Resolution 128/2001 Approving the New Statute of the Central Bank of Bolivia

BOARD RESOLUTION NO. 128/2001
SUBJECT: BOARD OF DIRECTORS – APPROVES NEW STATUTE OF THE CENTRAL BANK OF BOLIVIA.

HAVING REVIEWED:
Law No. 1670 of October 31, 1995.
Board Resolution No. 082/97 of February 20, 1997.
The Report from the Legal Affairs Management of the BCB No. 084/2001 of December 13, 2001.

CONSIDERING:
That the Statute Project responds to the spirit and provisions of Law No. 1670.
That the Central Bank of Bolivia, in its capacity as a public law entity of an autonomous nature, is authorized to establish its internal rules without the need for any additional administrative act. That the Statute constitutes the most important internal rule 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 Articles 44 and 54 subsection o) of Law No. 1670, it is the responsibility 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:

Article 1.- Approve the Statute of the Central Bank of Bolivia in its 14 chapters and 88 Articles, which forms an annex to this Resolution.

Article 2.- The Statute shall enter into force on January 1, 2002. The General Management shall be responsible for adapting, as soon as possible, the administrative structure and the regulations of the BCB to this new legal provision.

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Article 3.- Repeal, effective January 1, 2002, Board Resolution No. 082/97.

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

La Paz, December 13, 2001

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Juan Antonio Morales A.

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Armando Pinell S. Juan Medinaceli V.

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_________________ Armando Méndez M.
Roberto Camacho S.

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Javier Comboni S.

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ANNEX
STATUTE OF THE
CENTRAL BANK OF BOLIVIA

CHAPTER I
ON THE NATURE AND OBJECT OF THE BCB

Article 1.- (Object)
This statute regulates the organization and activities of the BCB, in the manner and scope established by the Law of the Central Bank of Bolivia, No. 1670 of October 31, 1995, and other current laws.

Article 2.- (Nature)
The Central Bank of Bolivia (BCB) is a State institution, of public law, of an autonomous nature, of indefinite duration, with its own legal personality and assets.

Article 3.- (Object of the BCB)
The object of the BCB is to ensure the stability of the internal purchasing power of the national currency.

Article 4.- (Legal Domicile)
The BCB has its legal domicile in the city of La Paz, Ayacucho street corner Mercado, seat of its main building.

Article 5.- (Subject to the Law)
The BCB is subject to compliance with the provisions contained in its Law, related legal norms, this Statute, and its internal regulations.

Article 6.- (Competencies)
According to Law No. 1670, the BCB has normative, administrative, technical, and financial competence:
1) Normative, to issue specialized norms in the fields assigned to it by the Law.

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2) Administrative, to establish its own ordering, organization, and functions in the administrative field, in concordance with the specialized nature of the institution and within the framework of national legislation.
3) Technical, for the formulation of policies and the application of instruments that allow it to fulfill its object.
4) Financial, to formulate, approve, and execute its budget.

Article 7.- (Approval of Norms)
The norms issued by the BCB will be approved through Resolutions of its Board of Directors.

CHAPTER II
ON THE DIRECTION AND ADMINISTRATION OF THE BANK

Article 8.- (Senior Direction)
The senior 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
   The other levels of administration, starting from the sub-manageries, are regulated in the Organization and Functions Manual of the BCB.
   The President, Directors, Managers, and Sub-managers must submit a sworn statement of assets and income and take a solemn oath thereof before the Comptroller General of the Republic or the authorities designated by him, updating it annually.

Article 9.- (Board of Directors)
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 No. 1670. The Directors assume office on the day of their installation.

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Article 10.- (Impediments and Obligations)
Before exercising functions, each Director will submit to the Secretary of the Board of Directors a sworn statement that he is not impeded by the causes indicated in Article 47 of Law No. 1670. Any subsequent impediment arising after installation must be communicated immediately and in writing to the President of the Bank for legal purposes.

Article 11.- (Powers of the Board of Directors)
Within the framework of Law No. 1670, the Board of Directors has the following powers:
1) Approve general decisions and issue the norms necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law.
2) Define the policies of the BCB, specialized norms of general application, and internal norms; as well as establish administrative, operational, and financial strategies of the BCB by approving its short and medium-term programs.
3) Approve the annual Monetary Program and its modifications, as well as monitor its execution.
4) Approve the policy and norms for Open Market operations, as well as monitor their execution.
5) Approve the policy and norms for the administration of International Reserves, as well as monitor their execution.
6) Authorize the contracting of credits intended to strengthen the level of international reserves.
7) Establish, by absolute majority of votes, legal reserves of mandatory compliance by financial intermediation entities and approve their composition, amount, calculation, characteristics, forms of administration, custody, and remuneration, according to Regulation.
8) Approve the Regulation for the granting of liquidity credits of less than 90 days, to financial intermediation entities with legal reserve guarantee.

