Resolution 082/97 Approving the Statute of the Central Bank of Bolivia

RESOLUTION OF THE BOARD OF DIRECTORS NO. 082/97 SUBJECT: GENERAL MANAGEMENT - APPROVES THE STATUTE OF THE CENTRAL BANK OF BOLIVIA (BCB).

VIEWED:
The Law of the Central Bank of Bolivia No. 1670 of October 31, 1995.
The Technical Report from the General Management dated December 30, 1996.
The Report from the Legal Affairs Management S-JIN 026/97 dated January 3, 1997.

CONSIDERING:
That the Statute project responds to the spirit and provisions of Law 1670 of October 31, 1995.
That the Central Bank of Bolivia, in its capacity as a public law entity of an autarkic nature, is empowered to establish its internal norms independently.
That the Statute constitutes the most important internal norm of the Bank, where the organization, hierarchy, and administrative structure of the entity are defined for the fulfillment of its objectives. That in accordance with the provisions of Articles 44 and 54, subsection o) of Law 1670, it is the attribute of the Board of Directors to approve, modify, and interpret the Statute and Regulations of the BCB.

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

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Article 1.- Approve the Statute of the Central Bank of Bolivia in its 15 chapters and 95 articles.
Article 2.- The Statute will enter into force on April 1, 1997. During the transition, the General Management will be responsible for adapting the administrative structure and other mechanisms of the Bank to this new legal provision.
Article 3.- The Presidency and the General Management are charged with executing this Resolution.

20.II.97

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Edgar Millares A.

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Armando Pinell S. Jaime Ponce G.

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Juan Medinacelli V. Fernando Campero P.

//3. R.D. No. 082/97
STATUTE OF THE
CENTRAL BANK OF BOLIVIA.

CHAPTER I
OBJECT AND NATURE OF THE ENTITY
(Object)
Article 1.- This statute regulates the organization and internal activities of the BCB, in the manner and scope established by Law 1670.
(Nature)
Article 2.- The Central Bank of Bolivia (BCB) is an institution of the State, of public law, of an autarkic nature, of indefinite duration, with its own legal personality and assets.
(Object of the BCB)
Article 3.- The object of the BCB is to procure the stability of the internal purchasing power of the national currency.
(Legal Domicile)
Article 4.- The BCB has its legal domicile in the city of La Paz (Ayacucho Street corner Mercado) where its main building is located.
(Subject to the Law)
Article 5.- The BCB is subject to compliance with the provisions contained in its Law, in other related legal provisions, in this Statute, and in its internal regulations.

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(Competencies)
Article 6.- By Article 1 of Law 1670, the BCB has normative, administrative, technical, and financial competence.
a) Normative, to fulfill its functions according to Law 1670. b) Administrative, to establish its own ordering, organization, and functions in the administrative field, in concordance with the particular nature of the institution and within the framework of national legislation. c) Technical, for the formulation of policies and the application of instruments that allow it to fulfill its object defined in Law 1670. d) Financial, to formulate and approve its budget. (Application of the Norms)
Article 7.- The norms referred to in Law 1670 will be issued through Resolutions of its Board of Directors.

CHAPTER II
DIRECTION AND ADMINISTRATION OF THE BANK
(Superior Direction)
Article 8.- The Direction and Administration of the Bank are in charge of:

1. THE BOARD OF DIRECTORS
2. THE PRESIDENT
3. THE GENERAL MANAGER
4. THE AREA MANAGERS

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(Administration)
Article 9.- The other levels of administration, from the Sub-Manageries onwards, are regulated in the Organization and Functions Manual.
(The Board of Directors)
Article 10.- The Board of Directors is the highest authority of the institution. It is composed of the President and five Directors elected in accordance with Article 45 of Law 1670. The Directors assume the position on the day of their installation.
(Impediments and Obligations)
Article 11.- Before exercising functions, each Director will present to the General Secretary a sworn declaration of not being impeded by the causes indicated in Article 47 of the BCB Law. Any subsequent impediment, after installation, must be communicated immediately and in writing to the President of the Bank for legal purposes.
The Directors must present a sworn declaration of assets and income to the Comptroller General of the Republic.
(Attributions)
Article 12.- The Board of Directors will ensure the effective development and fulfillment of the attributions, competencies, and functions conferred upon it by Law 1670, including institutional reordering and consolidation, and the responsibilities of the BCB in the normative field and formulation of general application policies in monetary, exchange, and financial intermediation matters, which include credit and banking.

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(Full-Time Directors)
Article 13.- At the beginning of each year, for reasons of service and according to the needs and institutional purposes, the Board of Directors may assign to one or more of its members full-time functions and exclusive dedication for management, through an express resolution adopted by an absolute majority of votes. It may also entrust other Directors with the performance of full-time functions, for shorter periods and for the fulfillment of specific tasks.

