BOARD OF DIRECTORS

BOARD RESOLUTION NO. 019/2022

SUBJECT: MONETARY OPERATIONS MANAGEMENT – MODIFICATION OF THE REPO OPERATIONS REGULATION

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).
• Law No. 1834, of March 31, 1998, on the Securities Market.
• Law No. 393 of August 21, 2013, on Financial Services.
• The BCB Statute, approved by Board Resolution No. 128/2005, of October 21, 2005, and its subsequent modifications.
• The Repo Operations Regulation, approved by Board Resolution No. 103/2020, of September 29, 2020.
• The Technical Report BCB-GOM-SOMA-INF-2022-10, of February 22, 2022, issued by the Monetary Operations Management (GOM).
• The Legal Report BCB-GAL-SANO-DLBCI-INF-2022-36, of February 23, 2022, issued by the Legal Affairs Management (GAL).

CONSIDERING:

That Article 326 of the Political Constitution of the State provides that the State, through the Executive Branch, will determine the objectives of the country's monetary and exchange rate policy, in coordination with the BCB.

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

That Article 328 of the Political Constitution of the State establishes that the BCB, in coordination with the economic policy determined by the Executive Branch, has among others, the attribution to determine and execute monetary policy.

---

//2. B.R. No. 019/2022

That Article 1 of Law No. 1670 establishes that the BCB is an institution of the State, of public law, of an autarkic nature, of indefinite duration, with legal personality that constitutes the sole monetary and exchange rate authority of the country, with administrative, technical, and financial competence and specialized normative faculties of general application.

That Article 2 of Law No. 1670 establishes that the object of the BCB is to seek the stability of the internal purchasing power of the national currency.

That Article 3 of Law No. 1670 establishes that the BCB will formulate policies of general application in monetary, exchange rate, and payment system matters for the fulfillment of its object.

That Article 6 of Law No. 1670 empowers the BCB to execute monetary policy and regulate the quantity of money and the volume of credit according to its monetary program, being able for this effect, to issue, place, and acquire securities and carry out other open market operations.

That Law No. 1670 of the BCB, in letters d) and o) of its Article 54 determines that the Board of Directors has the attributions to issue norms for the open market operations carried out by the BCB and to approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for any additional administrative act.

That Article 3 of Law No. 1834 defines the over-the-counter market as that which is carried out outside the stock exchanges, with the participation of authorized intermediaries, with securities registered in the Securities Market Registry and authorized by the Securities Superintendent, currently ASFI.

That Law No. 393 on Financial Services states in its Article 5, paragraph III that the BCB will be governed by its own provisions. Likewise, in its Article 16 it determines that ASFI has as its object to regulate, control, and supervise financial services within the framework of the Political Constitution of the State, this Law, and regulatory Supreme Decrees, as well as the activity of the securities market, the intermediaries, and auxiliary entities thereof.

That Law No. 393 on Financial Services in its Article 151 (Types of Financial Entities) establishes, among others, State Financial Entities or with Majority State Participation to: 1. Productive Development Bank, 2. Public Bank, and 3. Public Development Financial Entity.

---

//3. B.R. No. 019/2022

That Article 1 of the Repo Operations Regulation establishes that said Regulation has the object of regulating the Repo Operations carried out by the BCB (OR-BCB) with entities that constitute and participate in the Financial System.

That the Technical Report BCB-GOM-SOMA-INF-2022-10, of February 22, 2022, issued by the GOM, concludes that in order to maintain and support the liquidity levels of the financial system, it recommends to the BCB Board of Directors to incorporate a chapter into the Repo Operations Regulation, which authorizes and allows the BCB to regulate the carrying out of repo operations with State Financial Entities or with majority state participation.

That the Legal Report BCB-GAL-SANO-DLBCI-INF-2022-36, of February 23, 2022, issued by the GAL, concludes that there is no legal impediment for the BCB Board of Directors, within the framework of its attributions, to approve the modification to the Repo Operations Regulation according to the criteria and justifications contained in the Technical Report BCB-GOM-SOMA-INF-2022-10 elaborated by the GOM.

That in merit of the attributions conferred by letters d) and o) of Article 54 of Law No. 1670 and items 4) and 29) of Article 11 of the BCB Statute, the BCB Board of Directors is empowered to issue norms for the open market operations carried out by the BCB and to approve the BCB Regulations, by two-thirds of the votes of all its members, without the need for an additional administrative act.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify the Repo Operations Regulation approved by Board Resolution No. 103/2020 of September 29, 2020, incorporating Chapter IV, with the following text:

CHAPTER IV REPOS WITH STATE FINANCIAL ENTITIES OR WITH MAJORITY STATE PARTICIPATION

Article 11. (Authorized Entities). State Financial Entities or with majority state participation are authorized to participate in repo operations of public and/or private securities whose holders are Strategic National Public Enterprises (EPNE).

Article 12. (Characteristics and Conditions). The BCB Board of Directors will approve, through a meeting minutes, the financial characteristics and conditions taking into account the market context.

Article 2.- Approve the modification to Chapter IV of the Open Market Operations Regulation, in the following terms.

Says:

CHAPTER IV OTHER PROVISIONS

Article 11. (Certification). The BCB, at the request of the authorized entities, will issue certifications on the OR-BCB carried out with the BCB by the requesting entity.

Article 12. (Other operational aspects). The COMA may define any operational aspect not foreseen within the framework of this Regulation.

Article 13. (Custody of Bearer Securities). In all cases, the bearer securities subject to OR-BCB, during the validity of the operations, must remain in deposit and custody of the BCB or another entity authorized by the Issuer Entity.

Must Say:

CHAPTER V OTHER PROVISIONS

Article 13. (Certification). The BCB, at the request of the authorized entities, will issue certifications on the OR-BCB carried out with the BCB by the requesting entity.

Article 14. (Other operational aspects). The COMA may define any operational aspect not foreseen within the framework of this Regulation.

Article 15. (Custody of Bearer Securities). In all cases, the bearer securities subject to OR-BCB, during the validity of the operations, must remain in deposit and custody of the BCB or another entity authorized by the Issuer Entity.

---

//5. B.R. No. 019/2022

Article 3.- The modification effected by this Resolution to the Repo Operations Regulation will enter into force from its approval.

Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, March 2, 2022

SIGNED. ROGER EDWIN ROJAS ULO, Oscar Ferrufino Morro, Gabriel Herbas Camacho, Gumercindo Héctor Pino Guzmán, Diego Alejandro Pérez Cueto Eulert.