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9) Approve by absolute majority of votes, 90-day liquidity credits, renewable, to financial intermediation entities, according to Regulation.
10) Approve by two-thirds of the votes of the members present, credits to the General Treasury of the Nation (TGN) to attend urgent needs derived from public calamities, internal or international commotion, declared by Supreme Decree, and those for temporary liquidity needs, within the limits of the Monetary Program.
11) Approve the printing, issuance, and destruction of Boliviano banknotes and coins, and those issued for commemorative and numismatic purposes, as well as their denominations, dimensions, designs, and colors, according to Regulations when applicable.
12) Determine the exchange regime and exchange policy.
13) Approve the norms for the functioning of the payment system.
14) Define the organic structure of the Bank and its modifications at all levels.
15) Approve, by express Resolution and by absolute majority of all its members, the appointment of the General Manager made by the President. The General Manager cannot take office or assume functions until he has such approval.
16) Approve the removal of the General Manager, for the causes established in Article 50 of Law No. 1670, or by vote of the absolute majority of all its members.
17) Approve, by simple majority of the votes of its members present in the meeting, the appointment of the Economic Policy Advisor and the Managers appointed by the President. The appointees cannot take office or assume functions until they have such approval.
18) Appoint, with the vote of the absolute majority of all its members, the Internal Auditor from a list of three proposed by the President. The Internal Auditor may be removed for the causes indicated in Article 50 of Law No. 1670 or by decision of the absolute majority of the total members of the Board of Directors.

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19) Appoint, by simple majority of votes, the Sub-managers of Audit from lists of three proposed by the President.
20) Approve, by simple majority of votes, the suspension or dismissal of Bank executives whose appointment was approved by the Board of Directors, with the exception of the references to subsections 16 and 18 of this Article.
21) Approve the financial statements and annual reports of the BCB, as well as the guidelines of the policies that will be applied in the next management. Define the capitalization of the BCB's profits and order the creation of special reserves.
22) With the approval of the Board of Directors, the BCB may assume the representation of the State before international and multilateral organizations of a monetary nature.
23) Approve the regulation of the services provided by the BCB in its capacity as the government's financial agent.
24) Submit, through the President of the BCB, projects of norms to the Committee of Financial Prudential Norms (CONFIP), based on technical and legal reports from the Bank's Administration.
25) Regulate financial operations with the exterior carried out by public and private persons or entities.
26) Approve the regulations regarding the registration of public and private debt.
27) Authorize the creation of Clearing Houses and regulate their functioning.
28) Decree bank holidays.
29) Approve the Annual Operations Program (POA), the Bank's budget, and intra-institutional transfers.
30) Approve, modify, and interpret the Statute and Regulations of the BCB, by two-thirds of the votes of all its members, without the need for an additional administrative act.
31) Approve the policies and regulations regarding the internal regime of the BCB and human resources administration.

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32) Approve the annual financial support destined for the BCB Cultural Foundation, for its incorporation into the Bank's budget.
33) Resolve the revocation appeals, within the legal time limits, and the hierarchical appeals filed against the decisions of the President and the General Manager.
34) Approve inter-institutional agreements that require expenditures of the BCB's own resources and technical cooperation agreements, national and international, that the BCB receives or grants, evaluating their compliance periodically.
35) Approve internal regulations regarding the contracting and disposal of goods and services, based on the Basic Norms for the Administration of Goods and Services.
36) Authorize the alienation and leasing of the BCB's movable and immovable assets, so that the General Management carries out the corresponding bidding and contracting processes in accordance with current legal norms and Regulation.
37) Authorize the alienation and administration of portfolios and assets received in payment in kind from banks in liquidation.
38) Approve the BCB's equity participation in international financial entities of public law linked to its functions.
39) Appoint the Bank's representatives before other institutions, when applicable.
40) Approve the trips abroad that the President, Directors, and General Manager make on behalf of the BCB.
41) Appoint an Area Manager as Acting General Manager in the event of impediment or absence of the holder for a period of more than 45 business days.
42) Approve the Organization and Functions Manual of the BCB and its modifications.
43) Create and regulate decision-making committees and hire advisors when deemed appropriate and in the manner determined.

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44) Establish levels of responsibility, according to the hierarchy of BCB officials, in the fulfillment of functions and competencies and in the signing of documents concerning the Bank.
45) Entrust the General Manager to elaborate, in coordination with the Area Managers, the necessary regulation for the implementation of laws and general norms, as well as for the timely execution of Board decisions, in the areas of their respective competencies.
46) Annually fix the commission table that the Bank must charge for the services it provides.
47) Regulate the modalities and conditions of the declarations in commission of officials, special permits to provide advice to other entities on matters of interest to the Institution, and their temporary assignment to entities of the Public Sector.
48) Define the information and dissemination regime, as well as the dissemination of the Bank's policies and decisions.
49) Review the reports issued by the Superintendence of Banks and Financial Entities regarding the financial system.
50) Approve the Annual Internal Audit Operational Program and evaluate its execution quarterly.
51) Define the Board's annual activity calendar.
52) Other powers necessary for the fulfillment of its functions.

Article 12.- (Full-Time Directors)
At the beginning of each management, for reasons of service and according to the needs and institutional purposes, the Board of Directors may assign one or more of its members full-time functions and exclusive dedication for management, by express resolution adopted by absolute majority of votes. The remunerations received by full-time Directors will be subject to the same legal conditions applicable to the remuneration of the BCB President. Full-time Directors are entitled to legal vacations and will report their use to the Secretary of the Board of Directors.

