Resolution 159/2012 Approving the Specific Regulation for the Credit Granted under Law No. 261

BOARD RESOLUTION NO. 159/2012
SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES THE SPECIFIC REGULATION FOR THE GRANTING OF THE CREDIT PROVIDED FOR IN LAW NO. 261.

HAVING SEEN:
The Political Constitution of the State.
Law No. 1670, of October 31, 1995, of the Central Bank of Bolivia (BCB).
Law No. 261, of July 15, 2012, which approves the Construction, Implementation, and Administration of the Cable Transport System (Teleférico) in the cities of La Paz and El Alto.
The copy of note MOPSV/DESP.0976/2012 received on August 10, 2012, from the Ministry of Public Works, Services, and Housing addressed to the Ministry of Economy and Public Finance.
The notes MEFP/VTCP/DGAFT/USCFT/N°1616/12 and MEFP/VTCP/DGCP/UEPS-872/2012 received on August 22 and 24, 2012, from the Undersecretariat of Treasury and Public Credit, dependent on the Ministry of Economy and Public Finance. The Report from the Monetary Operations Management BCB-GOM-INF-2012-7 of August 28, 2012. The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-278 of August 28, 2012.

CONSIDERING:
That the Political Constitution of the State establishes in numeral 10 of article 158 that the Plurinational Legislative Assembly has the attribute to approve the contracting of loans that commit the general revenues of the State.

That article 322 of the Political Constitution of the State provides that the Plurinational Legislative Assembly will authorize the contracting of public debt when the capacity to generate income to cover the principal and interest is demonstrated, and the most advantageous conditions in terms of rates, terms, amounts, and other circumstances are technically justified. Public debt will not include obligations that have not been expressly authorized and guaranteed by the Plurinational Legislative Assembly.

That articles 22 and 23 of Law No. 1670 determine that the BCB cannot grant credits to the Public Sector or incur contingent liabilities in its favor, except in favor of the General Treasury (TGN) to attend to urgent needs derived from declared public calamities, internal or international commotion by Supreme Decree, and to attend to temporary liquidity needs, within the limits of the monetary program; these operations will be documented in all cases through negotiable public debt securities issued by the National Treasury.

That paragraph I of article 2 (Financing) of Law No. 261, within the framework of Articles 158 and 322 of the Political Constitution of the State, authorizes the Ministry of Economy and Public Finance to contract a credit with the BCB in national currency for an amount of up to Bs 1,633,372,800.- (One billion six hundred thirty-three million three hundred seventy-two thousand eight hundred 00/100 Bolivianos) destined for the construction of the Cable Transport System (Teleférico) in the cities of La Paz and El Alto.

That paragraph II of article 2 (Financing) of Law No. 261, authorizes the Central Bank of Bolivia to grant the Ministry of Economy and Public Finance an extraordinary credit on concessional conditions, for which the application of articles 22 and 23 of Law No. 1670 of October 31, 1995, is exempted from the BCB.

That the copy of note MOPSV/DESP.0976/2012 from the Ministry of Public Works, Services, and Housing addressed to the Ministry of Economy and Public Finance, through which they request prioritizing actions before the BCB for the signing of the internal credit contract.

That the notes MEFP/VTCP/DGAFT/USCFT/N°1616/12 and MEFP/VTCP/DGCP/UEPS-872/2012 from the Undersecretariat of Treasury and Public Credit, dependent on the Ministry of Economy and Public Finance, refer to the credit request and the degree of concessionality approved for the credit authorized by Law 261 (Teleférico).

That the Report from the Monetary Operations Management BCB-GOM-INF-7 recommends that for the granting of the Credit to the Ministry of Economy and Public Finance mentioned in Law 261, a specific regulation be available for this effect.

That the Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-278 establishes that the Specific Regulation for the Concession of the Credit provided for in Law No. 261 is legally appropriate, as it does not contravene the current legal framework.

THEREFORE,

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

Article 1.- Approve the Specific Regulation for the Concession of the Credit provided for in Law No. 261, which forms an integral part of this Resolution as an annex.

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

Article 3.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, August 28, 2012

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Marcelo Zabalaga Estrada

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Rafael Boyán Téllez
Hugo Dorado Araníbar

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Gustavo Blacutt Alcalá

//4. R.D. N° 159/2012
SPECIFIC REGULATION FOR THE CONCESSION OF THE CREDIT PROVIDED FOR IN LAW NO. 261

CHAPTER I
PRELIMINARY PROVISIONS

Article 1.- (Object) This Regulation aims to regulate the granting of the credit provided for in Law No. 261 “Construction, implementation, and administration of the Cable Transport System (Teleférico) in the cities of La Paz and El Alto” by the Central Bank of Bolivia (BCB) in favor of the Ministry of Economy and Public Finance (MEFP).

CHAPTER II
CREDIT APPLICATION

Article 2.- (Credit Application)
To grant the credit, the MEFP must submit the following documentation:
1) Written request addressed to the President of the BCB and signed by the Minister of Economy and Public Finance, which must contain:
a) Amount requested, b) Proposal for term and form of payment of principal and interest, c) Proposal for disbursement schedule and payment plan, d) Guarantees offered.
2) Legalized Presidential Resolution appointing the Minister of Economy and Public Finance.

Article 3.- (Acceptable Guarantees)
Guarantees may be constituted by Treasury Bonds in favor of the BCB or by automatic, unconditional, and irrevocable debit from the accounts of the General Treasury of the Nation, which must be expressly authorized by the Plurinational Legislative Assembly.

Article 4.- (Reports for Approval)
Upon receipt of the application and documentation established in article 2 of this Regulation, prior to Board consideration, the President of the BCB will request the following reports:
a) Technical report on financial conditions to the Monetary Operations Management (GOM). b) Legal report from the Legal Affairs Management (GAL) regarding compliance with regulations and presentation of documentation required for the granting of the credit.

c) Other reports as required.

Article 5.- (Approval of Credit Application)
The BCB Board will consider the technical, legal, and other reports, and if appropriate, approve the credit by a favorable vote of two-thirds of its members present at the Board meeting, issuing the corresponding Resolution. Likewise, it will instruct the preparation and subsequent signing of the contract by the President of the BCB, prior to review and approval by the Board.

CHAPTER III
CREDIT CONTRACT

Article 6.- (Financial Conditions)
The financial conditions of the credit will be established and determined by the BCB Board, taking into account the MEFP's request and the degree of concessionality established by the MEFP through Ministerial Resolution.

Article 7.- (Contract)
The credit conditions approved by the BCB Board will be recorded in the contract to be signed in a public document before the Notary of the Governorship.
The protocolization procedures for the Contract will be carried out by the BCB, and the expenses incurred by these actions will be covered by the MEFP.

Article 8.- (Evaluation and Monitoring)
The evaluation and monitoring of the credit resources granted are the exclusive responsibility of the Ministry of Public Works, Services, and Housing (MOPSV), as stated in Law No. 261, article 2, paragraph III.

Article 9.- (Conditions for Disbursements)
Disbursements of the public credit resources granted will be made only when:
a) The BCB Board Resolution approving the granting of the Credit and the Public Credit Contract are available. b) A specific account enabled in Bolivianos at the BCB. For this effect, the MEFP must request the opening of the mentioned account. c) In case the Disbursement Schedule is subject to modification, this will be communicated to the BCB.

Article 10.- (On Registration and Accreditation, of the Use and Destination of the Credit Resources)
The registration and accreditation of the credit, as well as the use and destination of the credit resources, are the exclusive responsibility of the MEFP and/or the MOPSV.
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