Resolution 118/2008

BOARD RESOLUTION NO. 118/2008 SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT – APPROVES REGULATION FOR THE REGISTRATION OF BOLIVIA'S PUBLIC EXTERNAL DEBT.

VIEWED: The Law No. 1670 of October 31, 1995, of the Central Bank of Bolivia (BCB). The Board Resolution No. 113/2003 of October 7, 2003, which approves the Regulation for the registration of Bolivia's public and private external debt. The Board Resolution No. 128/2005 of October 21, 2005, which approves the Statute of the BCB. The Board Resolution No. 101/2008 of July 22, 2008, which approves the new organizational structure of the BCB. The Report of the International Operations Management (GOI) No. 009/2008 of September 3, 2008. The Report of the Legal Affairs Management (SANO) 234/2008 of September 4, 2008.

CONSIDERING: That Law 1670 in its articles 20, 21, and 29 establishes the functions that the Central Bank of Bolivia must fulfill regarding Bolivia's external debt. That the Statute of the BCB in its article 11 numeral 25 determines that the Board will approve regulations regarding the registration of public and private debt. That the new organizational structure of the BCB creates the Surveys and Indicators Team, dependent on the Economic Policy Management, which will be responsible for collecting and processing information on foreign private capital, including private external debt. That the International Operations Management, in its Report GOI No. 009/2008, recommends modifying the current Regulation for the registration of public and private external debt, to regulate the registration of public external debt, a function that is under the responsibility of the GOI, excluding matters referred to private external debt. That according to the Report of the Legal Affairs Management SANO 234/2008, the Regulation for the registration of Bolivia's public external debt does not contravene the

//2. B.D. No. 118/2008

current legal framework and that in accordance with the attribution conferred by article 54 clause o) of Law 1670, the Board is empowered to approve, modify, and interpret the regulations of the BCB.

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

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

Article 2.- This Regulation shall enter into force from the date of its approval.

Article 3.- Repeal Board Resolution No. 113/2003 of October 7, 2003.

Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, October 7, 2008

---

Raúl Garrón Claure

---

Gustavo Blacutt Alcalá Hugo Dorado Araníbar

---

Rolando Marín Ibáñez Osvaldo Nina Baltazar Ernesto Yáñez Aguilar

//3. B.D. No. 118/2008

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

CHAPTER I GENERAL PROVISIONS

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 external debt, the payment of public external debt service, and the publication of the country's external debt statistics.

Article 2.- BCB Attributions 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 register of Bolivia's public external indebtedness.

Article 3.- Responsible Management The International Operations Management of the BCB is charged with the administration of this Regulation, and must report semi-annually to the Board on the status and registration of public external debt.

CHAPTER II PUBLIC EXTERNAL DEBT

Article 4.- Report of new public indebtedness The BCB will require the Ministries of Development Planning and Finance to send timely copies to the International Operations Management of the BCB 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 5.- 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

//4. B.D. No. 118/2008

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

Article 8.- 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 entities of the details of their obligations, requiring the timely deposit of funds for payment to the creditor, when applicable.

Article 9.- Payment of debt service The BCB will make 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 10.- 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 11.- Balance reconciliation

//5. B.D. No. 118/2008

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

Article 12.- Commissions The BCB will charge the debtor the commissions established annually in the BCB Commission Table for services.

CHAPTER III OFFICIAL STATISTICAL INFORMATION ON BOLIVIA'S EXTERNAL DEBT

Article 13.- Generation of external debt statistics The International Operations Management of the BCB will administer the Debt Management and Analysis System (SIGADE), periodically generating the official statistical information on the country's public external debt.

Article 14.- External debt statements The BCB will send monthly to the Ministries of Finance and Development Planning, the summaries of the External Debt Statements of the country until the 10th day of the following month.

Article 15.- Request for information The BCB, at the request of a debtor entity, will provide updated statistical information on the external debt of said entity.

Article 16.- Dissemination of information on external debt The BCB will PUBLISH information on Bolivia's External Debt in its monthly and quarterly Bulletins, in its Annual Report, and on its website.

• ° -