Resolution 062/2012

BOARD RESOLUTION NO. 062/2012
SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – APPROVES THE PURCHASE OF GOLD IN THE NATIONAL MARKET DESTINED FOR INTERNATIONAL RESERVES

HAVING SEEN:
The Political Constitution of the State approved by referendum on January 25, 2009, and published on February 7, 2009.
Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB).
Law No. 2042 of December 21, 1999.
Law No. 175 of October 11, 2011, which provides for the purchase of gold by the BCB destined for international reserves.
Law No. 211 of December 23, 2011
Law No. 233 of April 13, 2012
Supreme Decree No. 1167 of March 14, 2012, which regulates Law No. 175 of October 11, 2011.
Supreme Decree No. 29881 of January 7, 2009, on the regulation of budget modifications.
Board Resolution No. 082/2006 of October 3, 2006.
Board Resolution No. 104/2011 of August 23, 2011.
Board Resolution No. 009/2012 of January 10, 2012.
Board Resolution No. 046/2012 of April 17, 2012.
Board Resolution No. 052/2012 of May 3, 2012.
The Regulation for the Administration of International Reserves approved by Board Resolution No. 163/2011 of December 20, 2011.
The note MEFP/VPCF/DGPGP/UGPPP/N° 0123/2012 from the Ministry of Economy and Public Finance dated May 3, 2012.

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The Report from the International Operations Management BCB-GOI-SRES-INF-2012-9 of May 16, 2012.
The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-157 of May 18, 2012.

CONSIDERING:
That Article 328 of the Political Constitution of the State establishes as one of the attributes of the BCB, in coordination with the economic policy determined by the Executive Branch, the administration of international reserves, constituted by various internationally accepted assets, including gold.

That Law 1670 of October 31, 1995, provides that the BCB will administer and manage its international reserves in the manner it considers most appropriate for the fulfillment of its object and functions and for their adequate safeguarding and security.

That Law No. 2042 establishes that any budget modification must be carried out as indicated in the Budget Modification Regulation.

That Law No. 175 of October 11, 2011, authorizes the BCB to purchase gold bars from State Mining Enterprises and from the Central Marketing of Miners of the Mining Cooperatives Ltd. (COMERMIN), which will be destined to increase the international gold reserves.

That Law No. 211 (Financial Law) approves the General State Budget (PGE) for the 2012 management period, which includes the Budget of the Central Bank of Bolivia.

That Law No. 233 of April 13, 2012, approves modifications to the General State Budget (PGE – 2012), which includes the modification to the BCB Budget.

That Supreme Decree No. 1167 authorizes the Ministry of Economy and Public Finance (MEFP) to issue Fiscal Credit Notes (NOCRES) charged to the General State Budget of each management period in favor of the BCB, so that the Issuing Entity assumes the effective rate of the Value Added Tax (VAT) for the purchase of gold bars from State Mining Enterprises, destined for international reserves.

That Supreme Decree No. 29881 establishes the procedures for drafting, presenting, approving, and registering modifications to the budgets of entities in the Public Sector.

That Board Resolution No. 082/2006 approves the Specific Regulation of the Budget System of the Central Bank of Bolivia.

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That Board Resolution No. 104/2011 approves the Annual Operations Program (POA) and the Budget of the Central Bank of Bolivia for the 2012 management period.

That Board Resolution No. 009/2012 approves the Budget of the Central Bank of Bolivia for the 2012 management period, in accordance with the General State Budget (PGE) – 2012 management period approved by Law No. 211.

That Board Resolution No. 052/2012 adjusts the approved Budget to the General State Budget (PGE) in application of Financial Law No. 233, regarding expenses.

That the Regulation for the Administration of International Reserves in its Article 8 establishes that gold purchase or sale operations will be authorized by the Board through an express resolution.

That Article 9 of the Regulation for the purchase of gold from State Mining Enterprises (EMIES) destined for international reserves provides that the BCB Board will establish the maximum purchase volumes of gold from EMIES semi-annually.

That through note MEFP/VPCF/DGPGP/UGPPP/N° 0123/2012 the Ministry of Economy and Public Finance requests that, in accordance with the requirements established in Supreme Decree No. 29881 of January 7, 2009, the following documentation be sent to it: Board Resolution, Legal Report, and Technical Report with price projections and gold purchase volumes that justify the additional budget for the 2012 management period.

That the Report from the International Operations Management BCB-GOI-SRES-INF-2012-9 recommends approving the purchase of up to 350 kilograms of gold bars in the current 2012 management period, with an effective VAT rate of Bs 20.5 million, an amount for which the issuance of NOCRES must be processed.

That according to the Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-157, this Board Resolution does not contravene the current legal framework.

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

Article 1.- Approve the purchase of up to 350 kilograms of gold bars in the 2012 management period from State Mining Enterprises, with an effective Value Added Tax (VAT) rate amount of Bs 20.5 million.

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Article 2.- Authorize the Presidency and General Management of the BCB to carry out the corresponding procedures so that the Ministry of Economy and Public Finance makes an inter-institutional transfer to the Central Bank of Bolivia in the amount of Bs 20.5 million to request the issuance of Fiscal Credit Notes charged to the General State Budget, within the framework established in Supreme Decree No. 1167.

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

La Paz, May 22, 2012

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Marcelo Zabalaga Estrada

__________________________ __________________________ Hugo Dorado Araníbar Rolando Marín Ibáñez _______________________ Gustavo Blacutt Alcalá