Resolution 194/2012

BOARD RESOLUTION NO. 194/2012
SUBJECT: MONETARY OPERATIONS MANAGEMENT – APPROVES MODIFICATIONS TO THE SPECIFIC REGULATION FOR THE GRANTING OF 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.
Law No. 291 of September 22, 2012, which approves the second modification to the General State Budget Management 2012, for entities of the public sector, and establishes other specific financial provisions.
The Specific Regulation for the Granting of Credit provided for in Law No. 261 of August 28, 2012.
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 from the Ministry of Economy and Public Finance MEFP/VTCP/DGCP/UEPS-1145/2012 of October 12, 2012, MEFP/VTCP/DGCP/UEPS-1253/2012 of November 12, 2012 and MEFP/VTCP/DGCP/UEPS-1232/2012 of November 14, 2012.
The Reports from the Monetary Operations Management BCB-GOM-SOSP-INF-2012-6 of October 24, 2012 and BCB-GOM-SOSP-INF-2012-7 of November 16, 2012.
The Reports from the Legal Affairs Management BCB-GAL-SANO-INF-2012-343 of October 26, 2012 and BCB-GAL-SANO-INF-2012-365 of November 16, 2012.

CONSIDERING:
That the Political Constitution of the State establishes in numeral 10 of article 158, that the Plurinational Legislative Assembly has the attribution 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 Law No. 1670 determines that the highest authority of the BCB is its Board of Directors, responsible for defining its policies, specialized regulations of general application and internal rules (Art. 44); to this effect, it is empowered to issue the rules and adopt the general decisions that may be necessary for the Issuer Entity to fulfill the functions, competencies and powers assigned by Law, as well as to 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 any additional administrative act (Art. 54, secs. a and o). That Law No. 261 in its Article 2 Paragraph I authorizes the Ministry of Economy and Public Finance (MEFP) to contract a credit with the Central Bank of Bolivia (BCB) in national currency for an amount up to Bs1,633,372,800.00, destined for the construction of the Cable Transport System (Teleférico) in the cities of La Paz and El Alto); and in Paragraph II authorizes the BCB to grant the MEFP an extraordinary credit on concessional terms, for which the BCB is exempted from the application of articles 22 and 23 of the BCB Law. That Law No. 291 in its Article 10 authorizes the General Treasury of the Nation to effect the transfer of resources to the Ministry of Economy and Public Finance for the payment of the debt arising from the credit to be contracted with the BCB for the construction of the cable transport system (Teleférico) in the cities of La Paz and El Alto; as well as for the constitution of the necessary backing guarantees required by the respective loan contract. That the Specific Regulation for the Granting of Credit Provided for in Law No. 261, approved by Board Resolution No. 159/2012, of August 28, 2012, 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 in favor of the Ministry of Economy and Public Finance. That the Statute of the BCB approved by Board Resolution No. 128/2005, of October 21, 2005, and its subsequent modifications states that the Board of Directors has among others, the attribution to approve general decisions and issue the rules that may be necessary for the BCB to fulfill the functions, competencies and powers assigned to it by Law, and to this effect, it has the attribution to approve and modify 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. That through note MEFP/VTCP/DGCP/UEPS-1145/2012 the Ministry of Economy and Public Finance requests the BCB to consider a proposal for modifications to the BCB Specific Regulation for the Granting of 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”.

That in the Reports from the Monetary Operations Management BCB-GOM-SOSP-INF-2012-6 and BCB-GOM-SOSP-INF-2012-7 it concludes that the modifications suggested by the VTCP to articles 2 numeral 2), 3, 9 subsection b) and article 10 do not affect the essence or the objective with which the Regulation was planned and states that the proposed modifications clarify the requirements for the granting of the credit and define the responsibilities of the actors involved, and recommends the modification of the Regulation for the granting of the Credit to the Ministry of Economy and Public Finance enunciated in Law 261. That in the Reports from the Legal Affairs Management BCB-GAL-SANO-INF-2012-343 and BCB-GAL-SANO-INF-2012-365 it states that within the framework of what is established in Report BCB-GOM-SOSP-INF-2012-6 and BCB-GOM-SOSP-INF-2012-7, the proposal for modification of articles 2 numeral 2), 3, 9 subsection b) and article 10 proposed by the GOM, is legally procedent, being the competence of the Board of Directors of the BCB to consider its approval by two-thirds of the votes of all its members, in accordance with what is established in article 54 sec. o) of Law No. 1670 and article 24 of the Institution's Statute; and recommends putting before the Board of Directors the approval of the modification of the Specific Regulation for the Granting of Credit provided for in Law No. 261 since it does not contravene the current legal order.

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

Article 1.- Modify Article 2 numeral 2) of the Specific Regulation for the Granting of Credit Provided for in Law No. 261 in the following terms:
SAYS:
Article 2.- (Credit Application)
2) Legalized presidential resolution of the appointment of the Minister of Economy and Public Finance.
SHOULD SAY:
Article 2.- (Credit Application)
“2) Legalized presidential decree of the appointment of the Minister of Economy and Public Finance.”

Article 2.- Modify Article 3 of the Specific Regulation for the Granting of Credit Provided for in Law No. 261 in the following terms:
SAYS:
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.
SHOULD SAY:
Article 3.- (Acceptable Guarantees)
“The credit guarantee shall be constituted by the authorization of automatic debit from the ledgers of the General Treasury of the Nation (TGN) in the Single Treasury Account (TGN).”

Article 3.- Modify Article 9 subsection b) of the Specific Regulation for the Granting of Credit Provided for in Law No. 261 in the following terms:
SAYS:
Article 9.- (Conditions for Disbursements)
b) A specific account enabled at the BCB in Bolivianos. For this effect, the MEFP must request the opening of the mentioned account.
SHOULD SAY:
“Article 9.- (Conditions for Disbursements) b) A specific account enabled at the BCB in Bolivianos or a specific ledger in the Single Treasury Account (CUT) in Bolivianos.”

Article 4.- Modify Article 10 of the Specific Regulation for the Granting of Credit Provided for in Law No. 261 in the following terms:
SAYS:
Article 10.- (Of the 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.
SHOULD SAY:
“Article 10.- (Of the registration and accreditation, of the use and destination of the Credit resources) It corresponds to the Ministry of Public Works, Services and Housing, the evaluation, use, monitoring and destination of the resources of the credit to be granted by the Central Bank of Bolivia in favor of the Ministry of Economy and Public Finance, destined for the construction of the Cable Transport System (Teleférico) in the cities of La Paz and El Alto.”

Article 5.- The modifications to this Regulation shall enter into force from their approval.
Article 4.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, November 20, 2012

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Marcelo Zabalaga Estrada

_______________________ _______________________ Hugo Dorado Araníbar Rolando Marín Ibáñez

_______________________ _______________________ Gustavo Blacutt Alcalá Abraham Pérez Alandia