Resolution 026/2011

BOARD RESOLUTION NO. 026/2011 SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES MODIFICATIONS TO THE REGULATION FOR THE GRANTING OF CREDIT TO STRATEGIC NATIONAL PUBLIC ENTERPRISES WITHIN THE FRAMEWORK OF THE GENERAL STATE BUDGET – 2010 AND 2011 MANAGEMENT PERIODS, APPROVED BY BOARD RESOLUTION NO. 23/2011.

SEEN:

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, and its subsequent modifications. Board Resolution No. 23/2011, of February 22, 2011, which approves the Regulation for the Granting of Credit to Strategic National Public Enterprises within the Framework of the General State Budget – 2010 and 2011 Management Periods. The Report from the BCB Legal Affairs Management BCB-GAL-SANO-INF-2011-62, of February 28, 2011.

CONSIDERING:

That by Board Resolution No. 23/2011, of February 22, 2011, the Regulation for the Granting of Credit to Strategic National Public Enterprises within the Framework of the General State Budget – 2010 and 2011 Management Periods was approved.

That by Report BCB-GAL-SANO-INF-2011-62, the Legal Affairs Management concludes that the proposed modifications to the Regulation for the Granting of Credit to Strategic National Public Enterprises within the Framework of the General State Budget – 2010 and 2011 Management Periods, intended to clarify the operative text in Articles 3 and 4 of the Regulation for the Granting of Credit to Strategic National Public Enterprises within the Framework of the General State Budget – 2010 and 2011 Management Periods, are legally appropriate, as they do not contravene the current legal framework, and it is within the competence of the BCB Board to consider their approval.

That Article 11, numeral 29 of the BCB Statute, concordant with Article 54, clause o) of Law No. 1670, establishes that the Board has the authority to approve, modify, and interpret the Statute and regulations by two-thirds of the votes of its members, without the need for any additional administrative act.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- Approve the modification of Article 2, paragraph I, numeral 6) of the Regulation for the Granting of Credit to Strategic National Public Enterprises within the Framework of the General State Budget – 2010 and 2011 Management Periods, in the following manner:

SAYS:

Article 2.- (Credit Application of the SPNE) I. For the consideration and approval of the credit application, the SPNE must submit the following documentation: 6) Communication of the Investment Plan to the Ministries of Economy and Public Finance, Development Planning, and the sector ministry.

SHOULD SAY:

“Article 2.- (Credit Application of the SPNE) I. For the consideration and approval of the credit application, the SPNE must submit the following documentation: 6) Communication of the Investment Plan to the Ministry of Development Planning and the sector ministry.”

Article 2.- Approve the modification of Article 3 of the Regulation for the Granting of Credit to Strategic National Public Enterprises within the Framework of the General State Budget – 2010 and 2011 Management Periods, in the following manner:

SAYS:

Article 3.- (Payment Capacity) The SPNE must have and demonstrate the capacity to commit a sufficient flow of resources, either from the parent or corporate company, to back the payment of its obligations, regardless of the project's cash flows.

SHOULD SAY:

“Article 3.- (Payment Capacity) The SPNE, to back the payment of its obligations, must have and demonstrate the capacity to commit a sufficient flow of its own resources. This flow must consider the flows corresponding to the parent company, its subsidiaries, or those in which it holds participation and/or the resource flow of the project subject to the credit.”

Article 3.- Approve the modification of Article 4 of the Regulation for the Granting of Credit to Strategic National Public Enterprises within the Framework of the General State Budget – 2010 and 2011 Management Periods, in the following manner:

SAYS:

Article 4.- (Guarantees) The credit guarantee shall be constituted by negotiable securities issued by the TGN in favor of the BCB, which cover the payment of principal and interest. The securities shall be managed by the sector ministry. Such securities must be presented at the time of signing the contract.

SHOULD SAY:

“Article 4.- (Guarantees) The guarantee used to cover the payment of the principal and interest of the credit may be constituted by all or some of the following alternatives:

1. Automatic debit of SPNE accounts, opened at the BCB, provided that operational income of the SPNE is periodically deposited in said accounts, in an amount sufficient to back the debt service.
2. Other guarantees that the SPNE may constitute and that have the acceptance of the BCB.
3. In the event that the BCB does not accept the mentioned guarantees, it will communicate this circumstance to the sector ministry, which may request from the Ministry of Economy and Public Finance the issuance of negotiable securities that guarantee the payment of the principal and interest.”

Article 3.- The modifications to the Regulation for the Granting of Credit to Strategic National Public Enterprises within the Framework of the General State Budget – 2010 and 2011 Management Periods will enter into force from the date of approval of this Resolution.

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

La Paz, March 2, 2011

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Marcelo Zabalaga Estrada

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Ernesto Yáñez Aguilar Rolando Marín Ibáñez

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Hugo Dorado Araníbar Gustavo Blacutt Alcalá

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Rafael Boyán Téllez