These Directors will exercise their functions within the framework of the provisions contained in Law 1670 and this Statute, according to the responsibilities and tasks entrusted to them by the Board of Directors, and may not exercise any other remunerated activity except university teaching. The remuneration received by full-time and exclusive dedication Directors will be subject to the same legal conditions applicable to the remuneration of the President of the BCB. (Other Attributions of the Board of Directors)
Article 14.- The Board of Directors has the following attributions, in addition to those indicated in Article 54 of Law 1670:
a) Approve, through an express resolution and by an absolute majority of all its members, the designation of the General Manager that has been made by the President. If the Board of Directors does not approve, the President must designate another person. b) Approve, by a simple majority of votes of its members present in the meeting, the designation of the Advisors, Managers, and Sub-Managers appointed by the President. If the Board of Directors does not approve, the President must designate other persons. c) Suspend and dismiss the General Manager, by vote of the absolute majority of all its members. //7. R.D. No. 082/97 d) Suspend and dismiss the Advisors, Managers, and Sub-Managers, by simple majority. e) Approve the participation of the Bank in international meetings, related to its functions. f) Approve trips abroad on official mission of the President, the Directors, and the General Manager. g) Establish and approve, in accordance with what is provided by Article 82 of Law 1670, the financial support destined for the Cultural Foundation of the BCB, for its incorporation into the annual budget of the Bank. h) Establish the turn of Directors for the purposes provided in subsection m) of Article 54 of Law 1670. i) Declare employees of the entity on commission. j) Approve the internal regulations relative to the contracting of goods and services, based on the basic norms issued by the Governing Bodies of the Government. k) Know and resolve, within the legal timeframes provided, the appeals for review. l) Approve the training program of the BCB personnel. m) Approve the annual operational plan of the Bank. n) Approve the personnel administration policy of the Bank. o) Know and approve the international technical cooperation agreements that the BCB receives or grants. p) Approve inter-institutional agreements.

q) Approve the Organization and Functions Manual of the BCB. r) Appoint the Bank's representatives before other institutions.
//8. R.D. No. 082/97 s) Others that are considered necessary for the fulfillment of its functions.

CHAPTER III
BOARD OF DIRECTORS MEETINGS
(Frequency)
Article 15.- The Board of Directors meets ordinarily at least once a week and, exceptionally, as many times as it deems convenient for the good progress of the institution.
(Headquarters)
Article 16.- The meetings of the Board of Directors are held in the Bank's building, located at its legal domicile. Exceptionally, the Board of Directors may sit in another place different from its headquarters by decision of the absolute majority of its members.
(Call to Meeting)
Article 17.- The call to ordinary Board of Directors meetings is made in writing through the General Secretariat, which is responsible for distributing, with due advance notice, the agenda and corresponding documentation.
(Extraordinary Meetings)
Article 18.- The President of the Board of Directors may call as many extraordinary Board of Directors meetings as he deems convenient. Two or more Directors may request that an extraordinary session be called, justifying, in a note addressed to the President, the need for the same.
(Quorum)

Article 19.- The quorum for Board of Directors meetings is four of its members, including the President.
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(Licenses)
Article 20.- Directors who cannot attend a session for reasons of force majeure must request from the President, through the Secretary of the Board of Directors, the respective license for its registration in the minutes.
Unjustified absence from Board of Directors meetings for more than one calendar month, in accordance with subsection c) of Article 50 of Law 1670, is a cause for removal.
(Agenda)
Article 21.- It is the attribute of the President to instruct the call to Board of Directors meetings and establish the topics that form part of the agenda of each meeting. The Board of Directors may ask the President to include urgent topics or incorporate them into the agenda of a next ordinary or extraordinary meeting.
(Alteration of the Agenda)
Article 22.- The agenda may be altered by decision of the majority of the Directors who attend the session.
(Consideration of the Minutes)
Article 23.- At the beginning of each ordinary meeting, the Minutes of the previous session must necessarily be considered.
(Voting)
Article 24.- The Resolutions and Decisions of the Board of Directors are adopted by a simple majority of votes of the members present in the meeting, except in cases where Law 1670 or special regulations require a qualified majority.
Directors may not abstain from voting. In case of dissent, they must justify their position, which will be recorded in the minutes.
The President has a casting vote in case of a tie.
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(Confidentiality and Magnetic Recording)
Article 25.- Board of Directors meetings are reserved, with Directors being obliged to keep secret the operations and matters treated in accordance with Article 80 of Law 1670. By two-thirds of the votes of all its members, the Board of Directors may approve that its meetings be recorded on magnetic media. The recordings will be the responsibility of the Secretary of the Board of Directors and will have strictly confidential character.
The recordings will have no probative value inside or outside the BCB and, as established by Law 1670 in its Article 53, last paragraph, only "the Board of Directors Minutes will have full probative value for all legal effects." (Resolutions)
Article 26.- The Board of Directors pronounces itself on matters within its competence through Resolutions. It may also do so through decisions that will be expressly recorded in the minutes. Every Resolution of the Board of Directors must be motivated and justified by a technical report from the Management or Managements to whom the matter subject to the Resolution corresponds and by a Legal Advisory report.
(Participation of Managers and Other Officials)
Article 27.- The General Manager attends the Board of Directors meetings with the right to speak but without a vote. By instructions from the Presidency, he may present the different topics contemplated in the agenda. The President may excuse the attendance of the General Manager.

