Board Resolution No. 120/2025: Approval of Conditions and Characteristics for Exceptional Repo Operations with the Central Bank of Bolivia

[Logo: Bicentenario de Bolivia] [Logo: Banco Central de Bolivia] [Logo: Estado Plurinacional de Bolivia]

BOARD RESOLUTION NO. 120/2025

SUBJECT: MONETARY OPERATIONS MANAGEMENT AND ECONOMIC POLICY ADVISORY – APPROVES THE CONDITIONS AND CHARACTERISTICS FOR EXCEPTIONAL REPO OPERATIONS WITH THE CENTRAL BANK OF BOLIVIA.

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. 1834 of March 31, 1998, on the Securities Market.

Law No. 393 of August 21, 2013, on Financial Services.

The Regulation for Repo Operations approved by the Financial System Supervision Authority (ASFI).

Board Resolution No. 095/2022 of October 6, 2022, which approves the Statute of the Central Bank of Bolivia.

The Regulation of the Open Market Operations Committee approved via Board Resolution No. 018/2023 of January 25, 2023, and its modification.

The Regulation of Open Market Operations approved via Board Resolution No. 040/2024 of March 26, 2024.

The report BCB-GOM-SOMA-INF-2025-145 of September 19, 2025, issued by the Monetary Operations Management (GOM) and the Economic Policy Advisory (APEC).

The report BCB-GAL-SANO-DLBCI-INF-2025-321 of September 22, 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 Central Bank of Bolivia (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 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 the following attributes: 1. Determine and execute monetary policy. 2. Execute exchange rate policy. 3. Regulate the payment system. 4. Authorize the issuance of currency. 5. Administer international reserves.

That Article 1 of Law No. 1670 of the Central Bank of Bolivia determines that the BCB is an institution of the State, of public law, of an autonomous nature, of indefinite duration, with legal personality and its own assets and with legal domicile in the city of La Paz. It is the sole monetary and exchange rate authority of the country, with administrative, technical, and financial competence and specialized regulatory powers of general application.

That Articles 3, 6, and 38 of Law No. 1670 establish that the BCB will formulate policies of general application in monetary matters, execute monetary policy, and regulate the quantity of money and the volume of credit in accordance with its Monetary Program, being able to issue, place, and acquire securities and carry out other open market operations, as well as effect other new operations that are compatible with the object of the BCB.

That Article 44 and subsections a) and d) of Article 54 of Law No. 1670 state that the Board of Directors of the BCB is responsible for defining its policies, specialized regulations of general application, and internal rules, as well as establishing administrative, operational, and financial strategies, in addition to having the attribute of issuing norms and adopting general decisions that may be necessary for the Issuing Entity to fulfill the functions, competencies, and powers assigned by the Law; to monitor the execution of monetary, exchange rate, credit, financial intermediation,

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international reserve administration policies and regulations, and others corresponding to the BCB in accordance with said Law, and to issue norms for the open market operations carried out by the BCB.

That Article 3 of Law No. 1834 on the Securities Market provides that an over-the-counter market shall be understood as that which takes place outside the stock exchanges, with the participation of authorized intermediaries, with Securities registered in the Securities Market Registry, and only securities authorized by the current Financial System Supervision Authority (ASFI) may be traded in said market.

That Law No. 393 on Financial Services in its Article 119 provides that Financial Intermediation Entities are authorized to carry out Repo Operations.

That the Regulation for Repo Operations contained in Book 4th, Title IV, Chapter I, Section 1 of the Compilation of Norms for the Securities Market, approved by ASFI, regulates the norms and procedures for stock exchange repo operations in the national securities market, complying, where applicable, with what is established in Law No. 1834 on the Securities Market (LMV) and other applicable provisions, and indicates that operations in which the BCB acts as counterparty are carried out only with values registered in the Securities Market Registry (RMV) and in at least one Stock Exchange, in accordance with the BCB's Repo Operations Regulation.

That subsections 1) and 5) of Article 10 of the BCB Statute determine that the Board of Directors of the Issuing Entity has the attributes to approve general decisions and issue the norms that may be necessary for the BCB to fulfill the functions, competencies, and powers assigned to it by the Law, and to approve the policy and norms for open market operations as well as to monitor their execution.

That Article 7 of the Regulation of the Open Market Operations Committee and its modification establishes that it is the attribute of the COMA to define, authorize, and/or modify the periodicity of the BCB's Repo Operations, the characteristics of the values to be accepted as collateral, eligible entities, allocation mechanisms, method of calculating the unit value of the initial transaction, coverage mechanisms, early redemption, and others.

