Regulatory Alerts2025-10-15 | RESOLUCIÓN DE DIRECTORIO N° 131/2025Added · Updated
Board Resolution No. 131/2025
The Board of Directors of the Central Bank of Bolivia rejects the liquidity credit application submitted by La Promotora Entidad Financiera de Vivienda (VPR). The decision is based on findings that VPR’s liquidity needs are not temporary, citing continuous reduction in intermediation activity, accumulated losses, regulatory capital issues, and significant short- and medium-term maturity mismatches since 2023. The rejection follows non-binding consultations with the Financial System Supervision Authority and recommendations from the Financial System Analysis Committee and the Legal Affairs Department.
B O A R D O F D I R E C T O R S
BOARD RESOLUTION NO. 131/2025
SUBJECT: FINANCIAL ENTITIES MANAGEMENT – REJECT THE LIQUIDITY CREDIT APPLICATION OF LA PROMOTORA ENTIDAD FINANCIERA DE VIVIENDA IN APPLICATION OF ARTICLE 36 OF LAW NO. 1670 AND ARTICLE 430 OF LAW NO. 393.
HAVING REVIEWED:
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. 095/2022 of October 6, 2022, which approves the Statute of the BCB.
Board Resolution No. 011/2023 of January 10, 2023, which approves the Regulations of the Financial System Analysis Committee (COASIF).
Board Resolution No. 093 of July 22, 2025, which approves the Regulations on Liquidity Credits to Financial Intermediation Entities in application of Article 36 of Law No. 1670 and Article 430 of Law No. 393.
Note G.G. No. 809/2025 of September 18, 2025, issued by La Promotora Entidad Financiera de Vivienda (VPR).
Note ASFI/DSR I/R-223710/2025 of September 30, 2025, issued by the Financial System Supervision Authority (ASFI).
Minutes No. 11/2025 of the ordinary meeting of COASIF of October 13, 2025.
Report BCB-GEF-SASF-DAN-INF-2025-85 of October 13, 2025, issued by the Financial Entities Management (GEF).
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Report BCB-GAL-SANO-DLBCI-INF-2025-355 of October 14, 2025, issued by the Legal Affairs Management (GAL).
CONSIDERING:
That the Political Constitution of the State establishes in its Article 232 that Public Administration is governed by the principles of legitimacy, legality, impartiality, publicity, commitment and social interest, ethics, transparency, equality, competition, efficiency, quality, warmth, honesty, responsibility and results.
That Law No. 1670, in Article 1, provides 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, financial competence and specialized regulatory powers of general application, in the manner and with the scope established in said Law.
That Article 36 of Law No. 1670 provides that, to meet liquidity needs in duly justified and qualified cases by its Board of Directors, by absolute majority of votes, the BCB may grant banks and financial intermediation entities credits for terms of ninety days, renewable. The credit limits and their guarantees shall be established by the BCB Board of Directors, by absolute majority. To consider applications for these credits, the BCB will conduct non-binding consultations with the Superintendence of Banks and Financial Entities (currently ASFI).
That Articles 44 and the letter a) of Article 54 of Law No. 1670 establish that the BCB Board of Directors is its highest authority, responsible for defining its policies, specialized regulatory norms of general application and internal norms, with attributions, among others, to issue norms and adopt general decisions that may be necessary for the BCB to fulfill the functions, competencies and powers assigned to it by the Law.
That Article 430 of Law No. 393 states that the BCB may grant Liquidity Credits to Financial Intermediation Entities with the guarantee of the Legal Reserve constituted, as
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well as with other guarantees determined by the Issuing Entity, according to Regulations approved by its Board of Directors.
That items 1) and 9) of Article 10 of the BCB Statute establish that the Board of Directors of the Issuing Entity has the attributions 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, as well as to approve by absolute majority of votes, Liquidity Credits for terms of up to 90 days, renewable, to Financial Intermediation Entities.