The Advisors, Managers, and Sub-Managers may be called to Board of Directors sessions, when their presence is necessary to deal with matters related to their area. The Board of Directors may invite other people for the consideration of specific matters. //11. R.D. No. 082/97 (Secretary of the Board of Directors)
Article 28.- The General Secretary of the BCB fulfills the functions of Secretary of the Board of Directors, attends its meetings, and is responsible for drafting the minutes and resolutions. The President may excuse the attendance of the Secretary of the Board of Directors.
(Minutes and Resolutions)
Article 29.- The Board of Directors Minutes have full probative value for all legal effects and are structured as follows:
I. Place, day, and time when the meeting begins and concludes and list of participants;
II. Agenda;
III. Reports and Decisions adopted;
IV. Complete transcription of the approved resolutions.
The Board of Directors Resolutions have the following structure:
SUBJECT: Summary of the topic and identification of the proposing area.
VIEWED: List of antecedents and reports of a technical and legal nature.
CONSIDERING: Exposition of arguments and justification of the proposals or propositions.

RESOLUTIVE: Space intended to reflect the determinations adopted and the authorities responsible for their execution.
The Minutes and Resolutions bear the name and signature of the President and the Directors who attend the meeting, as well as the sequential identification number and the date on which they are issued. //12. R.D. No. 082/97 (Publication of the Norms of General Application)
Article 30.- The Bank will publish in the Annual Report the norms of general application issued by the Board of Directors. It may also publish them in informational bulletins or in national media.

CHAPTER IV
OF THE PRESIDENT OF THE BANK
(Executive Authority)
Article 31.- According to Article 57 of the BCB Law, the President is the first executive authority of the Institution.
(Other Attributions)
Article 32.- The President of the Bank has the following attributions, in addition to those indicated in Article 59 of Law 1670:
a) Propose to the Board of Directors the measures that in his judgment are convenient for the execution of monetary, exchange, credit, financial intermediation, international reserves administration, and internal functioning policy of the BCB. b) Appoint the General Manager, the Advisors, Managers, and Sub-Managers.

c) Preside over the Committees established in this Statute, being able to delegate this function in one of the full-time Directors, if there are any, or in the General Manager. d) Determine daily the exchange rate, in his capacity as President of the Monetary and Exchange Policy Committee. //13. R.D. No. 082/97

e) Legalize with his signature and that of the General Manager the banknotes of different denominations, whose issuance and circulation the Board of Directors authorizes. f) Legalize with his signature and that of the General Manager the securities whose issuance the Board of Directors authorizes. The President may delegate this attribution to one or more area managers, through special powers. g) Sign the contracts and agreements that the Bank concludes, whose amounts correspond to their hierarchy. h) Revoke the powers that he has granted. i) Authorize the trips abroad of BCB officials in all categories, excepting those established in subsection f) of Article 14 of this Statute. j) Others that are entrusted to him by the Board of Directors and those corresponding to his condition as the main executive of the Bank. (Judicial Representation)
Article 33.- According to Article 61 of Law 1670, the President represents the BCB judicially jointly with the General Manager.
To initiate judicial actions of a penal nature or those in which the assets of the Bank are compromised, he will require express authorization from the Board of Directors.
(Powers)
Article 34.- With respect to Article 59, subsection g) of Law 1670, relative to the attributions of granting special powers to third parties, the President may not exercise that right in the following cases:

a) When it concerns decisions privative of the BCB Board of Directors.
//14. R.D. No. 082/97 b) When an express Resolution of the Board of Directors prevents it. c) When the current regulations so determine.
(International Representation of the Bank)
Article 35.- The President assumes the official representation of the Bank before the international organizations in which the BCB participates on behalf of the country, being able to delegate the same.
(Policy Coordination)
Article 36.- On behalf of the institution, the President will seek the coordination of the policies of BCB responsibility with the Government's economic policy, through the exchange of criteria and frequent dialogue with the Minister of Finance, with the purpose of fulfilling the object of the BCB indicated in Article 2 of Law 1670.
In the case of insufficient coordination of the respective policies, in accordance with Article 5 of the aforementioned Law, the President must recommend to the Government, in writing, the adoption of the measures that the case advises. The President will inform the Board of Directors about the evolution of the coordination process. (Public Debt Negotiation)

Article 37.- The BCB, through its President, participates in the renegotiation of external public debt, in compliance with Article 29 subsection i) of Law 1670. The President may delegate this attribution to a Director, the Principal Advisor of Economic Policy, or the General Manager of the BCB.
The President will transmit to the Government, through the Minister of Finance, the recommendations that the Issuing Institute considers convenient regarding public indebtedness, in observance of Article 5 of the BCB Law. //15. R.D. No. 082/97 (Official Spokesperson)
Article 38.- The President is the only official spokesperson of the BCB, being able to delegate this faculty to the members of the Board of Directors or to Bank officials.
(Extraordinary Powers)
Article 39.- According to what is provided in Article 60 of Law 1670, in cases of emergency duly justified, when it is not possible to convene the Board of Directors, the President may adopt during a period of 48 hours, decisions that correspond to said body. For this effect, the President will issue Presidential Decisions that will have the structure of the Board of Directors Resolutions provided for in the second part of Article 29 of this Statute. The decisions must be motivated and justified, indispensably, by a technical report and a legal report.
After the 48 hours have passed, the President will convene the Board of Directors to inform it in detail of the decisions adopted, without responsibility for the Directors. In case that the Board of Directors cannot meet, he will inform it at the next meeting.

