BOARD

BOARD RESOLUTION NO. 079/2025

SUBJECT: ECONOMIC POLICY ADVISORY AND FINANCIAL ENTITIES MANAGEMENT – MODIFY THE LEGAL RESERVE REGULATION FOR FINANCIAL INTERMEDIATION ENTITIES.

VIEWED:

• The Political Constitution of the State (CPE) of February 7, 2009.
• 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. 076/2022 of August 26, 2022, which approves the Legal Reserve Regulation for Financial Intermediation Entities and its modifications.
• Board Resolution No. 095/2022 of October 6, 2022, which approves the Statute of the Central Bank of Bolivia.
• Report BCB-APEC-SADBC-INF-2025-66 of June 13, 2025, from the Economic Policy Advisory (APEC) and the Financial Entities Management (GEF).
• Report BCB-GAL-SANO-DLBCI-INF-2025-186 of June 13, 2025, from the Legal Affairs Management (GAL).

CONSIDERING:

That Article 327 of the Political Constitution of the State states that the BCB is a public law institution, with legal personality and its own assets. Within the framework of the State's economic policy, it is the function of the BCB to maintain the stability of the internal purchasing power of the currency, to contribute to economic and social development.

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That Article 328 of the Political Constitution of the State states that the BCB, in coordination with the economic policy determined by the Executive Branch, in addition to those specified by Law, has among its attributions to determine and execute monetary policy.

That Article 1 of Law No. 1670 on the BCB, modified by Article 67, section A3, numeral 1 of Law No. 1864 of June 15, 1998, on Popular Property and Credit, determines that the BCB is a State institution, of public law, of an autonomous nature, of indefinite duration, with its own legal personality and assets and with legal domicile in the city of La Paz. It is the sole monetary and exchange authority of the country, with administrative, technical, and financial competence and specialized normative faculties of general application.

That Article 3 provides that the BCB, within the framework of the present Law, will formulate policies of general application in monetary, exchange, and payment system matters for the fulfillment of its object.

That Article 7 of Law No. 1670 determines that the BCB may establish Legal Reserves of mandatory compliance by Banks and Financial Intermediation Entities (EIF). Their composition, amount, method of calculation, characteristics, and remuneration shall be established by the Board of the Bank, by an absolute majority of votes. The control and supervision of the Legal Reserve shall correspond to the current Authority for the Supervision of the Financial System (ASFI).

That Article 37 of Law No. 1670 establishes that the BCB will be the depository of the liquid reserves destined to cover the Legal Reserve and to attend to the payment system and other operations with the BCB of EIF subject to the authorization and control of ASFI.

That Article 44 of Law No. 1670 provides that the highest authority of the BCB is its Board, which is responsible for defining its policies, specialized norms of general application, and internal rules; as well as for establishing administrative, operational, and financial strategies of the Issuing Entity, approving their respective short and medium-term programs.

That subsections a), i), and o) of Article 54 of Law No. 1670, indicate as attributions of the Board of the BCB, to issue norms and adopt general decisions that were

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necessary for the Issuing Entity to fulfill the functions, competencies, and faculties assigned 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 Article 426 of Law No. 393 determines that EIF must ensure that at all times and under different alternatives, they have adequate levels of liquidity and sufficient resources to guarantee the continuity of operations and the timely attention of their obligations, considering the complexity and volume of their operations and the risk profile they are assuming. For their part, EIF will plan a prudent management of their assets and liabilities anticipating that cash inflows will bear a relationship to expected outflows. The liquidity level defined by the entity will be based on estimated needs, cash flow projections, deposit concentration levels, and the quality and convertibility of assets into cash.

That Article 430 of Law No. 393 provides that the BCB may grant liquidity credits to Financial Intermediation Entities with the guarantee of the legal reserve constituted, as well as with other guarantees determined by the Issuing Entity, according to a Regulation approved by its Board.

That the Legal Reserve Regulation for EIF, provides in its Article 1 that its object is to fix and regulate the administration of the Legal Reserve and the resources resulting from its modification, in order to have instruments of monetary regulation and preservation of the stability of the financial system.

That Article 2 of the aforementioned regulation provides that all EIF, authorized for their operation by ASFI, are subject to the provisions of the Regulation.

That Article 16 of the Legal Reserve Regulation for EIF establishes that EIF may maintain up to 20% of their Legal Reserve requirement in Cash in National Currency (MN) and Non-Indexed Foreign Currency Units (MNUFV) in Custody Funds in any location, the other EIF may maintain up to 60%. Any excess that EIF maintain above this percentage will not be recognized for reserve purposes. EIF must maintain 10% of their requirement for

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Legal Reserve in Cash in Foreign Currency (ME) and Foreign Currency Units (MVDOL) in Custody Funds in any location. Any excess that EIF maintain above this percentage will not be recognized for reserve purposes. The global deficiency in Custody Funds in ME and MVDOL cannot be compensated with excess reserves in BCB accounts or reserve in securities.