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Article 13.- (Part-Time Directors)
Part-time Directors receive per diems for their attendance at Board of Directors Meetings. The Board of Directors may also entrust these Directors with the performance of functions or commissions on a full-time basis, for defined brief periods and for the fulfillment of specific tasks. In the latter case, the days worked in the assigned labor or commission will be remunerated pro rata, taking as reference the salary of one month of a full-time Director.

Article 14.- (Directors with domicile in a place different from the city of La Paz)
The Bank will cover the travel and per diem expenses of Directors with domicile in the interior of the country. It will also cover such expenses when Board of Directors meetings are held in a place different from its headquarters.

CHAPTER III
ON BOARD OF DIRECTORS MEETINGS

Article 15.- (Frequency)
Ordinary meetings will be held once a week, and extraordinary meetings, as many times as the Board of Directors deems appropriate or as stipulated in Article 18.

Article 16.- (Venue)
The Board of Directors meetings will be held at the Bank's legal domicile. The Board of Directors may meet in another place different from its headquarters, by decision of the absolute majority of its members.

Article 17.- (Convocation)
The convocation to ordinary Board of Directors meetings is made in writing through the Board of Directors Secretariat, which is responsible for distributing, with due advance notice, the agenda and corresponding documentation.

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Article 18.- (Extraordinary Meetings)
The President of the Board of Directors may convene as many extraordinary Board of Directors meetings as he deems appropriate. At the request of two or more Directors, the President will convene the extraordinary sessions considered necessary.

Article 19.- (Quorum)
The quorum for Board of Directors meetings is four of its members, including the President.

Article 20.- (Licenses)
Directors who cannot attend a session must request the President, through the Secretary of the Board of Directors, the respective license for its registration in the minutes.

Article 21.- (Agenda)
It is the President's responsibility to instruct the convocation to Board of Directors meetings and establish the topics that form part of the agenda of each meeting. At the request of one or more Directors, other topics may be included in the agenda.

Article 22.- (Alteration of the Agenda)
The agenda may be altered by decision of the Directors attending the session.

Article 23.- (Consideration of the Minutes)
At the beginning of each ordinary meeting, the minutes of the previous session must necessarily be considered.

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Article 24.- (Voting)
Resolutions and decisions of the Board of Directors are adopted by simple majority of votes of the members present in the meeting, except in cases where Law No. 1670 or this Statute require qualified majorities. The required votes are as follows:

Nº of Members present in Board of Directors	Simple Majority	Absolute Majority (2/3 of total Directors)	2/3 Majority of members present
6	4	4	4
5	3	4	3

The President has the casting vote in case of a tie.
Directors cannot abstain from voting. In case of dissent, they must justify their position, which will be recorded in the minutes.

Article 25.- (Confidentiality and Magnetic Recording)
Board of Directors meetings are reserved in accordance with Article 80 of Law No. 1670. By two-thirds of the votes of all its members, the Board of Directors may approve that certain meetings or specific topics 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. As established by the Law of the Central Bank of Bolivia, No. 1670: Board of Directors minutes will have full probative value for all legal effects.

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Article 26.- (Resolutions)
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. Any draft 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 report from the Legal Affairs Management. These reports must be sent to the Board of Directors by the General Management with its recommendation, except in technical matters corresponding to the Economic Policy Advisory, which may submit reports to the Board of Directors with its own recommendation.

Article 27.- (Participation of Managers and other Officials)
The General Manager attends Board of Directors meetings with the right to speak but without voting. By instructions of the President, he may present the different topics contemplated in the agenda, related to Administration. The President may excuse the attendance of the General Manager. Advisors, Managers, and Sub-managers may be summoned 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.

Article 28.- (Minutes and Resolutions)
Board of Directors minutes are structured as follows:
I. Place, day, and time when the meeting starts and concludes, and list of participants;
II. Agenda;
III. Reports and decisions adopted;
IV. Full transcription of approved resolutions.

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Board of Directors resolutions have the following structure:
SUBJECT: Identification of the proposing area and summary of the topic.
HAVING REVIEWED: 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 resolutions adopted, the effective date, and the authorities responsible for its execution.
Minutes and resolutions bear the name and signature of the President and the Directors attending the meeting, as well as the sequential identification number and the date on which they are issued.

Article 29.- (Dissemination of Norms of General Application)
The Bank will publish in the Annual Report the norms of general application issued by the Board of Directors. It may also disseminate them in informational bulletins or in informational and national dissemination media.

Article 30.- (Board of Directors Secretariat)
The Board of Directors Secretariat is in charge of a Secretary who will have a category equivalent to an Area Sub-Manager in the Bank's hierarchical structure. It depends directly on the Board of Directors and administratively on the General Management. It fulfills the following main functions:

1. Coordinate the agendas of Board of Directors meetings with the General Management for consideration by the President, within the framework of the annual activity calendar, and new initiatives proposed by the Directors.
2. Make convocations and attend Board of Directors meetings, with the right to speak.

