Resolution 060/2001 Approving the Regulation for Operations of Special Accounts and Other US Dollar Accounts of the Public Sector

BOARD RESOLUTION NO. 060/2001 SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES REGULATION FOR OPERATIONS OF SPECIAL ACCOUNTS AND OTHER ACCOUNTS IN US DOLLARS OF THE PUBLIC SECTOR.

SEEN: The Law No. 1670 of October 31, 1995. The Board Resolution No. 147/97 of September 2, 1997. The Reports from the Monetary Operations Management 010/2001 and 011/2001 of May 7 and 24, 2001, respectively. The Report from the Legal Affairs Management SANO No. 100/2001 of May 16, 2001.

CONSIDERING: That Law 1670 defines the functions of the Central Bank of Bolivia as Financial Agent of the Government and establishes the provision of services related to the contracting of external credits.

That Board Resolution No. 147/97 approves the Regulation for Operations of Special Accounts of the Public Sector.

That it is necessary to modify the Regulation for Operations of Special Accounts of the Public Sector, in order to adapt it to the dynamism required by this type of operation, regulating the opening of Other Accounts in US Dollars for exclusive use by the General Treasury of the Nation.

That the Reports from the Monetary Operations Management 010/2001 and 011/2001, justify the need to approve the draft Regulation for Operations of Special Accounts and Other Accounts in US Dollars of the Public Sector.

//2. R.D. No. 060/2001 That the Report from the Legal Affairs Management SANO No. 100/2001 establishes that in accordance with Article 54, subsections a) and o) of Law 1670, the Board of Directors of the Central Bank of Bolivia has the authority to consider and approve the draft Regulation for Operations of Special Accounts and Other Accounts in US Dollars of the Public Sector.

THEREFORE, THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Approve the new Regulation for Operations of Special Accounts and Other Accounts in US Dollars of the Public Sector in its six Chapters and 21 Articles, attached to this Resolution, which will enter into force as of July 1, 2001.

Article 2.- Repeal Board Resolution No. 147/97 of September 2, 1997, from the entry into force of this Regulation.

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

La Paz, June 19, 2001

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Juan Antonio Morales A.

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Armando Pinell S. Jaime Ponce G.

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Juan Medinaceli V. Armando Méndez M.

//3. R.D. No. 060/2001 ANNEX REGULATION FOR OPERATIONS OF SPECIAL ACCOUNTS AND OTHER ACCOUNTS IN US DOLLARS OF THE PUBLIC SECTOR

CHAPTER I OBJECT, TERMS AND DEFINITIONS

Article 1.- (Object of the Regulation) The present Regulation aims to establish norms for the operations of Special Accounts of the Public Sector and other US dollar accounts of the General Treasury of the Nation (TGN) within the framework of Chapter V of Law 1670, which defines the functions of the Central Bank of Bolivia (BCB) as the government's financial agent.

Article 2.- (Terms and Definitions) The terms and definitions applicable to this Regulation are as follows:

Financing Agreement A credit or donation agreement signed between the Republic of Bolivia and a foreign government or an international financing organization.

Subsidiary Agreement The Agreement signed between the Republic of Bolivia, represented by the Ministry of Finance, and an institution or company of the Public Sector for the use of resources coming from an external loan or donation.

Special Account An account opened at the BCB in foreign currency through the Ministry of Finance, at the request of a company or institution of the Public Sector as a result of an external credit or donation agreement.

Other Accounts in US Dollars A US dollar account opened at the BCB through the Ministry of Finance, at the request and for the use of the TGN with resources not coming from external financing or donations.

//4. R.D. No. 060/2001 Fiscal Current Account A current account of the Public Sector opened in the banking system, authorized by the TGN.

External Financing Resources granted as credit or donation by governments and international organizations.

Authorized Signatories Persons authorized at the BCB to operate and request information related to the special account and other US dollar accounts.

Account Holder Institution or company of the Public Sector that is the beneficiary and executor of the resources of the special account. The holder of other US dollar accounts can only be the TGN.

