PRESIDENTIAL DECISION NO. 001/2008

MODIFICATION OF BOARD RESOLUTION NO. 156/2007 APPROVING MODIFICATIONS TO THE LEGAL RESERVE REGULATION

VISTOS:

• Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB).
• The BCB Statute approved by Board Resolution No. 128/2005, of October 21, 2005, modified by Board Resolution No. 031/2006 of April 18, 2006.
• Board Resolution No. 156/2007 of December 18, 2007, approving modifications to the Legal Reserve Regulation, approved by Board Resolution No. 048/2005 of April 20, 2005.
• Act No. 058/2007 of December 18, 2007 of the Board of the Issuing Entity.
• Internal Communication APEC-INEP 002/2008 of January 02, 2008 from the Economic Policy Advisory.
• Report from the Legal Affairs Management SANO No. 002/2008 of January 04, 2008.

CONSIDERING:

That through Board Resolution No. 156/2007, the modification of Article 2 of the Legal Reserve Regulation was approved, establishing a schedule for the Additional Reserve Base between February 11 and June 29, 2008.

That by virtue of Act No. 058/2007, the Board decreed a recess of the meetings of this collegiate body between December 20, 2007, and January 10, 2008.

That as stated by the Economic Policy Advisory in its note APEC-INEP 002/2008, it has been found that there are discrepancies in the implementation schedule, an aspect that must be resolved in order to avoid confusion among financial entities.

That as provided by Article 60 of Law No. 1670 and Article 40 of the BCB Statute, in cases of emergency duly justified, when it is not possible to convene the Board of the Issuing Entity, by way of exception, the President of the BCB may adopt decisions that correspond to the Highest Authority of the Institution. To this effect, the President of the BCB must inform of the decision adopted at the next Board meeting, and such decision cannot be considered the responsibility of the Directors.

That according to the Report from the Legal Affairs Management SANO No. 002/2008, there is no impediment for the President of the Issuing Entity, in the exercise of the powers granted by Article 60 of Law No. 1670 and Article 40 of the BCB Statute, to issue a Presidential Decision.

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THEREFORE,

THE ACTING PRESIDENT OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Modify Article 1 of Board Resolution No. 156/2007 as set forth below:

SAYS:

“Article 1. Approve the partial modification to Article 2 (Terms and abbreviations) of the Legal Reserve Regulation as follows:

Additional Reserve Base (BEA): Corresponds to the difference between the OSEA-ME and a percentage of the OSEA-ME of the base date. This percentage will be adjusted according to the following schedule:

Period	Percentage
Between February 11, 2008 and June 29, 2008	30%
From June 30, 2008 onwards	0%”

MUST SAY:

“Article 1. Approve the partial modification to Article 2 (Terms and abbreviations) of the Legal Reserve Regulation as follows:

Additional Reserve Base (BEA): Corresponds to the difference between the OSEA-ME and a percentage of the OSEA-ME of the base date. This percentage will be adjusted according to the following schedule:

Period	Percentage
Between February 25, 2008 and June 29, 2008	30%
From June 30, 2008 onwards	0%”

Article 2. The General Management is charged with the execution and compliance of this Decision.

La Paz, January 04, 2008

Signature

: LUL GARRÓN CLAURE
ACTING PRESIDENT
CENTRAL BANK OF BOLIVIA