Board Resolution No. 093/2025 Approving the Update of the Liquidity Credit Regulation for Financial Intermediation Entities

BOARD

BOARD RESOLUTION NO. 093/2025

SUBJECT: FINANCIAL ENTITIES MANAGEMENT – APPROVING THE UPDATE OF THE REGULATION OF LIQUIDITY CREDITS TO FINANCIAL INTERMEDIATION ENTITIES IN APPLICATION OF ARTICLE 36 OF LAW NO. 1670 AND ARTICLE 430 OF LAW NO. 393.

VIEWED:

The Political Constitution of the State of February 7, 2009 (CPE).

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. 095/2022 of October 6, 2022, which approves the Statute of the BCB.

Board Resolution No. 037/2003 of April 29, 2003.

The Legal Reserve Regulation for Financial Intermediation Entities, approved by Board Resolution No. 076/2022 of August 26, 2022, and its modifications (REL).

The Regulation of the Committee for the Analysis of the Financial System, approved by Board Resolution No. 011/2023 of January 10, 2023.

The report BCB-GEF-SASF-DAN-INF-2025-61 of July 18, 2025, issued by the Financial Entities Management (GEF).

The report BCB-GAL-SANO-DLBCI-INF-2025-239 of July 21, 2025, issued by the Legal Affairs Management (GAL).

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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.

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 Property and Popular Credit, determines that the BCB is a State institution, of public law, of an autarkic 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 powers of general application.

That Article 36 of Law No. 1670 establishes that to meet liquidity needs, in duly justified and qualified cases by its Board, by an absolute majority of votes, the BCB may grant banks and financial intermediation entities credits for terms of ninety days, renewable. The limits of these credits and their guarantees will be established by the BCB Board, by absolute majority. To consider applications for these credits, the BCB will conduct non-binding consultations with the Financial System Supervisory Authority.

That Article 44 of Law No. 1670 establishes 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 establishing administrative, operational, and financial strategies of the Issuer Entity, approving their respective short and medium-term programs.

That subsections a) and o) of Article 54 of Law No. 1670, indicate as attributions of the BCB Board to issue norms and adopt general decisions that are 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 an additional administrative act.

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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 Issuer Entity, according to a regulation approved by its board.

That numeral 1) of Article 5 of the BCB Statute provides that its Board has normative competence to issue specialized norms in the fields assigned by Law.

That Article 6 and numerals 1) and 30) of Article 10 of the BCB Statute, provide that the Board has the attributions to approve general decisions and issue the norms that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it 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 an additional administrative act.

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

That Article 26 of the BCB Statute, stipulates that the Board pronounces 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 whom 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.

That Article 3 of the Legal Reserve Regulation for Financial Intermediation Entities and its modifications, defines the RAL Fund as the Liquid Asset Requirement Fund, which is a closed investment fund constituted solely by the resources contributed by EIFs through Legal Reserve in securities. Each EIF will have its contribution to the RAL Fund registered individually.

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That the report BCB-GEF-SASF-DAN-INF-2025-61 issued by the GEF, concludes that it is necessary to update the Regulation of Liquidity Credits to Entities of the Financial Intermediation System in application of Article 36 of Law No. 1670 and Article 430 of Law No. 393, which is broader in scope, compatible with the current normative and operational framework, being technically viable and recommending the BCB Board to approve it.

That the report BCB-GAL-SANO-DLBCI-INF-2025-239 issued by the GAL, concludes that the proposal for the Regulation of Liquidity Credits to Financial Intermediation Entities in application of Articles 36 of Law No. 1670 and 430 of Law No. 393 made by the GEF in Report BCB-GEF-SASF-DAN-INF-2025-61, whose objective is to broaden its scope and update the current normative and operational framework, is legally viable for approval by the Board of the Issuer Entity through the issuance of an express Resolution.

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

Article 1.- Approve the Regulation of Liquidity Credits to Financial Intermediation Entities in application of Article 36 of Law No. 1670 and Article 430 of Law No. 393 in its four (IV) Chapters and twenty-one (21) Articles, which as an Annex forms an integral part of this Resolution.

Article 2.- From the entry into force of the regulation, Board Resolution No. 037/2003 of April 29, 2003, is hereby repealed.

Article 3.- This Resolution will enter into force from the date of its publication.

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

La Paz, July 22, 2025

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

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ANNEX

REGULATION OF LIQUIDITY CREDITS TO FINANCIAL INTERMEDIATION ENTITIES IN APPLICATION OF ARTICLE 36 OF LAW NO. 1670 AND ARTICLE 430 OF LAW NO. 393

CHAPTER I GENERAL PROVISIONS

Article 1. (Object)

This Regulation aims to establish the conditions for granting credits intended to meet the liquidity needs of Financial Intermediation Entities within the framework of Articles 36 of Law No. 1670 of the Central Bank of Bolivia (BCB) and 430 of Law No. 393 on Financial Services.