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3. Coordinate logistical support for Board of Directors sessions.
4. Draft minutes of the meetings for consideration by the Board of Directors and certify the correct transcription of the approved text.
5. Safeguard the minutes, administer the documentation and archives of the Board of Directors.
6. Legalize the minutes and resolutions of the Board of Directors.
7. Communicate the decisions of the Board of Directors by its instructions.
8. Handle the correspondence of the Board of Directors.
9. Provide administrative support to the members of the Board of Directors.
10. Others entrusted to him by the Presidency and the Board of Directors.

Article 31.- (Appointment and Removal)
The appointment of the Secretary of the Board of Directors is for an indefinite period, but may be replaced by decision of the Board of Directors or for the causes established in Articles 47, 50, and 80 of Law No. 1670.

Article 32.- (Confidentiality)

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The Secretary of the Board of Directors is obligated to maintain confidentiality regarding all topics discussed in the Board, except those that the Board decides to make public.

CHAPTER IV
OF THE PRESIDENT OF THE BANK

Article 33.- (Executive Authority)
The President of the BCB is the first executive authority of the Institution and is responsible for directing and supervising the work leading to the formulation of specialized policies and general application norms, and the definition of administrative, operational, and financial strategies of the BCB, including their respective medium and long-term programs, supervising and evaluating their execution. He/She will provide the Board with the information and analysis and audit services necessary for the fulfillment of its functions and will act on behalf of the Board and preside over its meetings. He/She will have a casting vote in case of a tie.

//16. R.D. Nº 128/2001

Article 34.- (Powers)
Within the framework of what is stated in Articles 57 to 61 of Law 1670, the President has the following powers:

1) Propose to the Board the policies, norms, resolutions, and measures deemed pertinent for the fulfillment of the object and functions of the BCB and supervise the execution of decisions approved by the Board.
2) Direct and supervise the administration of the BCB and its operations.
3) Supervise and evaluate the performance of the General Manager and Area Managers of the Bank.
4) Exercise the legal representation of the BCB without prejudice to his/her powers of delegation.
5) Propose to the Board the measures that are convenient for the formulation and execution of monetary, exchange, credit, payment system, international reserves management, and internal functioning policies of the BCB.
6) Administer exchange policy in accordance with the Law, this Statute, and the corresponding Regulations.
7) Appoint the General Manager, Advisors, and Managers, in the manner established in this Statute.
8) Appoint and dismiss Deputy Managers in accordance with the Internal Regulation.
9) Determine the agenda of Board meetings.
10) Convene Board meetings to any Bank official for informative and evaluative purposes.
11) Legalize with his/her signature and that of the General Manager the banknotes of different denominations, whose issuance and circulation the Board authorizes.
12) Legalize with his/her signature and that of the General Manager the negotiable instruments whose issuance the Board authorizes. The President may delegate this power to one or more area managers, through special powers.

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13) Sign the contracts and agreements concluded by the Bank, expressly delegating this faculty if desired.
14) Sign the contracts for the execution of the BCB's inter-institutional agreements derived from its status as the Government's financial agent.
15) Appoint an Area Manager as Acting General Manager in the event of impediment or absence of the holder for periods not exceeding 45 business days.
16) Preside over the Presidency Committees established in this Statute, delegating this function to the Vice President, the General Manager, or the Advisor for Economic Policy.
17) Appoint and remove other Advisors to the Presidency.
18) Appoint the BCB's representatives to meetings of institutions in which it is a member and other entities, when appropriate.
19) Authorize foreign travel for all BCB officials, excepting those established in subsection 39) of Article 11° of this Statute.
20) Participate in any renegotiation and conversion of external public debt, at the request of the Government.
21) Represent the BCB judicially, together with the General Manager, delegating this representation through special powers if desired.

22) Bring to the attention of the Board the conclusions of control reports issued by the Comptroller General of the Republic, as well as those issued by Internal Audit, and order the adoption of corrective measures as appropriate.
23) Grant special powers to third parties and revoke them, except as stated in Article 35 of this Statute.
24) Approve the awards of goods and services of the Bank in accordance with the Regulation.

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25) Remove from the Bank's records goods that have fallen into disuse, obsolescence, theft, shrinkage, etc., in accordance with current norms, as well as those goods whose alienation has been authorized by the Board.
26) Resolve appeals presented against decisions of the General Manager.
27) Others entrusted to him/her by the Board and those corresponding to his/her status as the Bank's principal executive.

Article 35 (Powers)
With respect to Article 59, subsection g) of Law 1670, regarding the powers to grant special powers to third parties, the President cannot exercise this right in the following cases:

1. When it concerns decisions exclusive to the BCB Board of Directors.
2. When an express resolution of the Board prohibits it.
3. When current regulations so determine.

Article 36.- (International Representation of the Bank)
The President assumes the official representation of the Institution before international organizations, delegating such representation if desired.

Article 37.- (Policy Coordination)
Policy coordination with the Executive Power referred to in Articles 4° and 5° of Law N° 1670 shall be the responsibility of the President.

Article 38.- (Public Debt Negotiation)
For the renegotiation and conversion of external public debt, the President, representing the BCB, may participate directly or delegate this power to a Director or the Principal Advisor for Economic Policy.

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Article 39.- (Official Spokesperson)
The President is the official spokesperson of the BCB, delegating this faculty for specific topics to members of the Board or Bank officials if desired.

