Resolution 113/2003 Approving the New Regulation for the Registration of Bolivia's Public and Private External Debt

BOARD RESOLUTION NO. 113/2003 SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – APPROVES NEW REGULATION FOR THE REGISTRATION OF BOLIVIA'S PUBLIC AND PRIVATE EXTERNAL DEBT.

VIEWED: Law 1670 of October 31, 1995. The Statute of the Central Bank of Bolivia, approved by Board Resolution No. 128/2001 of December 13, 2001. The Regulation for the Registration of Public and Private External Debt, approved via Board Resolution No. 079/98 of September 1, 1998. The Report from the International Operations Management (GOI) No. 007/2003 of September 24, 2003. The Report from the Legal Affairs Management (SANO/184/2003) of September 26, 2003. The note from the General Management (GGRL. I. No. 828/2003) of October 6, 2003.

CONSIDERING: That Law 1670 in its articles 20, 21, and 29 establishes the functions that the Central Bank of Bolivia must fulfill regarding public and private external debt.

That the Statute of the BCB in Article 11, items 25 and 26, determines that the Board will regulate financial operations with the exterior carried out by public and private persons or entities, and will approve regulations relative to the registration of public and private debt.

That the International Operations Management in its Report GOI No. 007/2003 recommends modifying the current Regulation for the registration of public and private external debt to optimize the registration and monitoring processes of external debt, and to approve the project of the new Regulation for the Registration of Bolivia's Public and Private External Debt.

That according to the Report from the Legal Affairs Management SANO/184/2003, the project of the Regulation for the Registration of Bolivia's Public and Private External Debt does not contravene the current legal framework and that, in accordance with the attribution conferred by Article 54, item o) of Law 1670, the Board is empowered to approve, modify, and interpret the regulations of the BCB without the need for any additional administrative act.

That the General Management in its note GGRL. I. No. 828/2003 recommends to the Board consider the proposal for the Regulation for the Registration of Bolivia's Public and Private External Debt.

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

Article 1.- Approve the new Regulation for the Registration of Bolivia's Public and Private External Debt, which is attached and forms part of this Resolution.

Article 2.- The Regulation for the Registration of Bolivia's Public and Private External Debt will enter into force starting November 1, 2003.

Article 3.- Repeal from November 1, 2003, Board Resolution No. 079/98 of September 1, 1998, and all provisions contrary to this Regulation.

Article 4.- The International Operations Management of the Central Bank of Bolivia is charged with the administration of this Regulation for the Registration of Bolivia's Public and Private External Debt, and must report semi-annually to the Board on the status and registration of public and private external debt, and monthly to the Presidency and the General Management on the status of public external debt.

Article 5.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, October 7, 2003.

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Juan Antonio Morales A.

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Enrique Ackermann A. José Luis Evia.

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Fernando Paz B. Jaime Apt Brofman

ANNEX REGULATION FOR THE REGISTRATION OF BOLIVIA'S PUBLIC AND PRIVATE EXTERNAL DEBT

CHAPTER I OBJECT AND ATTRIBUTIONS

Article 1.- Object This Regulation aims to establish the norms and procedures through which the Central Bank of Bolivia (BCB) will carry out the official registration of Bolivia's public and private external debt, the payment of public external debt service, and the publication of the country's external debt statistics.

Article 2.- Attributions of the BCB Subject to what is provided in articles 20, 21, and 29 of Law 1670 of October 31, 1995, the BCB is the institution responsible for maintaining the registry of Bolivia's public and private external indebtedness.

CHAPTER II PUBLIC EXTERNAL DEBT

Article 3.- Report of new public indebtedness The BCB will require the Ministry of Finance to send timely to the International Operations Management of the BCB a copy of the loan contract signed by any public or private entity with a State guarantee, and the legal provisions (Law and Supreme Decree) authorizing such external indebtedness.

Article 4.- Report of new indebtedness guaranteed by the State In accordance with Article 20 of Law 1670 of October 31, 1995, the BCB will require private companies that contract a credit or any other external indebtedness with a State guarantee to send to the International Operations Management of the BCB, within 30 days from its signing, a copy of the loan contract and the supporting documentation of the guarantee.

Article 5.- Registration of external debt The BCB will monitor new external indebtedness contracted, assign a control number to each credit, and register it in the Debt Management and Analysis System (SIGADE).

At the request of the entities, public debtor or private guaranteed, the BCB will issue a certification of the credit registration.

Article 6.- Obtaining information from external creditors The BCB will request all external creditors to send statements and settlements of debt service, with a notice no less than 30 days prior to each due date, and will proceed to verify the amounts to be paid.

Article 7.- Notification to debtors On a monthly basis and with a minimum advance of seven days to the due date, the BCB will notify public debtor institutions or private guaranteed ones of the details of their obligations, requiring the timely deposit of funds for payment to the creditor, when applicable.

Article 8.- Payment of debt service The BCB will effect the payment of public external debt service once the debtor proceeds with the respective fund coverage.

When stipulated in the corresponding contracts, the BCB will directly debit from the debtor entity's accounts the funds necessary to effect the payment of the obligation.

Article 9.- Direct payments Institutions that make direct payment of their external obligations must report this information to the BCB on the date of the fund transfer abroad.

Article 10.- Balance reconciliation The BCB will semi-annually reconcile the balances of external credits with entities in the public sector, and must sign the corresponding Minutes.

Article 11.- Commissions The BCB will charge the debtor the commissions and fees established annually in the "Table of Commissions and Other Income" approved by the Board of the Issuing Entity.

CHAPTER III PRIVATE EXTERNAL DEBT

Article 12.- Report of new private external indebtedness Subject to articles 20 and 21 of Law 1670 of October 31, 1995, private companies that contract a credit or any other external indebtedness must report this information to the BCB, within 30 days from the signing of the contracts or the incurrence of the obligation, in the forms that the Issuing Entity will make available to them. The BCB will assign a control number to each external obligation.

At the request of the debtor company, the BCB will certify the registration of the new external indebtedness.

Article 13.- Quarterly report of private external debt flows Private entities must remit to the BCB information on balances and flows of their external indebtedness corresponding to the previous quarter, by the first fortnight of the following quarter, in the forms that the Issuing Entity will make available to them.

Article 14.- Forms for reporting information The BCB will make available to private entities the forms for reporting their new indebtedness and the balances and flows of their external debt, which will be available on the BCB website. The General Management of the BCB will approve the forms referred to in this Article.

Article 15.- Discrepancies in information In case of discrepancy between the information provided by the debtor and that recorded in the BCB's records, the latter may request copies of documents supporting the balances and flows of external obligations reported by the private entity.

Article 16.- Registration of information Information on medium and long-term private external indebtedness will be incorporated into SIGADE. Short-term debt will be registered in a database designed for that purpose.

Article 17.- Bank secrecy The reported information will be confidential under the protection of Article 8 of Law 1670 of October 31, 1995.

CHAPTER IV OFFICIAL STATISTICAL INFORMATION ON BOLIVIA'S EXTERNAL DEBT

Article 18.- Generation of external debt statistics The BCB will administer the Debt Management and Analysis System (SIGADE), periodically generating the official statistical information on the country's external debt.

Article 19.- External debt statements The BCB will send monthly to the Ministry of Finance summaries of the Public External Debt Statements of the country by the 20th day of the following month.

Article 20.- Request for information At the request of a debtor entity, the BCB will provide updated statistical information on the external debt of said entity.

Article 21.- Dissemination of external debt information The BCB will publish information on Bolivia's External Debt in its monthly and quarterly Bulletins, in its Annual Report, and on its website.