670 of October 31, 1995.

That within the framework of Paragraph I of the mentioned Article and according to what is established by Item 10, Paragraph I of Article 158 and Article 322 of the Political Constitution of the State, the San Buenaventura Sugar Company (EASBA) is authorized to contract the aforementioned credit with the Central Bank of Bolivia (BCB).

,iee(i- C&el?t/ eiatele:e% 1.2. r ee lo 1/3. R.D. N° 180/2013 That according to item III, the Ministry of Productive Development and Plural Economy is responsible for the evaluation and monitoring of the execution of the resources of the credit to be granted by the Central Bank of Bolivia (BCB) in favor of the San Buenaventura Sugar Company (EASBA).

That according to item IV, EASBA is responsible for the use and destination of the resources to be disbursed by the Central Bank of Bolivia, within the framework of Paragraph I of the mentioned Article.

That according to item V, 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 BCB, to guarantee the amount of the credit granted by said entity in favor of EASBA, upon written request of the sector-leading Ministry and jointly with the BCB.

That according to item VI, EASBA is exempted from the effects and scope of the application of Articles 33 and 35 of Law No. 2042 of December 21, 1999, on Budgetary Administration.

That in concordance with item VII, the Ministry of Productive Development and Plural Economy, through Ministerial Resolution, must justify to the BCB that the use and destination of the resources of the credit to be acquired by EASBA are of national priority within the framework of the National Development Plan and that the future flows used for the payment of the credit indicated in the mentioned Article.

That through Supreme Decree No. 637, EASBA is created as an EPNE (National Strategic Public Enterprise), providing that EASBA does not have a Board of Directors, with its Highest Executive Authority being the General Manager designated by Supreme Resolution.

That Ministerial Resolution No. 195 determines for the 2013 management, a value of at least 20%, as the degree of concessionality for Public Enterprises that access internal credits of the Central Bank of Bolivia in an extraordinary manner.

That the Regulations for the Granting of Credit to National Strategic Public Enterprises within the framework of the General State Budget Management Years 2010, 2011 and 2012, approved through BCB Board Resolution No. 023/11 and modified through Board Resolutions No. 026/11, No. 027/11, No. 030/11, No. 097/11, No. 039/12, No. 064/12 and No. 024/13, has the object of regulating the granting of credits by the BCB in favor of EPNEs.

That Board Resolution No. 144/13 approves modifications to the Regulations for the Granting of Credit to National Strategic Public Enterprises within the framework of the General State Budget — Management 2010, 2011, 2012 and 2013 and the Procedure t(--q73(71,1eeey-- ei/afeW, • • 1/4. R.D. N° 180/2013 to define the Discount Rate and the Degree of Concessionality in Credits to be granted to EPNEs.

That through note from the San Buenaventura Sugar Company CITE: EASBA — GG — No. 0363/2013 of December 9, 2013 and within the framework of what is established in Law No. 396, EASBA requests the BCB to grant a credit under concessional conditions with the objective of financing productive investment for Bs 332,747,250.00 (Three Hundred Thirty-Two Million Seven Hundred Forty-Seven Thousand Two Hundred 00/100 Bolivianos) and proposes for the payment of the debt a term of 20 years at an interest rate of 0.8055% annual on balances, of which 4 years are for the grace period and 16 years for the payment of capital and interest. Likewise, it presents the Investment Plan, Disbursement Schedule and the proposed Payment Plan.

That Ministerial Resolution MDPyEP/DESPACHO/N°271.2013, of the Ministry of Productive Development and Plural Economy, justifies to the BCB the following: 1) That according to the National Development Plan (PND), the execution of the EASBA project is of national priority and will be executed by the same, through the General Management, for which it authorizes EASBA to request from the BCB a credit of Bs 332,747,250.00 (Three Hundred Thirty-Two Million Seven Hundred Forty-Seven Thousand Two Hundred 00/100 Bolivianos), provided for in Article 7 of Law No. 396. 2) The financial funds will be destined to finance the implementation of EASBA, whose generated flows will be destined to pay the credit acquired with the BCB. 3) It instructs the General Directorate of Administrative Affairs and Planning of the Ministry of Development and Plural Economy to monitor the resources of the credit.

That through Administrative Resolution No. 116/2013, the General Manager of EASBA approves the Investment Plan, the Payment Plan and the Disbursement Schedule, with breakdown of expenses in national currency and expenses in foreign currency.

That through notes CITE: EASBA-GG-N° 0339, 0340 and 0338/2013, EASBA informs the Ministry of Economy and Public Finance, the Ministry of Development Planning and the Ministry of Productive Development and Plural Economy of the approval of the Investment Plan.