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That Article 4 of the Regulation of Open Market Operations provides that a Repo is an operation consisting of the sale that an agent (repo seller) makes at a certain price (Initial Value) of Securities issued by the BCB, the General Treasury of the Nation (TGN), and/or Private Securities, to a second agent (repo buyer), with the commitment of the repo seller to repurchase the Securities, within a term and at a price (Return Value) pre-established on the date of the transaction.

That Articles 5 and 6 of the Regulation of Open Market Operations establish that the Board of Directors will define the OMA policies through the approval of monetary regulation operation guidelines presented by the APEC, and it is the COMA that will determine the application of the OMAs based on the guidelines defined by the Board of Directors, the analysis of the liquidity situation of the financial system, and monetary policy.

That Article 8 of the Regulation of Open Market Operations determines that OMA policies and guidelines will be executed among others through Repo Operations.

That Article 47 of the Regulation of Open Market Operations provides that entities regulated and/or supervised by the ASFI or by the Pension and Insurance Supervision and Control Authority (APS) are enabled to carry out Repo Operations with the BCB, unless restrictions are imposed in the sectoral norm, and that in all cases, the settlement of the operations must be carried out in the Current Account and/or Reserve Account that financial entities hold at the BCB.

That Article 47 of the Regulation of Open Market Operations determines that a Repo Operation is called direct when the BCB is the repo buyer and reverse when it acts as the repo seller, and that the BCB may act in both modalities in Repo Operations.

That the report BCB-GOM-SOMA-INF-2025-145 issued by the GOM and the APEC concludes that since February 2025 to date, deposits in the financial system have slowed down, although in a heterogeneous manner in each sub-system. An explanatory factor for this behavior is the uncertainty due to the electoral period. The measures carried out in the evolution of repo rates have proven to be prudent for

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maintaining financial stability, according to a macroprudential approach. Regarding the creation of the exceptional repo, it is considered viable to incorporate this measure oriented to assist with the specific liquidity needs of EIFs. The proposal is made in order to assist in generating an environment of certainty in the Financial System that allows them to maintain the dynamics of their main intermediation variables and respond in a timely manner to potential liquidity needs. Likewise, it proposes a temporary duration for the measure and subsequent evaluation for its extension, therefore recommending to the Board of Directors of the BCB the approval of the conditions and characteristics for exceptional repos with the Central Bank of Bolivia.

That the GAL through report BCB-GAL-SANO-DLBCI-INF-2025-321, concludes that the proposal of the GOM and the APEC regarding the conditions and characteristics for exceptional repo operations with the Central Bank of Bolivia is legally appropriate, insofar as it does not contravene the current legal order, since it does not violate any legal norm; recommending to the Board of Directors of the BCB the approval of the conditions and characteristics for exceptional repos with the Central Bank of Bolivia.

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

Article 1.- Approve the conditions and characteristics for Exceptional Repo Operations with the Central Bank of Bolivia, which form part of this Resolution as an Annex.

Article 2.- This Resolution shall enter into force from its publication.

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

La Paz, September 23, 2025

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

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ANNEX

CONDITIONS AND CHARACTERISTICS FOR EXCEPTIONAL REPO OPERATIONS WITH THE CENTRAL BANK OF BOLIVIA

1. Definition.- Exceptional repos are an instrument for exceptional liquidity injection at a longer term and at a lower rate than usual repos.

2. Authorized Participants.- All Financial Intermediation Entities that register a market participation of less than 6%, taking into account Obligations with the Public and Public Enterprises regarding the total Obligations in national currency of the set of Financial Intermediation Entities.

3. Admitted Instruments as Collateral.- Public securities issued by the Central Bank of Bolivia (BCB) or the General Treasury of the Nation, Green, Social, and/or Sustainable Bonds, and Fixed-Term Deposits (DPF) in national currency with issuer risk rating from AAA to A2 and that were issued to natural and/or legal persons until June 30, 2025, with single interest payment at maturity and with coupon payments (does not include DPF with interest paid in advance).

4. Daily Offered Amount.- Defined by the Open Market Operations Committee (COMA).

5. Maximum Term of the Operation.- 90 days.

6. Renewal of Operations.- No renewal.

7. Repo Yield Rate.- Defined by the COMA.

8. Application Mechanism.- Money Desk through the "First come, first served" modality.

9. Early Cancellation of Repos.- No penalty.

10. Coverage Mechanism.- Applies current mechanisms.

11. Validity.- From October 2 of the current management period, until November 26, 2025.

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