024 2018 SGDB EXT

BANCO CENTRAL DE BOLIVIA
ESTADO PLURINACIONAL DE BOLIVIA

SUBJECT:

To:
Multiple Banks and SMEs

MODIFICATION OF THE METHODOLOGY OF THE REFERENCE INTEREST RATE FOR MULTIPLE BANKS AND SMEs (TReMN)

Ladies and Gentlemen:

The Central Bank of Bolivia (BCB) communicates to entities of financial intermediation that, the Director of the S.C.S. approved the modification of the methodology of the Reference Interest Rate for Multiple Banks and SMEs (TReMN) according to the following methodology:

1. From the state of monthly changes in charges for Multiple Banks and SMEs, the charges for obligations with the public for demand deposits, savings, and term deposits for operations in all monetary denominations (accounts 411.01 to 411.05) will be obtained.

The monthly data of these charges mentioned is obtained by the difference between the monthly states of results formulated for the current month and the previous one, with the exception of the month of December. All data is taken without realizing any adjustment.

The result of point 2 is multiplied by 360 and divided by the number of calendar days in the month of the state of results.

The result of point 3 is divided by the average of the balance sheet balances of Multiple Banks and SMEs for the same month of the obligations with the public for demand deposits, savings, and term deposits for operations in all monetary denominations (accounts 211.00, 212.00, 213.00, and 215.00).

2. The Reference Interest Rates (TRe) in the remaining monetary denominations are calculated as the weighted average effective passive interest rate of fixed-term deposits (DPF) contracted in the corresponding monetary denomination, for all terms for Multiple Banks and SMEs of the calendar month.

3. The new TReMN and TRe are valid for the month following the receipt of states of results and balances for the TReN and of the information of operations and interest rates of new deposits for the remaining TRe.

4. For the month of June 2018, the TReMN and TRe calculated with information from the month of April will have validity from June 7 to June 30. From July 1, 2018, the TReMN and TRe will have validity for one calendar month.

Sincerely,

[Signature]

CCUR

BANCO CENTRAL DE BOLIVIA
ESTADO PLURINACIONAL DE BOLIVIA

90 years of the BCB
Ayacucho Street corner Mercado - Telephone: (591-2) 2409090 - Fax: (591-2) 2661590 www.bcb.gob.bo - bancocentraldebolivia@bcb.gob.bo - La Paz - Bolivia