Board Resolution No. 181/2013

Meryieeey- eie!
The note from the San Buenaventura Sugar Company, Reference: EASBA-GG-N° 371/2013 dated December 16, 2013.

BOARD RESOLUTION NO. 181/2013
SUBJECT: MONETARY OPERATIONS MANAGEMENT — MODIFIES BOARD RESOLUTION NO. 180/2013 BY EXTENDING THE SCOPE OF THE GRACE PERIOD FOR INTERESTS AND SPECIFYING THE FINAL DISBURSEMENT DATE OF THE CONCESSIONAL EXTRAORDINARY CREDIT GRANTED TO THE SAN BUENAVENTURA SUGAR COMPANY (EASBA) FOR AN AMOUNT OF Bs 332,747,250.-

HAVING SEEN:
The Political Constitution of the State promulgated on February 7, 2009.
Law No. 1670 of the Central Bank of Bolivia (BCB) dated October 31, 1995.
Law No. 396 modifying the General State Budget (PGE-2013) dated August 26, 2013.
Supreme Decree No. 637 dated September 15, 2010.
Ministerial Resolution No. 195 dated April 9, 2013.
Board Resolution of the Central Bank of Bolivia No. 023/11 dated February 22, 2011, which approves the Regulations for the granting of credit to National Strategic Public Enterprises within the framework of the General State Budget — Management Years 2010 and 2011; modified by Board Resolutions No. 026/11, No. 027/11, No. 030/11, No. 097/11, No. 039/12, No. 064/12 and No. 024/13, dated 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 dated October 15, 2013. Board Resolution of the Central Bank of Bolivia No. 180/2013 dated December 17, 2013. The Note from the San Buenaventura Sugar Company, Reference: EASBA — GG — No. 0363/2013 dated December 9, 2013. The notes from the Presidency of the Central Bank of Bolivia BCB-PRES-CE-2013-888 and BCB-PRES-CE-2013-889 dated December 16, 2013.

The note from the San Buenaventura Sugar Company, Reference: EASBA-GG-N° 373/2013 dated December 17, 2013.
The note from the San Buenaventura Sugar Company, Reference: EASBA-GG-N° 374/2013 dated December 19, 2013.
Administrative Resolution No. 116/2013 dated 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 dated November 21, 2013.
Supreme Resolution No. 05137 dated February 10, 2011.
The notes from the San Buenaventura Sugar Company (EASBA), References: EASBA-GG-N° 0339, 0340 and 0338/2013 dated November 21, 2013.
The Report from the Economic Policy Advisory, Reference: BCB-APEC-SSMF-INF-2013-043 dated December 10, 2013.
The Report from the Monetary Operations Management, Reference: BCB-GOM-SOSP-DCE-INF-2013-18 dated December 10, 2013.
The Report from the Legal Affairs Management, Reference: BCB-GAL-SANO-INF-2013-437 dated December 10, 2013.
The Report from the Monetary Operations Management, Reference: BCB-GOM-SOSP-DCE-INF-2013-21 dated December 19, 2013.
The Report from the Legal Affairs Management, Reference: BCB-GAL-SANO-INF-2013-452 dated December 20, 2013.

CONSIDERING:

That Article 322 of the Political Constitution of the State provides that the Plurinational Legislative Assembly authorizes the contracting of public debt when it is demonstrated that there is the capacity to generate income to cover the principal and interest, 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 Fifty 00/100 Bolivianos), in favor of the San Buenaventura Sugar Company (EASBA), under concessional conditions, with the objective of financing productive investment and operating 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 aforementioned Article and in accordance with what is established by Number 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).

That according to Number 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 Number 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 aforementioned Article.

That according to Number 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 Number 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 Number VII, the Ministry of Productive Development and Plural Economy, through Ministerial Resolution, must justify before 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 future flows will be used for the payment of the credit indicated in the aforementioned 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 by BCB Board Resolution No. 023/11 and modified by Board Resolutions No. 026/11, No. 027/11, No. 030/11, No. 097/11, No. 039/12, No. 064/12 and No. 024/13, aims to regulate the granting of credits by the BCB in favor of EPNEs.

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 PGE — 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 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 to define the Discount Rate and the Degree of Concessionality in Credits to be granted to EPNEs.

That through a note from the San Buenaventura Sugar Company, Reference: EASBA — GG — No. 0363/2013 dated 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 Fifty 00/100 Bolivianos) and proposes for the payment of the debt a term of 20 years at an annual interest rate of 0.8055% on balances, of which 4 years are for the grace period and 16 years for the payment of principal and interest. Likewise, it presents the proposed Investment Plan, Disbursement Schedule and Payment Plan.

