Resolution 185/2012

BOARD RESOLUTION NO. 185/2012
SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES THE SPECIFIC REGULATION FOR THE GRANTING OF THE CREDIT PROVIDED FOR IN LAW NO. 232.

SEEN:
The Political Constitution of the State.
Law No. 1670, of October 31, 1995, of the Central Bank of Bolivia (BCB).
Law No. 232 of April 9, 2012, which authorizes the BCB to grant to the Fund for the Industrial and Productive Revolution (FINPRO), an extraordinary credit of $us600,000,000 (Six Hundred Million 00/100 United States Dollars), exempting the Issuing Entity from the application of articles 22 and 23 of Law No. 1670. Supreme Decree No. 1367 of October 3, 2012, which regulates Law No. 232. The Report from the Monetary Operations Management BCB-GOM-SOS-INF-2012-05 of October 11, 2012. The Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-332 of October 15, 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 numeral 4 of article 316 of the Political Constitution of the State establishes that the function of the State in the economy "consists of participating directly in the economy through the incentive and production of economic and social goods and services to promote economic and social equity and drive development, avoiding oligopolistic control of the economy." 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 capital and interest is demonstrated, and the most advantageous conditions in 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.

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That the first transitional provision of Law 232 indicates that the restrictions contained in Law No. 1670, especially what is provided in articles 22 and 23 thereof, or any contrary legal provision, are not applicable.
That paragraph III of article 2° (Creation) of Law No. 232 indicates that FINPRO will have an extraordinary credit of Six Hundred Million United States Dollars ($us600,000,000) granted by the BCB, with resources from the International Reserves. That paragraph II item a), of article 6° (Resources) of Law No. 232 indicates that this credit constitutes an additional resource for FINPRO, with no financial cost, for a term of thirty years, disbursable in a single lump sum, payable at maturity, with the guarantee of the trust's equity. That paragraphs I and III of the first additional provision of Law No. 232 authorize the BCB to grant, with resources from the International Reserves, an extraordinary credit of $us600 million, indicating that restrictions contained in Law No. 1670, including articles 22 and 23 of said norm or any contrary legal provision, are not applicable. That the Report from the Monetary Operations Management BCB-GO-SOSP-INF-2012-05 concludes that it is necessary to have a defined procedure, with clear and transparent rules for the administration of the exceptional credit to FINPRO, and refers for the consideration of the Board a draft Regulation that contemplates the needs and recommendations of the area for the granting of the credit mentioned in Law No. 232. That the Report from the Legal Affairs Management BCB-GAL-SANO-INF-2012-332 concludes that the Specific Regulation for the Granting of the Credit provided for in Law No. 232 proposed by the GOM according to report BCB-GOM-SOSP-INF-2012-05 is legally appropriate, insofar as it does not contravene the current legal framework, being the competence of the BCB Board to consider its approval by two-thirds of the votes of all its members, in accordance with what is established in article 54 item o) of Law No. 1670 and article 24 of the Institution's Statute.

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

Article 1.- Approve the Specific Regulation for the Granting of the Credit provided for in Law No. 232, which as an annex forms an integral part of this Resolution.

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

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

La Paz, October 17, 2012

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Marcelo Zabalaga Estrada
_________________________ _________________________ Rafael Boyán Téllez Hugo Dorado Araníbar

_________________________ _________________________ Ernesto Yáñez Aguilar Gustavo Blacutt Alcalá

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ANNEX
SPECIFIC REGULATION FOR THE GRANTING OF THE CREDIT PROVIDED FOR IN LAW NO. 232

CHAPTER I
PRELIMINARY PROVISIONS

Article 1.- (Object)
The purpose of this Regulation is to govern the granting of the credit provided for in Law No. 232 of April 9, 2012, which authorizes the BCB to grant an extraordinary credit of $us600,000,000 (Six Hundred Million 00/100 United States Dollars) to the Fund for the Industrial and Productive Revolution (FINPRO), exempting the issuing entity from the application of articles 22 and 23 of Law No. 1670.

CHAPTER II
CREDIT APPLICATION

Article 2.- (Credit Application)
To grant the credit, the applicant must submit the following documentation:
1) Written request addressed to the President of the BCB and signed by the legal representative of the Trustee; for this credit, the Productive Development Bank SAM.
2) Document of designation of the legal representative and power of representation.
3) Trust agreement signed between the BDP, Ministry of Economy and Public Finances (MEFP) and the BCB.
4) Opening balance sheet of the Trust.

Article 3.- (Acceptable Guarantees)
The guarantee of the extraordinary credit shall be constituted by the equity of the FINPRO trust, accredited by approved financial statements.

Article 4.- (Reports for Approval)
Upon receipt of the application and documentation established in article 2 of this Regulation, prior to the Board's consideration, the President of the BCB will request the following reports:

//5. R.D. No. 185/2012 a) Technical report to the Monetary Operations Management (GOM) regarding financial conditions. b) Legal report from the Legal Affairs Management (GAL) regarding compliance with regulations and submission 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 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 credit contract by the President of the BCB, prior to review and approval by the Board.

CHAPTER III
CREDIT CONTRACT

Article 6.- (Financial Conditions)
The credit will not accrue any financial cost. The term is thirty years, disbursable in a single lump sum, payable at maturity.

Article 7.- (Contract)
The financial conditions mentioned in article 6 of this Regulation, endorsed 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 of the Contract will be carried out by the BCB and the expenses that these procedures entail, if applicable, will be covered by the trust.

Article 8.- (Conditions for Disbursement)
The disbursement of the resources of the extraordinary public credit granted will be effected only when there is:
a) The Board Resolution of the BCB approving the granting of the Credit. b) The Public Credit Contract signed by all contracting parties. c) A specific account enabled by the BCB abroad in the name of FINPRO.

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Article 9.- (Responsibility for the Use and Destination of Credit Resources)
The responsibility for the use and destination of the credit resources will be governed by what is provided in Supreme Decree No. 1367.
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