Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 198/2015

SUBJECT: BOARD OF DIRECTORS - AMENDS ARTICLE 6 OF BOARD RESOLUTION NO. 033/2015 OF MARCH 10, 2015, WHICH APPROVES THE CREATION OF SPECIAL MONETARY REGULATION DEPOSITS.

VISTOS:

• 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 Board of Directors Minutes No. 013/2015 of March 10, 2015.
• The Report from the Economic Policy Advisory Office BCB-APEC-SIE-INF-2015-18 of January 10, 2015.
• The Report from the Monetary Operations Management BCB-GOM-SOMA-INF-2015-71 of October 27, 2015.
• The Report from the Board of Directors Secretariat BCB-SDIR-INF-2015-2 of October 27, 2015.

CONSIDERING:

That the Board of Directors of the Central Bank of Bolivia, based on the conclusions and recommendations of reports BCB-APEC-SIE-INF-2015-18 and BCB-GAL-SANO-INF-2015-96, approved Board Resolution No. 033/2015 for the creation and implementation of the Special Monetary Regulation Deposits – Second Offering (DERM-2) directed at Financial Intermediation Entities (EIF), whose Article 6 (Remuneration) states that “DERM-2 will be remunerated at an Effective Annualized Rate (TEA) of 1.75%, payable at maturity.”

That on the same date, based on the analysis of report BCB-APEC-SIE-INF-2015-18 on the TEA of monetary regulation titles in Open Market Operations, the Board of Directors in point 7 of Minutes No. 013/2015 approved the second offering of Special Monetary Regulation Deposits (DERM 2) with an effective annualized rate of 2%.

That there is an inconsistency between what is established in Board Resolution No. 033/2015 and Point 7 of Minutes No. 013/2015, attributable to a transcription error in the aforementioned Resolution, therefore the Board of Directors Secretariat through report BCB-SDIR-INF-2015-2 recommends amending Article 6 of Board Resolution No. 033/2015 and ratifying the decision appearing in point 7 of Minutes No. 013/2015 of March 10, 2015, to the effect that the second offering of Special Monetary Regulation Deposits (DERM 2) must have an effective annualized rate of 2%.

That the Board of Directors of the BCB, in its capacity as the highest authority of the Institution, is responsible for defining its policies, specialized general application regulations, and internal rules, being empowered to issue norms and adopt general decisions necessary for the fulfillment of the functions, competencies, and powers assigned by Law to the Issuing Entity, as established in articles 44 and 54 item o) of Law No. 1670 and articles 9, 11, and 24 of the BCB Statute.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Amend Article 6 of Board Resolution No. 033/2015 of March 10, 2015, as follows:

IT SAYS:

Article 6 (Remuneration)

DERM-2 will be remunerated at an Effective Annualized Rate (TEA) of 1.75%, payable at maturity.

IT MUST SAY:

“Article 6 (Remuneration)

DERM-2 will be remunerated at an Effective Annualized Rate (TEA) of 2.00%, payable at maturity.”**

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

La Paz, October 27, 2015

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Marcelo Zabalaga Estrada

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//3. B.D. No. 198/2015

Reynaldo Yujra Segales
Alvaro Rodriguez Rojas
Abraham Pérez Alandia
Ronald Polo Rivero
Sergio Velarde Vera