ASFI Circular Letter DNP CC-2843 2020 of April 29, 2020

[Logo: ASFI - SUPERVISORY AUTHORITY OF THE FINANCIAL SYSTEM - PLURINATIONAL STATE OF BOLIVIA]

La Paz, April 29, 2020
CIRCULAR LETTER/ASFI/DNP/CC-2843/2020

Present

REF: PROCESS NO. T-2005827846
EMERGENCY PLAN FOR EMPLOYMENT SUPPORT AND LABOR STABILITY

Gentlemen:

Within the framework of what is established in Supreme Decree No. 4216 of April 14, 2020, regarding the Special Program for Support to Micro, Small, and Medium Enterprises and the Emergency Plan for Employment Support and Labor Stability, and in Ministerial Resolution No. 160 of April 21, 2020, from the Ministry of Economy and Public Finance, which approves the Regulations for the Emergency Plan for Employment Support and Labor Stability, Financial Intermediation Entities (FIEs) must grant credits under this plan, with the purpose of providing relief in the payment of salaries for personnel of legally constituted companies, whose workers are registered in the Integrated Pension System, under the following conditions:

For terms of up to eighteen (18) months, with a six (6) month grace period.
For a maximum amount of Bs8,488 (Eight Thousand Four Hundred Eighty and 00/100 Bolivianos) per worker.
At an annual interest rate of 3.73%.
To companies that have not obtained credits or have outstanding credits (based on the definition in the Chart of Accounts for Financial Entities) as of February 29, 2020, with risk ratings A, B, and C.

VRC/AGL/Cesar Daza C.

La Paz: Central Office, Plaza Isabel La Católica No. 2507 · Tel: (591-2) 2174444 - 2431919 · Fax: (591-2) 2430028 · P.O. Box No. 447 · Torres Del Poeta Condominium, Tower "A", floors 4, 5, 6 · Reyes Ortiz Street corner Federico Zuazo Gundlach Building, East Tower, Floor 3 · Tel: (591-2) 2311818 · P.O. Box No. 6118 · El Alto: Consultation Center, Villa Bolívar Municipal Urbanization, Block "O" Ladislao Cabrera Avenue No. 16 (Villa Adela Crossing) · Tel: (591-2) 2834449 · Potosí: Consultation Center, Alonso de Ibáñez Plaza No. 20, El Siglo Gallery, Floor 1, Central Zone · Tel: (591-2) 6230858 · Oruro: Consultation Center, Guachalla Passage, Chamber of Commerce Building, Floor 3, Office 307 · Tel: (591-2) 5117706 - 5112468 · Santa Cruz: Departmental Office, Irala Avenue No. 585 corner Ejército Nacional Avenue, ground floor Office No. 2 and Floor 2 Office No. 201, First Ring, P.O. Box No. 1359 · Tel: (591-3) 3336288 - 3336287 - 3336286 - 3336285 · Fax: (591-3) 3336288 · Cobija: Consultation Center, Lieutenant Colonel Emilio Fernández Molina Avenue No. 049, between Beni and Sucre Streets · Tel: (591-3) 8424841 · Trinidad: Consultation Center, Antonio Vaca Díez Street No. 26 between Nicolás Suárez and November 18 Avenue, Central Zone · Tel (591-3) 4629659 · Cochabamba: Departmental Office, Colombia Street No. 364 near May 25 Street · Tel: (591-4) 4584505 - 4584506 · Sucre: Consultation Center, Ayacucho Street between Loa and Junín, ground floor (ex) ECOBOL Building · Tel: (591-4) 6439777 - 6439775 - 6439774 · Fax: (591-4) 6439776 · Tarija: Consultation Center, Junín Street between April 15 and Virgilio Lema No. 451 · Tel: (591-4) 6113709

Toll-free line: 800 103 103 · Website: www.asfi.gob.bo · Email: asfi@asfi.gob.bo

As an indispensable requirement, applicant companies seeking access to these credits must submit contribution forms to Pension Fund Administrators, either for the months of January, February, or March of the current fiscal year, accompanied by a sworn statement supporting the truthfulness of the information presented.
FIEs will adapt their credit analysis and evaluation processes, based on the availability of information for each borrower as of February 29, 2020, given that Supreme Decree No. 4196 of March 17, 2020, declares a national health emergency and quarantine throughout the territory of the Plurinational State of Bolivia, against the outbreak of the Coronavirus (COVID-19), determining in Paragraph I of its Third Additional Provision, the establishment of mechanisms for the flexibility of obligations.
FIEs must carry out the follow-up that they normally perform in their credit operations, as well as their credit risk management, during the validity of the Program.
For the constitution of specific provisions, credit operations granted with the coverage of the Guarantee Funds may exclude from the direct and contingent balance the amounts corresponding to said guarantee, within the framework of what is established in numeral 2) of Article 1°, Section 3 of the Regulations for the Evaluation and Classification of Credit Portfolios, contained in Chapter IV, Title II, Book 3° of the Compilation of Norms for Financial Services.

Likewise, considering what is established in Paragraph I of the Third Additional Provision of Supreme Decree No. 4196, cited above, these operations will be subject to the provision regime established for the Productive Sector, contemplated in the aforementioned Article 1°.

The risk coverage mechanisms for credit operations granted by Multiple Banks and SMEs, within the framework of what is established in point IV, of Article 5 of the Regulations approved by Ministerial Resolution No. 160, will be applied in accordance with the modification of the Guarantee Funds regulations that are established for this effect.

The resources for the granting of these credits will be financed to the Financial Intermediation Entities by the General Treasury of the Nation (TGN), as provided in Article 3 of the Regulations for the Emergency Plan for Employment Support and Labor Stability, approved by Ministerial Resolution No. 160 of April 21, 2020, from the Ministry of Economy and Public Finance.

VRC/AGL/Cesar Daza C.

Toll-free line: 800 103 103 · Website: www.asfi.gob.bo · Email: asfi@asfi.gob.bo

FIEs will register the obligation with the TGN, in subaccount 223.09 "Obligations with the TGN - Emergency Plan for Employment Support and Labor Stability". However, temporarily, these obligations will be registered in subaccount 242.99 "Various Creditors", for the purpose of sending information as of the end of April of the current fiscal year.

FIEs will inform the TGN about the credits disbursed weekly (from Monday to Friday), with the objective that the TGN instructs the Central Bank of Bolivia (BCB) to make the corresponding deposits in the Current Account or Legal Reserve Account of each entity.

Finally, within the framework of what is determined in the Final Provision of Supreme Decree No. 4216 and in Article 7 of the Regulations for the Emergency Plan for Employment Support and Labor Stability, FIEs must report to the Periodic Information Capture System (SCIP), daily information on credit operations corresponding to the Emergency Plan for Employment Support and Labor Stability, in the format that will be established for this effect.

Sincerely.

[Signature]
Lic. Gonzalo Guillermo Romano Rivero
EXECUTIVE GENERAL DIRECTOR a.i.
Financial System Supervisory Authority

[Seal: PLURINATIONAL STATE OF BOLIVIA - Financial System Supervisory Authority]

VRC/AGL/Cesar Daza C.

Toll-free line: 800 103 103 · Website: www.asfi.gob.bo · Email: asfi@asfi.gob.bo

ASFI Circular Letter DNP CC-2843 2020 of April 29, 2020

Lineage: In force