That the Monetary Operations Management states in its report CITE: BCB-GOM-SOSP-DCE-INF-2013-18 of December 10, 2013 concludes that: Since EASBA presented its credit request note proposing financial conditions, the GOM simulated scenarios to be taken into account by the Board and recommends: 1) Consider the interest rate scenarios proposed for the approval of the financial conditions of the credit requested by EASBA and the proposed financial conditions. 2) In case the credit request is considered favorably, EASBA must open the corresponding disbursement and payment accounts at the BCB. 3) Ensure the recovery of the credit in the shortest possible time, seeking to safeguard the capital complying with the degree of concessionality provided for in current regulations.

t__(...-We.; it ecy C&eiet."-ez/ ey/iff ice; C......3/52 e o • /75. RD. N° 180/2013 That the Legal Affairs Management states in its report CITE: BCB-GAL-SANO-INF-2013-437 of December 10, 2013 concludes that the request made by EASBA through note EASBA-GG-N° 0363/2013, for the granting of a credit for an amount of Bs 322,747,250.-, falls within what is provided by current regulations, to this effect, it has complied with the presentation of the documents required in article 2 of the Regulations for the Approval of Credit to EPNEs within the framework of the General State Budget — Management Years 2010, 2011, 2012 and 2013, therefore it corresponds to the Board of Directors of the BCB to consider the aforementioned credit request and consequent approval by two-thirds of the votes of the members present in the meeting.

That the report from the Economic Policy Advisory CITE: BCB-APEC-SSMF-INF-2013-040 of December 10, 2013 states that the disbursement to be made in the current management within the framework of the credit requested by EASBA to the BCB will not affect the fulfillment of the goals of the Monetary Program because the total disbursements to YPFB and to the EPNES made this year are below the total amount included in the Monetary and Fiscal Program.

That by virtue of what is provided in Article 44 of Law No. 1670, the Board of Directors of the BCB is the competent instance to authorize the granting of the extraordinary credit in favor of EASBA in order to comply with what is expressly provided in Law No. 396.

That Article 1 of Board Resolution No. 024/13 modifies the Regulations for the Granting of Credit to National Strategic Public Enterprises in the Framework of the GBE — Management Years 2010, 2011 and 2012 modifying the Regulations for the Approval of Credit to National Strategic Public Enterprises in the Framework of the General State Budget — Management Years 2010, 2011, 2012 and 2013.

That through notes BCB-PRES-CE-2013-888 and BCB-PRES-CE-2013-889, the President of the BCB communicates to the General Manager of EASBA and the Ministry of Productive Development and Plural Economy respectively, the decision of the Board of Directors of the Issuing Entity regarding the conditions for the granting of a concessional extraordinary credit to the San Buenaventura Sugar Company.

That through note CITE: EASBA-GG-N° 371/2013, EASBA expresses acceptance of all the conditions of the Concessional Credit approved by the Board of Directors of the BCB, described in note BCB-PRES-CE-2013-888.

That Article 6 of the Regulations Granting of Credit to National Strategic Public Enterprises in the Framework of the GBE — Management Years 2010, 2011, 2012 and 2013 establishes that the Board of Directors of the BCB, in consideration of the technical and legal reports, will consider the credit request and in its case approve it through the favorable vote of two-thirds of its members present in the Board meeting, issuing the corresponding Resolution; and instruct the elaboration and subsequent signing of the contract by the President of the BCB, prior to review and approval by the Board.

re4eziee{i, xeefor,io arcelo Zab Estrada 1/6. R.D. N° 180/2013 THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Approve within the framework of what is provided in Article 7 of Law No. 396 of August 28, 2013 on Modifications to the PGE-2013 (Law No. 317), of the antecedents and provisions described above, the granting of a concessional extraordinary credit to EASBA under the following terms and conditions: • Currency: Bolivianos Total Credit Amount: Bs 332,747,250.00 (Three Hundred Thirty-Two Million Seven Hundred Forty-Seven Thousand Two Hundred 00/100 Bolivianos). Term: 20 years Grace Period: On capital for four years with payment of interest computable from the first disbursement. Annual Interest Rate: 0.64% (zero point sixty-four percent) Deadline for Disbursements: Until 2016 Payment Plan: Annual Guarantees: Non-Negotiable Treasury Bonds.

Article 2.- Authorize the President of the BCB to sign the contract with the San Buenaventura Sugar Company (EASBA) 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, 2013

• Rol do Marin Ibatiez Reynaldo Yujra Se es 1/7. R.D. N° 180/2013 (liefaYrn rez an ia d'