CHAPTER V
OF THE VICE PRESIDENT OF THE BOARD OF DIRECTORS (Function)
Article 40.- The Vice President of the Board of Directors has the function of substituting the President of the Bank in cases of temporary absence or impediment of the latter, with all the attributions conferred upon him by Law 1670.
(Appointment)
Article 41.- His designation will be made in accordance with what is prescribed in Article 62 of Law 1670.
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(Cases of Absence)
Article 42.- In cases of temporary absence or impediment of the Vice President, the Board of Directors will designate one of its Directors to substitute him.

CHAPTER VI
OF THE GENERAL MANAGER
(Manager's Authority)
Article 43.- The General Manager is the first operational authority of the BCB.
He answers directly to the President of the Bank and is responsible for the internal management and administration of the entity, in accordance with the attributions assigned to him by Law 1670, this Statute, and the Institution's regulations. (Requirements)
Article 44.- The General Manager must possess a university degree, have Bolivian nationality by origin, and have extensive experience in banking, economic, legal, administrative, or financial matters.
(Appointment and dismissal)
Article 45.- The appointment of the General Manager is made in accordance with what is provided by Article 65 of Law 1670. His appointment is for an indefinite time and may be dismissed in accordance with Article 66 of the same Law and in accordance with what is established by Article 14, subsection c) of this Statute.
(Cases of Absence)
Article 46.- In case of absence or impediment greater than one week of the General Manager, it corresponds to the Board of Directors to appoint an Area Manager as Acting General Manager, while the absence of the holder lasts.
//17. R.D. No. 082/97
In case of absence or impediment less than one week, the President of the BCB will appoint the Administration Manager as Acting General Manager, while the absence of the holder lasts. (Incompatibilities)
Article 47.- The General Manager is subject to the incompatibilities established in Article 47 of Law 1670.
(Attributions)
Article 48.- In addition to the attributions established in Article 67 of the BCB Law, the General Manager has the following:
a) Coordinate with the Area Managers, when appropriate, the presentation of reports on topics recorded in the agenda of the Board of Directors sessions. b) Act in the Board of Directors sessions as rapporteur of the matters referred to the operations and administration of the Bank. c) Supervise the functioning of the Manageries and

evaluate their performance periodically. d) Sign jointly with the President the banknotes of different denominations, whose issuance the Board of Directors authorizes. e) Direct the contracting processes of goods and services, up to the award inclusive, of whose minutes he must inform monthly to the President and, when the case requires, to the Board of Directors. f) Sign, jointly with the President, the securities whose issuance the Board of Directors authorizes. g) Appoint interim executive level officials, in temporary substitution of the holders, informing about the particular to the President. //18. R.D. No. 082/97 h) Call periodically to executive level meetings to consider technical, operational, and administrative aspects of the Bank. i) Preside over the Committees by delegation of the President. j) Present to the President the General Balance, the Statement of Losses and Gains, and the proposal for distribution of profits, in accordance with what is provided in Law 1670. k) Approve the plans and programs presented by the Bank's Administration. l) Keep in custody one of the keys to the gold reserves vault. m) Hire and dismiss Bank personnel. n) Present to the President the Annual Operational Plan and Budget of the Bank. o) Present to the President the guidelines of personnel administration policy. p) Approve the trips within the country of the BCB officials. q) Exercise other attributions that are entrusted to him by the

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Board of Directors and those corresponding to his condition as the first operational authority of the Bank.

CHAPTER VII
OF THE AREA MANAGERS
(Attributions)
Article 49.- The Area Managers are responsible for the direction and administration of their respective areas, in accordance with the attributions conferred upon them by Law 1670, this Statute, and the internal regulations of the Institution.
(Appointment)
Article 50.- The Area Managers are appointed by the President of the Bank, with the approval of the Board of Directors, in accordance with what is established in Article 14, subsection b) of this Statute.
(Cases of Absence)
Article 51.- In case of absence or impediment of an Area Manager, the President of the Bank will appoint a Sub-Manager as Acting Area Manager, while the absence of the holder lasts.

CHAPTER VIII
OF THE SUB-MANAGERS
(Attributions)
Article 52.- The Sub-Managers are responsible for the direction and administration of their respective sub-areas, in accordance with the attributions conferred upon them by Law 1670, this Statute, and the internal regulations of the Institution.
(Appointment)
Article 53.- The Sub-Managers are appointed by the President of the Bank, with the approval of the Board of Directors, in accordance with what is established in Article 14, subsection b) of this Statute.
(Cases of Absence)
Article 54.- In case of absence or impediment of a Sub-Manager, the Area Manager will appoint a subordinate official as Acting Sub-Manager, while the absence of the holder lasts.

CHAPTER IX
OF THE ADVISORS
(Attributions)
Article 55.- The Advisors provide advice and support to the President and the Board of Directors in matters within their competence, in accordance with the attributions conferred upon them by Law 1670, this Statute, and the internal regulations of the Institution.
(Appointment)
Article 56.- The Advisors are appointed by the President of the Bank, with the approval of the Board of Directors, in accordance with what is established in Article 14, subsection b) of this Statute.
(Cases of Absence)
Article 57.- In case of absence or impediment of an Advisor, the President of the Bank will appoint a subordinate official as Acting Advisor, while the absence of the holder lasts.