Article 2. (Scope of Application)

All EIFs with operating licenses authorized by the ASFI are subject to the provisions of this Regulation.

Article 3. (Abbreviations)

For the purposes of this Regulation, the following abbreviations and definitions are used:

a) ASFI: Financial System Supervisory Authority. b) BCB: Central Bank of Bolivia. c) BBV: Bolivian Stock Exchange. d) COASIF: Committee for the Analysis of the Financial System. e) EIF: Financial Intermediation Entity. f) EL: Legal Reserve. g) GEF: Financial Entities Management of the BCB. h) MN: National Currency. i) ME: Foreign Currency

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Article 4. (Definitions)

RAL Fund.

The Liquid Asset Requirement Fund is a closed investment fund constituted solely by the resources contributed by EIFs through Legal Reserve in securities. Each EIF will have its contribution to the RAL Fund registered individually.

Article 5. (On liquidity credit operations)

The BCB may grant Liquidity Credits in National Currency, when an EIF presents temporary liquidity needs, duly justified and backed.

CHAPTER II CREDIT APPLICATIONS

Article 6. (Credit application)

I. EIFs, through their main legal representative, may submit their credit application to the BCB in writing, specifying the required amount, justifying and backing their temporary liquidity need.

II. To justify and back their credit application, the EIF must attach at least the following documentation:

a) Internal policies and limits for liquidity risk management containing at minimum the objectives and guidelines of the liquidity risk management process, formally approved by the Board or equivalent body. b) Liquidity program adjusted to the guidelines established in Article 4, Section 2, Chapter I, Title III, Book 3 of the Compilation of Norms for Financial Services of ASFI. c) Extraordinary plan for daily liquidity management that includes actions to overcome the illiquidity situation within a period not exceeding 90 calendar days, with a detail on the source and use of funds and an observed and projected liquidity flow. d) Financial matching by residual maturity and by currencies in magnetic medium and physical document for the twelve months prior to the application.

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e) Detail of repo operations at the BBV containing information on amount and residual term by currency. In magnetic medium and physical document. f) Information on its financial and patrimonial situation at the last month-end closing. In magnetic medium and physical document. g) Declaration expressing its consent to submit to the BCB's regulations governing Liquidity Credit, the conditions it establishes for it, any future modifications, and irrevocable authorization to apply debits to its accounts for the fulfillment of emerging obligations.

III. EIFs in the regularization process under the application of Law No. 393 on Financial Services must additionally attach the following documentation duly signed by their main legal representatives:

a) Copy of the Regularization Plan, if the cause of the regularization process is directly related to liquidity risk, or in its case, it must send a summary report of the same. b) Legalized copy of the non-objection of the ASFI regarding the regularization plan.

IV. The BCB may request the EIF for complementary information it deems convenient to verify the financial situation of the credit applicant entity.

Article 7. (Consultations to the ASFI)

To consider applications for these credits, the BCB will conduct non-binding consultations to the ASFI, in accordance with what is provided in the second paragraph of Article 36 of Law No. 1670.

The President of the BCB may request any other information from the ASFI that he considers necessary to evaluate the financial situation of the applying EIF within the framework of what is established in Article 40 of Law No. 1670.

Article 8. (Evaluation)

I. For the applying EIF to be enabled for the evaluation stage, it must have a minimum equity adequacy coefficient of 10%, not have registered capital decreases consecutively during the last three fiscal years, and show a positive annual average of its accounting equity discounted from assets in use.

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II. The GEF will evaluate the documentation sent by the EIF, preliminarily, within a period not greater than 5 business days from its receipt in said organizational area, possibly making observations and/or requesting complementary information. The EIF must rectify all observations and/or send the complementary documentation within a period not greater than 5 business days counted from the date on which the BCB's request is made, otherwise the application will be rejected.

III. Once the documentation is received in accordance with what is defined in Article 6 of this Regulation, including the ASFI's response to the non-binding consultation, the GEF will carry out the evaluation of the application within a period not greater than 10 business days and present the results for consideration by the COASIF, a body that will analyze the liquidity credit application and issue the recommendation to be considered by the BCB Board.

Article 9. (Approval or rejection)

The BCB Board may approve or reject the liquidity credits requested by the EIF and their financial conditions by absolute majority of votes.

CHAPTER III LIQUIDITY CREDITS WITH RAL FUND GUARANTEE

Article 10. (Guarantee)

EIFs may guarantee the requested liquidity credit with the resources constituted in the RAL Fund in National Currency and Foreign Currency, up to 90% of their individual participation, discounted from the resources committed as guarantee in compensation and liquidation processes, according to the Regulation of Payment Services, Electronic Payment Instruments, Compensation and Liquidation.

