Resolution 073/2011

BOARD RESOLUTION NO. 073/2011 SUBJECT: MONETARY OPERATIONS MANAGEMENT – AUTHORIZES THE OPEN MARKET OPERATIONS COMMITTEE TO ESTABLISH A COMMISSION FOR THE TRANSFER AND ASSIGNMENT OF SECURITIES PLACED THROUGH DIRECT SALE MECHANISMS.

HAVING SEEN: The Political Constitution of the State approved by referendum on January 25, 2009, and promulgated on February 7, 2009. Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia, and its modifications. Law No. 1834 of March 31, 1998, on the Securities Market (LMV). The Statute of the Central Bank of Bolivia, approved by Board Resolution No. 128/2005, of October 21, 2005, and its subsequent modifications. The Open Market Operations (OMA) Regulation, approved by Board Resolution No. 127/2003 of November 11, 2003, and the modifications approved by Board Resolutions No. 017/2004, No. 070/2005, No. 108/2007, No. 130/2007, of February 10, 2004, May 24, 2005, August 21, 2007, and October 16, 2007, respectively. The Technical Report from the Monetary Operations Management BCB-GOM-SOMA-INF-2011-019 of June 9, 2011. The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2011-211 of June 10, 2011.

CONSIDERING: 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, whose function is to maintain 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 as attributions of the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those indicated by Law, to determine and execute monetary policy, execute exchange rate policy, regulate the payment system, authorize the issuance of currency, and administer international reserves.

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

That Article 44 of Law No. 1670 states that the highest authority of the BCB is responsible for defining policies, specialized regulations of general application, and internal rules; as well as establishing administrative, operational, and financial strategies, approving their short and medium-term programs.

That Article 54 subsections a) and n) of Law No. 1670 grants the Board the power to issue norms and adopt general decisions necessary for the BCB to fulfill the functions, competencies, and powers assigned by Law, as well as to formulate policies related to its internal management.

That Article 2 of Law No. 1834 provides that Securities are freely transferable in accordance with what is established in the Securities Market Law. Any limitation on their circulation is null and void.

That Article 3 of Law No. 1834 establishes that the stock market shall be understood as the meeting of supply and demand for Securities registered in the Securities Market Registry and in stock exchanges, carried out therein by authorized intermediaries. Likewise, the over-the-counter market shall be understood as that which takes place outside of exchanges, with the participation of authorized intermediaries, with Securities registered in the Securities Market Registry. Only Securities authorized by the "Superintendence of Securities, Pensions and Insurance" may be traded in the over-the-counter market.

That Article 11 items 1 and 4 of the BCB Statute states that it is the attribution of the Board of the Issuer to approve general decisions and issue the norms that are necessary for the BCB to fulfill the functions, competencies, and powers assigned by Law, as well as to approve the policy and norms for Open Market Operations, as well as to monitor their execution.

That the Technical Report from the Monetary Operations Management, within the framework of a new issuance of over-the-counter securities under direct sale mechanisms to the public, with the objective of signaling interest rates to the financial market and encouraging savings as part of the BCB's policies to moderate liquidity and contain price increases, recommends to the Board to authorize the Open Market Operations Committee (COMA) to establish a commission for the transfer and assignment of securities placed through Direct Sale mechanisms.

That in the opinion of the Legal Affairs Management, it is legally appropriate to authorize COMA the power for this Committee to establish a commission for the transfer and assignment of securities placed through Direct Sale mechanisms.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA

RESOLVES:

Article 1.- The Open Market Operations Committee (COMA) is authorized to establish a commission for the transfer and assignment of securities placed through direct sale mechanisms, which shall be published in due course and brought to the knowledge of the general public.

Article 2. The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, June 14, 2011

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Marcelo Zabalaga Estrada

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Rolando Marín Ibáñez Hugo Dorado Araníbar

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Ernesto Yáñez Aguilar