Article 40.- (Extraordinary Powers)
In accordance with Article 60° of Law N° 1670, in cases of duly justified emergency, when it is not possible to convene the Board, the President may adopt during a period of 48 hours, decisions corresponding to said body. For this effect, the President will issue Presidential Decisions that will have the structure of Board Resolutions provided in this Statute. The decisions must be motivated and justified, indispensably by a technical report and a legal report.

After 48 hours have elapsed, the President will convene the Board to inform them in detail about the decisions adopted, without responsibility for the Directors. In case the Board cannot meet, he/she will inform at the next meeting.

CHAPTER V
OF THE VICE PRESIDENT OF THE BOARD

Article 41.- (Function)
The Vice President of the Board has the function of substituting the President of the Bank, in cases of temporary absence or impediment, with all the powers conferred by Law N° 1670.

Article 42.- (Appointment)
His/her appointment shall be made in accordance with what is prescribed in Article 62° of Law 1670.

Article 43.- (Cases of Absence)
The Board will appoint one of the Directors to substitute the Vice President, in cases of temporary absence or impediment. The appointment will be made simultaneously with the election of the Vice President and will remain valid throughout his/her term.

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For cases of temporary absence or impediment of the President, Vice President, and his/her substitute, the Board will appoint one of its members to exercise the Acting Presidency of the Bank.

CHAPTER VI
OF THE GENERAL MANAGER

Article 44.- (Operational Authority)
The General Manager is the First Operational Authority of the BCB.
He/She answers directly to the President of the Bank and is responsible for the internal management and administration of the entity, in accordance with the powers assigned by Law 1670, this Statute, and the Institution's regulations.

Article 45.- (Requirements)
The General Manager must have Bolivian nationality by origin; possess a university degree and have extensive experience in banking, economic, legal, administrative, or financial matters.

Article 46.- (Appointment and Dismissal)
The appointment of the General Manager is made in accordance with what is provided by Article 65° of Law N° 1670 and this Statute. His/her appointment is for an indefinite term and may be dismissed in accordance with subsection 16 of Article 11 of this Statute.

Article 47.- (Cases of Absence)
In case of absence or impediment of the General Manager exceeding 45 business days, the Board is responsible for appointing an Area Manager as Acting General Manager.
In case of absence or impediment less than 45 days, it will be the President of the BCB who appoints an Area Manager as Acting General Manager.

Article 48.- (Incompatibilities)
The General Manager is subject to the incompatibilities established in Article 47° of Law N° 1670.

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Article 49.- (Powers)
In addition to the powers established in Article 67° of the BCB Law, the General Manager has the following:

1) Propose to the President topics for the agenda of Board meetings.
2) Participate in Board sessions as rapporteur on matters referred to the Bank's operations and administration.
3) Take note of the reports from Area Managers and issue recommendations for their presentation to the Board.
4) Sign jointly with the President the banknotes of different denominations, whose printing the Board authorizes.
5) Sign with the President the negotiable instruments authorized by the Board.
6) Present to the President for approval by the Board the BCB's POA and Budget, the general balance sheet, the profit and loss statement, and the proposal for distribution of profits, in accordance with what is provided in Law N° 1670.
7) Present to the President the proposal for personnel administration policy and its regulation for approval by the Board.
8) Coordinate and express conformity with the plans, programs, and budgets prepared by Area Managers.
9) Formulate the general budget of the BCB and supervise its execution.
10) Approve operational and administrative procedures of the Institution, through General Manager circulars.
10) Periodically convene executive-level meetings to consider technical, operational, and administrative aspects of the Bank.
11) Create and preside over working committees according to administrative needs. Likewise, by instruction of the President, integrate the Presidency Committees.

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12) Keep custody of one of the keys to the gold reserves vault.
13) Temporarily appoint executive-level officials, in temporary substitution of the holders, informing the President about the matter.
14) Hire and dismiss Bank personnel in accordance with current norms, with the exception of what is established in the powers corresponding to the Board and the President.
15) Supervise the functioning of Area Managers and periodically evaluate their performance.
16) Execute contracting processes for goods and services in accordance with current norms, and inform the President and, when the case requires, the Board, about the decisions adopted.
17) Approve travel within the country for BCB officials.
18) Order the rotation or suspension of non-executive Bank personnel, for reasons of better service, at any time.
19) Exercise other powers entrusted to him/her by the President and the Board.

Article 50.- (Evaluation)
The General Manager will be evaluated semi-annually by the President and the Vice President of the Board.

CHAPTER VII
OF THE PRESIDENCY COMMITTEES

Article 51.- (Permanent Committees)
The Bank's Presidency has the following Committees:

1. Monetary and Exchange Policy Committee
2. Open Market Operations Committee (COMA)
3. Financial Intermediation System Analysis Committee (COASIF)
4. International Reserves Committee

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The Committees are plural bodies of indefinite duration presided over by the President of the Bank, whose purpose is to consider, coordinate, and make decisions on matters within their competence. Each Committee may establish Subcommittees deemed convenient for specific purposes. The President may delegate the Presidency of these Committees to the Vice President, the General Manager, or the Principal Advisor for Economic Policy. Directors may attend the Committees when they deem appropriate in an informative capacity and without voting rights. The Committees will meet with the frequency determined by the President. The Bank's President may create other Committees deemed necessary.