Article 11. (Amount)

The Liquidity Credit granted may not exceed the amount guaranteed by the RAL Fund according to the preceding Article.

Article 12. (Formalization of the Liquidity Credit)

In case of approval of the Liquidity Credit by the BCB Board, it will be formalized through the corresponding contract, signed between the main legal representative

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of the applying EIF and the President of the BCB, the latter being able to delegate or grant powers for this faculty.

Article 13. (Obligations valid with RAL Fund guarantee)

In case the applying EIF has active liquidity loans with guarantee of the RAL Fund of Tranches I and/or II, the BCB at the moment of the disbursement of the Liquidity Credit will proceed to simultaneously cancel the pending balances of said loans of Tranches I and/or II, the amounts that are not subject to said operation must be credited to the EIF's legal reserve account. The EIF may not maintain loans guaranteed by the RAL Fund in the mentioned tranches simultaneously with the Liquidity Credits referred to in this Regulation.

Article 14. (Reports for consideration of the Liquidity Credit)

Upon receipt of the application and documentation of the EIF established in Article 6 of this Regulation and in case of application for renewal of the Liquidity Credit, to effect its treatment in the Board, the following reports must be presented:

a) Technical report from the Financial Entities Management, regarding the technical, financial, and viability evaluation of the Liquidity Credit. b) Legal report from the Legal Affairs Management, regarding compliance with the regulations and compliance with the required documentation.

Article 15. (Financial conditions)

a) Interest rate. The Board will determine the interest rate for Liquidity Credits based on the recommendation of the COASIF. This interest rate must be higher than that determined for credits with guarantee in Tranche II of the RAL Fund. b) Term. The term for Liquidity Credits may not exceed 90 (ninety) calendar days, and may be renewed for an equal period according to Article 17 of this Regulation, prior to payment of accrued interest. c) Currency. The Liquidity Credit will be granted in National Currency.

Article 16. (Disbursement of the operation)

Once the application is approved, the GEF will process the disbursement of the Liquidity Credit by credit to the current and reserve account or reserve account of the applying EIF.

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Article 17. (Renewal)

I. The BCB Board will approve or reject the renewal of the Liquidity Credits granted under this Regulation, possibly increasing the interest rate granted, considering the technical and financial justifications of the applying EIF and based on the recommendation of the COASIF.

II. The EIF's application for renewal of Liquidity Credits must comply with the presentation of the documentation established in Article 6 of this Regulation and include the technical and financial justification for why the objective provided in the initially presented daily liquidity management plan was not met, referred to overcoming the illiquidity situation.

III. The EIF that maintains a liquidity credit may request its renewal only once.

IV. The BCB, according to need, may conduct non-binding consultations to the ASFI to consider the renewal of the requested Liquidity Credit.

Article 18. (Payment)

The EIF may pay the Liquidity Credit in advance or at maturity. At maturity, the BCB will automatically debit the loan amount and corresponding interest from the current and reserve account or the reserve account that the EIF maintains at the BCB. In case of insufficient funds, the guarantee and/or any other account that the EIF maintains at the BCB will be executed.

CHAPTER IV OTHER PROVISIONS

Article 19. (Obligations)

The EIF that maintains an active Liquidity Credit must comply with the following obligations:

a) Inform the BCB monthly on the actions executed from the Extraordinary plan for daily liquidity management.

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b) Not distribute dividends during the validity, nor make payments to shareholders while maintaining the liquidity credit with the BCB.

Article 20. (Communication to the ASFI)

The BCB will communicate to the ASFI the Liquidity Credit operation granted, as well as any non-compliance with the obligations established in this Regulation.

Article 21. (Automatic debit by the BCB)

I. In case an EIF is subject to intervention ordered by the ASFI and has active Liquidity Credits with guarantee of the RAL Fund of Tranches I, II, or this Regulation, within the framework of Paragraph VIII of Article 542 of Law No. 393 of August 21, 2013, they will be resolved by full right from the date of issuance of the Intervention Resolution, empowering the BCB to automatically debit from the current and reserve account or reserve account of the EIF and/or any other account that the EIF maintains at the BCB, the amount of the credit plus the accrued interest up to the date of the Intervention Resolution. If there are not sufficient funds in said accounts, the debit of the existing amount and execution of the guarantee for the remaining balance will proceed.

II. The EIF, by availing itself of the Liquidity Credits with guarantee of the RAL Fund, waives the right to file or limit the corresponding collections that the BCB carries out through administrative, judicial, or extrajudicial channels of any nature.