Board Resolution No. 181/2014

BOARD RESOLUTION NO. 181/2014

SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT - APPROVES THE CONSTITUTION OF THE TRUST WITH YPFB AND AUTHORIZES THE PRESIDENT OF THE BCB TO SIGN THE TRUST CONSTITUTION CONTRACT.

HAVING SEEN:

Law 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 subsequent modifications.

Note YPFB/PRS/DLG No. 1609 UGLU No. 172/2014 of December 15, 2014.

Supreme Decree No. 2220 of December 17, 2014.

Report from the International Operations Management BCB-GOI-INF-2014-22 of December 17, 2014.

Report from the Legal Affairs Management BCB-GAL-SANO-INF-2014-809 of December 17, 2014.

CONSIDERING:

That according to article 29, paragraph 0 of Law No. 1670, the Central Bank of Bolivia may carry out trust operations.

That Yacimientos Petroliferos Fiscales Bolivianos, through note YPFB/PRS/DLG No. 1609 UGLU No. 172/2014, has requested the BCB to constitute a Trust to comply with what is established in the "Transactional Contract for the Definitive Resolution of Disputes, Termination of International Investment Arbitration, Recognition of Rights, and General and Reciprocal Release of Obligations" to be signed between YPFB and the company Pan American Energy LLC.

That Supreme Decree No. 2220 in its First Final Provision authorizes Yacimientos Petroliferos Fiscales Bolivianos to carry out the constitution of a Trust for the sum of USD 32,520,375.-, to be administered by the Central Bank of Bolivia in the capacity of trustee.

That the International Operations Management, through Report BCB-GOI-INF-2014-22, recommends to the Institution's Board of Directors to authorize the constitution of the Trust with YPFB and authorize Mr. President of the BCB to sign the Trust Constitution Contract.

That as expressed in Report BCB-GAL-SANO-INF-2014-809, in the opinion of the Legal Affairs Management, there is no legal impediment for the Board of Directors to consider the authorization of the constitution of the Trust with YPFB and authorize Mr. President of the BCB to sign the aforementioned Contract.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Authorize the constitution of a Trust with Yacimientos Petroliferos Fiscales Bolivianos (YPFB), in the capacity of Settlor, for a total amount of USD 32,520,375.-

Article 2.- Authorize Mr. President of the BCB to sign the Trust Constitution Contract with Yacimientos Petroliferos Fiscales Bolivianos.

Article 3.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, December 17, 2014

Celso Zabala Estrada
Sergio Velarde Vera