CHAPTER X
OF THE GENERAL SECRETARY
(Attributions)
Article 58.- The General Secretary is responsible for the general administration of the Bank, in accordance with the attributions conferred upon him by Law 1670, this Statute, and the internal regulations of the Institution.
(Appointment)
Article 59.- The General Secretary is appointed by the President of the Bank, with the approval of the Board of Directors, in accordance with what is established in Article 14, subsection b) of this Statute.
(Cases of Absence)
Article 60.- In case of absence or impediment of the General Secretary, the President of the Bank will appoint a subordinate official as Acting General Secretary, while the absence of the holder lasts.

CHAPTER XI
OF THE INTERNAL AUDIT
(Attributions)
Article 61.- The Internal Audit is responsible for the internal control of the Bank, in accordance with the attributions conferred upon it by Law 1670, this Statute, and the internal regulations of the Institution.
(Appointment)
Article 62.- The Internal Audit is appointed by the President of the Bank, with the approval of the Board of Directors, in accordance with what is established in Article 14, subsection b) of this Statute.
(Cases of Absence)
Article 63.- In case of absence or impediment of the Internal Audit, the President of the Bank will appoint a subordinate official as Acting Internal Audit, while the absence of the holder lasts.

CHAPTER XII
OF THE LEGAL ADVISORY
(Attributions)
Article 64.- The Legal Advisory provides legal advice and support to the President and the Board of Directors in matters within their competence, in accordance with the attributions conferred upon it by Law 1670, this Statute, and the internal regulations of the Institution.
(Appointment)
Article 65.- The Legal Advisory is appointed by the President of the Bank, with the approval of the Board of Directors, in accordance with what is established in Article 14, subsection b) of this Statute.
(Cases of Absence)
Article 66.- In case of absence or impediment of the Legal Advisory, the President of the Bank will appoint a subordinate official as Acting Legal Advisory, while the absence of the holder lasts.

CHAPTER XIII
OF THE HUMAN RESOURCES
(Attributions)
Article 67.- The Human Resources is responsible for the management of the Bank's personnel, in accordance with the attributions conferred upon it by Law 1670, this Statute, and the internal regulations of the Institution.
(Appointment)
Article 68.- The Human Resources is appointed by the President of the Bank, with the approval of the Board of Directors, in accordance with what is established in Article 14, subsection b) of this Statute.
(Cases of Absence)
Article 69.- In case of absence or impediment of the Human Resources, the President of the Bank will appoint a subordinate official as Acting Human Resources, while the absence of the holder lasts.

CHAPTER XIV
OF THE INFORMATION TECHNOLOGY
(Attributions)
Article 70.- The Information Technology is responsible for the management of the Bank's information systems, in accordance with the attributions conferred upon it by Law 1670, this Statute, and the internal regulations of the Institution.
(Appointment)
Article 71.- The Information Technology is appointed by the President of the Bank, with the approval of the Board of Directors, in accordance with what is established in Article 14, subsection b) of this Statute.
(Cases of Absence)
Article 72.- In case of absence or impediment of the Information Technology, the President of the Bank will appoint a subordinate official as Acting Information Technology, while the absence of the holder lasts.

CHAPTER XV
FINAL PROVISIONS
Article 73.- This Statute enters into force on the date of its approval.
Article 74.- The previous norms that contradict this Statute are repealed.
Article 75.- This Statute is published in the Official Gazette and in the Annual Report of the Bank.

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END OF DOCUMENT

President and/or the Board of Directors.

CHAPTER VII
OF THE PERMANENT COMMITTEES
(Function of the Committees)

Article 49.- The Committees are plural bodies whose purpose is to consider and make decisions on specific matters.

Directors may attend the Committees when they deem their participation necessary or merely in an informational capacity.

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The Bank has the following Committees:

1. Monetary and Exchange Policy Committee
2. Open Market Operations Committee
3. International Reserves Management Committee
4. Financial System Analysis Committee
5. General Administration Committee

(Monetary and Exchange Policy Committee)

Article 50.- The Monetary and Exchange Policy Committee is tasked with recommending the adoption of decisions on exchange, monetary, and financial matters and coordinating the policies whose management is the responsibility of the BCB, and coordinating these with fiscal policy and the Government's other macroeconomic policies.

This Committee is chaired by the President of the BCB and composed of the Chief Advisor of Economic Policy, the Manager of Currency and Credit, the Manager of International Affairs, and the Manager of the Financial System. The Alternate Chief Advisor of Economic Policy acts as Secretary.

The President may delegate the chairmanship of the Committee to a Director or to the Chief Advisor of Economic Policy.

(Open Market Operations Committee)

Article 51.- The Open Market Operations Committee is tasked with:
a) Evaluating the behavior of open market operations and recommending the necessary actions for their development and control. b) Weekly determination of the volume and conditions for active and passive operations with Treasury Bills and Bonds, other securities issued by the State, and BCB Deposit Certificates, in accordance with the monetary policy defined by the Board of Directors and the recommendations of the Monetary and Exchange Policy Committee.

//20. R.D. Nº 082/97

This Committee is chaired by the President of the BCB and composed of the General Manager, the Manager of Currency and Credit, the Chief Advisor of Economic Policy, and the Deputy Manager of Open Market Operations, who acts as Secretary.

The President may delegate the Chairmanship to a Director or to the General Manager.

(International Reserves Management Committee)

Article 52.- The International Reserves Management Committee is tasked with:
a) Analyzing and evaluating the behavior of the country's International Reserves, as well as recommending policies to the Board of Directors for better management thereof. b) The administration and investment of international reserves, consisting of monetary reserves, gold reserves, and other international assets, in accordance with the international reserves policy defined by the Board of Directors.

