Board Resolution No. 118/2026

BOARD OF DIRECTORS BOARD RESOLUTION NO. 118/2026 SUBJECT: ECONOMIC POLICY ADVISORY - FINANCIAL ENTITIES MANAGEMENT - MODIFY THE LEGAL RESERVE REGULATION FOR FINANCIAL INTERMEDIATION ENTITIES.

VIEWED: The Law No. 1670 of October 31, 1995 of the Central Bank of Bolivia (BCB) and its modifications. The Law No. 393 of August 21, 2013 on Financial Services and its modifications. The Legal Reserve Regulation for Financial Intermediation Entities approved by Board Resolution No. 76/2022 of August 26, 2022 and its modifications. The BCB Statute approved by Board Resolution No. 85/2026 of June 23, 2026. The report BCB-APEC-SPMEE-INF-2026-38 of July 30, 2026, from the Economic Policy Advisory (APEC) and the Financial Entities Management (GEF). The report BCB-GAL-SANO-DLBCI-INF-2026-205 of July 31, 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 regulatory powers of general application. In its article 3, it determines that the BCB will formulate general application policies in monetary, exchange, and payment system matters to fulfill its object.

That the aforementioned Law, in its article 7, establishes that the BCB may establish legal reserves of mandatory compliance by Banks and Financial Intermediation Entities. Their composition, amount, method of calculation, characteristics, and remuneration shall be established by the Bank's Board of Directors, by an absolute majority of votes. The control and supervision of the legal reserve shall correspond to the current Financial System Supervisory Authority (ASFI).

BOARD OF DIRECTORS //2. B.R.N° 118/2026 (ASFI). In its article 37, it determines that the BCB will be the custodian of the liquid reserves destined to cover the legal reserve and attend the payment system and other operations with the BCB of the Financial Intermediation Entities subject to the authorization and control of the ASFI.

That Law No. 1670, in its article 44, provides that the highest authority of the BCB is its Board of Directors, which is responsible for defining its policies, specialized regulations 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. In letters a), i), and o) of its article 54, it establishes that the Board of Directors has the authority to issue regulations and adopt general decisions that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the 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 I of its article 426 provides that Financial Intermediation Entities must at all times have adequate levels of liquidity 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 the 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 their operation by the ASFI, are subject to the provisions of this Regulation.

That the BCB Statute, in its articles 6 and 7, establishes that the BCB has regulatory competence and that the regulations it issues will be approved by Resolution of its Board of Directors. In items 1), 6), 22), and 50) of its article 11, it determines that the Board of Directors has the authority to approve general decisions and issue regulations that are necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law; to establish legal reserves of mandatory compliance by financial intermediation entities by an absolute majority of votes and approve their composition, amount, calculation, characteristics, forms of administration, custody, and remuneration; as well as to approve, modify, and interpret the Statute and Regulations of the BCB by two-thirds of the votes

BOARD OF DIRECTORS //3. B.R.N° 118/2026 of all its members, without the need for an additional administrative act; and to approve modifications of any determination and provision established by the Board of Directors, as well as to carry out their follow-up.

CONSIDERING: That through report BCB-APEC-SPMEE-INF-2026-38, APEC and GEF conclude that the proposal to modify the Legal Reserve Regulation for Financial Intermediation Entities will contribute to moderating liquidity levels in order to mitigate pressures on the main macroeconomic variables, in line with what is established in the current 2026 Monetary Program.

That through report BCB-GAL-SANO-DLBCI-INF-2026-205, GAL concludes that in attention to the background information sent by APEC and GEF, it is legally viable to modify the Legal Reserve Regulation for Financial Intermediation Entities, as it does not violate the current legal framework, so it corresponds to the BCB Board of Directors its approval in accordance with what is established in article 54 letters a), i), and o) of Law No. 1670 and article 11 items 1), 6), 22), and 50) of the BCB Statute.

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

Article 1. Modify Article 6 (Legal Reserve Rates) of the Legal Reserve Regulation for Financial Intermediation Entities, as follows:

SAYS: "Article 6 (Legal Reserve Rates). The legal reserve rates on the liabilities detailed in Article 4 of this Regulation are the following: a) In NCF and NCFV: Cash Eight and a half percent (8.5%) for cash reserve. Bonds Three percent (3.0%) for bond reserve.

BOARD OF DIRECTORS B.R.N° 118/2026 b) In FCF and FCFDOL: Cash Ten percent (10%) for cash reserve. Bonds Two and a half percent (2.5%) for bond reserve for DPF greater than 720 days; and three and a half percent (3.5%) for the rest of liabilities.

The FIEs must constitute the Legal Reserve in Cash, equivalent to a rate of one hundred percent (100%), on the accounts included in 'Other Obligations with the public, with companies with state participation and with banks and financing entities indicated in article 4 of this Regulation.'

SHOULD SAY: "Article 6 (Legal Reserve Rates). The legal reserve rates on the liabilities detailed in Article 4 of this Regulation are the following: a) In NCF and NCFV: Cash Eight and a half percent (8.5%) for cash reserve. Bonds Five percent (5.0%) for bond reserve, starting from the next requirement period beginning on August 3, 2026. Six and a half percent (6.5%) for bond reserve, starting from the requirement period beginning on August 17, 2026. Seven and a half percent (7.5%) for bond reserve, starting from the requirement period beginning on September 14, 2026. b) In FCF and FCFDOL: Cash Ten percent (10%) for cash reserve. Bonds Two and a half percent (2.5%) for bond reserve for DPF greater than 720 days; and three and a half percent (3.5%) for the rest of liabilities.

BOARD OF DIRECTORS //5. B.R.N° 118/2026 The FIEs must constitute the Legal Reserve in Cash, equivalent to a rate of one hundred percent (100%), on the accounts included in 'Other Obligations with the public, with companies with state participation and with banks and financing entities indicated in article 4 of this Regulation.'

Article 2. The modification to the Legal Reserve Regulation for Financial Intermediation Entities will enter into force from the publication of this Resolution.

Article 3. The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, July 31, 2026 SIGNED: DAVID IVAN ESPINOZA TORRICO, Claudia Haydee Pacheco Ayala, Dennise Sussan Maitin Alarcón, Walter Fernando Orel lana Rocha, Alvaro Alfonso Romero Villavicencio.