CHAPTER II AUTHORIZATION OF SPECIAL ACCOUNTS

Article 3.- (Required Documents) To authorize a special account, the necessary documents are the financing and/or donation agreement signed between the Republic of Bolivia and the financiers, as well as the subsidiary agreement signed between the Republic and the beneficiary of the credit.

Article 4.- (Authorization Request) The Ministry of Finance, through the Undersecretariat of Treasury and Public Credit, will request the BCB to authorize a Special Account for a public beneficiary entity that meets the requirements detailed in the preceding paragraph. To this effect, it must justify the need for the account, specify its currency, and attach the corresponding supporting documentation.

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Article 5.- (Authorization of Accounts) The Monetary Operations Management, through the Sub-Management of Public Sector Operations, will be responsible for processing the authorization requests for Special Accounts.

CHAPTER III PROCEDURE FOR OPERATIONS OF SPECIAL ACCOUNTS

Article 6.- (External Disbursements) To execute disbursements destined for Special Accounts, the BCB will communicate to the Account Holder the account number of a correspondent bank abroad.

Article 7.- (Disbursements in Other Currencies) For disbursements by external financiers in a foreign currency different from that requested in the authorization of the special account, the BCB will process the disbursement in the account's currency, at the prevailing exchange rate of the day, which appears in the BCB's quotation table.

Article 8.- (Local Transfers) Local transfers from the special account to fiscal or private current accounts will be made in national currency, at the purchase exchange rate of the foreign currency on the date the transfer is made.

Article 9.- (Transfers Abroad) Transfers abroad will be made in the currency of the special account and will be subject to the commissions established in the BCB's Table of Commissions and Other Income.

Article 10.- (Transfers Abroad in Different Currency) For transfers abroad in a currency different from that of the special account, the Holder will assume the commissions arising from the exchange operation, in addition to the commissions mentioned in Article 9 of this Regulation.

//6. R.D. No. 060/2001

Article 11.- (Authorized Signatories) Withdrawal requests must have two signatures legally accredited at the BCB by the Account Holder. When the Holder is the Ministry of Finance, exceptionally, withdrawal requests will be processed with the sole signature of the Minister.

Article 12.- (Commissions and Interest) The BCB will not charge commissions nor pay interest for the management of the special account.

CHAPTER IV AUTHORIZATION OF OTHER ACCOUNTS IN US DOLLARS

Article 13.- (Request for Authorization of Other Accounts) The Ministry of Finance must present a duly justified request to the BCB for the authorization of Other Accounts in US Dollars for exclusive use by the TGN and its operational dependencies.

Article 14.- (Account Authorization) The Monetary Operations Management, through the Sub-Management of Public Sector Operations, will request the Accounting Management to authorize the required account.

Article 15.- (Communication of Authorization) Once the account is authorized, the Monetary Operations Management will communicate the number assigned to said account.

CHAPTER V PROCEDURE FOR OPERATIONS OF OTHER ACCOUNTS IN US DOLLARS

Article 16.- (Fund Transfers)

Fund transfers from other US dollar accounts to fiscal or private current accounts will be made in national currency at the prevailing purchase exchange rate on the day the transfer is made, which appears in the BCB's quotation table.

//7. R.D. No. 060/2001

Article 17.- (Authorized Signatories) Withdrawal requests must have two signatures legally accredited at the BCB by the Ministry of Finance.

Article 18.- (Commissions and Interest) The BCB will not charge commissions nor pay interest for the management of other US dollar accounts.

CHAPTER VI VALIDITY OF SPECIAL ACCOUNTS AND OTHER ACCOUNTS IN US DOLLARS

Article 19.- (US Dollar Accounts) The following accounts of the Ministry of Finance remain in force and are authorized, without the need for additional procedures:

Transitory M/E Account Treasury Bonds M/E Value Account

Article 20.- (Closure of Special Accounts and Other Accounts) The closure of Special Accounts and Other Accounts in US Dollars will be carried out upon written request of the Ministry of Finance.

Article 21.- (Closure of Accounts for Lack of Activity) If the balance of Special Accounts and Other Accounts in US Dollars remains at zero and/or remains inactive for more than one year, the BCB will proceed to their automatic closure, informing the Ministry of Finance thereof.

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