It is chaired by the President of the BCB and composed of the General Manager, the Manager of International Affairs, the Chief Advisor of Economic Policy, and the Deputy Manager of Reserves and External Debt, who acts as Secretary. The President may delegate his representation to a Director or to the General Manager.

(Financial System Analysis Committee)

Article 53.- The Financial System Analysis Committee is tasked with analyzing the behavior and evolution of the national financial intermediation system, liquidity credit requests, excluding those for immediate liquidity, and recommending rules and policies oriented toward the development of a sound, stable, and competitive financial system.

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It is chaired by the President of the BCB and composed of the General Manager, the Manager of the Financial System, the Chief Advisor of Economic Policy, and the Deputy Manager of Analysis and Credits, who acts as Secretary.

The President may delegate the Chairmanship to a Director or to the General Manager.

(General Administration Committee)

Article 54.- The General Administration Committee is tasked with analyzing, evaluating, and issuing opinions on matters of internal administrative management of the BCB, regarding: institutional development strategies, administration and development of human resources, systematization of work processes, information systems, analysis and evaluation of the Budget, and recommending the best use and allocation of management resources.

It is chaired by the President of the BCB and composed of a full-time Director, if there is one, the General Manager, Area Managers, the Administration Manager, who acts as Secretary, and the Heads of the Systems and Training Units.

The President may delegate the Chairmanship to a Director or to the General Manager.

CHAPTER VIII
OF THE ADVISORY AND SUPPORT UNITS
(Level of Advisory and Support)

Article 55.- The advisory and support level of the BCB is composed of the Economic Policy Advisory, the Legal Advisory, and the General Secretariat, whose main executives hold the category equivalent to an Area Manager in the Bank's hierarchical structure.

(Economic Policy Advisory)

Article 56.- The Economic Policy Advisory has the following functions:
//22. R.D. Nº 082/97 a) Monitor monetary, financial, and economic variables related to national and international economic activity. b) Provide economic, monetary, financial, and statistical information, as well as the analyses required by the Bank's Presidency. c) Provide the advice required by the Presidency and the Board of Directors in decision-making. d) Prepare the Institution's annual report for consideration by the Board of Directors. e) Prepare the BCB's specialized publications in coordination with the Area Managers. f) Other functions assigned by the President.

(Legal Advisory)

Article 57.- The Legal Advisory provides legal advisory services to the Board of Directors, the President, and the General Manager of the BCB and also constitutes the consultative body of the Legal Affairs Unit. Its functions are as follows:
a) Advise on all matters of law subject to current legal provisions, comparative legislation, doctrine, and jurisprudence. b) Ensure that Board of Directors Resolutions, decisions, and agreements of the BCB comply with current legal norms. c) Advise and participate in the preparation of general application regulations in credit, banking, monetary, exchange, and financial intermediation matters, in the manner and scope established by Law 1670, as well as in the drafting of bills, decrees, regulations, manuals, and other pertinent documents for the BCB. //23. R.D. Nº 082/97 d) Advise and take charge of real, personal, and mixed actions filed by public or private persons from outside the Republic, where the Institution is involved as plaintiff or defendant, and, within the country, take charge of those actions and defenses whose magnitude, importance, and value compromise the prestige or assets of the BCB. e) Propose the hiring of law firms or lawyers within or outside Bolivia. f) Advise and take charge of actions in the defense of revocation and hierarchical appeals established in Articles 55 and 56 of Law 1670.

(General Secretariat)

Article 58.- The General Secretariat has the main function of attending to secretarial and administrative support requirements of the Board of Directors, the Presidency, and the General Management, as well as public relations, protocol, correspondence, archives, keys, authorized signatures, and communications services of the Bank.

(Appointment and Removal)

Article 59.- The procedure for the appointment and removal of functions of the Advisor of Economic Policy, the Legal Advisor, and the General Secretary is that established for other Area Managers in Articles 60 and 62 of this Statute. These officials are subject to the requirements established in Article 60 of the Statute and the exclusions established in Article 47 of Law 1670.
//24. R.D. Nº 082/97

CHAPTER IX
OF THE AREA MANAGERS
(Form of Appointment and Requirements)

Article 60.- Area Managers shall be appointed by the President of the BCB, with the approval of the Board of Directors by a simple majority of votes of its members present at the meeting.

To hold the position of Area Manager, it is an indispensable requirement to hold a university degree in fields related to the position.

(Incompatibilities)

Article 61.- The incompatibilities established in Article 47 of Law 1670 are extended by homologation to Area Managers.

(Duration in Office)

Article 62.- The duration of managers is indefinite, but they may be replaced by the Board of Directors due to the incompatibilities indicated in the previous Article or by removal, upon proposal of the President, with a report from the General Manager.

(Dependence and Functions)

Article 63.- Area Managers depend on the General Manager and act under his direction.

It is their responsibility to plan, direct, and supervise the work and operations in their areas of activity. They must comply with the BCB Law and this Statute, the Regulations, and Resolutions of the Board of Directors.

(Attendance at Board Meetings)

Article 64.- Managers may be summoned to Board of Directors meetings.

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(Representation)

Article 65.- Managers may attend local, national, and international meetings on behalf of the Bank, only by mandate of the Board of Directors, the President, or the General Manager.

