Central Bank of Bolivia

Board of Directors

BOARD RESOLUTION NO. 106/2020

SUBJECT: INTERNATIONAL OPERATIONS DEPARTMENT – APPROVES MODIFICATION TO THE INTERNAL REGULATIONS FOR OPERATIONS THROUGH THE ALADI RECIPROCAL PAYMENTS AND CREDITS AGREEMENT.

VISTOS:

• Law No. 1670 of October 31, 1995.
• The Statute of the Central Bank of Bolivia approved by Board Resolution No. 128/2005 of October 21, 2005, and its modifications.
• The Reciprocal Payments and Credits Agreement currently in force between the Central Banks of the member countries of ALADI and the Dominican Republic, as well as its Regulations.
• Board Resolution No. 140/2011 of October 25, 2011, which approves the Internal Regulations for Operations through the ALADI Reciprocal Payments and Credits Agreement.
• Board Resolution No. 147/2017 of October 17, 2017, through which the Board of the BCB made a modification to the current Regulations, enabling AESA Ratings as a Credit Rating Agency.
• The Report from the International Operations Department BCB-GOI-SOEXT-DOCC-INF-2020-10 of October 7, 2020.
• The Report from the Legal Affairs Department BCB-GAL-SANO-DLBCI-INF-2020-100 of October 9, 2020.

CONSIDERING:

• That through Board Resolution No. 140/2011, the Internal Regulations for Operations through the ALADI Reciprocal Payments and Credits Agreement were approved.
• That the Report BCB-GOI-SOEXT-DOCC-INF-2020-10 from the International Operations Department evaluates the Regulations and recommends approving a modification regarding credit rating agencies.
• That the Report BCB-GAL-SANO-DLBCI-INF-2020-100 from the Legal Affairs Department states that the approval of the modification to the Internal Regulations for Operations through the ALADI Reciprocal Payments and Credits Agreement is legally appropriate, being within the competence of the BCB Board to consider its approval by two-thirds of the votes of all its members in accordance with what is established in subsection o) of Article 54 of Law No. 1670 and numeral 29) of Article 1 of the BCB Statute.

THEREFORE,

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,

RESOLVES:

Article 1.- Modify Article 23 (Maximum Term) of the Internal Regulations for Operations through the ALADI Reciprocal Payments and Credits Agreement, as follows:

IT SAYS:

Article 23 (Maximum Term).

The maximum term of the Instruments issued and/or guaranteed by Authorized Institutions shall be adjusted to the following table:

Long-Term Foreign Currency Credit Risk Rating
Moody's Latin America	AESA Ratings	Maximum term of instruments
Aaa, Aa1, Aa2, Aa3	AAA, AA+, AA, AA-	5 years
A1	A+	3 years
A2	A	2 years
A3	A-	1 year
Baa1, Baa2, Baa3	BBB+, BBB, BBB-	6 months

When an Authorized Institution has ratings from more than one Credit Rating Agency, the lower rating shall be considered.

IT MUST SAY:

“Article 23 (Maximum Term).”

The maximum term of the Instruments issued and/or guaranteed by Authorized Institutions shall be adjusted to the following table:

Long-Term Foreign Currency Credit Risk Rating
Moody's Local	AESA Ratings	Maximum term of instruments
AAA.bo, AA+.bo, AA.bo, AA-.bo	AAA, AA+, AA, AA-	5 years
A+.bo	A+	3 years
A.bo	A	2 years
A-.bo	A-	1 year
BBB+.bo, BBB.bo, BBB-.bo	BBB+, BBB, BBB-	6 months

When an Authorized Institution has ratings from more than one Credit Rating Agency, the lower rating shall be considered.

Credit risk ratings shall be updated at the BCB whenever the Credit Rating Agencies issue the rating for each of the Authorized Institutions.”

Article 2.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, October 13, 2020

Armando Pinell Siles Walter Morales Carrasco Alejandro Barlegas Rivero José Gabriel Espinoza Yañez