That Articles 24 and 26 of the Issuing Entity’s Statute stipulate that Resolutions and decisions of the Board of Directors are adopted by simple majority of votes of the members present in a meeting, except in cases where Law No. 1670 or the Statute require qualified majorities and that the Board of Directors pronounces itself on matters within its competence through Resolutions, it may also do so through decisions that will be expressly recorded in Minutes. Likewise, any draft Board Resolution must be motivated and justified by a technical report from the Management or Managements to which the subject matter of the Resolution corresponds and by a report from the GAL. These reports must be sent to the Board of Directors by the General Management with its recommendation, except in technical matters corresponding to the Economic Policy Advisory which may submit reports to the Board of Directors with its own recommendation.
That item 3) of Article 6 of the COASIF Regulations establishes as one of its functions to analyze liquidity credit applications within the framework of Article 36 of Law No. 1670, for consideration by the BCB Board of Directors, according to Regulations.
That Articles 1 and 2 of the Regulations on Liquidity Credits to Financial Intermediation Entities in application of Article 36 of Law No. 1670 and Article 430 of Law No. 393 establish that its object is to establish the conditions for the granting of credits intended to meet the liquidity needs of Financial Intermediation Entities (EIF) within the framework of Articles 36 of Law No. 1670 of the BCB and 430 of Law No. 393 on Financial Services.
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That Article 7 of said Regulations establishes that, to consider applications for these credits, the BCB will conduct non-binding consultations with ASFI, in accordance with what is provided in the second paragraph of Article 36 of Law No. 1670.
That Article 9 of the Regulations on Liquidity Credits to Financial Intermediation Entities in application of Article 36 of Law No. 1670 and Article 430 of Law No. 393 establishes that the BCB Board of Directors may approve or reject the Liquidity Credits requested by the EIF and their financial conditions by absolute majority of votes.
That COASIF issued a recommendation to the BCB Board of Directors to reject the application for a Liquidity Credit in application of Article 36 of Law No. 1670 and Article 430 of Law No. 393, presented by VPR, because this entity did not justify or back up a situation implying temporary liquidity needs.
That through report BCB-GEF-SASF-DAN-INF-2025-85, GEF concludes that the corresponding actions were carried out within the timeframes established in the Regulations on Liquidity Credits to Financial Intermediation Entities in application of Article 36 of Law No. 1670 and Article 430 of Law No. 393, evidencing that, since 2023, VPR presented a continuous reduction in its intermediation activity which resulted in a constant need for liquid resources, which implied negative results since that management period; this situation and the decrease in regulatory capital limit the absorption of accumulated losses and market confidence; on its part, since 2023, the entity has problems with the constitution of the Legal Reserve, which is why it constantly resorts to the Liquidity Credit window with the guarantee of the RAL Fund; and the high maturity mismatch in the short and medium term compromises the repayment of the credit; likewise, the financial weakness and tight liquidity management of VPR reflects that its liquidity need is not of a temporary nature, therefore it recommends the BCB Board of Directors consider the rejection pronouncement issued by COASIF.
That through report BCB-GAL-SANO-DLBCI-INF-2025-355, GAL indicates that from the review of the background it is concluded that in accordance with what is stated in report BCB-GEF-SASF-DAN-INF-2025-85 issued by GEF, in addition to the recommendation made by the
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COASIF, VPR’s liquidity need is not of a temporary nature, therefore it recommends the BCB Board of Directors reject VPR’s Liquidity Credit application.
THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA,
RESOLVES:
Article 1.- Within the framework of the Regulations on Liquidity Credits to Financial Intermediation Entities in application of Article 36 of Law No. 1670 and Article 430 of Law No. 393, reject the Liquidity Credit application presented by La Promotora Entidad Financiera de Vivienda.
Article 2.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.
La Paz, October 16, 2025
SIGNED. ROGER EDWIN ROJAS ULO, Gumercindo Héctor Pino Guzmán, Miguel Angel Marañon Urquidi, Victor Gonzalo Calisaya Gomez.
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