(Replacements for Absences)

Article 66.- In the event of temporary absence of a Manager, for any reason, he shall be replaced by a Deputy Manager of the same dependency, by decision of the General Manager.

(Performance Evaluation)

Article 67.- Area Managers, in coordination with the General Manager and the Administration Manager, shall periodically, in accordance with the Qualification Regulation, evaluate staff performance.

The President and the General Manager, jointly, shall periodically evaluate the performance of Area Managers.

(Denomination of Area Managers)

Article 68.- The administrative structure of the BCB is composed of the following Managers:

1. Financial System Manager
2. International Affairs Manager
3. Currency and Credit Manager
4. Administration Manager
5. Accounting Manager

CHAPTER X
OF THE FUNCTIONS OF THE MANAGERS
(General Function)

Article 69.- Each Manager must prepare and submit annually to the consideration of the General Manager, the operational plans and procedure manuals of their Deputy Managers and Departments.

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(Financial System Manager)

Article 70.- The Financial System Manager has the main function of studying, proposing, and applying regulatory norms that allow promoting the stability, competition, and efficiency of the national financial intermediation system, as well as permanently evaluating its performance, through appropriate indicators.

This Manager is responsible for preparing the technical documentation accompanying requests for temporary liquidity credits, excluding those for immediate liquidity which are submitted to the Financial System Analysis Committee. It also executes the monitoring of commitments assumed by financial entities benefiting from liquidity credits.

It has directly under its charge the trusts that the BCB receives from the Government of Bolivia or from duly recognized International Financial Institutions, to channel resources to the financial system.

(International Affairs Manager)

Article 71.- The International Affairs Manager has the main function of administering reserve investments, the exchange regime, the regime for delivery and discharge of foreign exchange, as well as the ALADI Payments Agreement. Similarly, it carries out the registration, control, and monitoring of public and private external debt.

(Currency and Credit Manager)

Article 72.- The Currency and Credit Manager has the main function of regulating and controlling the amount of money in the country through public credit, open market operations carried out by the Bank, legal reserves, immediate liquidity windows, and other monetary operations. It is responsible for supervising the printing, issuance, distribution, and destruction of banknotes, as well as the minting, distribution, and withdrawal of coins, within the norms of Law 1670, Board of Directors resolutions, and instructions of the General Manager.

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(Administration Manager)

Article 73.- The Administration Manager is responsible for formulating the Bank's Annual Budget; executing, controlling, and evaluating its compliance; administering the human resources employed by the BCB; administering the processes of contracting, handling, and disposal of goods and services; security systems; and providing, in adequate quantities and quality, movable goods, equipment, accessories, and materials to support the technical and administrative operations of the Bank. It is also responsible for the maintenance of the Bank's infrastructure and the proper functioning of its equipment and installations.

(Accounting Manager)

Article 74.- The Accounting Manager has the main function of preparing and presenting the financial statements of the Institution, such as the General Balance Sheet, Statements of Results, and complementary financial information, ensuring that they are prepared in accordance with current legal provisions, norms issued by the Superintendence of Banks, and in application of generally accepted accounting principles.

(Creation and Suppression of Managerships)

Article 75.- The Board of Directors may create, suppress, modify, and transform managerships, to achieve better efficiency in the Bank's activities.

(Other Attributes)

Article 76.- The other attributes of the Managerships and their internal organization are specified in the Bank's Organization and Functions Manual.

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CHAPTER XI
OF THE UNITS DEPENDENT ON THE GENERAL MANAGEMENT.
(Units)

Article 77.- The following units are under the direct dependence of the General Management:
a) Legal Affairs Unit b) Training Unit c) Systems Unit

(Category)

Article 78.- For all administrative purposes, the heads of these units have the category of Deputy Area Managers according to the Bank's hierarchical order. Their appointment, requirements, incompatibilities, duration in office, and removal correspond to those in force for all Deputy Area Managers.

(Legal Affairs Unit)

Article 79.- The Legal Affairs Unit is directed by a lawyer and exercises the legal functions that are not assigned to the Legal Advisory, according to Article 57 of this Statute, coordinating permanently with it.

The Legal Advisory Unit provides legal services to the General Management and the Area Managers, in the following fields:
a) In the issuance of reports, criteria, opinions, and legal recommendations for decision-making at the operational, administrative, and internal regime levels.
//29. R.D. Nº 082/97 b) In actions and defense of the rights and interests of the BCB before the Judicial Power, the other Powers of the State, and public and private persons in constitutional, civil, commercial, tax, labor, administrative, and penal matters where the Institution is involved as plaintiff or defendant. To this effect, it has under its charge the execution and monitoring of trials and procedures, exhausting the instances necessary according to Law. c) In the drafting and review of labor contracts and provision of works and services required by the BCB. It participates in the preparation of specifications and technical specifications for contracting, with other entities, the provision of said services. d) In the monitoring and supervision of the performance of external lawyers. e) In others assigned by the Bank's authorities.

(Training Unit)

Article 80.- The Training Unit is directed by a professional in fields related to the Bank's activities and has the following main functions:
a) Train the BCB's human resources, in function of the Institution's fundamental objectives. b) Formulate and execute the plans, projects, and training programs for BCB staff. c) Evaluate and carry out monitoring and control of the annual training plan. //30. R.D. Nº 082/97 d) Draft and propose the annual budget of resources destined to training, in coordination with the Administration Manager. e) Propose the participation of BCB officials in local, national, and international training activities. f) Propose personnel evaluation systems. g) Others assigned by the Bank's authorities.