Article 52.- (Monetary and Exchange Policy Committee)
The Monetary and Exchange Policy Committee has the purpose of recommending the adoption of decisions on monetary, exchange, and payment system matters.
He/She will propose to the President policy coordination measures whose management is the responsibility of the BCB. Likewise, he/she will propose measures of coordination with the Government's fiscal and macroeconomic policies. The Committee will also have the following powers and functions:

1) Perform monitoring and evaluation of the monetary program.
2) Propose to the Board measures leading to the fulfillment of the monetary program and modifications to exchange policy.
3) Recommend to the Board norms and measures regarding the functioning of the payment system.
4) The Committee's powers regarding exchange policy will be defined by Regulation.

It is presided over by the President of the BCB and integrated by the Principal Advisor for Economic Policy, the Manager of Monetary Operations, the Manager of International Operations, and the Manager of Financial Entities. The Assistant Advisor for Economic Policy acts as Secretary.

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Article 53.- (Open Market Operations Committee)
The Open Market Operations Committee has the purpose:

1) Analyze and evaluate the behavior of Open Market Operations and recommend necessary actions for their development and control.
2) The powers of the COMA will be defined by Regulation.

It is presided over by the President of the BCB and integrated by the General Manager, the Manager of Monetary Operations, and the Principal Advisor for Economic Policy. The Deputy Manager of Open Market Operations acts as Secretary.

Article 54.- (Financial Intermediation System Analysis Committee)
The Financial Intermediation System Analysis Committee has the purpose:

1) Analyze the behavior and evolution of the national financial intermediation system.
2) Approve reports to meet specific liquidity needs of financial intermediation entities, in accordance with Regulation.
3) Analyze liquidity credit requests for consideration by the Board, in accordance with Regulation.
4) Evaluate the immediate liquidity financing mechanisms granted by the BCB.
5) Recommend prudential financial norms and policies oriented towards the development of a healthy, stable, and competitive financial intermediation system.

It is presided over by the President of the BCB and integrated by the General Manager, the Manager of Financial Entities, the Principal Advisor for Economic Policy, and the Manager of Monetary Operations. The Analysis Deputy Manager acts as Secretary.

//25. R.D. Nº 128/2001

Article 55.- (International Reserves Committee)
The International Reserves Committee has the purpose:

1) Analyze the behavior of the BCB's international reserves.
2) Approve periodic guidelines for the investment of international reserves, within the framework of norms, strategies, and policies defined by the Board. It may also set general administration guidelines within the aforementioned framework.
3) Take note that investments made by the International Operations Management (GOI) and by Delegated Administrators were carried out within the framework of current provisions and norms, based on the Evaluation and Monitoring Reports of Investments prepared by the GOI and by its Investment Control Department.
4) Recommend policies to the Board for better performance of international reserves.

It is presided over by the President of the BCB and integrated by the General Manager, the Manager of International Operations, and the Principal Advisor for Economic Policy. The Reserves Deputy Manager acts as Secretary.

CHAPTER VIII
OF THE GENERAL MANAGEMENT COMMITTEES

Article 56.- (General Management Committees)
The General Management has the following committees:

a) Human Resources Administration Committee:
It is the body responsible for executing policies and making decisions on specific Human Resources matters, related to the Personnel Administration System (SAP).
It is presided over by the General Manager and integrated by the Administration Manager, the Human Resources Deputy Manager, and the Personnel Chief.

//26. R.D. Nº 128/2001

b) Training Committee:
It is the body responsible for planning, coordinating, proposing policies, and making administrative decisions, on training matters, based on policies approved by the Board and the corresponding regulations. It is presided over by the General Manager and integrated by the Administration Manager, the Human Resources Deputy Manager, and the Head of the Development and Training Department.

In both committees, Area Managers or their delegates may participate as guests without voting rights to substantiate their requirements.

Article 57.- (Other Working Commissions)
The General Management may create temporary commissions for activity coordination according to service needs.

CHAPTER IX
OF THE AREA MANAGERS

Article 58.- (Form of Appointment and Requirements)
Area Managers will be appointed by the President, in the manner provided in this Statute.
To hold the position of Area Manager, it is an indispensable requirement to have a university degree in branches related to the position.

Article 59.- (Incompatibilities)
The incompatibilities, grounds for dismissal, and obligations established in Articles 47°, 50, and 80 of Law N° 1670, are extended to Area Managers.

Article 60.- (Tenure in Office)
Area Managers will be appointed for an indefinite term. The Board may remove them for justified causes, having incurred the grounds indicated in the previous Article, for reasons of better service, or due to retirement.

//27. R.D. Nº 128/2001

Article 61.- (Dependency and Functions)
Area Managers depend on the General Management and act under its direction.
They are responsible for planning, budgeting, directing, and supervising work and operations in their areas of activity. They must comply with the BCB Law, this Statute, the regulations, and Board resolutions.

Article 62.- (Attendance at Board)
Area Managers may be convened by the President, Directors, or the General Management to Board meetings.

Article 63.- (Representation)
Area Managers may attend, by instruction of the General Management, local and national meetings representing the Bank. Attendance at international meetings will only be by mandate of the President.

