Board Resolution No. 035/2026

BOARD
BOARD RESOLUTION NO. 35/2026
SUBJECT: FINANCIAL ENTITIES MANAGEMENT - MODIFY THE LEGAL RESERVE REGULATION FOR FINANCIAL INTERMEDIATION ENTITIES.

VIEWED:
Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB) and its modifications.
Law No. 393 of August 21, 2013 on Financial Services and its modifications.
Board Resolution No. 76/2022 of August 26, 2022, which approves the Legal Reserve Regulation for Financial Intermediation Entities and its modifications.
Board Resolution No. 95/2022 of October 6, 2022, which approves the Statute of the BCB.
The report BCB-GEF-INF-2026-6 of March 25, 2026, from the Financial Entities Management (GEF).
The report BCB-GAL-SANO-DLBCI-INF-2026-69 of March 25, 2026, from the Legal Affairs Management (GAL).

CONSIDERING:
That Law No. 1670 in its Article 1 provides that the BCB is the sole monetary and exchange authority of the country, with administrative, technical, and financial competence and specialized normative powers of general application. In its Article 3, it determines that the BCB will formulate general application policies in monetary, exchange, and payments system matters to fulfill its object.

That the aforementioned Law, in Article 7, establishes that the BCB may establish legal reserves of mandatory compliance by Banks and financial intermediation entities. Their composition, amount, calculation method, characteristics, and remuneration shall be established by the Bank's Board of Directors by absolute majority vote. Control and supervision of the legal reserve shall correspond to the current Financial System Supervision Authority (ASFI). In its Article 37, it determines that the BCB will be the custodian of liquid reserves destined to cover the legal reserve and attend to the payments system and other operations with the

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BCB of financial intermediation entities subject to the authorization and control of the ASFI.

That Law No. 1670, in Article 44, provides that the highest authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized norms of general application, and internal norms; as well as establishing administrative, operational, and financial strategies of the Issuing Entity, approving their respective short and medium-term programs. In subsections a), i), and o) of its Article 54, it is established that the Board has the authority to issue norms and adopt general decisions necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law; to fix and regulate the administration of the legal reserve to which banks and other financial entities must be subject, disposing of measures for its compliance; 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 an additional administrative act.

That Law No. 393 in paragraph 1 of its Article 426 provides that Financial Intermediation Entities must at all times have adequate liquidity levels to guarantee the continuity of their operations and the timely fulfillment of their obligations.

That the Legal Reserve Regulation for Financial Intermediation Entities, in its Article 1, establishes that its object is to fix and regulate the administration of the legal reserve and resources resulting from its modification, in order to have instruments of monetary regulation and preservation of financial system stability. In its Article 2, it provides that all financial intermediation entities, authorized for operation by the ASFI, are subject to the provisions of this Regulation.

That the Statute of the BCB, in its Articles 5 and 6, establishes that the BCB has normative competence and that the norms it issues will be approved by Board Resolution. In items 1), 7), and 30) of its Article 10, it determines that the Board has the authority to approve general decisions and issue norms necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by Law; to establish by absolute majority vote, legal reserves of mandatory compliance by financial intermediation entities and approve their composition, amount, calculation, characteristics, forms of administration, custody, and remuneration, according to Regulation. Likewise, to approve, modify, and interpret the Regulations of the BCB by two-thirds of the votes of all its members.

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CONSIDERING:
That through report BCB-GEF-INF-2026-6, the GEF concludes that on March 31, 2026, the validity of the FIUSEER Fund would effectively conclude for all financial intermediation entities, due to the determination of the Board contained in Act 21/2026 of the Extraordinary Session of March 25, 2026, and that the extension of the deadline for the CPVIS II and CPVIS III Funds reduces the probability of liquidity tensions in the financial system by distributing relevant obligations with the BCB over time in a context of lower seasonal slack.

That through report BCB-GAL-SANO-DLBCI-INF-2026-69, the GAL establishes that the approval of the modification of Articles 31 and 33 of the Legal Reserve Regulation for Financial Intermediation Entities is legally viable as it does not violate the current legal framework, and therefore it corresponds to the BCB Board to consider its approval in accordance with what is established in Article 54 subsections a), i), and o) of Law No. 1670, and Article 10 items 1), 7), and 30) of the BCB Statute.

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

Article 1.- Modify Article 31 (Liquidity Loans in National Currency with Guarantee of the Fund for Credits Destined to the Productive Sector and Social Interest Housing II)
of the Legal Reserve Regulation for Financial Intermediation Entities, as follows:

SAYS:
"Article 31 (Liquidity Loans in National Currency with Guarantee of the Fund for Credits Destined to the Productive Sector and Social Interest Housing II).
The resources of each participant in the CPVIS II Fund will serve as guarantee for the liquidity loans in national currency that they request from the BCB, under the following conditions:

1. Financial Intermediation Entities (EIFs) may request liquidity loans from the BCB in national currency at an interest rate of 0%. These loans may be requested until February 2, 2026.
2. The maximum amount of accumulated liquidity loans will be the participation amount of each EIF in the CPVIS II Fund, equivalent in national currency to the prevailing purchase exchange rate. The liquidity loans will have a maturity date of March 31, 2026.
3. On March 31, 2026, the BCB will return to the EIFs, in national currency and foreign currency, respectively, their participation in the CPVIS II-National Currency Fund and CPVIS II-Foreign Currency Fund, prior to cancellation of their liquidity loans in national currency with guarantee of the CPVIS II Fund. In the event that an EIF does not have sufficient resources in its current or reserve account in national currency to pay its liquidity loans, the BCB may offset the difference with its participation in the CPVIS II-National Currency Fund, and in case of insufficiency of this fund, it will offset the balance with the CPVIS II-Foreign Currency Fund at the prevailing purchase exchange rate.
   The return of voluntary contributions, at the request of the EIFs, will be made in the EIFs' accounts abroad. In the event that the EIF does not have its own account abroad, the EIF will communicate in writing to the BCB the account to which the return will be credited. In both cases, the BCB will not charge the Commission for transfer of funds abroad for the financial system, established in the 'Table of Commissions for BCB Services.'
4. EIFs may voluntarily request the BCB to substitute the guarantee of existing liquidity loans in the CPVIS II Fund from foreign currency to national currency in an amount equivalent to the prevailing purchase exchange rate, if at the time of their request they have existing liquidity loans in the CPVIS II Fund. The request must specify the amount of the guarantee substitution in foreign currency and the decrease in resources of the legal reserve account in national currency. The substituted foreign currency amount will be credited to the EIF's Foreign Currency Legal Reserve account for cash withdrawal within the framework of the Monetary Material Administration Regulation. EIF requests must be made in accordance with what is established in the circular issued by the BCB."

SHOULD SAY:
"Article 31 (Liquidity Loans in National Currency with Guarantee of the Fund for Credits Destined to the Productive Sector and Social Interest Housing II).
The resources of each participant in the CPVIS II Fund will serve as guarantee for the liquidity loans in national currency that they request from the BCB, under the following conditions:

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1. EIFs may request liquidity loans from the BCB in national currency at an interest rate of 0%. These loans may be requested until February 2, 2026.
2. The maximum amount of accumulated liquidity loans will be the participation amount of each EIF in the CPVIS II Fund, equivalent in national currency to the prevailing purchase exchange rate. The liquidity loans will have a maturity date of September 30, 2026.
3. On September 30, 2026, the BCB will return to the EIFs, in national currency and foreign currency, respectively, their participation in the CPVIS II-National Currency Fund and CPVIS II-Foreign Currency Fund, prior to cancellation of their liquidity loans in national currency with guarantee of the CPVIS II Fund. In the event that an EIF does not have sufficient resources in its current or reserve account in national currency to pay its liquidity loans, the BCB may offset the difference with its participation in the CPVIS II-National Currency Fund, and in case of insufficiency of this fund, it will offset the balance with the CPVIS II-Foreign Currency Fund at the prevailing purchase exchange rate.
   The return of voluntary contributions, at the request of the EIFs, will be made in the EIFs' accounts abroad. In the event that the EIF does not have its own account abroad, the EIF will communicate in writing to the BCB the account to which the return will be credited. In both cases, the BCB will not charge the Commission for transfer of funds abroad for the financial system, established in the 'Table of Commissions for BCB Services.'
4. EIFs may voluntarily request the BCB to substitute the guarantee of existing liquidity loans in the CPVIS II Fund from foreign currency to national currency in an amount equivalent to the prevailing purchase exchange rate, if at the time of their request they have existing liquidity loans in the CPVIS II Fund. The request must specify the amount of the guarantee substitution in foreign currency and the decrease in resources of the legal reserve account in national currency. The substituted foreign currency amount will be credited to the EIF's Foreign Currency Legal Reserve account for cash withdrawal within the framework of the Monetary Material Administration Regulation. EIF requests must be made in accordance with what is established in the circular issued by the BCB."

Article 2.- Modify items 2) and 8) of Article 33 (Liquidity Loans in National Currency with Guarantee of the Fund for Credits Destined to the Productive Sector and Social Interest Housing III) of the Legal Reserve Regulation for Financial Intermediation Entities, as follows:

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SAYS:
"2) The maximum amount of accumulated liquidity loans will be the participation amount of each EIF in the CPVIS III Fund, equivalent in national currency to the prevailing purchase exchange rate. The liquidity loans will have a maturity date of March 31, 2026."
"8) On March 31, 2026, the BCB will return in foreign currency to the EIFs their participation in the CPVIS III Fund prior to cancellation of their liquidity loans in national currency with guarantee of the CPVIS III Fund. In the event that an EIF does not have sufficient resources in its current or reserve account in national currency to pay its liquidity loans, the BCB may offset the difference with its participation in the CPVIS III Fund at the prevailing purchase exchange rate. The validity of this Fund may be extended to the extent that the BCB deems appropriate."

SHOULD SAY:
"2) The maximum amount of accumulated liquidity loans will be the participation amount of each EIF in the CPVIS III Fund, equivalent in national currency to the prevailing purchase exchange rate. The liquidity loans will have a maturity date of September 30, 2026."
"8) On September 30, 2026, the BCB will return in foreign currency to the EIFs their participation in the CPVIS III Fund prior to cancellation of their liquidity loans in national currency with guarantee of the CPVIS III Fund. In the event that an EIF does not have sufficient resources in its current or reserve account in national currency to pay its liquidity loans, the BCB may offset the difference with its participation in the CPVIS III Fund at the prevailing purchase exchange rate. The validity of this Fund may be extended to the extent that the BCB deems appropriate."

Article 3.- The modifications to the Legal Reserve Regulation for Financial Intermediation Entities will enter into effect from the date of their publication.

Article 4.- The Presidency and General Management are charged with the execution and compliance of this Resolution.

La Paz, March 26, 2026

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David Iván Espinoza Torrico
PRESIDENT a.i.
Claudia Haydee Pacheco Ayala
DIRECTOR a.i.
Dennise Sussan Martín Alarcón
DIRECTOR a.i.
Walter Fernando Orellana Rocha
DIRECTOR a.i.
Alvaro Alfonso Romero Villavicencio
DIRECTOR a.i.