(Systems Unit)

Article 81.- The Systems Unit is directed by a professional in computer science or related fields, with experience in the field, and has the following main functions:
a) Develop, plan, and execute the BCB's IT policy, including the implementation of plans and programs conducive to its purposes. b) Develop contingency and security plans in the BCB, in the IT area. c) Monitor the development and exploitation of the BCB's internal IT systems, in order to minimize the degree of dependence on external consulting. d) Administer the institutional database. e) Investigate, develop, and establish the organizational, functional, and procedural structures of the institution. f) Other functions assigned by the BCB's higher authorities.

//31. R.D. Nº 082/97

CHAPTER XII
ORGANIZATION AND FUNCTIONS
(Manual)

Article 82.- For the definition of the BCB's organizational structure and the scopes of competence and responsibility of its different administrative areas, the BCB Board of Directors will approve an Organization and Functions Manual by two-thirds of the votes of all its members, without any additional administrative act.

CHAPTER XIII
PERSONNEL REGIME
(Regulation)

Article 83.- In accordance with Title IV Internal Regime, Chapter I Personnel Regime of Law 1670, concordant with Law 1178 (SAFCO Law), the BCB Board of Directors will approve, by two-thirds of the votes of all its members, without any additional administrative act, the specific regulations relative to the Personnel Administration System, through the Internal Personnel Regulation.

CHAPTER XIV
AUDIT AND CONTROL
(Internal Audit Unit)

Article 84.- The audit and control functions of the Bank's operations and accounts are in charge of the Audit Unit, directed by an Internal Auditor designated according to Article 77 of Law 1670, from a slate presented by the President of the BCB.

The Internal Auditor must hold a university degree and recognized experience in the field of their competence.

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(Duration, Removal, and Hierarchy)

Article 85.- According to the BCB Law, the Internal Auditor serves for four years.

They are subject to the incompatibilities referred to in Article 47 of Law 1670 and may be removed for the causes indicated in Article 50 of said Law or by decision of the Board of Directors, by absolute majority of votes of all its members.

For administrative order purposes, the Internal Auditor has the level equivalent to an Area Manager in the Bank's hierarchical structure.

(Dependence)

Article 86.- The Internal Auditor answers to the Board of Directors, to whom they will present, at the beginning of each management period, their annual activity program.

(Auditor Activities and Reports)

Article 87.- The Internal Auditor formulates and executes the Unit's activity program independently, keeping the Board of Directors informed, through the President, on the development of their functions, quarterly and whenever the Board of Directors so requires. Any audit report, immediately after its preparation, will be sent to the knowledge of the BCB Board of Directors through the President.

(Audit Functions and Attributes)

Article 88.- Internal Audit has the following functions and attributes:
a) Verify that operations and transactions carried out by the BCB are in concordance with Law 1670, applicable legal norms, and policies, resolutions, and procedures approved by the Board of Directors and/or Bank executives. //33. R.D. Nº 082/97 b) Determine the reliability of financial records and verify that the entity's assets, liabilities, and equity are faithfully reflected in the Financial Statements. c) Ensure the safeguarding and protection of the Institution's assets and equity, including adequate security and maintenance measures. d) Ensure that internal procedures are efficient, transparent, and effective, especially regarding acquisitions and bidding for goods and services, personnel hiring, maintenance of fixed assets, provision of financial services, and performance and security of financial assets. e) Ensure that IT processes for recording and fund transfers are subject to the highest levels of security. f) Supervise the execution of the BCB Budget. g) Exercise the other functions and powers that correspond to it, according to the Statute, regulations, other applicable provisions, and those assigned by the Board of Directors.

(Preventive Recommendations)

Article 89.- The Internal Audit Unit does not issue prior opinions according to Law 1178, but does issue preventive recommendations, once it has thoroughly analyzed the internal procedures employed, to avoid acts contrary to laws and internal norms or damage to the Bank's assets.

//34. R.D. Nº 082/97

(Scope and Limitations)

Article 90.- The Internal Audit functions cover all areas of the BCB, with selective or exhaustive scopes, as required.

It has no limitation in access to the BCB's records, documents, and operations.

(Administrative Dependence)

Article 91.- The Auditor and Internal Audit staff are subject to the Personnel Regime and depend administratively on the General Management.

(Special Audits)

Article 92.- The President, and any Director in justified emergency cases, may instruct the carrying out of special audits.

(External Audits)

Article 93.- The Board of Directors may arrange the contracting of external audits among Audit Firms of recognized specialty, competence, and reputation.

CHAPTER XV
OF THE MODIFICATION OF THE STATUTE
(Statute Reform)

Article 94.- This Statute adjusts to the prescriptions of Law 1670 of October 31, 1995, and may be modified in whole or in part, at the initiative of one or more members of the Board of Directors, upon proposal of the President or the General Manager.

//35. R.D. Nº 082/97

Proposed reforms must be sanctioned by two-thirds of the votes of all members of the Board of Directors, without the need for any additional administrative act.

Article 95.- The Statute shall enter into force on April 1, 1997.
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