Article 64.- (Substitution for Absences)
In case of temporary absence of an Area Manager, for any reason, he/she will be replaced by a Deputy Manager of the same dependency, by express designation of the General Manager.

Article 65.- (Performance Evaluation)
Area Managers will be evaluated semi-annually, by the President and the General Manager.

Article 66.- (Of the Area Managers)
The BCB's organizational structure, corresponding to the operational level, is composed of:

1. Monetary Operations Management
2. International Operations Management
3. Financial Entities Management
4. Legal Affairs Management
5. Systems Management
6. Administration Management
7. Accounting Management

//28. R.D. Nº 128/2001

CHAPTER X
OF THE OBJECT AND FUNCTIONS OF THE AREA MANAGERS

Article 67.- (Of the Object)
The Area Managers develop specialized activities at the operational level that contribute to the fulfillment of the BCB's object, subject to Law N° 1670 and the norms and regulations approved by the Board. They are:

1) Monetary Operations Management
The Monetary Operations Management has the object of executing and controlling treasury operations, open market operations, payment system operations, and credit operations to the TGN. It is responsible for establishing requirements for the acquisition, distribution, and destruction of monetary material, as well as its administration.

2) International Operations Management
The International Operations Management has the object of administering international reserves investments, the exchange regime, the registration and flow of payments of external debt obligations, and international payment agreements.

3) Financial Entities Management
The Financial Entities Management has the object of analyzing and monitoring entities of the financial intermediation system, and administering the BCB's credit operations with said entities. Likewise, it is responsible for the recovery and realization of the BCB's claims.

4) Legal Affairs Management
The Legal Affairs Management supervises and controls the sponsorship of lawsuits and assumes the defense of the BCB's rights and interests in administrative, judicial, and arbitral channels. It provides legal advice to the Board, Presidency, and all areas of the Bank. Participates in the elaboration of the Bank's legal instruments.

//29. R.D. Nº 128/2001

5) Systems Management
The Systems Management has the object of planning, developing, and executing the Bank's IT management as well as administering information technology resources.

6) Administration Management
The Administration Management has the object of administering contracting processes for goods and services, the disposal of goods, and the execution of the personnel administration system. It provides infrastructure maintenance services, security services, and goods required for the adequate administration of the Bank.

7) Accounting Management
The Accounting Management has as its main function to prepare and present the financial statements of the Institution, such as the General Balance Sheet, Income Statements, and complementary financial information, ensuring that they are prepared in accordance with current legal provisions, standards issued by the Superintendence of Banks and the Comptroller General of the State, and in application of Generally Accepted Accounting Principles.

Article 68.- (Functions)
The specific functions of the Management units and their internal organization are incorporated in the Organization and Functions Manual of the Bank.

CHAPTER XI
ON ADVISORY AND SUPPORT

Article 69.- (Level of Advisory and Support)
The Bank has the following levels of advisory and support:
1) Economic Policy Advisory.
2) General Secretariat.

Article 70.- (Economic Policy Advisory)
The Economic Policy Advisory has the following main functions:
1) Propose to the Monetary and Exchange Policy Committee the Monetary and Financial Program for its subsequent consideration and approval by the Board of Directors.
2) Control the execution of the Monetary and Financial Program and inform the President promptly regarding any variations that occur.
3) Propose to the Financial System Analysis Committee the regulatory norms that allow promoting the stability, competition, and efficiency of the national financial intermediation system.
4) Evaluate the behavior of open market operations.
5) Monitor monetary, financial, and economic variables related to national and international economic activity.
6) Provide the economic, monetary, financial, and statistical information, as well as the analyses required by the Bank's Presidency.
7) Provide the advice required by the Presidency and the Board of Directors in decision-making.
8) Prepare the annual report of the Institution for consideration by the Board of Directors.
9) Prepare the specialized publications of the BCB in coordination with the Area Management units.
10) Other functions assigned by the President.
The Economic Policy Advisory is directed by a Chief Advisor who holds the rank of Manager and is appointed in the manner established in this Statute.

Article 71.- (General Secretariat)
The General Secretariat is in charge of the protocol for the President, Directors, and General Manager, and of administering the correspondence services, the archive system, the library, the accreditation system, and the public relations of the BCB. This unit is directed by a General Secretary with the rank of Deputy Area Manager, appointed by the President of the BCB in the manner provided by this Statute for the Bank's Deputy Managers. The General Secretary substitutes the Board Secretary in cases of absence or temporary impediment thereof.

Article 72.- (Incompatibilities)
The heads of the Advisory and General Secretariat units are subject to what is established in Article 47 of Law No. 1670 and may be removed for the causes indicated in Articles 50 and 80 of said Law, by decision of the Board of Directors.

Articles 60, 62, and 64 apply to the Advisor and the General Secretary. The semi-annual performance evaluation of the Advisor and the General Secretary is the responsibility of the President and Vice President.

CHAPTER XII
ON AUDIT AND CONTROL

Article 73.- (Internal Audit)
The audit and control functions of the Bank's operations and accounts are the responsibility of the Internal Audit unit, which will apply the basic internal and external control standards issued by the Comptroller General of the Republic. The head of this unit will be appointed by the Board of Directors in accordance with Article 77 of Law No. 1670. The Chief Internal Auditor has the level of Area Manager. He/She must possess a university degree, professional registration, and recognized experience in the field of his/her competence.