That Articles 41 and 42 of the Legal Reserve Regulation for EIF regulate the Constitution of the Fund for Credits destined to the Productive Sector and the Loans in National Currency with Guarantee of the Fund for Credits destined to the Productive Sector.

That Articles 5 and 6 of the BCB Statute establish that the BCB has normative competence, being that the norms it issues will be approved by Board Resolution.

That numerales 1), 7), and 30) of Article 10 of the BCB Statute, determine that the Board of the Issuing Entity has the attributions to approve general decisions and issue the norms that are necessary for the BCB to fulfill the functions, competencies, and faculties assigned to it by Law; to establish by absolute majority of votes, Legal Reserves of mandatory compliance by EIF 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.

That Article 24 refers that resolutions and decisions of the Board are adopted by simple majority of votes of the members present in a meeting, except in cases where Law No. 1670 or this Statute require qualified majorities.

That Article 26 of the Statute of the Issuing Entity stipulates that the Board pronounces itself on matters within its competence through Resolutions. It may also do so through decisions that will be expressly recorded in the Minutes. Likewise, every draft Board Resolution must be motivated and justified by a technical report from the Management or Managements to which the matter subject to the Resolution corresponds and by a report from the GAL. These reports must be sent to the Board by the General Management with its recommendation.

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That the Economic Policy Advisory and the Financial Entities Management, through report BCB-APEC-SADBC-INF-2025-66, conclude and recommend to the BCB Board the approval of the modifications to the Legal Reserve Regulation for EIF with the objective of contributing to the macroprudential approach that the Issuing Entity executes in order to preserve the stability of the financial system.

That the GAL through report BCB-GAL-SANO-DLBCI-INF-2025-186, concludes that the proposal of the APEC and GEF has as its object the increase of Custody Funds in National Currency from 20% to 40% for Multiple Banks and Public Bank; and to modify the conditions of the CPRO Fund regarding validity periods, for which effect Articles 16, 41, and 42 of the Legal Reserve Regulation for Financial Intermediation Entities approved by Board Resolution No. 076/2022 and its modifications must be modified, being said modification proposals legally viable as they do not violate the current legal order. For all the above, it recommends to the BCB Board to consider its approval.

THEREFORE,

THE BOARD OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Modify Article 16 of the Legal Reserve Regulation for Financial Intermediation Entities, with the following text:

"Article 16 (Custody Funds).

Multiple Banks and the Public Bank may maintain up to 40% of their Legal Reserve requirement in Cash in National Currency (MN) and Non-Indexed Foreign Currency Units (MNUFV) in Custody Funds in any location, the other EIF may maintain up to 60%. Any excess that EIF maintain above the respective percentages will not be recognized for reserve purposes.

EIF must maintain 10% of their Legal Reserve requirement in Cash in Foreign Currency (ME) and Foreign Currency Units (MVDOL) in Custody Funds in any location. Any excess that EIF maintain above this percentage will not be recognized for reserve purposes. The global deficiency in Custody Funds in ME and MVDOL cannot be compensated with excess reserves in BCB accounts or reserve in securities."**

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Article 2.- Modify Article 41 of the Legal Reserve Regulation for Financial Intermediation Entities, with the following text:

"Article 41.- (Constitution of the Fund for Credits destined to the Productive Sector).

The Fund for Credits destined to the Productive Sector (CPRO Fund) was constituted in the BCB, in national currency (CPRO Fund-MN) with the available resources resulting from the modification of the Legal Reserve rate in Securities in National Currency - Non-Indexed Foreign Currency Units (MN-MNUFV) effective as of January 10, 2022, and the modification of the Legal Reserve rate in Securities in National Currency - UFV effective as of December 12, 2022; and in foreign currency (CPRO Fund-ME) with the available resources resulting from the modification of the Legal Reserve rate in Securities in Foreign Currency - Foreign Currency Units (ME-MVDOL) effective as of January 10, 2022, and the modification of the Legal Reserve rate in securities in ME-MVDOL effective as of December 12, 2022; in addition to the voluntary contributions of EIF in ME and deposited in the BCB account at its correspondent bank abroad, made from January 18, 2022, to December 30, 2025.