That Ministerial Resolution MDPyEP/DESPACHO/N°271.2013, of the Ministry of Productive Development and Plural Economy, justifies before 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 Fifty 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 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 a breakdown of expenses in national currency and expenses in foreign currency.

That through notes References: EASBA-GG-N° 0339, 0340 and 0338/2013, EASBA informs the Ministry of Economy and Public Finance, 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 Reference: BCB-GOM-SOSP-DCE-INF-2013-18 dated December 10, 2013 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.

That the Legal Affairs Management concludes in its report Reference: BCB-GAL-SANO-INF-2013-437 dated December 10, 2013 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.-, is framed 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 in 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, Reference: BCB-APEC-SSMF-INF-2013-040 dated December 10, 2013 states that the disbursement to be made in the current management in the framework of the credit requested by EASBA to the BCB will not affect the fulfillment of the targets of the Monetary Program because the total disbursements to YPFB and to the EPNEs carried out this year are below the total amount included in the Monetary and Fiscal Program.

That through Board Resolution No. 180/2013 dated December 17, 2013, 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 in the aforementioned Resolution, the granting of a concessional extraordinary credit to EASBA was approved under the following terms and conditions:

Currency:
Total Credit Amount:
Term:
Grace Period:
Annual Interest Rate:
Final Disbursement Date:
Payment Plan:
Guarantees:
Bolivianos
Bs 332,747,250.00 (Three Hundred Thirty-Two Million Seven Hundred Forty-Seven Thousand Two Hundred Fifty 00/100 Bolivianos).
20 years
To principal four years with interest payments computable from the first disbursement.
0.64% (zero point sixty-four percent)
Until 2016
Annual
Non-Negotiable Treasury Bonds.

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 the Issuing Entity regarding the conditions for the granting of a concessional extraordinary credit to the San Buenaventura Sugar Company.

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

That through notes EASBA-GG-N° 373/2013 and EASBA-GG-N° 374 dated December 17 and 19, 2013, EASBA accepts the financial conditions for the granting of the credit approved by the Board of the BCB, clarifying that its request was made with the purpose of obtaining a concessional credit for 20 years, with 4 years of grace for principal and interest because the return flows of the projects will generate income only from the 2016-2017 period. Likewise, they attach a proposed payment plan that considers that the payment of the accrued interest for the first 4 years will be at the conclusion of the fourth year in a single payment and that from the fifth year the payment of interest will be annual jointly with the principal.

That the Report BCB-GOM-SOSP-DCE-INF-2013-21 dated December 19, 2013, from the Monetary Operations Management recommends considering the interest rate scenarios proposed for the approval of the credit conditions by EASBA (table 1) and the financial conditions described in table 3. In case the credit request is considered favorably, EASBA must open the corresponding disbursement and payment accounts at the BCB.

That the Report BCB-GAL-SANO-INF-2013-452 dated December 20, 2013, from the Legal Affairs Management concludes in the sense that the requests made by EASBA through notes EASBA-GG-N° 373/2013 and EASBA-GG-N° 374/2013, do not violate the regulation that supports the approval of the credit nor modify the validity conditions of the request or the approval made, therefore within the scope of its competence it concludes that there are no legal observations regarding this matter.

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.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the modification to Board Resolution No. 180/2013 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, extending the scope of the grace period for interests and specifying the final disbursement date of the concessional extraordinary credit granted in favor of the San Buenaventura Sugar Company according to the following detail:

It says:
Currency: Bolivianos
Total Credit Amount: Bs 332,747,250.00 (Three Hundred Thirty-Two Million Seven Hundred Forty-Seven Thousand Two Hundred Fifty 00/100 Bolivianos).
Term: 20 years
Grace Period: To principal four years with interest payments computable from the first disbursement.
Annual Interest Rate: 0.64% (zero point sixty-four percent) Final Disbursement Date: Until 2016 Payment Plan: Annual

It should say:
Currency: Bolivianos
Total Credit Amount: Bs 332,747,250.00 (Three Hundred Thirty-Two Million Seven Hundred Forty-Seven Thousand Two Hundred Fifty 00/100 Bolivianos).
Term: 20 years
Grace Period: To principal and interest four (4) years with accumulated interest payments payable at the end of the fourth year in a single payment. From the fifth year the payments will be annual jointly with the principal.
Annual Interest Rate: 0.64% (zero point sixty-four percent) Final Disbursement Date: Until December 27, 2016 Payment Plan: Annual Guarantees: Non-Negotiable Treasury Bonds.

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

La Paz, December 20, 2013

Reynaldo Yujra Segales