Article 74.- (Duration and Removal)
In accordance with the BCB Law, the Chief Internal Auditor is appointed for four years. He/She is subject to the incompatibilities referred to in Article 47 of Law No. 1670 and may be removed for the causes indicated in Articles 50 and 80 of said Law, or by decision of the Board of Directors, by an absolute majority of votes of all its members.

Article 75.- (Dependency)
The Chief Internal Auditor reports to the Board of Directors, to whom he/she will present his/her program of operations and activities at the beginning of each term.
Once the Chief Internal Auditor and his/her Deputy Managers are appointed, they will depend administratively on the General Management but may not be suspended or substituted in their positions without the consent of the Board of Directors.

Article 76.- (Activities and Reports of Internal Audit)
The Chief Internal Auditor formulates and executes independently the program of operations and activities of Internal Audit, keeping the Board of Directors informed, through the President, on the development of his/her 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 Board Secretary. The audit report issuance letter must identify all auditors who have participated in its preparation.

Article 77.- (Functions and Powers of Internal Audit)
Internal Audit has the following functions and powers:
1) Evaluate the degree of compliance and effectiveness of administration systems and the internal control instruments incorporated therein; determine the reliability of records and financial statements; and analyze the results and efficiency of operations.
2) Evaluate and qualify the effectiveness of internal control systems for the safeguarding and protection of the Institution's assets and equity.
3) Evaluate administration systems to determine their efficiency, transparency, and effectiveness, especially with regard to acquisitions and bidding for goods and services; provision of financial services; performance and security of financial assets, maintenance of fixed assets, and compliance with the entity's norms and regulations regarding all systems.
4) Evaluate information systems and the management of data processing centers.
5) Evaluate the non-automated processes of the BCB.
6) Exercise the other functions and powers that correspond to it, in accordance with the Statute, regulations, other applicable provisions, and those assigned by the Board of Directors.
7) Analyze the results and efficiency of operations.

Article 78.- (Preventive Recommendations)
Internal Audit does not issue prior opinions in accordance with Law No. 1178, but does issue preventive recommendations, once it has meticulously analyzed the internal procedures employed, to prevent acts contrary to laws and internal norms or damage to the Bank's equity.

Article 79.- (Scope and Limitations)
The functions of Internal Audit cover all areas of the BCB, including the Cultural Foundation, with selective or exhaustive scope, as required.
Internal Audit has no limitation in access to the records, documents, and operations of the BCB.

Article 80.- (Special Audits)
Both the President and the Board of Directors may instruct the carrying out of special audits.

Article 81.- (Evaluation)
The Chief Internal Auditor will be evaluated semi-annually in his/her performance by the Board of Directors.
The Deputy Managers of Internal Audit will be evaluated semi-annually in their performance by the Chief Internal Auditor, communicating the results to the Board of Directors and the General Management.

Article 82.- (External Audit)
The Board of Directors will annually instruct the Administration to contract private audit firms of recognized prestige to carry out external audit corresponding to the management period. Additionally, the Board of Directors may instruct the contracting of other external audits for specific purposes.

CHAPTER XIII
ON ORGANIZATION, FUNCTIONS, AND PERSONNEL REGIME

Article 83.- (Organic Structure and Functions Manual)
The Board of Directors approves the organic structure of the BCB, its modifications, as well as the scopes of competence and responsibility of the different areas of the Bank, by two-thirds of the votes of all its members, without any additional administrative act.

The Board of Directors approves the Organization and Functions Manual and its modifications, upon proposal of the General Management.

Article 84.- (Personnel Administration and Internal Regulations)
The BCB Board of Directors approves by two-thirds of the votes of all its members and without any additional administrative act, the Internal Regulations of the Institution within the framework of current laws, upon proposal of the General Management.

Article 85.- (Personnel Evaluation)
The performance evaluation of personnel up to the level of General Manager will be carried out semi-annually. The evaluations will be carried out in accordance with the Personnel Administration System Regulations approved by the Board of Directors.

Article 86.- (Executive Personnel)
For the purposes of this Statute and the BCB regulations, the executive personnel of the Bank comprises:

• President
• General Manager
• Area Managers and Deputy Managers
• Chief and Associate Advisors
• Chief Internal Auditor and Audit Deputy Managers
• General Secretary
• Board Secretary
• Department Heads

Article 87.- (Rotation of Executive Personnel)
Periodically, the General Management will present to the consideration of the Board of Directors, a proposal for partial rotation of the Bank's executive personnel, at the level of managers, deputy area managers, and department heads, based on the following criteria:

• Need to broaden the professional experience of executives so that the Institution has managerial staff capable of performing functions in the different areas of the Bank.
• Performance evaluations.
• Promotions.
• Vacancies.
• Needs for better service.

CHAPTER XIV
ON THE MODIFICATION OF THE STATUTE

Article 88.- (Reform of the Statute)
This Statute may be modified in whole or in part, at the initiative of two or more members of the Board of Directors or upon proposal of the President.
The proposed reforms will be sanctioned by two-thirds of the votes of all members of the Board of Directors, without the need for any additional administrative act.