Likewise, it will be constituted in foreign currency (CPRO Fund-ME) with seventy percent (70%) of the resources of the FIUSEER-ME, which are not guaranteeing liquidity loans with the BCB as of April 3, 2023, and seventy-five percent (75%) of the resources of the FIUSEER-ME, which are not guaranteeing liquidity loans with the BCB as of April 24, 2023. It will be constituted in national currency (CPRO Fund-MN) by ninety-five percent (95%) of the resources of the FIUSEER-MN, which are not guaranteeing liquidity loans with the BCB as of April 24, 2023.

The validity of this fund will be until December 30, 2026. The resources of each EIF in the fund will be returned by the BCB upon expiration of the fund according to what is provided in numeral 9 of Article 42.

EIF may request the BCB for the partial or total return of their participation in the CPRO-ME that is not guaranteeing liquidity loans in National Currency, for their sale to the BCB according to what is established in the Exchange Operations Regulation."**

Article 3.- Modify Article 42 of the Legal Reserve Regulation for Financial Intermediation Entities, with the following text:

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"Article 42.- (Loans in National Currency with Guarantee of the Fund for Credits destined to the Productive Sector).

The resources of each participant in the CPRO Fund will serve as guarantee for the loans in National Currency that they request from the BCB, under the following conditions:

1. EIF may request loans in National Currency from the BCB at an interest rate of 0%. These loans will have the following purpose according to the type of entity: a. In the case of banks, the loans guaranteed with the CPRO Fund will have the purpose of increasing their portfolio of credits in National Currency destined to the productive sector. b. In the case of EFV, the loans guaranteed with the CPRO Fund will have the purpose of increasing their social housing portfolio. c. In the case of CAC and IFD, the loans guaranteed with the CPRO Fund must be destined to their portfolio of credits in National Currency, with a participation of the productive sector not less than 50%.

2. Loans may be requested until December 30, 2025. The extension of the loan request period will be reviewed annually by the BCB.

3. The maximum amount of accumulated loans will be the participation amount of each EIF in the CPRO Fund, equivalent in National Currency to the prevailing buying exchange rate. Loans will have a maturity date of December 30, 2026.

4. Monthly, the BCB will compare the amount of loans granted to each EIF with the guarantee of their participation in the CPRO Fund, with the increase in the balance of credits disbursed by said entities in National Currency with respect to December 31, 2021, as established in numeral 1 of this Article. If the increase is less than the accumulated loans granted by the BCB, the difference will pay the prevailing National Currency repo interest rate on the date of evaluation of each end of month, from said date until the entity has remedied that difference.

5. For the purposes of the comparison indicated in numeral 4 of this Article, EIF with loans guaranteed with the CPRO Fund must send to the BCB and to ASFI, under the character of sworn declaration, through the mechanism

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communicated via External Circular, information of their credits, as established in numeral 1 of this Article. The cut-off will be made at the end of each month, until the fifth business day of the following month. The included information must not consider credits reported in other sworn declarations (Fondos CPVIS III, CAPROSEN, and FIUSEER).

6. In case an EIF needs to demonstrate compliance with the portfolio increase on a date other than the end of the month to remedy the difference indicated in numeral 4 of this Article, it must send this information to the BCB, under the character of sworn declaration, within a maximum period of five business days after the fulfillment of the portfolio increase.

7. In case the EIF with loans guaranteed with the CPRO Fund does not send the information cited in the previous numerales within the established deadlines, the BCB will communicate the non-compliance to ASFI so that this authority applies the corresponding fines or sanctions.

8. Credits destined to the productive sector will be understood as credit operations established in numeral 7 of Article 33 of this Regulation.

9. On December 30, 2026, the BCB will return to EIF, in National Currency and in Foreign Currency, respectively, their participation in the CPRO Fund-MN and CPRO Fund-ME, prior to cancellation of their loans in National Currency with guarantee of the fund. In case an EIF does not have sufficient resources in its current account or reserve account in National Currency to pay its loans, the BCB may compensate the difference with its participation in the CPRO Fund-MN, and in case of insufficiency of this fund, it will compensate the balance with the CPRO Fund-ME at the prevailing buying exchange rate. The return of voluntary contributions, at the request of EIF, will be made in the accounts abroad of the EIF. In case 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".

10. The validity of the CPRO Fund may be extended to the extent that the BCB considers pertinent."**

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Article 4.- The modifications to the Legal Reserve Regulation for Financial Intermediation Entities will enter into force as of June 17, 2025.

Article 5.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, June 16, 2025

SIGNED. ROGER EDWIN ROJAS ULO, Gumerindo Héctor Pino Guzmán, Miguel Angel Marañón Urquidi, Victor Gonzalo Calisaya Gomez.